IT Deductions Under Section 80C to 80U

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Income Tax

The Income Tax department provides tax benefits to taxpayers in case they incur certain personal expenses (insurance policies, loans etc). These expenses can be claimed under section 80C to section 80U of the Income Tax Act, 1961. A deduction in income tax is the investment or expense that helps individuals in reducing the tax payable. The income tax deduction reduces your gross total income (means the income on which tax has to be paid). Thereby, reducing the tax on your total income while filing your income tax return.

The following guide will help you under the amount of tax exemption provided under each section as well as who can avail those exemptions.

Section Income Tax Deduction for FY 2019-20 (AY 2020-21) Who can Invest? Limit for FY 2019-20 (AY 2020-21)
Section 80C Investing into very common and popular investment options like LIC, PPF, Sukanya Samriddhi Account, Mutual Funds, FD etc Individual
Or
HUF
Up to Rs 1,50,000
Section 80CCC Investment in Pension Funds Individuals Up to Rs 1,50,000
Section 80CCD(1) Atal Pension Yojana and National Pension Scheme Contribution Individuals Up to Rs 1,50,000
Section 80CCD(1B) Atal Pension Yojana and National Pension Scheme Contribution Individuals Up to Rs 50,000
Section 80CCD(2) National Pension Scheme Contribution by Employer Individuals Amount Contributed
or
14% of Basic Salary + Dearness Allowance (in case the employer is CG)
10% of Basic Salary+ Dearness Allowance (in case of any other employer)
– Whichever is lower
Section 80D Medical Insurance Premium and Medical Expenditure Individual
Or
HUF
Up to Rs 1,00,000
Section 80DD Medical Treatment of a Dependent with Disability Individual
Or
HUF
Normal Disability: Rs 75000/-
Severe Disability: Rs 125000/-
Section 80DDB Specified Diseases Individual
Or
HUF
Senior Citizens: Up to Rs 1,00,000
Others: Up to Rs 40,000
Section 80E Interest paid on Loan taken for Higher Education Individuals 100% of the interest paid up to 8 assessment years
Section 80EE Interest paid on Housing Loan Individuals Up to Rs 50,000 subject to some conditions
Section 80EEA Interest paid on Housing Loan Individuals Up to Rs 1,50,000/- subject to some conditions
Section 80EEB Interest paid on Electric Vehicle Loan Individuals Up to Rs 1,50,000/- subject to some conditions
Section 80G Donation to Charitable Institutions All Assessees (Individual, HUF, Company etc)  100% or 50% of the Donated amount or Qualifying limit,
Allowed donation in cash up to Rs.2000/-
Section 80GG Income Tax Deduction for House Rent Paid Individuals Rs.60,000/-
25% of Total Income
Rent paid – 10% of Total Income
– whichever is lower
Section 80GGA Donation to Scientific Research & Rural Development All assessees except those who have an income (or loss) from a business and/or a profession 100% of the amount donated.
Allowed donation in cash up to Rs.10,000/-
Section 80GGB Contribution to Political Parties Companies 100% of the amount contributed
No deduction available for contribution made in cash
Section 80GGC Individuals on contribution to Political Parties Individual
HUF
AOP
BOI
Firm
100% of the amount contributed.
No deduction available for contribution made in cash
Section 80IA Profits and Gains from Industrial Undertakings engaged in infrastructure development, etc. Industrial Undertakings engaged in specified businesses 100% of the profit for 10 consecutive years out of 15 years beginning from year of commencement
Section 80IAB Profits and Gains to SEZ Developers SEZ Developers 100% of the profit for 10 consecutive years out of 15 years beginning from year in which SEZ has been notified by CG
Section 80IAC Eligible startups Company or LLP engaged in eligible business subject to some conditions 100% of the profit for 3 consecutive years out of 7 years beginning from the year of commencement
Section 80IB Profits and Gains from certain Industrial Undertakings other than infrastructure development undertakings Specified Industrial Undertakings 25%, 30% or 100% of the profit for such periods as may be specified subject to certain conditions
Section 80IBA Profits from Housing Projects Individual
HUF
AOP
BOI
Company
Firm
Any other person engaged in the business of Housing Projects as may be specified
100% of the profit
Section 80IC Certain Undertakings in Special category States Certain Industrial Undertakings Sikkim – 100% of profit for 10 years
Himachal Pradesh/ Uttaranchal
100% of the profit (For first 5 years)
25% (For next 5 years), (30% in case of Companies)
North Eastern States – 100% of the profit for 10 years
Section 80ID Profits and Gains of Hotels/Convention Centres in specified area Hotel or Convention Centre 100% of the profit for 5 consecutive years beginning from the year of operation
Section 80IE Certain Undertakings in North Eastern States Undertakings engaged in manufacture/ provision of specified goods/ services or undertake substantial expansion, in North Eastern States 100% of the profit for 10 consecutive years beginning from the year of commencement or completion of expansion, as may be applicable
Section 80JJA Profits and Gains of Specified Business Specified Business 100% of the profit for 5 consecutive years beginning from the year of commencement
Section 80JJAA Employment of New Employees Employer who was subject to tax audit u/s 44AB 30% of additional employee cost for 3 years including the year in which employment is provided
Section 80LA Certain Income of Offshore Banking Units in SEZ and IFSC Offshore Banking Units in SEZ or Unit of IFSC Offshore Banking Unit –
100% of the income (For 5 consecutive years
50% of the income (For next 5 years)
IFSC – 100% of the income for 10 consecutive years out of 15 years
beginning from the year in which permission is obtained
Section 80PA Certain income of Producer Companies Producer Companies engaged in eligible business 100% of the profit
Section 80RRB Royalty on Patents Individuals (Indian citizen or foreign citizen being resident in India) Rs.3,00,000/-
Or
Specified Income
– whichever is lower
Section 80QQB Royalty Income of Authors Individuals (Indian citizen or foreign citizen being resident in India)  Rs.3,00,000/-
Or
Specified Income
– whichever is lower
Section 80TTA Interest earned on Savings Accounts  Individual
Or
HUF (except senior citizen)
Upto Rs 10,000/-
Section 80TTB Interest Income earned on deposits (Savings/ FDs) Individual (60 yrs or above) Upto Rs 50,000/-
Section 80U Disabled Individuals Individuals Normal Disability: Rs. 75,000/-
Severe Disability: Rs. 1,25,000/-

Income tax deduction needs to be claimed at the time of filing your income tax return and no separate disclosure compliances have to be made. The amount of deductions should be reduced form the gross income to reach at the taxable amount.

The government has provided various provisions for taxpayers however, due to lack of knowledge, citizens neglect possible tax-saving options which will also make for smart investments. Get help from tax experts regarding which sections you need to fill while filing your income tax return.

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