Income Tax Deductions List - Deductions on Section 80C, 80CCC, 80CCD & 80D - FY 2023-24 (AY 2024-25)
The Income tax department with a view to encourage savings and investments amongst the taxpayers have provided various deductions from the taxable income under chapter VI A deductions. 80C being the most famous, there are other deductions which are beneficial for the taxpayers to reduce their tax liability. Let us understand these deductions in detail:
Section 80 Deduction List
-
Section 80C Investments -
Section 80CCC Insurance Premium -
Section 80CCD Pension Contribution
-
Section 80TTA Interest on Savings Account -
Section 80GG House Rent Paid -
Section 80E Interest on Education Loan -
Section 80EE Interest on Home Loan -
Section 80D Medical Insurance -
Section 80DD Disabled Dependent -
Section 80DDB Medical Expenditure -
Section 80U Physical Disability
-
Section 80G Donations -
Section 80GGB Company Contribution -
Section 80GGC Contribution to Political Parties -
Section 80RRB Royalty of a Patent -
Section 80TTB Interest Income
-
Frequently Asked Questions
Section 80C – Deductions on Investments
Section 80C is one of the most popular and favorite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses.
- Who can claim Section 80C deduction: Section 80C deduction can be claimed by Individuals and HUFs
- Maximum deduction allowed under section 80C: Up to Rs.150,000 can be claimed as deduction every year from the Gross total income. Companies, partnership firms, and LLPs cannot avail the benefit of this deduction.
Deduction Limits Under Section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B)
Sec 80CCC and Sec 80CCD provide deductions for the investments in the pension scheme either by yourself or by way of the employer’s contribution.
The maximum deduction under Section 80C,are 80CCC and 80CCD(1) put together is Rs 1.5 lakhs. However, you may claim an additional deduction of Rs 50,000 allowed u/s 80CCD(1B) for contributions made to NPS(National Pension Scheme). Thus, the maximum deduction limit is Rs 2 lakhs under Section 80C+80CCC+80CCD(1) + Section 80CCD(1B).
| Sections | Eligible investments for tax deductions | Maximum Deduction |
|---|---|---|
| 80C | Investment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc. | Rs 1,50,000 |
| 80CCC | Payment made towards pension funds | Rs 1,50,000 |
| 80CCD(1) | Payments made towards Atal Pension Yojana or other pension schemes notified by government | Employed: 10% of basic salary + DA Self-employed: 20% of gross total income |
| 80CCE | Total deduction under Section 80C, 80CCC, 80CCD(1) | Rs 1,50,000 |
| 80CCD(1B) | Investments in NPS (outside Rs 1,50,000 limit under Section 80CCE) | Rs 50,000 |
| 80CCD(2) | Employer’s contribution towards NPS (outside Rs 1,50,000 limit under Section 80CCE) | Central government employer: 14% of basic salary +DA Others: 10% of basic salary +DA |
Here are some investment options that are allowed as deduction u/s 80C. They not only help you with saving taxes but also help you grow your money. A quick comparison of the options is tabulated below:
Section 80C Deductions List
| Investment options | Average Interest | Lock-in period for | Risk factor |
| ELSS funds | 12% – 15% | 3 years | High |
| NPS Scheme | 8% – 10% | Till 60 years of age | High |
| ULIP | 8% – 10% | 5 years | Medium |
| Tax saving FD | Up to 8.40% | 5 years | Low |
| PPF | 7.90% | 15 years | Low |
| Senior citizen savings scheme | 8.60% | 5 years (can be extended for other 3 years) | Low |
| National Savings Certificate | 7.9% | 5 years | Low |
| Sukanya Samriddhi Yojana | 8.50% | Till girl child reaches 21 years of age (partial withdrawal allowed when she reached 18 years) | Low |
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Sometimes, you may have deductions or investments eligible for 80C but haven’t submitted proof to your employer. This may cause excess TDS deductions. You can still claim these deductions while e-filing, as long as you have the proofs with Cleartax.
Section 80TTA – Interest on Savings Accounts
- Who can claim Section 80TTA deduction: Section 80TTA deduction can be claimed by an individual or HUF.
- Maximum deduction allowed under section 80TTA: Rs 10,000
Section 80TTB – Interest From Deposits Held by Senior Citizens
- Who can claim Section 80TTB deduction: Section 80TTB deduction can be claimed by a resident senior citizen aged 60 years and above at any time during the financial year.
- Maximum deduction allowed under section 80TTB: Rs 50,000
Section 80GG – Income Tax Deduction on House Rent Paid
- Who is eligible to claim deduction under Section 80GG: Those who do not receive HRA in their salary structure but live in rented accommodations.
- Conditions for claiming Section 80GG:
- Taxpayer must be self-employed or salaried individual who does not receive HRA
- Taxpayer must be paying rent for residential purpose only
- The taxpayer should not have self-occupied residential property in any other place. Also, the taxpayer, their spouse or minor child or their HUF should not own any residential accommodation in the place where they currently reside.
- File Form 10BA -
- How much deduction is available Under Section 80GG:
The least of the following is available as deduction:- Rent paid (-) 10% of adjusted total income*
- Rs 5,000/- per month
- 25% of adjusted total income*
*Adjusted Gross Total Income =
Gross Total Income
Less:
- LTCG, if any, included in total gross income
- STCG u/s 111A
- Deductions u/s 80C to 80U except deduction under section 80GG
- Incomes of NRIs and foreign companies are taxed at a special tax rate, such as incomes u/s 115A, 115AB, 115AC, or 115AD.
An online ITR e-filing software like that of ClearTax is extremely easy as the limits are auto-calculated. So you do not have to worry about making complex calculations.
Section 80E – Interest on Education Loan
- Who is eligible to claim deduction under Section 80E: An individual can claim a deduction of interest paid on an education loan taken for pursuing higher education.
- The education loan can be taken for the taxpayer, their spouse or children or for a student for whom the taxpayer is a legal guardian.
- 80E deduction is available for a maximum of 8 years (beginning the year in which the interest starts getting paid) or till the entire interest is paid, whichever is earlier. There is no ceiling limit on the amount of interest that can be claimed.
Section 80EEA – Interest on Home Loan For First-Time Home Owners
Section 80EEA, which provides taxpayers with an extra deduction for paying interest on a house loan. Whereas Section 24 exempted interest on home loans up to Rs.2 lakhs, this section provides a tax exemption of up to Rs1.5 lakhs per financial year to individuals on the interest paid on home loans for purchasing/constructing an affordable house. Deduction can be claimed for the housing loan taken between 1st April 2019 to 31st March 2022. Read in detail here.
80EE- Interest on Home Loan For First-Time Home Owners
This deduction can be claimed from FY 2016-17 and onwards only if the loan has been taken in FY 2016-17.
The deduction under section 80EE is available only to home-owners (individuals) having only one house property on the date of sanction of the loan. The value of the property must be less than Rs 50 lakh and the home loan must be less than Rs 35 lakh. The loan taken from a financial institution must have been sanctioned between 1 April 2016 and 31 March 2017.
There is an additional deduction of Rs 50,000 available on your home loan interest on top of the deduction of Rs 2 lakh (on the interest component of home loan EMI) allowed under section 24.
Click here know more about section 80EE
Section 80EEB - Interest paid on Electric Vehicle Loan
To encourage the purchase and usage of electric vehicles, deduction is allowed for interest paid on vehicle loan availed to purchase the electric vehicles up to Rs.150,000.
Click here to know more on the condition specified for claiming deduction.
Section 80D – Deduction on Medical Insurance Premium
| Policy for? | Deduction for self & family | Deduction for parents | Preventive Health check-up | Maximum Deduction |
| Self & Family (below 60 years) | 25,000 | - | 5,000 | 25,000 |
| Self & Family + Parents (all of them below 60 years) | 25,000 | 25,000 | 5,000 | 50,000 |
| Self & Family (below 60 years) + Parents (above 60 years) | 25,000 | 50,000 | 5,000 | 75,000 |
| Self & Family + Parents (above 60 years) | 50,000 | 50,000 | 5,000 | 1,00,000 |
You (as an individual or HUF) can claim a deduction of Rs.25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000, if they are less than 60 years of age. If the parents are aged above 60, the deduction amount is Rs 50,000.
In case, both taxpayer and parent(s) are 60 years or above, the maximum deduction available under this section is up to Rs.1 lakh.
In case of senior citizens, the amount paid on account of medical expenditure incurred is allowed as deduction under Section 80D provided health insurance is not taken on them.
MODE OF PAYMENT
Premium Payment to be made in any mode other than cash, however for preventive health check-up cash payments are acceptable.
Example: Rohan’s age is 65 and his father’s age is 90. In this case, the maximum deduction Rohan can claim under section 80D is Rs. 100,000.
From FY 2015-16 a cumulative additional deduction of Rs. 5,000 is allowed for preventive health check.
Section 80DD – Deduction for Medical Treatment of a Dependent with Disability
- Section 80DD deduction is available to a resident individual or a HUF
- Deduction: Expenditure incurred on medical treatment (including nursing), training and rehabilitation of specially-abled (handicapped) dependent relative
| Disability | Level of Disability | Amount of Deduction |
| Normal Disability | 40% - 79% | Rs 75,000 |
| Severe Disability | 80% or more | Rs 1,25,000 |
- To claim this deduction a certificate of disability is required from the prescribed medical authority.
Note: Dependant means the spouse, children, parents, brothers and sisters of the individual in case of Individuals, a member of the Hindu undivided family in the case of HUF and such dependent should not claim deduction under section 80U in his/her income tax return.
Section 80DDB – Deduction for Medical Treatment etc
- Who is eligible to claim Section 80DDB deduction: 80DDB deduction is available to a resident individual or a HUF. You can get a deduction for any money you spend on medical treatments for yourself or your dependents
- Quantum of deduction under 80DDB:
| Age | Amount of deduction |
| < 60 years | Amount paid or 40,000, whichever is less |
| 60 and above | Amount paid or 1,00,000, whichever is less |
- For reimbursement claims: Any reimbursement of medical expenses by an insurance company or employer shall be reduced from the quantum of deduction the taxpayer can claim under this section. Also, remember that you need to get a prescription for such medical treatment from the concerned specialist to claim such a deduction. Read our detailed article on Section 80DDB.
Section 80U – Deduction for Disabled Individuals
| Disability | Level of Disability | Amount of Deduction |
| Normal Disability | upto 80% | Rs 75,000 |
| Severe Disability | 80% or more | Rs 1,25,000 |
A deduction of Rs.75,000 is available to a resident individual who suffers from a physical disability (including blindness) or mental retardation. In case of severe disability, one can claim a deduction of Rs 1,25,000.
Click here to know more about the types of disability covered u/s 80U and how to claim it.
Section 80G – Income Tax Benefits Towards Donations for Social Causes
The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction.
From FY 2017-18, any donations made in cash exceeding Rs 2,000 will not be allowed as a deduction. Donations above Rs 2000 should be made in any mode other than cash to qualify for an 80G deduction.
a. Donations with 100% deduction without any qualifying limit
- National Defence Fund set up by the Central Government
- Prime Minister’s National Relief Fund
- National Foundation for Communal Harmony
- An approved university/educational institution of National eminence
- Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
- Fund set up by a State Government for the medical relief to the poor
- National Illness Assistance Fund
- National Blood Transfusion Council or to any State Blood Transfusion Council
- National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
- National Sports Fund
- National Cultural Fund
- Fund for Technology Development and Application
- National Children’s Fund
- Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
- The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
- The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6,1993
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
- Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
- Prime Minister’s Armenia Earthquake Relief Fund
- Africa (Public Contributions — India) Fund
- Swachh Bharat Kosh (applicable from financial year 2014-15)
- Clean Ganga Fund (applicable from financial year 2014-15)
- National Fund for Control of Drug Abuse (applicable from financial year 2015-16)
b. Donations with 50% deduction without any qualifying limit
- Jawaharlal Nehru Memorial Fund*
- Prime Minister’s Drought Relief Fund
- Indira Gandhi Memorial Trust*
- The Rajiv Gandhi Foundation*
Note: * Deductions won’t be available for the donations made on or after 1st April 2024.
c. Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income
- Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
- Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India
d. Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income
- Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
- Government or any local authority to be utilised for any charitable purpose other than the purpose of promoting family planning
- Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
- Any corporation referred in Section 10(26BB) for promoting the interest of minority community
- For repairs or renovation of any notified temple, mosque, gurudwara, church or other places.
Section 80GGB – Company Donation to Political Parties
Section 80GGB deduction is allowed to an Indian company for the amount contributed by it to any political party or an electoral trust. A deduction is allowed for donations done by any mode of payment other than cash.
Section 80GGC – Deduction on Donations By a Person to Political Parties
- What is Section 80GGC Deduction: 80GGC provides deduction for any amount donated to a political party or an electoral trust. You can avail this deduction only if you pay by any mode other than cash.
- Who can claim deduction under section 80GGC: Only an individual taxpayer can claim deduction under section 80GGC. It is not available for companies, local authorities and an artificial juridical person wholly or partly funded by the government. They may claim the deduction under Section 80GGB.
Section 80RRB – Deduction on Income via Royalty of a Patent
80RRB Deduction for any income by way of royalty for a patent, registered on or after 1 April 2003 under the Patents Act 1970, shall be available for up to Rs.3 lakh or the income received, whichever is less. The taxpayer must be an individual patentee and an Indian resident. The taxpayer must furnish a certificate in the prescribed form duly signed by the prescribed authority.
Section 80QQB – Deduction on Royalty Income of Authors
Authors of India who are earning royalty or copyright income are eligible to claim deduction under section 80QQB of up to Rs.3 lakh or the income received, whichever is less . There are certain conditions that must be satisfied to be eligible for this tax deduction. Click here to know more
Section 80 Deductions Summary Table
| Section | Deduction on | Allowed Limit (maximum) FY 2022-23 |
|---|---|---|
| 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 |
| 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 |
| 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 |
Other Articles:
Term Insurance Tax Benefits Under Section 80C, 80D and 10D
Income Tax Allowances and Deductions
Income Tax Slabs
Standard Deduction for Salaried Individuals
Section 80G Deductions
Section 80E Income Tax Deduction
Section 80D Deductions
House Rent Allowance
Deductions under Section 80CCD(1B)
Section 80GG Deductions
Section 80DDB Deductions
Frequently Asked Questions
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