Deductions on Section 80C



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Deductions on Section 80C

Deductions on Section 80C, 80CCC, 80CCD & 80D Income duty department with a view to encourage savings and investments amongst the taxpayers have handed colorful deductions from the taxable income under chapter VI A deductions. 80C being the most notorious, there are other deductions which are salutary for the taxpayers to reduce their duty liability. Let us understand these deductions in detail 80c Section 80C Investments Insurance Premium Section 80CCC Insurance Premium Insurance Premium Section 80CCD Pension donation nterest on Savings Account Section 80TTA Interest on Savings Account House Rent Paid Section 80GG House Rent Paid Interest on Education Loan Section 80E Interest on Education Loan Interest on Home Loan Section 80EE Interest on Home Loan Medical Insurance Section 80D Medical Insurance Handicapped Dependent Relative Section 80DD impaired Dependent Medical Expenditure Section 80DDB Medical Expenditure Physical Disability Section 80U Physical Disability individual donation to Political Parties Section 80G Donations individual donation to Political Parties Section 80GGB Company donation Companies donation tp political parties Section 80GGC donation to Political Parties kingliness of a Patent Section 80RRB kingliness of a Patent Interest Income Section 80TTB Interest Income constantly constantly Asked Questions Section 80C – Deductions on Investments Section 80C is one of the most popular and favourite sections amongst the taxpayers as it allows to reduce taxable income by making duty saving investments or incurring eligible charges. It allows a maximum deduction of Rs1.5 lakh every time from the taxpayers total income. The benefit of this deduction can be profited by individualities and HUFs. Companies, cooperation enterprises, LLPs can not mileage the benefit of this deduction. Section 80C includes subsections, 80CCC, 80CCD( 1), 80CCD( 1b) and 80CCD( 2). It’s important to note that overall limit including the subsections for claiming deduction is Rs1.5 lakh except an fresh deduction of Rs,000 allowed u/ s 80CCD( 1b) Section 80CCC – Insurance Premium/ Section 80CCD – Pension donation Eligible investments for duty deductions 80 C 80C allows deduction for investment made in PPF, EPF, LIC decoration, Equity linked saving scheme, top quantum payment towards home loan, stamp duty and enrollment charges for purchase of property, Sukanya smriddhi yojana( SSY), National saving instrument( NSC), elderly citizen savings scheme( SCSS), ULIP, duty saving FD for 5 times, structure bonds etc 80CCC Deduction for life insurance subvention plan. 80CCC allows deduction for payment towards subvention pension plans Pension entered from the subvention or quantum entered upon rendition of the subvention, including interest or perk accrued on the subvention, is taxable in the time of damage. 80CCD( 1) Deduction for NPS Employee’s donation under section 80CCD( 1) Maximum deduction allowed is least of the following 10 of payment( in case taxpayer is hand) 20 & of gross total income( in case of tone employed) Rs1.5 Lakh( limit allowed u/ s 80C) 80CCD( 1b) Deduction for NPS fresh deduction of Rs,000 is allowed for quantum deposited to NPS regard benefactions to Atal Pension Yojana is also eligible for deduction. 80CCD( 2) Deduction for NPS Employers donation is allowed for deduction upto 10 of introductory payment plus honey allowance under this section. Benefit in this section is allowed only to salaried individualities and not tone employed. Section 80CCE Then are some investment options that are allowed as deduction u/ s 80C. They not only help you with saving levies but also help you grow your plutocrat. A quick comparison for the options is tabulated below Investment options Average Interest Cinch in period for threat factor ELSS finances 12 – 15 3 times High NPS Scheme 8 – 10 Till 60 times of age High ULIP 8 – 10 5 times Medium duty saving FD 7 – 8 5 times Low PPF7.10 5 times Low elderly citizen savings scheme7.4 5 times( can be extended for other 3 times) Low National6.8 5 times Low Sukanya Samriddhi Yojana8.4 Till girl child reaches 21 times of age partial pullout allowed when she reached 18 times) Low Get Savings on Income levies With a Tax Expert to Help You train occasionally, you may have deductions or investments eligible for 80C, but have n’t submitted the attestations to your employer. This may beget to fresh TDS deductions. You can still claim these deductions whilee-filing, as long as you have the attestations with you. I WANT AN EXPERT TO HELP ME FILE Section 80 TTA – Interest on Savings Account Deduction from Gross Total Income for Interest on Savings Bank Account still, you may claim a deduction of maximum Rs 10, 000 against interest income from your savings regard with a bank, If you’re an individual or an HUF. Do include the interest from savings bank account in other income. Section 80TTA deduction isn’t available on interest income from fixed deposits, recreating deposits, or interest income from commercial bonds. Section 80GG – House Rent Paid Deduction for House Rent Paid Where HRA isn’t entered Section 80GG deduction is available for rent paid when HRA isn’t entered. The taxpayer, partner or minor child shouldn’t enjoy domestic accommodation at the place of employment b. The taxpayer shouldn’t have tone- enthralled domestic property in any other place c. The taxpayer must be living on rent and paying rent d. The deduction is available to all individualities Deduction available is the least of the following Rent paid minus 10 of acclimated total income Rs,000/- per month 25 of acclimated total income * * Acclimated Gross Total Income is arrived at after conforming the Gross Total Income for certain deductions, pure income, long- term capital earnings and income related tonon-residents and foreign companies. An onlinee-filing software like that of ClearTax can be extremely easy as the limits are bus- calculated. So, you don’t have to worry about making complex computations. From FY 2016- 17 available deduction has been raised to Rs,000 a month from Rs,000 per month. Section 80E – Interest on Education Loan Deduction for Interest on Education Loan for Higher Studies A deduction is allowed to an existent for interest on loans taken for pursuing advanced education. This loan may have been taken for the taxpayer, partner or children or for a pupil for whom the taxpayer is a legal guardian. 80E deduction is available for a outside of 8 times( beginning the time in which the interest starts getting repaid) or till the entire interest is repaid, whichever is before. There’s no restriction on the quantum that can be claimed. Easy and Accurate ITR Filing on ClearTax Train in 7 Mins| Minimal Data Entry| 100 Paperless E-File ITR For FREEGet an Expert supported Plan Section 80EE – Interest on Home Loan Deductions on Home Loan Interest for First Time Home Owners FY 2017- 18 and FY 2016- 17 This deduction is available in FY 2017- 18 if the loan has been taken in FY 2016- 17. The deduction under section 80EE is available only to home- possessors( individualities) having only one house property on the date of permission of the loan. The value of the property must be lower than Rs 50 lakh and the home loan must be lower than Rs 35 lakh. The loan taken from a fiscal institution must have been sanctioned between 1 April 2016 and 31 March 2017. There’s an fresh deduction of Rs,000 available on your home loan interest on top of deduction of Rs 2 lakh( on interest element of home loan EMI) allowed under section 24. FY 2013- 14 and FY 2014- 15 During these fiscal times, the deduction available under this section was first- time house worth Rs 40 lakh or lower. You can mileage this only when your loan quantum during this period is Rs 25 lakh or lower. The loan must be sanctioned between 1 April 2013 and 31 March 2014. The aggregate deduction allowed under this section can not exceed Rs 1 lakh and is allowed for FY 2013- 14 and FY 2014- 15. Section 80D – Medical Insurance Deduction for the decoration paid for Medical Insurance You( as an individual or HUF) can claim a deduction ofRs.,000 under section 80D on insurance for tone, partner and dependent children. An fresh deduction for insurance of parents is available over to Rs,000, if they’re lower than 60 times ofage.However, the deduction quantum is Rs 50, 000, If the parents are progressed above 60. In case, both taxpayer and parent( s) are 60 times or over, the maximum deduction available under this section is over toRs. 1 lakh. Example Rohan’s age is 65 and his father’s age is 90. In this case, the maximum deduction Rohan can claim under section 80D isRs.,000. From FY 2015- 16 a accretive fresh deduction ofRs.,000 is allowed for preventative health check. Section 80DD – impaired Dependent Deduction for Rehabilitation of Handicapped Dependent Relative Section 80DD deduction is available to a resident existent or a HUF and is available on Expenditure incurred on medical treatment( including nursing), training and recuperation of hindered dependent relative Payment or deposit to specified scheme for conservation of hindered dependent relative. Where disability is 40 or further but lower than 80 – fixed deduction of Rs,000. ii. Where there’s severe disability( disability is 80 or further) – fixed deduction of Rs. To claim this deduction a instrument of disability is needed from prescribed medical authority. From FY 2015- 16 – The deduction limit of Rs,000 has been raised to Rs,000 and Rs has been raised to Rs. Section 80DDB – Medical Expenditure Deduction for Medical Expenditure on tone or Dependent Relative a. For individualities and HUFs below age 60 A deduction up toRs.,000 is available to a resident existent or a HUF. It’s available with respect to any expenditure incurred towards treatment of specified medical conditions or affections for himself or any of his dependents. For an HUF, such a deduction is available with respect to medical charges incurred towards these specified affections for any of the HUF members. b. For elderly citizens and super elderly citizens In case the existent on behalf of whom similar charges are incurred is a elderly citizen, the individual or HUF taxpayer can claim a deduction up to Rs 1 lakh. Until FY 2017- 18, the deduction that could be claimed for a elderly citizen and a super elderly citizen was Rs,000 and Rs,000 independently. This has now come a common deduction available upto Rs 1 lakh for all elderly citizens( including super elderly citizens) unlike earlier. c. For payment claims Any payment of medical charges by an insurer or employer shall be reduced from the amount of deduction the taxpayer can claim under this section. Also flash back that you need to get a tradition for similar medical treatment from the concerned specialist in order to claim similar deduction. Read our detailed composition on Section 80DDB. Section 80U – Physical Disability Deduction for Person suffering from Physical Disability A deduction ofRs.,000 is available to a resident existent who suffers from a physical disability( including blindness) or internal deceleration. In case of severe disability, one can claim a deduction of Rs. From FY 2015- 16 – Section 80U deduction limit of Rs,000 has been raised to Rs,000 and Rs has been raised to Rs. Section 80G – Donations Deduction for donations towards Social Causes The colorful donations specified in u/ s 80G are eligible for deduction up to either 100 or 50 with or without restriction. From FY 2017- 18 any donations made in cash exceeding Rs,000 won’t be allowed as deduction. The donations above Rs 2000 should be made in any mode other than cash to qualify for 80G deduction..