SECTION 80C

Section 80C of the Income Tax Act provides provisions for tax deductions on a number of payments, with both individuals and Hindu Undivided Families eligible for these deductions.
Eligible taxpayers can claim deductions to the tune of Rs 1.5 lakh per year under Section 80C, with this amount being a combination of deductions available

Some of the popular investments which are eligible for this tax deduction are mentioned below

  • Payment made towards life insurance policies (for self, spouse or children)
  • Payment made towards a superannuation/provident fund
  • Tuition fees paid to educate a maximum of two children
  • Payments made towards construction or purchase of a residential property
  • Payments issued towards a fixed deposit with a minimum tenure of 5 years

 

Subsections under section 80 C:

Section 80C has an exhaustive list of deductions an individual is eligible for, which have led to the creation of suitable sub-sections to provide clarity to taxpayers

 

Section 80 CCC:

Section 80 CCC of the Income Tax Act provides scope for tax deductions on investment in pension funds.
These pension funds could be from any insurer and a maximum deduction of  Rs 1.5 lakh can be claimed under it This deduction can be claimed only by individual taxpayers

Section 80 CCD:

Section 80 CCD aims to encourage the habit of savings among individuals, providing them an incentive for investing in pension schemes which are notified by the Central Government.
Contributions made by an individual and his/her employer, both are eligible for tax deduction, subject to the deduction being less than 10% of the salary of the person. Only individual taxpayers are eligible for this deduction.

Section 80 CCF:

Open to both Hindu Undivided Families and Individuals, Section 80 CCF contains provisions for tax deductions on.
Subscription of long-term infrastructure bonds which have been notified by the government.
One can claim a maximum deduction of Rs 20,000 under this Section.

Section 80 CCG:

Section 80 CCG of the Income Tax Act permits a maximum deduction of Rs 25,000 per year, with specified individual residents eligible for this deduction.
Investments in equity savings schemes notified by the government are permitted for deductions, subject to the limit being 50% of the amount invested.

SECTION 80D

Section 80D of the Income Tax Act permits deductions on amounts spent by an individual towards the premium of a health insurance policy's.
This includes payment made on behalf of a spouse, children, parents or self to a Central Government health plan.
An amount of Rs 15,000 can be claimed as deduction when paid towards the insurance for spouse, dependent children or self, while this amount is Rs 20,000 if the person is over the age of 60 year.
Both individuals and Hindu Undivided Families are eligible for this deduction, subject to the payment being made in modes other than cash.

Subsection under section 80 D
Section 80DD

Section 80DD provides provisions for tax deductions in two cases, with the permitted deduction being Rs 75,000 for normal disability and Rs 1.25 lakh if it is a severe disability.

This deduction can be claimed in case of the following expenditures.

  • On payments made towards the treatment of dependants with disability.
  • Amount paid as premium to purchase or maintain an insurance policy for such dependant.
  • The permitted deduction is Rs 75,000 for normal disability and Rs 1.25 lakh for a severe disability.
  • Both Hindu Undivided Families and resident individuals are eligible for this deduction. The dependant, in this case can be either a spouse, sibling, parents or children.

 

Section 80DDB

Section 80DDB can be utilised by HUFs and resident individuals and provides provisions for deductions on the.
Expense incurred by an individual/family towards medical treatment of certain diseases.
The permitted deduction is limited to Rs 40,000, which can be increased to Rs 60,000 if the treatment is for a senior citizen.

SECTION 80E

Under Section 80E of the Income Tax Act has been designed to ensure that educating oneself doesn’t become an additional tax burden.
Under this provision, taxpayers are eligible for tax deductions on the interest repayment of a loan taken to pursue higher education.
This loan can be availed either by the taxpayer himself/herself or to sponsor the education of his/her ward/child. Only individuals are eligible for this deduction.
With the loans taken from approved charitable organisations and financial institutions permitted for tax benefits.

Subsection of section 80 E
Section 80EE

Only individual taxpayers are eligible for deductions under Section 80EE, with the interest repayment of a loan taken by them to buy a residential property qualifying for deductions.
The maximum deduction permitted under this section is Rs 3 lakhs.

SECTION 80 G

Section 80G encourages taxpayers to donate to funds and charitable institutions, offering tax benefits on monetary donations.

All assessees are eligible for this deduction, subject to them providing proof of payment, with the limit of deductions decided based on a few factors.

  • 100% deductions without any limit
    Donations to funds like National Defence Fund, Prime Minister’s Relief Fund, National Illness Assistance Fund, etc. qualify for 100% deduction on the amount donated.
  • 100% deduction with qualifying limits
    Donations to local authorities, associations or institutes to promote family planning and development of sports qualify for 100% deduction, subject to certain qualifying limits.
  • 50% deduction without qualifying limits
    Donations to funds like the PMs Drought Relief fund, Rajiv Gandhi Foundation, etc. are eligible for 50% deduction
  • 50% deduction with qualifying limit
    Donations to religious organisations, local authorities for purposes apart from family planning and other charitable institutes.
    Are eligible for 50% deduction, subject to certain qualifying limits.

 

Subsection of section 80 G
Section 80GG

Individual taxpayers who do not receive house rent allowance are eligible for this deduction on the rent paid by them, subject to a maximum deduction equivalent to 25% of their total income or Rs 2,000 a month.
The lower of these options can be claimed as deduction.

Section 80GGA

Tax deductions under this section can be availed by all assessees, subject to them not having any income through profit or gain from a business or profession.
Donations by such members to enhance social/scientific/statistical research or towards the National Urban Poverty Eradication Fund are eligible for tax benefits.

Section 80GGB

Tax deductions under this section can be availed by Indian Companies only, with the amount donated by them to a political party or electoral trust qualifying for deductions.

Section 80GGC

Under this section, funds donated/contributed by an assessee to a political party or electoral trust are eligible for deduction. Local authorities and artificial juridical persons are not entitled to the tax deductions available under Section 80GGC.

SECTION 80 TTA

Deductions under Section 80TTA can be claimed by Hindu Undivided Families and Individual taxpayers. This section permits deductions to the tune of Rs 10,000 every year on the interest earned on money invested in bank savings accounts in the country.

SECTION 80U

Tax deductions under Section 80U can be claimed only by resident individual taxpayers who have disabilities. Individuals who have been certified by relevant medical authorities to be a Person With Disability can claim a maximum deduction of Rs 75,000 per year. Individuals who have severe.
Disabilities are entitled to a maximum deduction of Rs 1.25 lakh, subject to them meeting certain criteria. Some of the disabilities which classify for tax benefits are autism, mental retardation, cerebral palsy, etc.

13 Not to forget, it is your obligation. The taxes you pay on your income will work towards betterment of our nation