Income Tax Deductions

Income Tax Deductions List

List of Income Tax Deductions for Sections 80C, 80CCC, 80CCD, and 80D for the Fiscal Year 2022–23 (Application Year 2023–24)

The income tax department has established a number of deductions from taxable income under chapter VI A deductions in an effort to promote savings and investments among taxpayers. Despite the fact that 80C is the most well-known, there are other deductions that help taxpayers to lower their tax obligations.

Let us understand these deductions in detail:

Section 80 Deduction List

Section 80C Investments

Section 80CCC Insurance Premium

Section 80CCD Pension Contribution

Section 80TTA Interest on Savings Account

Section 80GG House Rent Paid

Section 80E Interest on Education Loan

Section 80EE Interest on Home Loan

Section 80D Medical Insurance

Section 80DD Disabled Dependent

Section 80DDB Medical Expenditure

Section 80U Physical Disability

Section 80G Donations

Section 80GGB Company Contribution

Section 80GGC Contribution to Political Parties

Section 80RRB Royalty of a Patent

Section 80TTB Interest Income

Questions and Answers

Section 80C - Investment Tax Deductions

One of the most well-known and favoured sections among taxpayers is Section 80C because it enables individuals to lower their taxable income by making tax-saving investments or incurring qualifying costs. It permits a maximum annual deduction from the taxpayer's gross income of Rs. 1.5 lakh.

Both individuals and HUFs are eligible to take advantage of this discount. LLPs, corporations, and partnership businesses are not eligible for this deduction.

Subsections 80CCC, 80CCD (1), 80CCD (1b), and 80CCD (2) are all included in Section 80C.

The entire ceiling for claiming a deduction, including the subsections, is Rs. 1.5 lakh, with the exception of an extra deduction of Rs. 50,000 permitted under Section 80CCD(1b).

Section 80C and its subsections

80C Premium payments for life insurance, contributions to equity-linked savings plans, principal payments for house loans, SSY, NSC, SCSS, and other similar programmes.

80CCC Payment paid for mutual funds and pension programmes.

80CCD (1) Contributions made to government-sponsored programmes such the Atal Pension Yojana and the National Pension System, among others.

Investments in NPS up to Rs. 50,000 under 80CCD (1B).

80CCD (2) Employer's NPS contribution, up to 10% of base pay and any applicable dearness allowance.

Section 80C Deductions List

Investment Options Average Interest Lock-in Period Risk Factor

ELSS Funds 12% - 15% 3 years High

NPS Scheme 8% - 10% Till 60 years of age High

ULIP 8% - 10% 5 years Medium

Tax Saving FD Up to 8.40% 5 years Low

PPF 7.90% 15 years Low

Senior Citizen Savings Scheme 8.60% 5 years (can be extended for other 3 years) Low

National Savings Certificate 7.9% 5 years Low

Sukanya Samriddhi Yojana 8.50% Till girl child reaches 21 years of age (partial withdrawal allowed when she reaches 18 years) Low

Investment Options	Average Interest	Lock-in Period	Risk Factor
ELSS Funds	12% - 15%	3 years	High
NPS Scheme	8% - 10%	Till 60 years of age	High
ULIP	8% - 10%	5 years	Medium
Tax Saving FD	Up to 8.40%	5 years	Low
PPF	7.90%	15 years	Low
Senior Citizen Savings Scheme	8.60%	5 years (can be extended for other 3 years)	Low
National Savings Certificate	7.9%	5 years	Low
Sukanya Samriddhi Yojana	8.50%	Till girl child reaches 21 years of age (partial withdrawal allowed when she reaches 18 years)	Low

Get Income Tax Savings By Hiring a Tax Professional to Help You File

You could sometimes have investments or deductions that qualify for 80C but not have given your employer the necessary documentation. Additional TDS deductions might result from this. As long as you have the supporting documentation, you may still claim these deductions while filing electronically.

Interest on Savings Accounts, Section 80TTA

You may deduct up to Rs 10,000 from your interest income from savings accounts with banks, co-operative societies, or post offices if you are an individual or a HUF. Do consider interest from a savings account as additional income.

Fixed deposit, recurring deposit, and corporate bond interest income are not eligible for the section 80TTA deduction.

Interest From Deposits Held by Senior Citizens, Section 80TTB

For interest income received on deposits maintained by resident senior citizens (age 60 or more) with a bank, a post office, a co-operative, a society engaged in the banking industry, and other institutions, Section 80TTB allows a deduction of up to Rs 50,000. The maximum TDS deduction under Section 194A for senior persons has been increased as a consequence to Rs. 50,000. However, no deduction under section 80TTA is allowed in these circumstances. It should be emphasised that since tax is withheld at the source by banks, seniors age 75 and above who only receive pension and interest income are excused from submitting ITRs.

Section 80GG - Income Tax Deduction on House Rent Paid a. When HRA is not received, a deduction under Section 80GG is allowed for rent paid. The taxpayer should not possess a residence near their place of work, nor should their spouse or small kid.

The taxpayer should not own any additional self-occupied residential properties.
The taxpayer must pay rent and live in a flat.
Everyone may take use of the deduction.
The following are the minimum deductions that are available:
Rent paid less 10% of total income (adjusted)
Rs. 5,000 monthly
25% of the total adjusted income
*Adjusted Gross Total Income is obtained by subtracting certain deductions, exempt income, long-term capital gains, and income from non-residents and foreign corporations from the Gross Total Income.

It may be quite simple to use an online ITR e-filing tool like ClearTax since the limitations are determined automatically. Therefore, you do not need to worry about doing difficult computations.

From FY 2016–17 forward, the monthly deduction amount has increased from Rs 2,000 to Rs 5,000.

Interest on Education Loans, Section 80E

An person is permitted to deduct the interest paid on loans received to pursue higher education. This loan may have been obtained on behalf of the taxpayer, their spouse, their children, or a student over whom they have legal custody.

The 80E deduction is allowed for a maximum of 8 years (starting in the year when interest repayment begins), or until all interest has been paid, whichever comes first. The amount that may be claimed is not limited.

Interest on Home Loans for First-Time Home Owners, Section 80EEA

This is Section 80EEA, which offers taxpayers an additional deduction for mortgage interest payments. This provision exempts house owners who take out a home loan and pay interest on the loan totaling an extra Rs 1.5 lakhs, while provision 24 exempted interest on home loans up to Rs 2 lakh. Read this in depth.

Fiscal Years 2017–18 and 2016–17

If the loan was taken out in FY 2016–17, this deduction is available in FY 2017–18.

Only homeowners (individuals) with a single residence on the day the loan was approved are eligible for the deduction under section 80EE. The house loan must be for less than Rs 35 lakh, and the property value must be less than Rs 50 lakh. The financial institution's loan must have been approved between April 1, 2016, and March 31, 2017.

In addition to the Rs 2 lakh deduction (on the interest component of home loan EMI) permitted under section 24, there is an extra deduction of Rs 50,000 available on your house loan interest.

Fiscal Years 2013–14 and 2014–15

The deduction allowed under this clause throughout these fiscal years was for a first-time home costing little more than Rs. 40 lakh. You may only use this if your total debt during this time is less than Rs 25 lakh. Loan approval must occur between April 1, 2013, and March 31, 2014. The total deduction permitted under this clause, which is permitted for the fiscal years 2013–2014 and 2014–2015, cannot exceed Rs 1 lakh.

Deduction for Medical Insurance Premiums under Section 80D

Section 80D allows you (as a person or HUF) to deduct Rs. 25,000 for insurance for yourself, your spouse, and your dependant children. If your parents are under 60, you may also deduct an extra Rs 25,000 for their insurance. In the 2018 Budget, this sum was doubled from Rs 30,000 to Rs 50,000 for parents who are older than 60.

If both the taxpayer and the taxpayer's parent(s) are 60 years of age or older, the maximum deduction allowed by this clause is Rs. 1 lakh.

A resident person or a HUF is eligible to take advantage of the Section 80DD deduction on the following:

a. Costs associated with the medical care, education, and rehabilitation of a dependent person who is disabled

b. Making a payment or deposit to a designated plan for a dependant relative with a disability.

i. A fixed deduction of Rs. 75,000 is made when a disability is 40% or higher but less than 80%.

ii. A fixed deduction of Rs. 1,25,000 is made when there is a severe handicap (disability is 80% or more).

A certificate of incapacity from the designated medical authority is necessary to claim this deduction.

From FY 2015–16, the deduction thresholds of Rs. 50,000 and Rs. 1,000,000 have been increased to Rs. 75,000 and Rs. 1,25,000, respectively.

For individuals and HUFs under 60, see Section 80DDB - Deduction for Specified Diseases.

A resident person or a HUF is eligible for a deduction of up to Rs. 40,000. It may be used to cover any costs associated with the treatment of certain medical conditions for the owner or any of his dependents. Such a deduction is possible for a HUF in relation to medical costs related to certain designated illnesses for any HUF member.

For the elderly and the elderly

The individual or HUF taxpayer may claim a deduction of up to Rs 1 lakh if the elderly person for whose benefit the costs were spent. Up till FY 2017–18, a senior citizen and a super senior citizen may each claim a deduction of Rs. 60,000 and Rs. 80,000. Unlike before, this is now a standard deduction that is accessible to all senior people, including super senior citizens, up to Rs 1 lakh.

For claims of reimbursement

The amount of the deduction that the taxpayer may claim under this section must be reduced by any reimbursement of medical expenditures by an insurance or employer.

Also keep in mind that in order to claim such a deduction, you must have a prescription for such medical treatment from the relevant physician. Take a look at our in-depth article on Section 80DDB.

Section 80U - Deduction for Individuals with Disabilities

A resident with a physical impairment (including blindness) or mental retardation is eligible for a deduction of Rs. 75,000. One may be eligible for a deduction of Rs. 1,25,000 in cases of severe disability.

Section 80U deduction limits for FY 2015–16 were increased from Rs. 50,000 to Rs. 75,000 and from Rs. 1,000,000 to Rs. 1,25,000.

Income Tax Benefits for Donations to Social Causes under Section 80G

The different contributions listed in section 80G may be deducted up to 100% or 50%, with or without limitations.

Over Rs 2,000 in monetary gifts will no longer be eligible for a tax deduction starting in the 2017–18 fiscal year. Any method other than cash should be used to make donations above Rs 2000 in order to qualify for an 80G deduction.

Deduction on a Person's Donations to Political Parties under Section 80GGC

Any sum given to a political party or electoral trust may be deducted by an individual taxpayer under section 80GGC. Companies, municipal governments, and artificial juridical persons sponsored entirely or partially by the government are not eligible for it. Only if you pay in a method other than cash are you eligible for this deduction.

Section 80RRB - Income Tax Deduction for Patent Royalties

80RRB Deduction is possible for up to Rs. 3 lakh or the amount of the income received, whichever is smaller, for any royalties earned for patents filed on or after April 1, 2003 under the Patents Act, 1970. The taxpayer must be an Indian resident and an individual patentee. A certificate in the required format, properly signed by the required authority, must be provided by the taxpayer.

Interest Income on Deposits for Senior Citizens under Section 80TTB

With the introduction of a new section 80TTB in the 2018 budget, senior citizen deposit interest income will now be eligible for deductions. The maximum deduction allowed is Rs. 50,000.

There will be no further deductions permitted under section 80TTA. The threshold level for TDS on interest income payable to seniors will also be increased by amending section 194A of the Act in addition to section 80 TTB. According to the most recent Budget, the former cap of Rs 10,000 was raised to Rs 50,000.

Section 80 Deductions Summary Table

Section Deduction on Allowed Limit (maximum) FY 2022-23

80C Investment in PPF
– Employee’s share of PF contribution
– NSCs
– Life Insurance Premium payment
– Children’s Tuition Fee
– Principal Repayment of home loan
– Investment in Sukanya Samridhi

Account
– ULIPS
– ELSS
– Sum paid to purchase deferred annuity
– Five year deposit scheme
– Senior Citizens savings scheme
– Subscription to notified
securities/notified deposits scheme
– Contribution to notified Pension Fund set up by Mutual Fund or UTI.
– Subscription to Home Loan Account scheme of the National Housing Bank
– Subscription to deposit scheme of a public sector or company engaged in providing housing finance
– Contribution to notified annuity Plan of LIC
– Subscription to equity shares/ debentures of an approved eligible issue
– Subscription to notified bonds of NABARD Rs. 1,50,000

80CCC For amount deposited in annuity plan of LIC or any other insurer for a pension from a fund referred to in Section 10(23AAB) -

80CCD(1) Employee’s contribution to NPS account (maximum up to Rs 1,50,000) -

80CCD(2) Employer’s contribution to NPS account Maximum up to 10% of salary

80CCD(1B) Additional contribution to NPS Rs. 50,000

80TTA(1) Interest Income from Savings account Maximum up to Rs. 10,000

80TTB Exemption of interest from banks, post office, etc. Applicable only to senior citizens Maximum up to Rs. 50,000

80GG For rent paid when HRA is not received from employer Least of : – Rent paid minus 10% of total income – Rs. 5000/- per month – 25% of total income
80E Interest on education loan Interest paid for a period of 8 years

80EE Interest on home loan for first-time home owners Rs. 50,000

80D Medical Insurance – Self, spouse, children, Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old - Rs. 25,000, - Rs. 50,000

80DD Medical treatment for handicapped dependent or payment to specified scheme for maintenance of handicapped dependent – Disability is 40% or more but less than 80% – Disability is 80% or more – Rs. 75,000 – Rs. 1,25,000
80DDB Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD – For less than 60 years old – For more than 60 years old – Lower of Rs 40,000 or the amount actually paid – Lower of Rs 1,00,000 or the amount actually paid
80U Self-suffering from disability : – An individual suffering from a physical disability (including blindness) or mental retardation. – An individual suffering from severe disability – Rs. 75,000 – Rs. 1,25,000
80GGB Contribution by companies to political parties Amount contributed (not allowed if paid in cash)

80GGC Contribution by individuals to political parties Amount contributed (not allowed if paid in cash)

80RRB Deductions on Income by way of Royalty of a Patent Lower of Rs. 3,00,000 or income received

Section	Deduction on	Allowed Limit (maximum) FY 2022-23
80C	Investment in PPF – Employee’s share of PF contribution – NSCs – Life Insurance Premium payment – Children’s Tuition Fee – Principal Repayment of home loan – Investment in Sukanya Samridhi Account – ULIPS – ELSS – Sum paid to purchase deferred annuity – Five year deposit scheme – Senior Citizens savings scheme – Subscription to notified securities/notified deposits scheme – Contribution to notified Pension Fund set up by Mutual Fund or UTI. – Subscription to Home Loan Account scheme of the National Housing Bank – Subscription to deposit scheme of a public sector or company engaged in providing housing finance – Contribution to notified annuity Plan of LIC – Subscription to equity shares/ debentures of an approved eligible issue – Subscription to notified bonds of NABARD	Rs. 1,50,000
80CCC	For amount deposited in annuity plan of LIC or any other insurer for a pension from a fund referred to in Section 10(23AAB)	-
80CCD(1)	Employee’s contribution to NPS account (maximum up to Rs 1,50,000)	-
80CCD(2)	Employer’s contribution to NPS account	Maximum up to 10% of salary
80CCD(1B)	Additional contribution to NPS	Rs. 50,000
80TTA(1)	Interest Income from Savings account	Maximum up to Rs. 10,000
80TTB	Exemption of interest from banks, post office, etc. Applicable only to senior citizens	Maximum up to Rs. 50,000
80GG	For rent paid when HRA is not received from employer	Least of : – Rent paid minus 10% of total income – Rs. 5000/- per month – 25% of total income
80E	Interest on education loan	Interest paid for a period of 8 years
80EE	Interest on home loan for first-time home owners	Rs. 50,000
80D	Medical Insurance – Self, spouse, children, Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old	- Rs. 25,000, - Rs. 50,000
80DD	Medical treatment for handicapped dependent or payment to specified scheme for maintenance of handicapped dependent – Disability is 40% or more but less than 80% – Disability is 80% or more	– Rs. 75,000 – Rs. 1,25,000
80DDB	Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD – For less than 60 years old – For more than 60 years old	– Lower of Rs 40,000 or the amount actually paid – Lower of Rs 1,00,000 or the amount actually paid
80U	Self-suffering from disability : – An individual suffering from a physical disability (including blindness) or mental retardation. – An individual suffering from severe disability	– Rs. 75,000 – Rs. 1,25,000
80GGB	Contribution by companies to political parties	Amount contributed (not allowed if paid in cash)
80GGC	Contribution by individuals to political parties	Amount contributed (not allowed if paid in cash)
80RRB	Deductions on Income by way of Royalty of a Patent	Lower of Rs. 3,00,000 or income received

FAQ

On April 30, 2022, I invested 80 cents. Which year may I deduct this investment from my income?

When filing your tax return for the year in which the investment was made, you may deduct the cost of the investment. As a result, if you made the investment on April 30, 2022, you may deduct it from your income in the fiscal years 2022–2023.

My company has given me a loan so that I may pursue my further education. Can I use Section 80E to deduct the interest paid on such a loan?

Only if the loan was obtained from a financial institution for the purpose of pursuing higher education is it eligible for a Section 80E deduction for interest paid on the loan. Therefore, you will not be able to claim the interest under Section 80E if you take out a loan from your employer.

Is there a limitation or cap on how much money I may deduct under Section 80E?

There is no maximum limit set out by law for Section 80E deduction claims. Therefore, it is possible to deduct the real interest paid over the course of a year.

Can a business or an organisation profit from Section 80C?

Only individuals or a Hindu Undivided Family (HUF) are covered by Section 80C's requirements. As a result, a business or corporation cannot profit from Section 80C.

I've been paying a private insurance company for life insurance premiums. Can I deduct the cost of the premium I paid under Section 80C?

Any insurer that has been authorised by the Insurance Regulatory and Development Authority of India to accept payments for life insurance premiums, whether public or private, is eligible for a deduction under Section 80C. You may thus use the insurance premium you are paying to qualify for an 80C deduction.

When may I deduct the stamp duty I paid when buying a home or other property?

In accordance with Section 80C, you may continue to deduct the stamp duty paid for the acquisition of a home in the year in which the payment is made.

Can a business deduct contributions made under Section 80G?

Any taxpayer who makes a gift to one of the above organisations, funds, etc. qualifies for a deduction under Section 80G.

I am making monthly payments towards a medical insurance coverage that I, my wife, and my children all purchased. Additionally, I am covering the cost of a medical insurance policy that was purchased in the name of my elderly parents. Can I deduct both premiums that I paid?

You may deduct, up to a maximum of Rs 25,000, the premium you paid for the coverage you purchased for yourself, your spouse, and your children under Section 80D. In addition, you would be qualified to deduct up to Rs 50,000 of the premium paid for the coverage you purchased for your elderly parents (this limit was Rs 30,000 before FY 2017–18). As a result, you may deduct both premium payments made under Section 80D.

Does Section 80TTB exclude my FD interest?

Your interest income from a fixed deposit is free from taxation if you are a senior citizen over 60 according to Section 80TTB.

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