Table of Contents
Section 80 Deductions
The income tax department encourages the taxpayers to file their ITR then they provide various section 80 deductions from the taxable income under chapter VI A deductions. Let’s understand these deductions in detail.
Read This:- Income Tax Slab for FY 2020-21 and AY 2021-22
Section 80C
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
|---|---|---|
| 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 |
Subsection 80C – 80CCC, 80CCD(1), 80CCD(1B), 80CCD(2)
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 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) | An additional contribution to NPS | Rs. 50,000 |
Section 80TTA(1) and 80TTB
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80TTA(1) | Interest Income from Savings account | Maximum up to 10,000 |
| 80TTB | Exemption of interest from banks, post offices, etc. Applicable only to senior citizens | Maximum up to 50,000 |
Section 80GG
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80GG | For rent paid when HRA is not received from the employer | Least of : – Rent paid minus 10% of total income – Rs. 5000/- per month – 25% of total income |
Section 80E and 80EE
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80E | Interest on education loan | Interest paid for a period of 8 years |
| 80EE | Interest on home loan for first-time homeowners | Rs 2,00,000 on Interset Paid |
Section 80D , 80DD and 80DDB
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 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 a 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 |
Section 80U
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 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 |
Section GGB and GGC
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 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) |
Section RRB
| Section | Deduction on | Allowed Limit (maximum) FY 2020-21 |
| 80RRB | Deductions on Income by way of Royalty of a Patent | Lower of Rs 3,00,000 or income received |
Read This:- How to Calculate HRA (House Rent Allowance) as per Income Tax
Disclaimer:- Income Tax Section 80 Deductions are subject to amendments from time to time.
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