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Section 80C to 80U Deduction [FY 2023-24]

Income Tax Deductions

Income Tax deductions specified under Chapter VIA of the Income Tax Act  

Income tax deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115BAC, except for deduction u/s 80CCD (2), 80CCH which will be applicable for New Tax Regime as well.

Income tax deduction [Section 80C TO 80CCD (1)]

 Deduction towards payments made to 

80C
  • Life Insurance Premium
  • Provident Fund
  • Subscription to certain equity shares
  • Tuition Fees
  • National Savings Certificate
  • Housing Loan Principal
  • Other various items
80CCC

Annuity plan of LIC or other insurer towards Pension Scheme
80CCD(1)
Pension Scheme of Central Government
group Combined deduction limit of ₹ 1,50,000

 

Income tax deduction [Section 80CCD(1B)]
Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1)
group
Deduction limit of ₹ 50,000

 

Income tax deduction [Section 80CCD(2)]

Deduction towards contribution made by an employer to the Pension Scheme of Central Government

If the Employer is a PSU or Others
group
Deduction limit of 10% of salary
If the Employer is Central or State Government
group
Deduction limit of 14% of salary

 

Income tax deduction [Section 80CCH]

Deduction in respect of contribution to Agnipath Scheme

Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund
group
Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited
Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund
group
Allowed a deduction in the computation of total income of the whole of the amount so contributed

 

Income tax deduction [Section 80D]

Deduction towards payments made to Health Insurance Premium & Preventive Health check up

For Self / Spouse or Dependent Children
group
₹ 25,000 (₹ 50,000 if any person is a Senior Citizen)
₹ 5,000 for preventive health check up, included in above limit
For Parents
group
₹ 25,000 (₹50,000 if any person is a Senior Citizen)
₹ 5,000 for preventive health check up, included in above limit

 

 

 

 

 

Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage

For Self/    Spouse or Dependent Children
group Deduction limit of ₹ 50,000
For Parents
group Deduction limit of ₹ 50,000

 

Income tax deduction [Section 80DD]
 

 

Deduction towards payments made towards maintenance or medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme
group

Flat deduction of
₹ 75,000
available for a person with Disability, irrespective of expense incurred
The deduction is
₹ 1,25,000
if the person has Severe Disability (80% or more).=

 

Income tax deduction [Section 80DDB]

Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases
group
Deduction limit of
₹ 40,000
(₹ 1,00,000 if Senior Citizen)

 

Income tax deduction [Section 80E]
Deduction towards interest payments made on loan for higher education of Self or relative
group Total amount paid towards interest on loan taken

 

Income tax deduction [Section 80EE]
Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017
group Deduction limit of
₹ 50,000
on the interest paid on loan taken

 

Income tax deduction [Section 80EEA]
Deduction available only to individuals  towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE
group Deduction limit of
₹ 1,50,000
on the interest paid on loan taken

 

Income tax deduction [Section 80EEB]
Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023
group Deduction limit of
₹ 1,50,000
on the interest paid on loan taken

 

Income tax deduction [Section 80G]

Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc.

Donation are eligible for deduction under the below categories

Without any limit
group
100% deduction
50% deduction
Subject to qualifying limit
group
100% deduction
50% deduction

 

 

Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding  ₹ 2000/-

 

Income tax deduction [Section 80GG]

Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary

Least of the following shall be allowed as deduction

Rent paid reduced by 10% of Total Income before this deduction ₹ 5,000 per month 25% of Total Income (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 115D)
Note: Form 10BA to be filled for claiming this deduction.

 

Income tax deduction [Section 80GGA]

Deduction towards Donations made for Scientific Research or Rural Development

Donation are eligible for deduction under the below categories:

Research Association or University, College or other Institution for

  • Scientific Research
  • Social Science or Statistical Research
Association or Institution for

  • Rural Development
  • Conservation of Natural Resources or for Afforestation
PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project
Funds notified by Central Government for

  • Afforestation
  • Rural Development
National Urban Poverty Eradication Fund as setup and notified by Central Government

 

info

Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹  2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession

Income tax deduction [Section 80GGC]
 

Deduction towards Donations made to Political Party or Electoral Trust
group
Deduction towards Donations made to Political Party or Electoral Trust

 

Income tax deduction [Section 80TTA]
 

Deduction on interest received on saving bank accounts by Non-Senior Citizens
group
Deduction limit of
₹ 10,000/-

Income tax deduction [Section 80TTB]
 

Deduction on interest received on deposits by Resident Senior Citizens
group
Deduction limit of
₹ 50,000/-

 

Income tax deduction [Section 80U]
 

Deductions for a resident individual taxpayer with Disability
group

Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred

Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred

 

Let us take an example of tax saving for individuals 

Secti​on 80C to 80U p​rovides certain deductions which can be claimed from Gross Total Income (GTI). After claiming these deductions from GTI, the income remaining is called as  Total Income. In other words, GTI less Deductions (under secti​on 80C to 80U) = Total Income (TI). Total income can also be understood as taxable income. Following table gives a better understanding

 

Computation of gross total income and Taxable Income

Particulars Amount
Income from salary XXXXX
Income from house property XXXXX
Profits and gains of business or profession XXXXX
Capital gains XXXXX
Income from other sources XXXXX
Gross Total Income XXXXX
Less : Deductions under Chapter VI-A (i.e. under s​ection 80C to​​​ 80U) (XXXXX)
Total Income (i.e., taxable income) XXXXX

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  1. Pingback: section 115bac of income tax act - New Tax Regime

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