For financial year 2018-19 (including budget amendments)
Under section 80C, a deduction of Rs 1,50,000 can be claimed from your total income. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income through section 80C. This deduction is allowed to an Individual or a HUF. A maximum of Rs 1, 50,000 can be claimed for the FY 2018-19, 2017-18 and FY 2016-17 each.If you have paid excess taxes, but have invested in LIC, PPF, Mediclaim, incurred towards tuition fees etc.and have missed claiming a deduction of the same under 80C, you can file your Income Tax Return, claim these deductions and get a refund of excess taxes paid
FY 2016-17 and earlier years – In the case of a self-employed individual, maximum deduction allowed is 10% of gross total income.
b.Deduction for self-contribution to NPS – section 80CCD (1B) A new section 80CCD (1B) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible.
c. Employer’s contribution to NPS – Section 80CCD (2) Additional deduction is allowed for employer’s contribution to employee’s pension account of up to 10% of the salary of the employee. There is no monetary ceiling on this deduction.
a. This deduction is available for rent paid when HRA is not received. The taxpayer, spouse or minor child should not own residential accommodation at the place of employment
b. The taxpayer should not have self-occupied residential property in any other place
c. The taxpayer must be living on rent and paying rent
d. The deduction is available to all individuals
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 incomes, long-term capital gains and income relating to non-residents and foreign companies. An online e-filing software like that of ClearTax can be extremely easy as the limits are auto-calculated and 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.
FY 2017-18 and FY 2016-17 This deduction is available in FY 2017-18 if the loan has been taken in FY 2016-17. The deduction under this section is available only to an individual who is a first time home-owner. The value of the property purchased must be less than Rs 50 lakh and the home loan must be less than Rs 35 lakh. The loan must be taken from a financial institution and must have been sanctioned between 01 April 2016 to 31 March 2017. Through this section, an additional deduction of Rs 50,000 can be claimed on home loan interest. This is in addition to deduction of Rs 2,00,000 allowed under section 24 of the Income Tax Act for a self-occupied house property.
FY 2013-14 and FY 2014-15 This section provides a deduction on the home loan interest paid. The deduction under this section is available only to individuals for the first house purchased where the value of the house is Rs 40 lakh or less and the loan taken for the house is Rs 25 lakh or less. The loan must be sanctioned between 01 April 2013 to 31 March 2014. The aggregate deduction allowed under this section cannot exceed Rs 1,00,000 and is allowed for FY 2013-14 and FY 2014-15.
a. The assessee should be a new retail investor as per the requirement specified under the notified scheme.
b. The investment should be made in such listed investor as per the requirement specified under the notified scheme.
c. The minimum lock in period in respect of such investment is three years from the date of acquisition in accordance with the notified scheme.Upon fulfillment of the above conditions, a deduction, which is lower of the following is allowed.
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.
i. Where disability is 40% or more but less than 80% – fixed deduction of Rs 75,000.
ii. Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1,25,000.To claim this deduction a certificate of disability is required from prescribed medical authority. From FY 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1,00,000 has been raised to Rs 1,25,000.
|Section||Deduction on||Allowed Limit (maximum) FY 2018-19|
|80C|| Investment in PPF|
– Employee’s share of PF contribution
– Life Insurance Premium payment
– Children’s Tuition Fee
– Principal Repayment of home loan
– Investment in Sukanya Samridhi Account
– 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
|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)||Additional contribution to NPS||Rs. 50,000|
|80TTA(1)||Interest Income from Savings account||Maximum up to 10,000|
|80TTB||Exemption of interest from banks, post office, etc. Applicable only to senior citizens||Maximum up to 50,000|
|80GG||For rent paid when HRA is not received from employer||Least of :
– Rent paid minus 10% of total income
– Rs. 5000/- per month
– 25% of total income
|80E||Interest on education loan||Interest paid for a period of 8 years|
|80EE||Interest on home loan for first time home owners||Rs 50,000|
|80CCG||Rajiv Gandhi Equity Scheme for investments in Equities||Lower of
– 50% of amount invested in equity shares; or
– Rs 25,000
|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 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
|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
|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)|
|80RRB||Deductions on Income by way of Royalty of a Patent||Lower of Rs 3,00,000 or income received|