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GuidetoSection80Deductions

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ALL ABOUT TAX SAVINGS (OR DEDUCTIONS)

Guide to Section 80 Deductions

For financial year 201415 & 201516 with changes listed for FY 201617
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DeductionsonSection80C,80CCC&80CCD
Section80C
Undersection80C,adeductionofRs1,50,000canbeclaimedfromyourtotalincome.Insimple
terms,youcanreduceuptoRs1,50,000fromyourtotaltaxableincomethroughsection80C.
ThisdeductionisallowedtoanIndividualoraHUF.
AmaximumofRs1,50,000canbeclaimedforfinancialyear201415.Thelimitforfinancial
year201516andfinancialyear201617isalsoRs1,50,000.

Clickheretoseealltheinvestmentoptionstosave

Section80CCC:DeductionforPremiumPaidforAnnuityPlanofLICor
OtherInsurer
ThissectionprovidesdeductiontoanIndividualforanyamountpaidordepositedinanyannuity
planofLICoranyotherinsurer.Theplanmustbeforreceivingpensionfromafundreferredto
inSection10(23AAB).

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Iftheannuityissurrenderedbeforethedateofitsmaturity,thesurrendervalueistaxableinthe
yearofreceipt.

Section80CCD:DeductionforContributiontoPensionAccount
Employee'scontributionSection80CCD(1)AllowedtoanIndividualwhomakesdepositsto
his/herPensionaccount.Maximumdeductionallowedis10%ofsalary(incaseoftaxpayerbeing
anemployee)or10%ofgrosstotalincome(incaseoftaxpayerbeingselfemployed)orRs
1,00,000whicheverisless.ThelimitofRs1,00,000hasbeenincreasedtoRs1,50,000starting
financialyear201516(assessmentyear201617).
DeductionforselfcontributiontoNPSsection80CCD(1B)Anewsection80CCD(1B)has
beenintroducedforadditionaldeductionforamountdepositedbyataxpayertotheirNPS
account.ContributionstoAtalPensionYojanaarealsoeligible.Deductionisallowedon
contributionuptoRs50,000.
Employer'scontributionSection80CCD(2)Deductionisallowedforemployer'scontribution
toemployeespensionaccountupto10%ofthesalaryoftheemployee.Thereisnomonetary
ceilingonthisdeduction.
ReadMore

DeductionsonInterestonSavingsAccount
Section80TTA:DeductionfromgrosstotalincomeforInterestonSavings
bankaccount
AdeductionofmaximumRs10,000canbeclaimedagainstinterestincomefromasavingsbank
account.Interestfromsavingsbankaccountshouldbefirstincludedinotherincomeand
deductioncanbeclaimedofthetotalinterestearnedorRs10,000,whicheverisless.This
deductionisallowedtoanindividualorHUF.Anditcanbeclaimedforinterestondepositsin
savingsaccountwithabank,cooperativesocietyorpostoffice.Section80TTAdeductionisnot
availableoninterestincomefromfixeddepositsorrecurringdepositsorinterestincomefrom
corporatebonds.

DeductionsonHouseRent
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Section80GG:DeductionforHouseRentPaidwhereHRAisnotreceived
ThisdeductionisavailableforrentpaidwhenHRAisnotreceived.Taxpayerorhisspouse
orminorchildshouldnotownresidentialaccommodationattheplaceofemployment.
Taxpayershouldnothaveselfoccupiedresidentialpropertyinanyotherplace.
Taxpayermustbelivingonrentandpayingrent.
Deductionavailableistheminimumof
1.Rentpaidminus10%oftotalincome
2.Rs.2000/permonth
3.25%oftotalincome
ForFinancialyear201617Forcalculatingdeductionabove,Rs2,000permonthhasbeen
raisedtoRs5,000permonth.ThereforeamaximumofRs60,000perannumcanbeclaimedas
adeduction.

DeductionsonEducationLoanforHigherStudies
Section80E:DeductionforInterestonEducationLoanforHigherStudies
Deductionisallowedforinterestonloantakenforpursuinghighereducation.Thisloanmay
havebeentakenforthetaxpayer,spouseorchildrenorforastudentforwhomthetaxpayerisa
legalguardian.Thedeductionisavailableforamaximumof8yearsortilltheinterestispaid,
whicheverisearlier.Thereisnorestrictionontheamountthatcanbeclaimed.

DeductionforFirstTimeHomeOwners
Section80EE:DeductionsonHomeLoanInterestforFirstTimeHome
Owners
ForFinancialYear201314andFinancialYear201415

ThissectionprovideddeductionontheHomeLoanInterestpaid.Thedeductionunderthis
sectionisavailableonlytoIndividualsforfirsthousepurchasedwherethevalueofthehouseis
Rs40lakhsorlessandloantakenforthehouseisRs25lakhsorless.AndtheLoanhasbeen
sanctionedbetween01.04.2013to31.03.2014.Theaggregatedeductionallowedunderthis
sectioncannotexceedRs1,00,000andisallowedforfinancialyears201314&201415
(Assessmentyear201415and201516).
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Thisdeductionisnotavailableforfinancialyear201516(assessmentyear201617).
ForFinancialYear201617
ThissectionwasrevivedinBudget2016andisapplicablestartingFY201617.Thededuction
underthissectionisavailableonlytoanIndividualwhoisafirsttimehomeowner.Thevalueof
thepropertypurchasedmustbelessthanRs50LakhsandhomeloanmustbelessthanRs35
lakhs.AndtheLoanmustbetakenfromafinancialinstitutionandmustbesanctionedbetween
01.04.2016to31.03.2017.Underthissection,anadditionaldeductionofRs50,000canbe
claimedonhomeloaninterest.ThisisinadditiontodeductionofRs2,00,000allowedunder
section24oftheincometaxactforaselfoccupiedhouseproperty.Thereisnorestrictiononthe
numberofyearsforwhichthisdeductioncanbeclaimed.

DeductionsonRajivGandhiEquitySavingScheme
(RGESS)
Section80CCG:RajivGandhiEquitySavingScheme(RGESS)
TheRajivGandhiEquitySavingScheme(RGESS)waslaunchedafterthe2012Budget.
InvestorswhosegrosstotalincomeislessthanRs.12lakhscaninvestinthisscheme.Upon
fulfilmentofconditionslaiddowninthesection,thedeductionislowerof,50%ofamount
investedinequitysharesorRs25,000.

DeductionsonMedicalInsurance
Section80D:DeductionforpremiumpaidforMedicalInsurance
Forfinancialyear201415DeductionisavailableuptoRs.15,000/toataxpayerforinsurance
ofself,spouseanddependentchildren.Ifindividualorspouseismorethan60yearsoldthe
deductionavailableisRs20,000.Anadditionaldeductionforinsuranceofparents(fatheror
motherorboth)isavailabletotheextentofRs.15,000/iflessthan60yearsoldandRs20,000
ifparentsaremorethan60yearsold.Therefore,themaximumdeductionavailableunderthis
sectionistotheextentofRs.40,000/.(FromAY201314,withintheexistinglimitadeductionof
uptoRs.5,000forpreventivehealthcheckupisavailable).
Forfinancialyear201516DeductionisraisedfromRs15,000toRs25,000.Thedeductionfor
seniorcitizensisraisedfromRs20,000toRs30,000.Foruninsuredsuperseniorcitizens(more
than80yearsold)medicalexpenditureincurreduptoRs30,000shallbeallowedasadeduction
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undersection80D.However,totaldeductionforhealthinsurancepremiumandmedical
expensesforparentsshallbelimitedtoRs30,000.

DeductionsonMedicalExpenditureforaHandicapped
Relative
Section80DD:DeductionforRehabilitationofHandicappedDependent
Relative
Deductionisavailableon:
1.Expenditureincurredonmedicaltreatment,(includingnursing),trainingandrehabilitation
ofhandicappeddependentrelative
2.Paymentordeposittospecifiedschemeformaintenanceofdependenthandicapped
relative.
Wheredisabilityis40%ormorebutlessthan80%fixeddeductionofRs50,000.
Wherethereisseveredisability(disabilityis80%ormore)fixeddeductionofRs1,00,000.A
certificateofdisabilityisrequiredfromprescribedmedicalauthority.
Note:Apersonwith'severedisability'meansapersonwith80%ormoreofoneormore
disabilitiesasoutlinedinsection56(4)ofthe'Personswithdisabilities(Equalopportunities,
protectionofrightsandfullparticipation)'Act.
CertificatecanbetakenfromaSpecialistasspecified.
Patientsgettingtreatedinaprivatehospitalarenotrequiredtotakethecertificatefroma
governmenthospital.
Patientsreceivingtreatmentinagovernmenthospitalhavetotakecertificatefromany
specialistworkingfulltimeinthathospital.Suchspecialistmusthaveapostgraduate
degreeinGeneralorInternalMedicineoranyequivalentdegree,whichisrecognisedby
theMedicalCouncilofIndia.
CertificateinForm10Iisnolongerrequired.Thecertificatemusthavenameandageof
thepatient,nameofthediseaseorailment,name,address,registrationnumberandthe
qualificationofthespecialistissuingtheprescription.Ifthepatientisreceivingthe
treatmentinaGovernmenthospital,itshouldalsohavenameandaddressofthe
Governmenthospital.
Forfinancialyear201516ThedeductionlimitofRs50,000hasbeenraisedtoRs75,000and
Rs1,00,000hasbeenraisedtoRs1,25,000.

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DeductionsonMedicalExpenditureonSelforDependent
Relative
Section80DDB:DeductionforMedicalExpenditureonSelforDependent
Relative
AdeductionRs.40,000/ortheamountactuallypaid,whicheverislessisavailablefor
expenditureactuallyincurredbyresidenttaxpayeronhimselfordependentrelativeformedical
treatmentofspecifieddiseaseorailment.
ThediseaseshavebeenspecifiedinRule11DD.Acertificateinform10Iistobefurnishedby
thetaxpayerfromanyRegisteredDoctor.
IncaseofseniorcitizenthedeductioncanbeclaimeduptoRs60,000oramountactuallypaid,
whicheverisless.
Forfinancialyear201516forveryseniorcitizensRs80,000isthemaximumdeductionthat
canbeclaimed.

DeductionsforPersonsufferingfromPhysicalDisability
Section80U:DeductionforPersonsufferingfromPhysicalDisability
DeductionofRs.50,000/toanindividualwhosuffersfromaphysicaldisability(including
blindness)ormentalretardation.Incaseofseveredisability,deductionofRs.100,000canbe
claimed.CertificateshouldbeobtainedfromaGovt.Doctor.TherelevantruleisRule11D.This
isafixeddeductionandnotbasedonbillsorexpenses.
Forfinancialyear201516ThedeductionlimitofRs50,000hasbeenraisedtoRs75,000and
Rs1,00,000hasbeenraisedtoRs1,25,000.

DeductionfordonationstowardsSocialCauses
Section80G:DeductionfordonationstowardsSocialCauses
ThevariousdonationsspecifiedinSec.80Gareeligiblefordeductionuptoeither100%or50%
withorwithoutrestrictionasprovidedinSec.80G.80Gdeductionnotapplicableincase
donationisdoneinformofcashforamountoverRs10,000.
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Donationswith100%deductionwithoutanyqualifyinglimit:
NationalDefenceFundsetupbytheCentralGovernment
PrimeMinister'sNationalReliefFund
NationalFoundationforCommunalHarmony
Anapproveduniversity/educationalinstitutionofNationaleminence
ZilaSakshartaSamiticonstitutedinanydistrictunderthechairmanshipoftheCollectorof
thatdistrict
FundsetupbyaStateGovernmentforthemedicalrelieftothepoor
NationalIllnessAssistanceFund
NationalBloodTransfusionCouncilortoanyStateBloodTransfusionCouncil
NationalTrustforWelfareofPersonswithAutism,CerebralPalsy,MentalRetardationand
MultipleDisabilities
NationalSportsFund
NationalCulturalFund
FundforTechnologyDevelopmentandApplication
NationalChildren'sFund
ChiefMinister'sReliefFundorLieutenantGovernor'sReliefFundwithrespecttoanyState
orUnionTerritory
TheArmyCentralWelfareFundortheIndianNavalBenevolentFundortheAirForce
CentralWelfareFund,AndhraPradeshChiefMinister'sCycloneReliefFund,1996
TheMaharashtraChiefMinister'sReliefFundduringOctober1,1993andOctober6,1993
ChiefMinister'sEarthquakeReliefFund,Maharashtra
AnyfundsetupbytheStateGovernmentofGujaratexclusivelyforprovidingrelieftothe
victimsofearthquakeinGujarat
Anytrust,institutionorfundtowhichSection80G(5C)appliesforprovidingrelieftothe
victimsofearthquakeinGujarat(contributionmadeduringJanuary26,2001and
September30,2001)or
PrimeMinister'sArmeniaEarthquakeReliefFund
Africa(PublicContributionsIndia)Fund
SwachhBharatKosh(applicablefromfinancialyear201415)
CleanGangaFund(applicablefromfinancialyear201415)
NationalFundforControlofDrugAbuse(applicablefromfinancialyear201516)

Donationswith50%deductionwithoutanyqualifyinglimit.
JawaharlalNehruMemorialFund
PrimeMinister'sDroughtReliefFund
IndiraGandhiMemorialTrust
TheRajivGandhiFoundation

Donationstothefollowingareeligiblefor100%deductionsubjectto10%of
adjustedgrosstotalincome
Governmentoranyapprovedlocalauthority,institutionorassociationtobeutilisedforthe
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purposeofpromotingfamilyplanning
DonationbyaCompanytotheIndianOlympicAssociationortoanyothernotified
associationorinstitutionestablishedinIndiaforthedevelopmentofinfrastructurefor
sportsandgamesinIndiaorthesponsorshipofsportsandgamesinIndia.

Donationstothefollowingareeligiblefor50%deductionsubjectto10%of
adjustedgrosstotalincome
AnyotherfundoranyinstitutionwhichsatisfiesconditionsmentionedinSection80G(5)
Governmentoranylocalauthoritytobeutilisedforanycharitablepurposeotherthanthe
purposeofpromotingfamilyplanning
AnyauthorityconstitutedinIndiaforthepurposeofdealingwithandsatisfyingtheneed
forhousingaccommodationorforthepurposeofplanning,developmentorimprovement
ofcities,towns,villagesorboth
AnycorporationreferredinSection10(26BB)forpromotinginterestofminoritycommunity
Forrepairsorrenovationofanynotifiedtemple,mosque,gurudwara,churchorother
place.

DeductionsonContributionbyCompaniestoPolitical
Parties
Section80GGB:DeductiononcontributionsgivenbycompaniestoPolitical
Parties
DeductionisallowedtoanIndiancompanyforamountcontributedbyittoanypoliticalpartyor
anelectoraltrust.Deductionisallowedforcontributiondonebyanywayotherthancash.
Politicalpartymeansanypoliticalpartyregisteredundersection29AoftheRepresentationofthe
PeopleAct.Contributionisdefinedaspersection293AoftheCompaniesAct,1956.

DeductionsonContributionbyIndividualstoPolitical
Parties
Section80GGC:DeductiononcontributionsgivenbyanypersontoPolitical
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Parties
Deductionisallowedtoataxpayerforanyamountcontributedtoanypoliticalpartyoran
electoraltrust.Deductionisallowedforcontributiondonebyanywayotherthancash.
Politicalpartymeansanypoliticalpartyregisteredundersection29AoftheRepresentationofthe
PeopleAct.

DeductionsonIncomebywayofRoyaltyofaPatent
Section80RRB:DeductionwithrespecttoanyIncomebywayofRoyaltyof
aPatent
Deductionforanyincomebywayofroyaltyforapatentregisteredonorafter01.04.2003under
thePatentsAct1970shallbeavailableuptoRs.3lakhsortheincomereceived,whicheveris
less.ThetaxpayermustbeanindividualresidentofIndiawhoisapatentee.Thetaxpayermust
furnishacertificateintheprescribedformdulysignedbytheprescribedauthority.

DeductionsonInvestmentinLongTermInfrastructure
Bonds[REMOVED]
Section80CCF:InvestmentinLongTermInfrastructureBonds
ThissectionisnolongervalidfromAY201213.

Section80DeductionTable
Section
Section
80C

Deductionon
InvestmentinPPF
Employee'sshareofPFcontribution
NSCs
LifeInsurancePremiumpayment
Children'sTuitionFee

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FY201516
Rs.1,50,000

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PrincipalRepaymentofhomeloan
InvestmentinSukanyaSamridhiAccount
ULIPS
ELSS
Sumpaidtopurchasedeferredannuity
Fiveyeardepositscheme
SeniorCitizenssavingsscheme
Subscriptiontonotifiedsecurities/notifieddepositsscheme
ContributiontonotifiedPensionFundsetupbyMutualFund
orUTI.
SubscriptiontoHomeLoanAccountSchemeoftheNational
HousingBank
Subscriptiontodepositschemeofapublicsectororcompany
engagedinprovidinghousingfinance
ContributiontonotifiedannuityPlanofLIC
Subscriptiontoequityshares/debenturesofanapproved
eligibleissue
SubscriptiontonotifiedbondsofNABARD

80CC

ForamountdepositedinannuityplanofLICoranyotherinsurerfor
pensionfromafundreferredtoinSection10(23AAB).

80CCD(1)

Employee'scontributiontoNPSaccount(maximumuptoRs
1,00,000forFY201415)

80CCD(2)

Employer'scontributiontoNPSaccount

Maximumupto10%
ofsalary

80CCD(1B)

AdditionalcontributiontoNPS

Rs.50,000

80TTA(1)

InterestIncomefromSavingsaccount

Maximumupto
10,000

80GG

ForrentpaidwhenHRAisnotreceivedfromemployer

Leastofrentpaid
minus10%oftotal
incomeRs.2000/per
month25%oftotal
income

80E

Interestoneducationloan

Interestpaidfora
periodof8years

80EE

Interestonhomeloanforfirsttimehomeowners

Nil

80CCG

RajivGandhiEquitySchemeforinvestmentsinEquities

Lowerof50%of
amountinvestedin
equitysharesorRs
25,000

80D

MedicalInsuranceSelf,spouse,children
MedicalInsuranceParentsmorethan60yearsoldor(fromFY
201516)uninsuredparentsmorethan80yearsold

Rs.25,000

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Rs.30,000

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80DD

Medicaltreatmentforhandicappeddependantorpaymentto
specifiedschemeformaintenanceofhandicappeddependant
Disabilityis40%ormorebutlessthan80%
Disabilityis80%ormore
Rs.75,000
Rs.1,25,000

80DDB

MedicalExpenditureonSelforDependentRelativefordiseases
specifiedinRule11DD
Forlessthan60yearsold
Formorethan60yearsold
Formorethan80yearsold

80U

Selfsufferingfromdisability:
Individualsufferingfromaphysicaldisability(including
blindness)ormentalretardation.
Individualsufferingfromseveredisability

LowerofRs
40,000orthe
amount
actuallypaid
LowerofRs
60,000orthe
amount
actuallypaid
LowerofRs
80,000orthe
amount
actuallypaid

Rs.75,000

Rs.1,25,000

80GGB

Contributionbycompaniestopoliticalparties

Amountcontributed
(notallowedincash)

80GGC

Contributionbyindividualstopoliticalparties

Amountcontributed
(notallowedincash)

80RRB

DeductionsonIncomebywayofRoyaltyofaPatent

LowerofRs3,00,000
orincomereceived

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