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Section 80 C income tax deductions for salaried & individuals self employed persons

 

 

Section Purpose Maximum limit
80C saving/investment/insurance 1,50,000
80D Self/parents 25K/50K
Section 24 Interest paid to home loan (self-occupied or let out ) 200000*
87A Tax rebate (full if Taxable income below 5 lakhs) 12,500
Standard Deduction for employees 50000
80EE Interest paid to home loan 1st-time buyers property below 50 lakhs loan amount below 35 lakhs 50,000
80CCD (1b) NPS senior citizens 50000
80GG Rent paid All individual without HRA 60000
80TTA income savings & FD below 60 10000
80TTB income savings & FD above60 50000
80U Person with disability 75000
80G donation to trust cash 2k /electronic 50-100%
80GGC donation to a political party cash 2k electronic 100%
section 54 capital gain tax 2nd house up to 2 crore
80E Education loan Interest paid to the bank for higher studies 100% up to 8 years
HRA (salaried) follow which one is less

HRA Received

50% of Basic +salary +DA

excess rent paid over 10% of salary

which ever is less
LTA 2 travel allowance by employer 2 times in 4 years full

 

 

What comes under Section 80c?

  1. Insurance Premium
  2. Fixed deposits five years above.
  3. epf
  4. Postal deposits
  5. PPF
  6. NPF
  7. 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.

 

Section 80CCC

Deduction for Life insurance Annuity Plan.

Section 80CCD

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.

Section 80DD

up to 1,25,000 treatment for a disabled person, certificate of disability is required.

Section 80DDB

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.

 

Primary Sidebar

  • Income tax slab for AY 2021-22 and FY 2020-21
  • Section 80 C income tax deductions for salaried & individuals self employed persons
  • income tax business code list AY 2019-20 for iTR Forms
  • Section 44AD | section 44ada |44AE (ITR -4 ) presumptive income
  • How to file Income tax return Online for Salaried & Self employed ITR 1 & 4 AY 2019-20
  • financial statements (PL, balance sheet, cash flow, financial ratios)
  • set off and carry forward of losses



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