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80c Deduction list

Section 80: Income Tax Deductions Covering Section 80c to 80ttb

Jun 10, 2022

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Income Tax Deductions

Paying tax is one of the financial aspects that any firm or individual doesn’t willingly go for. But as to maintain the Government compliances one has to do it. For this, the Government of India has come up with various deductions options which serve as a win-win situation for both taxpayers and the Government. One of such deductions is available to taxpayers under section 80.

The various deductions which are introduced are:

  1. Section 80 C
  2. Section 80 CCC
  3. Section 80 CCD
  4. Section 80 TTA
  5. Section 80 GG
  6. Section 80 E
  7. Section 80 EE
  8. Section 80 D 
  9. Section 80 DD
  10. Section 80 DDB
  11. Section 80 U 
  12. Section 80 G
  13. Section 80 GGB
  14. Section 80 GGC
  15. Section 80 RRB
  16. Section 80 TTB

Section 80 (C, CCC, CCD)

The details of every section are explained in this document.

  1. Investments (Section 80 C)

This tax-saving deduction is for Hindu Undivided Families and Individuals (Companies, LLPs, and Partnership Firms are not eligible). This tax-saving deduction stands as one of the favorites among all the deductions. There are sub-sections which are under this deduction scheme, such as 80CCC, 80CCD(1), 80CCD(1b) and 80CCD(2).

The deduction allowed is in investment made in PPF, LIC premium, EPF, stamp duty and registration charges for property purchase, Equity-linked saving scheme, Senior Citizen saving scheme, and many more.  

The main aspect of this is that the maximum deduction limit is Rs. 1.5 Lakh (additional deduction of Rs. 50,000 is allowed under Section 80CCD(1b) )

  1. Insurance Premium (Section 80CC)

80CCC allows a deduction for payment towards annuity pension plans Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.

  1. Pension Contribution (80CCD)

80CCD (1): Employee’s contribution under section 80CCD (1) Maximum deduction allowed is least of the following

  • 10% of salary (in case taxpayer is employee)
  • 20& of gross total income (in case of self-employed)
  • Rs 1.5 Lakh ( limit allowed u/s 80C)

80CCD (1b): Additional deduction of Rs 50,000 is allowed for the amount deposited to the NPS account

Contributions to Atal Pension Yojana are also eligible for deduction.

80CCD (2): Employers’ contribution is allowed for deduction up to 10% of basic salary plus dearness allowance under this section. Benefit in this section is allowed only to salaried individuals and not self-employed.

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Section 80 (TTA, GG, E, EE)

  1. Interest on Savings Account (Section 80TTA)

This tax deduction yet saving facility is available to Hindu Undivided Families and Individuals. One can claim a deduction of the amount Rs.10,000 against the interest income from one saving account linked with the bank, post office, or cooperative society. 

Section 80TTA deduction is not available on the interest income from fixed deposits, recurring deposits, or interest income from corporate bonds.

  1. House Rent Paid (80GG)

With this tax reduction aspect, there are two categories that are handled. They are:

  • HRA not received

Given the condition that spouse, minor does not owe the residential accommodation and taxpayer is living on rent 

  • Other conditions
  • a. Rent paid minus 10% of adjusted total income
  • b. Rs 5,000/- per month
  • c. 25% of adjusted total income*
  • *Adjusted Gross Total Income is arrived at after adjusting the Gross Total Income for certain deductions, exempt income, long-term capital gains, and income related to non-residents and foreign companies.
  • An online e-filing software like HA TAX can be extremely easy as the limits are auto-calculated. So, you do not have to worry about making complex calculations.
  • From FY 2016-17 available deduction has been raised to Rs 5,000 a month from Rs 2,000 per month.
  1. Interest on Education Loan (Section 80E)

This tax deduction is for individuals who have taken education loans. As any loan charges interest, on a similar aspect, the interest which is charged is allowed as the deduction amount from the total income under Section 80E.

This facility is available only to be taken for the higher education of self, spouse, or kids (to whom one is legal Guardian). 

This loan can be taken up from any financial institute or bank (Note: Loan taken from friends and family doesn’t qualify the terms and conditions)

The term Higher Studies means that study which is pursued after senior secondary examination or its equivalent exam including both vocational & regular courses. There is no limit set for the maximum amount that is to be deducted. However for the official purpose, one needs to carry a certificate from the bank which should segregate the principal and the interest portion of the education loan during the financial year. 

(Note: The tax benefit is not allowed for the Principal Repayment only the total interest paid will be allowed as the deduction)

This loan deduction is available for a period of 8 years (until the interest is paid or the year where the loan is being repaid whichever is early in the case)

For any further queries contact HA for the same, our experts here will help.

  1. Interest on Home Loan (Section 80EE)

Borrowing for a home loan can give an advantage to individuals under income tax deduction. This home loan benefit can be availed by the individuals towards their first house property. 

This tax benefit was introduced by the Government of India in the financial year 2013-14. Initially, this tax benefit was introduced only for two years but later it was extended.

Any company, Hindu Undivided Family, Association of Person, and other kinds of taxpayers cannot claim this tax benefit but both residents, as well as non-residents, can claim the benefit of the tax. 

Section 80 (D, DD, DDB)

  1. Medical Insurance (Section 80D)

Medical insurance is one of the most important aspects which has to pay attention to. The government of India encourages everyone to invest and also utilize this service. 

Both Individuals and Hindu Undivided families can utilize this service. The benefits of this can be availed not only by the individual but also by the dependent parents, spouses, and dependent children of the individual. 

It is the additional deduction that is claimed apart from the deduction which is claimed under Section 80C. 

  1. Disabled Dependent (Section 80DD)

This is the tax benefit that can be availed by the individual whose disability of the dependent is not less than 40%. Since disability is a vast section it is clearly defined under Section 2(i) for the convenience of the people.

Conditions such as Mental Retardation, Vision loss, Mental Illness, Cerebral palsy, Hearing impairment, Leprosy-cured, and  Locomotor disability are covered under this section. For claiming the tax benefits one should get a disability certificate from the medical authority.

Note: One cannot claim the deduction if the claim has been made under Section 80U for ourselves. 

For more information contact HA! Our team here will help you with all the queries that one has. 

  1. Medical Expenditure (Section 80DDB)

Under the Income Tax Act of 1961 Chapter VIA, taxpayers can claim a deduction for medical treatment for themselves or dependent individuals. 

There are changes that are made in Section 80DDB from the financial year 2015-16. Some of the features are:

  • Senior citizens above the age of 60 years are eligible for a tax deduction of Rs. 1 Lakhs, whereas Super Senior citizens are eligible for a tax deduction of Rs. 80000 or the actual amount paid (whichever is lower).
  • Citizens between the age group of 60 to 80 years can claim a deduction of Rs. 60000 (or the amount which is lower)
  • An assesses can claim a tax deduction of Rs. 40000 (or the amount paid)

Diseases that can be claimed in this tax deduction under this Section are Neurological Disease, Hematological Disorders, Chronic Renal Failure, Malignant Cancers, and  Full Blown Acquired Immuno-Deficiency Syndrome (AIDS). 

For availing of the tax deduction one should mention the following details-

Patient’s name, Patient Age, Disease or Ailment, Specialist’s Name, Specialist’s Registration Number, Specialist’s Address, and Specialist Qualification 

For availing of this Tax Deduction advantage contact HA. Our experts will help you out throughout the process.

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Section 80(U, G, GGB, GGC)

  1. Physical Disability (Section 80U)

This tax benefit scheme offers benefits to individuals who suffer from a disability. Deduction up to Rs. 75000 on income is allowed given the condition that one suffers from the disability at least 40%.

The government of India has clearly defined the definition of disability under the Persons with Disability (Protection of Rights, Full Participation, and Equal Opportunities) Act 1995.

Any individual suffering from at least 40% disability certified by the medical authority is defined as disabled. Under seven categories disability is defined- Low vision, Blindness, Hearing Impairment, Leprosy Cured, Mental Retardation, Loco Motor Disability, and Mental Illness.

The difference between Section 80DD and Section 80U is that the former offers tax deductions to kin and family members whereas the latter provides deductions to individuals who are disabled.

For any further details contact HA for assistance. Our team of experts is here to guide you to smoothly avail of the tax reduction service.

  1. Donations (Section 80G)

One of the best utilization of money can be done by giving back to society. As charitable organizations tend to carry out tireless work to help the less fortunate ones, the Government of India has come up with a tax deduction policy for its citizen as one can easily be a part of this noble cause.

Section 80G under the Income Tax Act governs the specific rule and scope of the deduction for a contribution towards the charity. The unique feature of this policy is that for a certain number of charities there is no upper limit that has been fixed up. This stands as one of the prime aspects that individuals or organizations are free to donate/ contribute how much they want to.

Some of the terms and conditions which are under this section are:

  • The deduction cannot be claimed for Rs. 2000 which is made in cash.
  • The contribution made with kind is not eligible for the tax deduction.
  • The contribution made to the trusts which are located outside of India doesn’t count for the tax deduction is not eligible.

Eligibility criteria for claiming the deductions are:

  • Individual taxpayers and Hindu Undivided families can claim a deduction
  • The taxpayer must submit the relevant proof  of contribution
  • NRI can contribute to the trust can claim the deductions
  • The contribution should be made from the taxable income.

We at HA are here to give you full- expert advice in filing up Section 80G form. Contact us for further help. 

  1. Company Contribution (Section 80GGB)

The Government of India has provided relief to the political parties by introducing tax deduction policies. Under the Income Tax Act of 1961, there are certain things that have to be kept in mind regarding it and some of the essential points that one has to be focused upon are:

  • Only Cheque, Demand Draft, and Electronic Transfer are allowed under this section
  • No maximum limit is fixed for the contribution.
  • (There is no maximum applicable limit on the contributions made to political parties, under Section 80 GGB of the Income Tax Act. But as per the Companies Act 2013, companies can contribute up to 7.5% of their annual net profit (three years average). It is necessary that the respective company discloses the amount contributed and the name of the political party in its Profit and Loss account for the said financial year.
  • Exceptions such as – A Public Sector Enterprise & A company that is of three years or less than that
  • Advertisement from a company on a platform that is owned by the Political Party will be considered as a contribution.
  • The amount that has to be contributed via the electoral board doesn’t require the name of the party to be mentioned in the Profit and Loss account.

Key criteria with respect to the contribution made to the political parties are:

  • A firm, enterprise, or company that is registered in India is allowed to make a key contribution
  • Contribution can be made to n number of political parties
  • The receiving political party must mention the contribution made to them under Section 29A of the Representation of People Act 1951
  • Electoral Trust must register and recognize the competent authorities
  • Cash payments are not allowed, only cheques, Demand Draft, Electronic Transfer, or pay order is acceptable.
  • 100% claim can be made against the amount which is donated to the political party under this section

As there are many others that this Section holds, we at HA are here to help you with it. Our virtual experts are here to guide you with the best of service.

  1. Contribution to Political Parties (Section 80GGC)

This tax deduction provides a contribution that is made to the political parties. As to maintain transparency in the electoral funding system and reduce corruption, under Chapter VIA of deduction all the aspects are mentioned. The percentage deduction can range from 50% to 100% of the contributed amount.

Some of the features of this Section are:

  • Non-Corporate assesses or taxpayers can avail of this deduction
  • The total amount of deduction which is allowed cannot be greater than the total taxable income of the individual
  • The deduction is not applicable on TDS on an individual salary. Employees who draw salary with no other income which is from their other business can avail deductions under this section 

Eligibility criteria to avail these tax deductions are:

  • The taxpayer should not be a local authority
  • The taxpayer can be any individual
  • No Artificial Judicial person who receives funding from the Government completely or partially is eligible
  • Companies or any business firms can avail of this deduction

Entities such as-

Electoral Trust or any political party that is registered under Section 29A of the Representation of the people act 1951 can make a donation or contribution.

For further detailed information contact HA, our virtual experts are available 24/6 to provide expert service at an affordable cost.

 

80c deduction amount

Section 80 (RRB, TTB)

  1. The royalty of a Patent (Section 80RRB)

Any citizen of India has the right to carry out any legal or vocational activity to generate income. This has given the opportunity to generate or make money from various resources. One of the well-known sources of income is Royalty Payments.

It is basically an amount that is paid to a person by another party against the usage of certain work which has been produced by the recipient. Work can be defined as books, art, music, and much more similar to it. The terms and conditions with respect to Royalties differ widely according to the work. One can claim a deduction under this Section if he/ she falls under it.

Eligibility Criteria for claiming are:

  • Individuals claiming the deduction must be residents of India
  • Individuals who hold the original patent
  • The patent must be registered under the Patent Act 1970

(Value Point: A patent is an intellectual property right that ensures that the innovator’s rights are protected and if any other foreign entity uses the innovator’s product or service must then they must pay desirable royalty fees)

With respect to deductions one must consider some of the crucial aspects:

    1. A deduction maximum of up to Rs.3 lakhs can be claimed.
    2. Amount received as the loyalty is claimed only as a deduction irrespective of the other source of income that one has.
    3. The original Patent holder is eligible to claim the deduction
    4. Royalty fees received from the foreign country within 6 months can only be claimed for the financial year

(If the royalty payments are received from a foreign country, then the deduction can be claimed only with respect to the royalty payments received within 6 months of the completion of the financial year in which the income is earned.)

    1. Documentary evidence for the royalty payment should be made available otherwise the claim will be rejected.

(If the royalty payments are received from a foreign country, then the deduction can be claimed only with respect to the royalty payments received within 6 months of the completion of the financial year in which the income is earned.)

    1. The reduction is made available to resident individuals only.
    2. The royalty is settled between two parties as per the mutual agreement which is been made earlier.

As the subject of this tax reduction scheme is vast so as to know more in detail contact HA for the same.

  1. Interest Income (Section 80TTB)

In the budget of 2018 Section 80TTB was introduced. This tax deduction relief provides deduction to senior citizens toward the interest earned on the deposits.

A senior citizen under the Government definition is defined as an individual who is a resident of India and is 60 years or more than the age during the relevant previous year.

Income earned under the deposit should come under any of the following categories:

  • A banking company (i.e. banks) to which the Banking Regulation Act applies (it also includes banks referred to in section 51); or
  • A cooperative society is engaged in carrying on banking business (it also includes a cooperative land development bank or a cooperative land mortgage bank); or
  • A post office is defined under section 2 (k) of the Indian Post Office Act.

Under this Section, if the interest income is less than Rs. 50,000 then, in that case, entire interest income is allowed as a deduction but if the interest income is more than that only Rs. 50000 is allowed.

The deduction which is available is above the deduction available under Section 80c. For any other details contact HA, our virtual experts have age-old experience in dealing with these aspects. As a team, we ensure that once a client gets connected with us then all responsibilities are taken care of by us with full dedication making clients at ease.

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