Interest paid to home loan (self-occupied or let out )
Tax rebate (full if Taxable income below 5 lakhs)
Interest paid to home loan 1st-time buyers property below 50 lakhs loan amount below 35 lakhs
NPS senior citizens
Rent paid All individual without HRA
income savings & FD below 60
income savings & FD above60
Person with disability
donation to trust
cash 2k /electronic 50-100%
donation to a political party
cash 2k electronic 100%
capital gain tax
2nd house up to 2 crore
Education loan Interest paid to the bank for higher studies
100% up to 8 years
follow which one is less
50% of Basic +salary +DA
excess rent paid over 10% of salary
which ever is less
2 travel allowance by employer 2 times in 4 years
What comes under Section 80c?
- Insurance Premium
- Fixed deposits five years above.
- Postal deposits
- Mutual funds ELSS
You can get a tax deduction up to 150000 on your Total taxable income on this 80C Section along with other income tax deduction sections.
Deduction for Life insurance Annuity Plan.
Contribution to Pension Account 10% salary of the employee. 20% gross total income of self-employed.
80CCD (1B) 50,000 Extra deduction (150000+50000) for NPS contribution.
80CCD (2) 10% deduction from employer salary contribution made by the employer to EPF pension.
80 TTA Deduction up to 10,000 interest earned on a savings account. not FD and RD.
80GG Deduction for House Rent paid (if HRA Not received).
applicable for employees as well as Self employed.
7*12=84,000 or 25% adjusted income or rent paid – 10% of adjusted income.
NOTE: tax Prayer /spouse should not own house within the residing area up to 60KM.
Section 80E: Deduction for Higher education loan interest paid (term 8 years, no limit to claim).
Section 80EE: Home loan interest Deduction 11st time home buyer only not for the 2nd house.
Interest claim up to 50,000 Per year & 2,00,000 (under section 24).
The property value between 35-50 lakh and loan must be issued by the financial institution.
Section 80CCG -> Discontiued from FY 2017.
Section 80D Deduction for Medical insurance
Self /Spouse/ children 25,000
Parents below 60 years additional 25,000
Parents above 60+ 30,000
Some changes in budget 2018.
up to 1,25,000 treatment for a disabled person, certificate of disability is required.
Medical Expenditure on Self or Dependent, a prescription required.
Dedcutions upto 40,000
Senior citizens 1,00,000.
Section 80U Physical Disability -> up to 75,000.
Section 80G: Donations
50% or 100% based on organization.
2000 above donations by cash not allowed for deductions.
only allows if made electronically.
Section 80GGB company to Political Party.
Section 80GGC: any person to Political Parties
NOTE: donation made to the political party has 100% deduction. but it should be online.
Section 80RRB royalty for a patent registered on or after 01.04.2003 under the Patents Act 1970. up to Rs. 3 lakhs.
Section 80 TTB: deduction up to 50,000 from saving account interest for senior citizens 60+. (80 TTA not allowed).
income tax deductions for salaried employees
In addition the above deductions
HRA Already discussed above.
10% employer contribution to pension.
LTA-> Leave Travel allowance: given by the employer to the employee or his family.
two travels in a block of four years. only domestic travels within India by bus, train, air.