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Deduction as per Income Tax Act for Salaried Person & Business / Profession & Senior Citizen/Super Senior Citizen
Edu-Visor Update 18-12-2021
What is Income Tax Deductions as per Income Tax Act?
A deduction from an Income Tax point of view is the benefit given for the investment Made/expenditure incurred. Such deductions help in reducing the tax payable.
INCOME TAX DEDUCTION IN INDIA
(FOR FY 2021-2022 / AY 2022-2023)
DEDUCTIONS FOR SALARIED PERSON
| SECTIONS | PARTICULARS | LIMIT /RATE |
|---|---|---|
| A) 80C | Life insurance premium, -Provident Fund, -Tuition fees, -Housing loan principal, -Subscription to certain equity shares, -National saving certificates, -Other various items. |
Combined Deduction of 80C & 80CCD & 80CCC Limit of ₹ 1,50,000 |
| B) 80CCC | -Annuity plan for LIC or other insurer towards Pension Scheme | Combined Deduction of 80C & 80CCD & 80CCC Limit of ₹ 1,50,000 |
| C) 80CCD(1) | Pension scheme for Central Government. | Combined Deduction of 80C & 80CCD & 80CCC Limit of ₹ 1,50,000 |
| D) 80CCD(1B) | Pension Scheme of Central Government | ₹ 50,000 |
| E) 80CCD(2) | Other Pension -If Employer is a PSU, State government orOther -If Employer is Central government. |
10% of salary |
| F) 80D | Health Insurance Premium & Preventive Health check up. -For Self / Spouse or Dependent Children -For Parents |
₹50,000 ₹ 50,000 |
| G) 80DD | Disable Dependent CONDITIONS:- 1. Dependent disable relative includes spouse, children, brother and sister. 2. No benefit u/s 80U to disable relative. |
₹ 75,000 ₹ 1,25,000 (if the person has Severe Disability 80% or more) |
| H) 80DDB | Specified Diseases. Specified diseases as per rule 11DD are – 1) Neurological disease: (a) Dementia (b) Dystonia MusculorumDeformans (c) Motor Neuron Disease (d) Ataxia (e) Chorea (f) Hemiballismus (g) Aphasia (h) Parkinson’s Disease (all neurological disease must have disability of 40%and above) 2) Cancer 3) Full Blown Acquired Immuno Deficiency Syndrome (AIDS) 4) Chronic Renal Failure 5) Hemophilia 6) Thalassaemia. |
₹ 40,000 |
| I) 80E | Interest paid on Loan taken for Higher Education | 100% |
| J) 80EE | Interest paid on House loan CONDITIONS:- 1. No other residential house property. 2. Loan is sanctioned between 1st April 2016 to 31st March 2017. 3. Value of the residential house property does not exceed 50 lakhs. 4. Amount of loan does not exceed ` 35 lakhs |
₹ 50,000 on the interest paid on loan taken |
| K) 80EEA | Interest paid on House loan CONDITIONS:- 1. No other residential house property. 2. Loan is sanctioned between 1st April 2019 to 31st March 2022. 3. Value of the residential house property does not exceed 45 lakhs. 4. Deduction should not have been claimed u/s 80EE. |
₹ 1,50,000 on the interest paid on loan taken |
| L) 80EEB | Interest paid on electronicvehicle loan CONDITION:- 1.Loan is sanctioned between 1st April 2019 to 31st March 2023 |
₹ 1,50,000 on the interest paid on loan taken |
| M) 80G | Donations | 100% or 50% (No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000 ) |
| N) 80GG | Rent
CONDITIONS:- 1. No House rent allowance. 2. No house at the place of employment. 3. No claim for the benefit of self-occupied house property. 4. Proof for payment of rent. |
Lower of * 5000 per month * 25% of total income * Rent paid – 10% of total income |
| O) 80GGA | Donation for scientific research or rural development | In Cash – Upto 10,000
Other words – 100% |
| P) 80GGC | Contribution to Political parties | In Cash – No Deduction
Other mode – 100% |
| Q) 80TTA | Interest on saving account. | ₹ 10,000 |
| R) 80TTB | Interest for senior citizens | ₹ 50,000 |
| S) 80U | Disabled | ₹ 75,000 (deduction for a person with Disability), ₹ 1,25,000 (deduction for a person with Severe Disability (80% or more) |
NOTE:-
1. A salaried person can avail deductions u/s80C,80CC,80CCD(1), 80CCD(1B),80CCD(2), 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80TTA, 80TTB, 80U as per INCOME TAX ACT.
2. They can avail the deduction u/s 80DD only if he is not taking the benefits u/s 80U.
3. Deduction should not have been claimed u/s 80EE if they are availing the deduction u/s80EEA.
DEDUCTIONS FOR BUSINESS / PROFESSION
| SECTIONS | PARTICULARS | LIMIT /RATE |
|---|---|---|
| A) 80C | Life insurance premium, -Provident Fund, -Tuition fees, -Housing loan principal, -Subscription to certain equity shares, -National saving certificates, -Other various items. |
Combined Deduction of 80C & 80CD(1) & 80CCC Limit of ₹ 1,50,000 |
| B) 80CCC | -Annuity plan for LIC or other insurer towards Pension Scheme | Combined Deduction of 80C & 80CD(1) & 80CCC Limit of ₹ 1,50,000 |
| C) 80CD(1) | Pension scheme for Central Government. | Combined Deduction of 80C & 80CD(1) & 80CCC Limit of ₹ 1,50,000 |
| D) 80CCD(1B) | Pension Scheme of Central Government | ₹ 50,000 |
| E) 80CCD(2) | Other Pension -If Employer is a PSU, State government or Other -If Employer is Central government. |
10% of salary 14% of Salary |
| F) 80D | Health Insurance Premium & Preventive Health check up. -For Self / Spouse or Dependent Children -For Parents |
₹ 25,000 (₹ 50,000 if any person is a Senior Citizen) ₹ 25,000 (₹50,000 if any person is a Senior Citizen) |
| G) 80DD | Disable Dependent CONDITIONS:- 1. Dependent disable relative includes spouse, children, brother and sister. 2. No benefit u/s 80U to disable relative. |
₹ 75,000 ₹ 1,25,000 (if the person has Severe Disability 80% or more) |
| H) 80DDB | Specified Diseases. Specified diseases as per rule 11DD are – 1) Neurological disease: (a) Dementia (b) Dystonia Musculorum Deformans (c) Motor Neuron Disease (d) Ataxia (e) Chorea (f) Hemiballismus (g) Aphasia (h) Parkinson’s Disease (all neurological disease must have disability of 40% and above) 2) Cancer 3) Full Blown Acquired Immuno Deficiency Syndrome (AIDS) 4) Chronic Renal Failure 5) Hemophilia 6) Thalassaemia. |
₹ 40,000 (₹ 1,00,000 if Senior Citizen) |
| I) 80E | Interest paid on Loan taken for Higher Education | 100% |
| J) 80EE | Interest paid on House loan CONDITIONS:- 1. No other residential house property. 2. Loan is sanctioned between 1st April 2016 to 31st March 2017. 3. Value of the residential house property does not exceed 50 lakhs. 4. Amount of loan does not exceed ` 35 lakhs |
₹ 50,000 on the interest paid on loan taken |
| K) 80EEA | Interest paid on House loan CONDITIONS:- 1. No other residential house property. 2. Loan is sanctioned between 1st April 2019 to 31st March 2022. 3. Value of the residential house property does not exceed 45 lakhs. 4. Deduction should not have been claimed u/s 80EE. |
₹ 1,50,000 on the interest paid on loan taken |
| L) 80EEB | Interest paid on electronic vehicle loan CONDITION:- 1.Loan is sanctioned between 1st April 2019 to 31st March 2023 |
₹ 1,50,000 on the interest paid on loan taken |
| M) 80G | Donations Subject to qualifying limit |
100% or 50% (No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000 ) |
| N) 80GGC | Contribution to Political parties | In Cash – No Deduction
Other mode – 100% |
| O) 80GG | Rent
CONDITIONS:- 1. No House rent allowance. 2. No house at the place of employment. 3. No claim for the benefit of self-occupied house property. 4. Proof for payment of rent. |
Lower of * 5000 per month * 25% of total income * Rent paid – 10% of total income |
| P) 80IA | Industrial under takings CONDITION:- 1.Commencement of business on or after the 1-4-1995 but before 01-04-2017. |
100% of profit for 10 consecutive Annual years |
| Q) 80IAB | Undertaking in special economic zone
CONDITIONS:- 1.It must be engaged in the business of developing a Special Economic Zone (SEZ). 2. Such SEZ shall be notified on or after 1-4-2005 under the Special Economic Zones Act, 2005. 3. Such development has begun before 01-04-2017. |
100% of profit for 10 consecutive Annual years |
| R) 80IB | Profit & Gain from undertaking engaged in: -Industrial Undertaking -Industrial & Scientific research -Mineral oils -Developing & Building housing projects. - Integrated handling, storage & transportation of food grains unit. -Processing preservation and packaging of units or vegetables and meat products. -Operating & maintaining hospital in rural area. |
100% or 25% of profit |
| S) 80IBA | Profit & Gains from Housing projects | 100% of profit |
| T) 80IC | Undertaking in special category states : -Himachal Pradersh -Sikkim -Uttaranchal -North Eastern states |
100% for 1st 5 Annual year and 25% for next 5 Annual year. (30% for a company) |
| U) 80IE | Undertakings in North Eastern States | 100% of profit for 10 Annual year |
| V) 80JJA | Profit & Gains of business of collection & processing of Biodegradable waste | 100% for 5 consecutive Annual year |
| W) 80JJAA | Employment of new workmen | 30% of additional cost for 3 Annual year |
| X) 80QQB | Royalty income of authors of books | Lower of: *100% of such income *3,00,000 |
| Y) 80RRB | Royalty on Patents | Lower of: *100% of such income *3,00,000 |
| Z) 80TTA | Interest on saving account. | ₹ 10,000 |
| AA) 80TTB | Interest for senior citizens | ₹ 50,000 |
| AB) 80U | Disabled | ₹ 75,000 (deduction for a person with Disability), ₹ 1,25,000 (deduction for a person with Severe Disability (80% or more) |
NOTE:-
1. A BUSINESS PERSON CAN AVAIL DEDUCTIONS 80C, 80CCC, 80CD(1), 80CCD(1B), 80CCD(2), 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGC, 80IA, 80IAB, 80IB, 80IBA, 80IC, 80IE, 80JJA, 80JJAA, 80QQB, 80RRB, 80TTA, 80TTB, 80U AS PER INCOME TAX ACT.
2. They can avail the deduction u/s 80DD only if he is not taking the benefits u/s 80U.
3. Deduction should not have been claimed u/s 80EE if they are availing the deduction u/s80EEA..
DEDUCTIONS FOR SENIOR CITIZEN/SUPER SENIOR CITIZEN
| SECTIONS | PARTICULARS | LIMIT /RATE |
|---|---|---|
| A) 80C | Life insurance premium, -Provident Fund, -Tuition fees, -Housing loan principal, -Subscription to certain equity shares, -National saving certificates, -Other various items. |
Combined Deduction of 80C & 80CCD(1) & 80CCC Limit of ₹ 1,50,000 |
| B) 80CCC | -Annuity plan for LIC or other insurer towards Pension Scheme | Combined Deduction of 80C & 80CCD(1) & 80CCC Limit of ₹ 1,50,000 |
| C) 80CCD(1) | Pension scheme for Central Government. | Combined Deduction of 80C & 80CCD(1) & 80CCC Limit of ₹ 1,50,000 |
| D) 80CCD(1B) | Pension Scheme of Central Government | ₹ 50,000 |
| E) 80CCD(2) | Other Pension -If Employer is a PSU, State government or Other -If Employer is Central government. |
10% of salary 14% of Salary |
| F) 80D | Health Insurance Premium & Preventive Health check up. -For Self / Spouse or Dependent Children -For Parents |
₹ 50,000 ₹ 50,000 |
| G) 80DD | Disable Dependent CONDITIONS:- 1. Dependent disable relative includes spouse, children, brother and sister. 2. No benefit u/s 80U to disable relative. |
₹ 75,000 ₹ 1,25,000 (if the person has Severe Disability 80% or more) |
| H) 80DDB | Specified Diseases. Specified diseases as per rule 11DD are – 1) Neurological disease: (a) Dementia (b) Dystonia Musculorum Deformans (c) Motor Neuron Disease (d) Ataxia (e) Chorea (f) Hemiballismus (g) Aphasia (h) Parkinson’s Disease (all neurological disease must have disability of 40% and above) 2) Cancer 3) Full Blown Acquired Immuno Deficiency Syndrome (AIDS) 4) Chronic Renal Failure 5) Hemophilia 6) Thalassaemia. |
₹ 100,000 |
| I) 80E | Interest paid on Loan taken for Higher Education | 100% |
| J) 80EE | Interest paid on House loan CONDITIONS:- 1. No other residential house property. 2. Loan is sanctioned between 1st April 2016 to 31st March 2017. 3. Value of the residential house property does not exceed 50 lakhs. 4. Amount of loan does not exceed ` 35 lakhs |
₹ 50,000 on the interest paid on loan taken |
| K) 80EEA | Interest paid on House loan CONDITIONS:- 1. No other residential house property. 2. Loan is sanctioned between 1st April 2019 to 31st March 2022. 3. Value of the residential house property does not exceed 45 lakhs. 4. Deduction should not have been claimed u/s 80EE. |
₹ 1,50,000 on the interest paid on loan taken |
| L) 80EEB | Interest paid on electronic vehicle loan CONDITION:- 1.Loan is sanctioned between 1st April 2019 to 31st March 2023 |
₹ 1,50,000 on the interest paid on loan taken |
| M) 80G | Donations Subject to qualifying limit |
100% or 50% (No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000 ) |
| N) 80GG | Rent
CONDITIONS:- 1. No House rent allowance. 2. No house at the place of employment. 3. No claim for the benefit of self-occupied house property. 4. Proof for payment of rent. |
Lower of * 5000 per month * 25% of total income * Rent paid – 10% of total income |
| O) 80GGA | Donation for scientific research or rural development | In Cash – Upto10,000
Other words – 100% |
| P) 80GGC | Contribution to Political parties. | In Cash – No Deduction
Other mode – 100% |
| Q) 80TTB | Interest for senior citizens | 50,000 |
| R) 80U | Disabled | ₹ 75,000 (deduction for a person with Disability), ₹ 1,25,000 (deduction for a person with Severe Disability (80% or more) |
NOTE:-
1. A senior citizen can avail deductions u/s80C,80CC, 80CCD(1), 80CCD(1B), 80CCD(2), 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80TTB, 80U as per INCOME TAX ACT
2. They can avail the deduction u/s 80DD only if he is not taking the benefits u/s 80U.
3. Deduction should not have been claimed u/s 80EE if they are availing the deduction u/s80EEA