Subject: Direct Tax

Topic:Section80C To Section80U
Income Tax Deductions
under Section 80C to 80U
 What is Tax Deduction?
 Tax deduction helps in reducing your taxable income. It
decreases your overall tax liabilities and helps you save
tax. However, depending on the type of tax deduction
you claim, the amount of deduction varies. You can
claim tax deduction for amounts spent in tuition fees,
medical expenses and charitable contributions. Also,
you can invest in various schemes such as life insurance
plans, retirement savings schemes, and national savings
schemes etc. to get tax deductions.
Tax Deduction under Section 80C:
Deduction in respect of life insurance
premia,deferred annuity, contribution to provident
fund subscription to equity share or debentures.

1 Tax Saving Instruments Under Section 80C

Employee Provident Fund(EPF) & Voluntary
Provident Fund (VPF), Public Provident Fund (PPF),
5 Years Fixed Deposits, National Savings Certificate
(NSC), Senior Citizens Saving Schemes
(SCSS),Equity Linked Saving Schemes (ELSS), Life
Insurance Premium, Unit Linked Insurance Plans
(Ulips) about this tax saving Section 80C
Instruments.
Conti…
80C Tax Saving Expenses:
Home Loan Premium : The home loan
repayment in EMIs has two components
i.e. Principal and Interest . The principal
paid as EMI comes under this Section
80C. The overall limit should not exceed
1.5 lakh. The interest incurred to this
principal comes under Sec 24, which is
not under 1.5lakh limit.
Conti…
Children Tuition Fee Expenses :
The tuition fee paid at School, College or
any other educational institution for full
time course can be claimed under this
Section 80C. The tuition fee is allowed for
maximum two children only. Payments
towards building fees, library fees,
development fees does not qualify to this
section 80C. Tuition fee for the studies of
spouse and Self will not considered .
Section 80CCC :

 Deduction in respect of contribution to certain pension funds.

 .To encourage to invest in Pension Funds Sec 80CCC was introduced

in IT Act. Contributions to Pension Funds will be deductible from the
gross total income under section 80CCC . This 80CCC is applicable
to all Resident Individuals, Non-Resident individuals who made
contributions to pension funds. The maximum overall allowed
deduction is 1.5 lakh. The amount received while surrender of
annuity plan is taxable.

 .The amount paid to initiate or continue any yearly plan to pension

funds to any insurance company can claim deduction under Section
80CCC.
Section 80CCD National
Pension System (NPS)
Section 80CCD National Pension
System (NPS)
Deduction in respect of contribution to
pension scheme of central government.
The Central Government makes any
contribution to the pension account,
deduction of such contribution to the extent
of 10% of salary shall be allowed. Further, in
any year where any amount is received from
the pension account such amount shall be
charged to tax as income of that previous
year
Section 80CCG:
Deduction in respect of
investment made under an
equity saving scheme.

The deduction was 50 % of amount

invested in such equity shares or ₹ 25,000,
whichever is lower. The maximum
Investment permissible for claiming
deduction under RGESS is Rs. 50,000.
Section 80CCF:
Subscription to long term
infrastructure bonds.
Subscription made by individual or
HUF to the extent of Rs. 20,000 to
notified long term infrastructure
bonds is exempt from A.Y. 2011-12
onwards. This deduction is
discontinued A.Y. 2013-14.
Section 80D:
 Deduction in respect of health insurance premia.
 The premium is to be paid by any mode of payment
other than cash and the insurance scheme should be
framed by the General Insurance Corporation of
India & approved by the Central Govt. or Scheme
framed by any other insurer and approved by the
Insurance Regulatory & Development Authority. The
premium should be paid in respect of health
insurance of the assessee or his family members. The
Finance Act 2008 has also provided deduction upto
Rs. 15,000/- in respect of health insurance premium
paid by the assessee towards his pare nt/parents.
Section 80DD:
Deduction in respect of including medical
treatment of a dependant who is person with
disability.
The handicapped dependent should be a
dependent relative suffering from a permanent
disability (including blindness) or mentally
retarded, as certified by a specified physician or
psychiatrist. Note: A person with severe
disability means a person with 80% or more of
one or more disabilities as outlined in section
56(4) of the “Persons with Disabilities.
Section 80DDB:
 Deduction in respect of medical treatment etc.
 Deduction of Rs.40,000/- in respect of medical
expenditure incurred.01.04.2004, deduction
under this section shall be available to the
extent of Rs.40,000/- or the amount actually
paid, whichever is less. In case of senior
citizens, a deduction up to Rs.60,000/- shall be
available under this Section. Budget 2015 has
proposed deduction of Rs. 80000/- for senior
citizen aged 80 year or More from A.Y. 2016-
17.
Section 80E:
Deduction in respect of interest on loan taken
for higher education.
This provision has been introduced to provide
relief to students taking loans for higher
studies. The payment of the interest thereon
will be allowed as deduction over a period of
up to 8 years. Further, by Finance Act, 2007
deduction under this section shall be available
not only in respect of loan for pursuing higher
education by self but also by spouse or
children of the assesses.
Section 80EE:
Deduction in respect of interest on loan taken
for residential house property.
Vide Finance Act 2013, an individual is allowed a
deduction up to a limit of Rs 1,00,000 being paid as
interest on a loan taken from a Financial Institution,
sanctioned during the period 01-04- 2013 to 31-03-
2014 (loan not to exceed Rs 25 lakhs) for
acquisition of a residential house whose value does
not exceed Rs 40 lakhs. However the deduction is
available if the assesses does not own any
residential house property on the date of sanction of
the loan.
Section 80G:
Donation to certain funds, charitable
institutions etc.
The various donations specified in Sec.
80G are eligible for
deduction up to either 100% or 50% with
or without restriction as provided in Sec.
80G.
Section 80GG:
Deduction available is the least of(i) Rent
paid less 10% of total income. Rs.2000 per
monthlies. 25% of total income.
(1) Assesses or his spouse or minor child
should not own residential accommodation
at the place of employment.(2) He should
not be in receipt of house rent allowance.
(3) He should not have a self-occupied
residential premises in any other place.
Section 80GGA:
 Deduction for Donations made for Scientific
Research or Rural Development. The whole
amount given as donation to the institutions
specified under Section 80GGA is allowed as
a deduction under Section 80GGA.
In other words, 100% of the sum paid to the
institutions specified under Section 80GGA
is allowed as a deduction from the Gross
Total Income and the balance income would
be taxable as per the Income Tax Slab Rates.
Section 80GGC:
Deduction in respect of
contribution given by any person
to political parties.
Section 80RRB:
Deduction in respect of royalty on patents.

You can get tax deduction on royalty on

patents. Maximum deduction allowed is up
to Rs. 3, 00,000. Such deduction can be
availed any resident individual who is a
patentee and receives the income by way of
royalty for patent registered on or after
1/4/2003.
Section 80QQB:
Deduction in respect of royalty income
etc.Authors of certain books other than
text books.
Tax deduction under this section applies
to the royalty income of an author of
certain category of books. Maximum
tax deduction allowed is up to Rs. 3,
00,000. Resident individual authors can
avail tax deduction under it.
Section 80TTA:
Deduction in respect of interest on
deposits in saving account.
Interest on deposits in savings bank
accounts qualifies for tax deduction
under this section. Maximum
deduction offered is Rs. 10,000 p.a.
Individuals and members of HUF can
avail tax deduction under this section.
Section 80U:
Deduction in case of a person with
disability.
Under this section, tax deduction of Rs.
50,000 is allowed to a resident
individual who is certified by the
medical authority to be a person with
disabilities in the previous year. Autism,
cerebral palsy etc. are included under
multiple disabilities in this section.
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