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Tax Deductions Under Section 80 of the Income Tax Act

Deductions under the Income Tax Act will help in saving your income by reducing the tax liability via different tax deductions available. In this article, we will understand the tax deductions under section 80 of the Income Tax Act.

Section 80C

As per Section 80C of Income Tax Act, an individual or member of HUF (Hindu Undivided family) can claim maximum deduction of 1,50,000 INR on different Public Provident Fund Schemes such as NSC, Life Insurance, ULIPS, ELSS, EPF and so forth.

Section 80CCC

As per Section 80C of Income Tax Act, an individual can claim a maximum deduction of 1,50,000 INR on any amount deposited in the LIC annuity plan or any other plan for a pension mentioned in Section 10 (23AAB).

Section 80CCD

As per Section 80C of Income Tax Act, an individual can claim a maximum deduction of 1,50,000 INR on contribution made to NPS.

Moreover, an individual can claim 50,0000 INR over and above 1,50,000 INR on additional contribution made to National Pension Scheme as per section 80CCD(1B).

Section 80CCG

As per Section 80CCG of the Income Tax Act, an individual can claim a maximum deduction of 25,000 INR on the investment made in the Rajiv Gandhi Equity Scheme.

Section 80D

As per Section 80D of Income Tax Act, an individual or HUF can claim maximum deduction of 25,000 INR on the medical insurance paid for self, spouse or children. In addition to the above amount, more 50,000 INR can be claimed by taking medical insurance for parents having age 60 years or above.

Section 80DD

As per Section 80DD of Income Tax Act, an individual or HUF can claim maximum deduction of 75,000 INR on the expenses made on the medical treatment of a dependant who is differently-abled (where disability is greater than 40% but less than 80%).

Section 80DDB

As per Section 80CCG of Income Tax Act, an individual or HUF can claim maximum deduction of 1,25,000 INR on the expenses made on the medical treatment of a dependant who is differently-abled (where disability is greater than 80%).

Section 80E

As per Section 80E of Income Tax Act, an individual can claim a maximum deduction of 1,50,000 INR on the interest paid for a tenure of 8 years on the repayment of education loan.

Section 80EE

As per Section 80EE of Income Tax Act, an individual can claim a maximum deduction of 50,000 INR on the interest paid on the repayment of home loan.

Section 80GG

As per Section 80GG of Income Tax Act, an individual can claim a maximum deduction of 2,000 or the highest deduction of 25% of total incurred income on the house rent he/she has paid.

Section 80GGA

As per Section 80GGA of Income Tax Act, an assessee can claim income tax deduction on the donation paid towards National Poverty Eradication Fund or social/scientific research.

Section 80GGB

As per Section 80GGB of Income Tax Act, an Indian company can claim an income tax deduction on the donation paid towards electoral trust or political parties. However, any donation of more than 2,000 INR can be made through electronic transfer or account payee cheque. Moreover, proper disclosure of such transactions is necessary.

Section 80GGC

As per Section 80GGC of Income Tax Act, an individual can claim income tax deduction on the donation paid towards electoral trust or political parties.

Section 80QQB

As per Section 80QQB of Income Tax Act, all Indian authors can claim maximum deduction of up to 3,00,000 INR on the royalty received from the sale of a book.

Section 80RRB

As per Section 80RRB of Income Tax Act, a patent holder can claim maximum deduction of 3,00,000 INR on the royalty received from the patent registered provided that it is registered after March 31, 2003.

Section 80TTA

As per Section 80TTA of Income Tax Act, an individual or HUF can claim maximum deduction of 10,000 INR on the interest income received through saving account either bank, co-operative society or post office).

Section 80TTB

As per Section 80TTB of Income Tax Act, a senior citizen of India can claim maximum deduction of 50,000 INR on the interest income received through saving account either bank, co-operative society or post office).

Section 80U

As per Section 80U of the Income Tax Act, a disabled individual can claim 75,000 INR as tax deduction. However, any individual suffering from severe disability can claim 1,25,000 INR as a tax deduction.