Section 80 Deductions
The income tax department encourages the taxpayers to file their ITR then they provide various section 80 deductions from the taxable income under chapter VI A deductions. Let’s understand these deductions in detail.
Section 80C
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
|---|---|---|
| 80C | Investment in PPF – Employee’s share of PF contribution – NSCs – Life Insurance Premium payment – Children’s Tuition Fee – Principal Repayment of home loan – Investment in Sukanya Samridhi Account – ULIPS – ELSS – Sum paid to purchase deferred annuity – Five year deposit scheme – Senior Citizens savings scheme – Subscription to notified securities/notified deposits scheme – Contribution to notified Pension Fund set up by Mutual Fund or UTI. – Subscription to Home Loan Account scheme of the National Housing Bank – Subscription to deposit scheme of a public sector or company engaged in providing housing finance – Contribution to notified annuity Plan of LIC – Subscription to equity shares/ debentures of an approved eligible issue – Subscription to notified bonds of NABARD | Rs. 1,50,000 |
Subsection 80C – 80CCC, 80CCD(1), 80CCD(1B), 80CCD(2)
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80CCC | For amount deposited in annuity plan of LIC or any other insurer for a pension from a fund referred to in Section 10(23AAB) | – |
| 80CCD(1) | Employee’s contribution to NPS account (maximum up to Rs 1,50,000) | – |
| 80CCD(2) | Employer’s contribution to NPS account | Maximum up to 10% of salary |
| 80CCD(1B) | An additional contribution to NPS | Rs. 50,000 |
Section 80TTA(1) and 80TTB
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80TTA(1) | Interest Income from Savings account | Maximum up to 10,000 |
| 80TTB | Exemption of interest from banks, post offices, etc. Applicable only to senior citizens | Maximum up to 50,000 |
Section 80GG
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80GG | For rent paid when HRA is not received from the employer | Least of : – Rent paid minus 10% of total income – Rs. 5000/- per month – 25% of total income |
Section 80E and 80EE
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80E | Interest on education loan | Interest paid for a period of 8 years |
| 80EE | Interest on home loan for first-time homeowners | Rs 2,00,000 on Interset Paid |
Section 80D , 80DD and 80DDB
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80D | Medical Insurance – Self, spouse, children Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old | – Rs. 25,000 – Rs. 50,000 |
| 80DD | Medical treatment for handicapped dependent or payment to specified scheme for maintenance of a handicapped dependent – Disability is 40% or more but less than 80% – Disability is 80% or more | – Rs. 75,000 – Rs. 1,25,000 |
| 80DDB | Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD – For less than 60 years old – For more than 60 years old | – Lower of Rs 40,000 or the amount actually paid – Lower of Rs 1,00,000 or the amount actually paid |
Section 80U
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80U | Self-suffering from disability : – An individual suffering from a physical disability (including blindness) or mental retardation. – An individual suffering from severe disability | – Rs. 75,000 – Rs. 1,25,000 |
Section GGB and GGC
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80GGB | Contribution by companies to political parties | Amount contributed (not allowed if paid in cash) |
| 80GGC | Contribution by individuals to political parties | Amount contributed (not allowed if paid in cash) |
Section RRB
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80RRB | Deductions on Income by way of Royalty of a Patent | Lower of Rs 3,00,000 or income received |
Disclaimer:- Income Tax Section 80 Deductions are subject to amendments from time to time.
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