Income Tax Deduction

Summary and List of Income Tax Deductions under Section 80C, 80CCA, 80CCC, 80CCD, 80CCF, 80CCG, 80D, 80DD, 80DDB, 80E, 80EE, 80G, 80GG, 80GGB, 80GGC, 80JJAA, 80QQB, 80RRB, 80TTA to 80U of Income Tax Act, 1961. There are different tax saving options i.e. Allowable Deductions/Exemption under Income Tax, are given under chapter VIA of the Income Tax Act, 1961. Summary of different tax saving section under which person can claim deduction or exemption from total Income are given below.

Tax Deductions

1. Deduction under section 80C for investment in various financial instrument, insurance policy, fixed deposits, etc. Maximum Deduction under Section 80C, 80CCC and 80CCD is Rs.100,000/-.
2. Deduction under section 80CCA: Discontinued from April, 1992 Income Tax Deduction under section 80CCA for investment in National Savings Scheme or payment to a deferred annuity plan.
3. Deduction under section 80CCC for Contribution to pension scheme Maximum Deduction under Section 80C, 80CCC and 80CCD is Rs.100,000/- Click to Read further Income Tax Deduction under section 80CCC for Deduction in respect of contribution to certain pension funds.
4. Deduction under section 80CCD for Contribution to pension scheme of Central Government Click to Read further Deduction in Respect of Contribution to Pension Scheme of Central Government or Any Other Employer under Section 80CCD
5. Deduction under section 80CCF: Discontinued from AY 2013-14 Deduction in Respect of Subscription to Long Term Infrastructure Bonds under section 80CCF of Income Tax Act and maximum deduction under section 80CCF was Rs 20000/-.
6. Deduction under section 80CCG for Contribution to equity shares or equity mutual fund under Rajiv Gandhi Equity Saving Scheme and maximum deduction under Section 80CCG is Rs.50,000/-.
7. Deduction under section 80D for Contribution to medical premium and maximum deduction under Section 80D is Rs.15,000/-.
8. Deduction under section 80DD for Contribution to medical treatment and maintenance of handicapped dependent and Maximum Deduction under Section 80DD is Rs.100,000/- & Rs 50,000/-.
9. Deduction under section 80DDB for Contribution to medical treatment of specified diseases and maximum deduction under Section 80DDB is Rs.60,000/- and Rs 40,000/-.
10. Deduction under section 80E for interest payment of loan taken for higher education and there is no maximum Deduction under Section 80E so individual can total interest paid on education loan.
11. Deduction under section 80EE for interest payment of loan taken for new home for home loan amount of Rs 25 Lakhs and maximum Deduction under Section 80EE is Rs.100,000/-
12. Deduction under section 80G for Contribution/Donation to charitable organization and maximum deduction under Section 80G is 100% of contribution amount to 10% of 10% of adjusted gross total income of the taxpayer.
13. Deduction under section 80GG for payment of rent by individual salaried taxpayer who is not receiving House rent allowance (HRA) and should not own any residential accommodation and maximum deduction under Section 80GG is Rs 2000/- per Month.
14. Deduction under section 80GGB for Contribution/ Donation to political parties by Indian Company and there is no maximum deduction limit under Section 80GGB so assessee can claim whatever donation he made to political party as deduction u/s 80GGB.
15. Deduction under section 80GGC for Contribution/ Donation to political parties by tax payer other than Indian Company and there is no maximum deduction limit under Section 80GGC so assessee can claim whatever donation he made to political party as deduction u/s 80GGC.
16. Deduction under section 80JJAA for additional wages paid to new workmen in factory and maximum deduction under Section 80JJAA is 30% of additional wages paid to new workmen in factory.
17. Deduction under section 80QQB for income from royalty to author for lump sum consideration for the assignment or grant of any of his interests in the copyright of any book being a work of literary, artistic or scientific nature, or of royalty or copyright fees in respect of such book and maximum deduction under Section 80QQB is Rs.300,000/-
18. Deduction under section 80RRB Any individual who is resident in India having a patent and receiving any income by way of royalty for that registered patent can claim maximum deduction of Rs 300,000/- from his gross total income for that royalty income.
19. Deduction under section 80U for disable person. Individual can claim deduction from taxable income based on his physical disability and amount of deduction is dependent on percentage of disability and maximum deduction under Section 80U is Rs.50,000/- and Rs 100,000/-.
20. Deduction under section 80TTA on interest on saving bank account and maximum deduction under Section 80TTA is Rs.10,000/-