Income Tax Maximum Deductions Section Wise 80C To 80U

Income Tax Maximum Deductions Section Wise 80C To 80U  

Income Tax Maximum Deductions Section Wise 80C To 80U  for the year 2015-16 AY 2016-17 Tuition Fee- Two Children s National Savings Certificates (NSC) Repayment of Home Loan Principle (House Loan) LIC Insurance Premium- Annual CPS Pension post office fixed deposits bonds maximum amount deduction details Income Tax Maximum Deductions Section Wise 80C To 80U given below


Deductions under Section 80C (Available to Individuals / HUFs)

For investments in specified schemes, saving instruments etc.
The aggregate of total deduction available under sections 80C, 80CCC and 80CCD is limited to whole of the amount paid or deposited subject to a maximum of Rs. 1,50,000/- for investment in one or more of the following :
  1. Life Insurance Premium For individual, policy must be in self or spouse's or any child's name in case of individuals and on life of any HUF member in case of HUF.
  2. Sum paid under contract for deferred annuity for individual, on life of self, spouse or any child .
  3. Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
  4. Contributions by an individual made under Employees' Provident Fund Scheme
  5. Contribution made by a Resident Individual in PPF account. The account can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
  6. Contribution by employee to a Recognised Provident Fund.
  7. Contribution by an employee to an approved superannuation fund
  8. Deposit in Sukanya Samriddhi Account as natural / legal guardian of girl child.
  9. Subscription to notified savings certificates [National Savings Certificates]
  10. Contribution for participation in unit-linked Insurance Plan of UTI
  11. Contribution to notified unit-linked insurance plan of LIC Mutual Fund [Dhanaraksha 1989]
  12. Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]
  13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children
  14. Certain payments for purchase/construction of residential house property
  15. Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both
  16. Sum paid towards notified annuity plan of LIC (New Jeevan Dhara/New Jeevan Dhara-I/New Jeevan Akshay/New Jeevan Akshay-I/New Jeevan Akshay-II/Jeewan Akshay-III plan of LIC) or other insurer
  17. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)
  18. Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)
  19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions
  20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in 'eligible issue of capital' referred to above.
  21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.
  22. Subscription to notified bonds issued by the NABARD.
  23. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
  24. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)

Section 80CCC (Available to Individuals)

Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer
Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs. 150,000/-.
The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.
Note: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD(1) (combined together) is Rs. 1,50,000/-.

Section 80CCD (1) (Available to Individuals)

Deduction in respect of Contribution to Pension Account (by Assessee}
Deduction available for the amount paid or deposited in a pension scheme notified or as may be notified by the Central Government subject to a maximum of :
(a) 10% of salary in the previous year in the case of an employee
(b) 10% of gross total income in any other case.
The maximum deduction allowable under the secion is Rs. 1.00 lac. Rs. 1.50 lacs w.e.f. 01.04.2015 in case of contribution to New Pension Scheme (NPS).

Section 80CCD (2) (Available to Individuals) 

Deduction in respect of Contribution to Pension Account (by Employer}
Deduction available for the amount paid or deposited by the employer of the assessee in a pension scheme notified or as may be notified by the Central Government subject to a maximum of 10% of salary in the financial year.

Section 80CCD (Available to Individuals)

Additional Contribution to New Pension Scheme (NPS)
A deduction of upto Rs. 50,000 is available over and above the limit of Rs. 1.50 lakh in respect of contributions made to NPS under Section 80CCD(1).

Section 80CCG (Available to specified Resident Individuals)

50 per cent of amount invested by resident individuals, whose gross total income does not exceed Rs. 12 lakhs, in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions). Maximum deduction : Rs. 25,000/-.

Section 80D (Available to Individuals / HUFs)Deduction in respect of Medical Insurance

Deduction is available upto Rs. 30,000/- (enhanced from Rs. 20,000 w.e.f. 01.04.2015) for senior citizens and upto Rs. 25,000/- (enhanced from Rs. 15,000 w.e.f. 01.04.2015) in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 30,000/- (enhanced from Rs. 20,000 w.e.f. 01.04.2015) if parents are senior Citizen and Rs. 25,000/- (enhanced from Rs. 15,000 w.e.f. 01.04.2015) in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 60,000/- in case of individuals and Rs. 30,000/- in case of HUFs. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.

Section 80DD (Available to Resident Individuals / HUFs)

Deduction available to resident Individual and HUF in respect of Rehabilitation of Handicapped Dependent Relative
Deduction of Rs. 75,000/- (enhanced from Rs. 50,000 w.e.f. 01.04.2015) in respect of
  1. Expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
  2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Further, if the defendant is a person with severe disability a deduction of Rs. 125,000/- (enhanced from Rs. 1,00,000 w.e.f. 01.04.2015) shall be available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist. Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.

Section 80DDB (Available to Individuals / HUFs)

Deduction allowed to resident Individual and HUF in respect of Medical Expenditure on Self or Dependent Relative
A deduction to the extent of Rs. 40,000/- (Rs. 60,000 in case of senior citizen) or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

Section 80E (Available to Individuals)

Deduction in respect of Interest on Loan for Higher Studies
Deduction in respect of interest on loan taken for pursuing higher education (subject to certain conditions) (maximum period : 8 years).

Section 80EE (Available to Individuals) Deduction in respect of Interest on Residential House Property

The deduction under this sub-section is available w.e.f. AY 2014-15. The maximum deduction available is Rs. 1 lac. In a case where the interest payable for the financial year 2013-14 is less than Rs. 1 lac, the balance deduction amount shall be available in AY 2015-16.
The deduction under sub-section (1) shall be subject to the following conditions :
  1. the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;
  2. the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
  3. the value of the residential house property does not exceed forty lakh rupees;
  4. the assessee does not own any residential house property on the date of sanction of the loan.
If deduction for Housing Loan Interest is availed under this section, no deduction can be availed for such interest under any other provisions of the Act for the same or any other assessment year.

Section 80G (Available to all assessees)

Deduction in respect of Various Donations
The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G

Section 80GG (Available to Individuals not receiving any house rent allowance)

Deduction in respect of House Rent Paid
Deduction available is the least of
  1. Rent paid less 10% of total income
  2. Rs. 2000/- per month i.e. Maximum Deduction available is 24,000/-
  3. 25% of total income, provided
    • Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
    • He should not be in receipt of house rent allowance.
    • He should not have self occupied residential premises in any other place.

Section 80GGA (Available to All assessees not having any income chargeable under the head 'Profits and gains of business or profession')

Deduction in respect of certain donations for scientific research or rural development

Section 80GGB (Available to Indian company)

Sum contributed to any political party/electoral trust

Section 80GGC (Available to All assessees, other than local authority and artificial juridical person wholly or partly funded by Government)

> Deduction in respect of contributions given by any person to political parties.

Royalty Income of resident individuals on patents.

Maximum deduction Rs. 3,00,000/-

Section 80RRB (Available to Resident Individuals)

Royalty Income of resident individual authors of certain books other than text books.
Maximum deduction Rs. 3,00,000/-

Section 80 TTA (Available to Resident Individuals/HUFs)

Deduction from gross total income in respect of any Income by way of Interest on Savings account
Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 01.04.2012 (Assessment Year 2013-14).

Section 80U (Available to Resident Individuals)

Deduction in respect of Person suffering from Physical Disability
Deduction of Rs. 75,000/- (enhanced from Rs. 50,000 w.e.f. 01.04.2015) to a resident individual who suffers from a physical disability(including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 125,000/- (enhanced from Rs. 1,00,000 w.e.f. 01.04.2015) shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

Deductions Allowable under Section 24 of Income Tax Act :

Where a housing property has been acquired / constructed / repaired / renewed with borrowed capital, the amount of interest payable yearly on such capital is allowed as deduction under Section 24 of Income Tax Act, subject to the limits stated below. Penal interest on housing loan is not eligible for deduction. If a fresh loan has been raised to repay the original loan and the new loan has been used only for the purpose of repaying the original loan then, the interest accrued on such fresh loan is allowed for deduction.
  1. If the property is acquired or constructed with the capital borrowed on or after 01-04-1999 and such acquisition or construction is completed within 3 years of the end of the financial year in which capital was borrowed then the actual interest payable is allowed as deduction subject to a maximum Rs. 2,00,000/- (Rs. 1,50,000/- upto 31.03.2015).
  2. In other case interest up to maximum Rs. 30,000/- is deductible.
  3. The ceiling of Rs.2,00,000/- (Rs. 1,50,000 upto 31.03.2015) or Rs. 30,000/- is only in case the property is self occupied. There is no limit on deduction of interest if the property is let out.
Income Tax Maximum Deductions Section Wise 80C To 80U 


SECTIONNATURE OF DEDUCTIONREMARKS
80CCCPayment of premium for annuity plan of LIC or any other       insurer Deduction is available upto a  maximum of Rs. 1,00,000/-The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund. The Finance Act 2015 has enhanced the ceiling ofdeduction under Section 80CCC from Rs.100,000 to Rs. 1,50,000 with effect from A.Y. 2016-17 
80CCDDeposit made by an employee in his pension account to the extent of 10% of his salary.Where the Central Government makes any contribution to the pension account, deduction of such contribution to the extent of 10% of salary shall be allowed. Further, in any year where any amount is received from the pension account such amount shall be charged to tax as income of that previous year. The Finance Act, 2009 has extended benefit to any individual assesse, not being a Central Government employee. 
80CCFSubscription to long term infrastructure bondsSubscription made by individual or HUF to the extent of Rs. 20,000 to notified long term infrastructure bonds is exempt from A.Y. 2011-12 onwards. This deduction is discontinued w.e.f. A.Y. 2013-14.
80CCGInvestment under Rajiv Gandhi Equity Savings Scheme, 2013The deduction was 50 % of amount invested in such equity shares or ₹ 25,000, whichever is lower. The maximum Investment permissible for claiming deduction under RGESS is Rs. 50,000. The benefit is in addition to deduction available u/s Sec 80C.Read More- Deduction under section 80CCG
80DPayment of medical insurance      premium. Deduction is available upto Rs.15,000/ for self/ family and also upto Rs. 15,000/- for insurance in respect   of  parent/ parents of the assessee.In case of senior citizens, a deduction              upto Rs.20,000/- shall be available under this Section. Insurance premiume of senior citizen parent/ parents of the assessee also eligible for enhanced deduction of Rs. 20000/-The premium is to be paid by any mode of payment other than cash and the insurance scheme should    be framed by the General Insurance Corporation of India & approved by the Central Govt. or Scheme framed by any other insurer and approved by the Insurance Regulatory & Development Authority. The premium should be paid in respect of health insurance of the assessee or his family members. The Finance Act 2008 has also provided deduction upto Rs. 15,000/- in respect of health insurance premium paid by the assessee towards his parent/parents. w.e.f. 01.04.2011, contributions made to the Central Government Health Scheme is also covered under this section.Read More –Deduction U/s 80D for Mediclaim Premium to Individual, HUF, Senior CitizensBudget 2015  Proposed increase in Deduction Limit U/s. 80D which can be read here-Section 80D- Hike in Deduction Limit for Mediclaim
80DDDeduction of Rs.40,000/ — In respect of (a) expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative. (b) Payment or deposit to specified scheme for maintenance of dependent handicapped relative. W.e.f. 01 .04.2004 the deduction under this section   has  been enhanced to Rs.50,000/- Further,  if the dependent is a person with severe disability a deduction of Rs.1,00,000/– shall be available under this sectionBudget 2015 has Further Proposed to hike the limit from A.Y. 2016-17 to  Rs. 75000 from existing Rs. 50,000/-  and for person with severe disability to Rs. 1.25 lakh from existing Rs. 1 Lakh. Read more-Budget 2015- Section 80DD deduction Limit RaisedThe handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.Note:A person with severe disability means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the “Persons with Disabilities (Equal opportunities, Protection of Rights and Full Participation) Act.,”Read More – Deduction u/s. 80DD for expenses on medical treatment of disabled dependent
80DDBDeduction of Rs.40,000/- in respect of medical expenditure incurred.W.e.f.     01.04.2004, deduction under this section   shall        be available to the extent of Rs.40,000/- or  the amount actually paid, whichever is less.In case of senior citizens, a deduction upto Rs.60,000/- shall be available under this Section.Budget 2015 has proposed deduction of Rs. 80000/- for seniot citizen aged 80 year or More from A.Y. 2016-17-Read More-Section 80DDB- Limit raised & waived condition of certificateExpenditure must be actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10I is to be furnished by the assessee from a specialist working in a Government hospital.Budget 2015 has Proposed for the purpose of claiming deduction under the section assessee will be required to obtain aprescription from a specialist doctor instead of Certificate. 
80EDeduction in respect of payment in the previous year of interest on loan taken from a financial institution or approved charitable institution for higher studies.This provision has been introduced to provide relief to students taking loans for higher studies. The payment of the interest thereon will be allowed as deduction over a period of upto 8 years.         Further,                by Finance Act, 2007 deduction under this section shall be available not only in respect of loan for pursuing higher education by self but also    by                spouse    or
children of the assessee.W.e.f. 01.04.2010 higher education means any course of study pursued after passing the senior secondary examination or its equivalent from any recognized school, board or university. 
80EEDeduction in respect of interest on loan taken for residential house propertyVide Finance Act 2013, an individual is allowed a deduction upto a limit of Rs 1,00,000 being paid as interest on a loan taken from a Financial Institution, sanctioned during the period 01-04- 2013 to 31-03-2014 (loan not to exceed Rs 25 lakhs) for acquisition of a residential house whose value does not exceed Rs 40 lakhs. However the deduction is available if the assessee does not own any residential house property on the date of sanction of the loan.
80GDonation to certain funds,     charitable institutions etc.The various donations specified in Sec. 80G are          eligible    for
deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G 
80GGDeduction available is the least of(i) Rent paid less 10% of total incomeii. Rs.2000 per monthiii. 25% of total income(1) Assessee          or his spouse    or minor child       should    not own        residential accommodation at the place of employment.(2) He should not be in receipt of house rent allowance.(3) He should not have a self-occupied residential premises in any other place 
80TTADeduction in respect of interest on deposits in savings accountSection 80TTA is introduced wef A.Y. 2013-14 to provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower. 
80UDeduction of Rs.50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs.75,000/- shall be available u/s 80U.W.e.f. 01.04.2010 this limit has been raised to Rs. 1 lakh.Budget 2015 proposed to amend  section 80U  to raise  limit of deduction in respect of a person with disability from Rs. 50,000/- to Rs. 75,000 and for person with severe disability from one lakh rupees to one hundred and twenty five thousand rupees. Certificate should be obtained on prescribed format from a notified ‘Medical authority’. 
87ARebate Of Rs 2000 For Individuals Having Total Income Upto Rs 5 LakhFinance Act 2013 has provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income  not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or the amount of tax payable, whichever is lower. WEF A.Y. 2014-15. 
80RRBDeduction in respect of any income by way of royalty in respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available as :-Rs. 3 lacs or the income received, whichever is less.The assessee who is a patentee must be an individual resident in India. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority alongwith the return of income.
80QQBDeduction in respect of royalty or copyright income received in consideration for authoring any book of literary, artistic or scientific nature other than text book shall be available to the extent of Rs. 3 lacs or income received, whichever is less.The assessee must be an individual resident in India who receives such income   in exercise of his profession. To avail of this deduction, the assessee must furnish a certificate in the prescribed form along with the return of income.
80CThis section has been introduced by the Finance Act, 2005. Broadly speaking, this section provides deduction from total income in respect of various investments/ expenditures/payments in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section is limited to Rs. 1.50 lakh only. 

The following investments/payments are inter alia eligible for deduction u/s 80C:-

NATURE OF
INVESTMENT
REMARKS
Life Insurance Premium 
–    in case of individual, on life of assessee, assessee’s spouse and any child of assessee
 –    in case of HUF, on life of any member of the HUF
Sum paid under contract for deferred annuity in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)
Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self, spouse or childPayment limited to 20% of salary.
Contribution made under Employee’s Provident Fund Scheme
Contribution to PPFFor individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
Contribution by employee to a Recognised Provident Fund or an approved superannuation fund.
Subscription to any notified securities/notified deposits scheme.
Subscription to any notified savings certificates.e.g. NSC VIII issue.
Contribution to Unit Linked Insurance Plan of LIC Mutual Funde.g. Dhanrakhsa 1989
Contribution to notified deposit scheme/Pension fund set up by the National Housing Bank.
Certain payment made by way of instalment or part payment of loan taken for purchase/ construction of residential house property.Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
Subscription to units of a Mutual Fund notified u/s 1 0(23D)
Subscription to deposit scheme of a public sector company engaged in providing housing finance.
Any subscription to Equity shares/ Debentures forming part of any eligible issue of capital by a Public company/ Public Financial Institution, wherein.i) Eligible issue of capital means capital issued by a public co./ Public financial institution for utilizing the proceeds wholly & exclusively towards purposes of any business referred in Sec. 80IA(4).
Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education.Available in respect of any two children.
Any term deposit for a fixed period of not less than five years with the scheduled bank.This has been included in Section 80C by the Finance Act 2006.
Subscription to notified bonds issued by NABARDThis has been included in Section 80C by the Finance Act 2007 and has come into effect from 1.4.2008.
Payment made into an account under the Senior Citizens Savings Scheme Rules, 2004This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009.
Payment made as five year time deposit in an account under the Post Office Time Deposit Rules, 1981This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009.
Contribution to Sukanya Samriddhi Account Opened in the Name of Daughters –
Sukanya Samriddhi Account- Tax & Other benefits
This has been introduced vide Finance Act 2014 wef A.Y. 2015-16

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