Chapter VI a deduction for Tax Saving in India (Section 80C to 80U)

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Chapter Via deduction for Tax Saving in India (Section 80C to 80U)
As per the Income Tax Act, Chapter VI A, includes various sub-sections of section 80 of the Income Tax Act

Today, in this article we are going to discuss all chapter VI a deduction. This would clear your doubt related to the deduction under VI a. This will be helpful for many of you as it is important to have an idea about the deductions if you want to save tax from your gross salary.

What is Chapter VI A?

As per the Income Tax Act, Chapter VI A includes various sub-sections of section 80 of the Income Tax Act that allow an assessee to demand deductions from gross total income for various tax-saving transactions, approved expenses, and donations, etc. Such deductions allow an assessee to significantly decrease the amount of tax owed.

Read Here: Benefits of filing Income Tax Return (ITR) FY 20-21

The following sections are found in Chapter VI A of the Income Tax Act:

80C:

One of the most commonly used and highest deduction limit 80 C covers deduction on life insurance premiums, deferred annuities, PF donations, subscriptions of some equity shares or debentures, and so on. With section 80CCC and section 80CCD, the deduction limit is Rs 1.5 lakh (1).

Read about: Tax Saving Investment for Financial Year 2021-2022

80CCC:

Deduction in respect of contribution to certain pension funds. The deduction limit is Rs 1.5 lakh together with section 80C and section 80CCD (1).

80CCD (1):

Deduction in respect of contribution to pension scheme of Central Government – in the case of an employee, 10 percent of salary and in any other case, 20 percent of his/her gross total income in an FY will be tax-free. The overall limit is Rs 1.5 lakh together with 80C and 80CCC.

80CCD(1B): 

Deduction up to Rs 50,000 in respect of contribution to pension scheme of Central Government (NPS).

80CCD (2):

Deduction in respect of contribution to pension scheme of Central Government by the employer. The tax benefit is given on 14 percent contribution by the employer, where such contribution is made by the Central Government and where the contribution is made by any other employer, the tax benefit is given on 10 percent.

80D:

Deduction in respect of Health Insurance premium. Premium paid up to Rs 25,000 is eligible for deduction for individuals, other than senior citizens. For senior citizens, the limit is Rs 50,000 and the overall limit u/s 80D is Rs 1 lakh.

80DD:

Deduction in respect of maintenance including medical treatment of a dependent who is a person with a disability. The maximum deduction limit under this section is Rs 75,000.

80DDB:

Deduction in respect of expenditure up to Rs 40,000 on medical treatment of specified disease from a neurologist, an oncologist, a urologist, a hematologist, an immunologist, or such other specialist, as may be prescribed.

80E: 

Deduction in respect of interest on loan taken for higher education without any upper limit.

80EE: 

Deduction in respect of interest up to Rs 50,000 on loan taken for residential house property.

80EEA: 

Deduction in respect of interest up to Rs 1.5 lakh on loan taken for certain house property (on affordable housing).

80EEB:

Deduction in respect of interest up to Rs 1.5 lakh on loan taken for the purchase of an electric vehicle.

80G:

Donations to certain funds, charitable institutions, etc. Depending on the nature of the done, the limit varies from 100 percent of total donation, 50 percent of total donation, or 50 percent of donation with a cap of 10 percent of gross income.

80GG:

Deductions in respect of rent paid by non-salaried individuals who don’t get HRA benefits. The deduction limit is Rs 5,000 per month or 25 percent of total income in a year, whichever is less.

80GGA: 

Full deductions in respect of certain donations for scientific research or rural development.

80GGC: 

Full deductions in respect of donations to Political Party, provided such donations are non-cash donations.

80TTA: 

Deductions in respect of interest on savings bank account up to Rs 10,000 in case of assesses other than Resident senior citizens.

80TTB: 

Deductions in respect of interest on deposits up to Rs 50,000 in case of Resident senior citizens.

80U:

Deduction in case of a person with a disability. Depending on the type and extent of disability maximum deduction allowed under this section is Rs 1.25 lakh.

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