{"id":9270,"date":"2020-10-18T20:59:15","date_gmt":"2020-10-18T15:29:15","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=9270"},"modified":"2023-09-27T13:55:52","modified_gmt":"2023-09-27T08:25:52","slug":"income-tax-deduction-u-s-80c-80u","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/","title":{"rendered":"Income Tax Deduction u\/s 80C-80U"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e1cbd362dee\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e1cbd362dee\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#INCOME_TAX_DEDUCTION_UNDER_SECTION80C-80U_TO_INDIVIDUALS_HUF\" title=\"INCOME TAX DEDUCTION UNDER SECTION80C-80U TO INDIVIDUALS, HUF\">INCOME TAX DEDUCTION UNDER SECTION80C-80U TO INDIVIDUALS, HUF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Income_Tax_Deduction\" title=\"Income Tax Deduction\">Income Tax Deduction<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Section_80C-80U\" title=\"Section 80C-80U\">Section 80C-80U<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Section_80C\" title=\"Section 80C\">Section 80C<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Best_Section_80C_instruments_That_can_reduce_your_tax_Burden\" title=\"Best Section 80C instruments That can reduce your tax Burden\u00a0\u00a0\">Best Section 80C instruments That can reduce your tax Burden\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Tax_Saving_Investment_Options_under_section_80C\" title=\"Tax Saving Investment Options under section 80C\">Tax Saving Investment Options under section 80C<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Investment_in_Public_Provident_Fund\" title=\"Investment in Public Provident Fund:\">Investment in Public Provident Fund:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Investment_in_National_Savings_Certificate\" title=\"Investment in National Savings Certificate:\">Investment in National Savings Certificate:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#The_premium_on_a_Life_insurance_policy\" title=\"The premium on a Life insurance policy:\">The premium on a Life insurance policy:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Repayment_of_the_principal_on_the_housing_loan\" title=\"Repayment of the principal on the housing loan:\">Repayment of the principal on the housing loan:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#ADDITIONAL_DEDUCTION_CAN_BE_CLAIMS_NOT_COVERED_US_80C\" title=\"ADDITIONAL DEDUCTION CAN BE CLAIMS NOT COVERED U\/S 80C\">ADDITIONAL DEDUCTION CAN BE CLAIMS NOT COVERED U\/S 80C<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Section_80TTA_Interest_on_savings_accounts\" title=\"Section 80TTA: Interest on savings accounts\">Section 80TTA: Interest on savings accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Section_80CCG_Investment_made_in_equity_saving_scheme\" title=\"Section 80CCG: Investment made in\u00a0equity saving scheme\">Section 80CCG: Investment made in\u00a0equity saving scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Income_Tax_Deduction_under_Section_80D\" title=\"Income Tax Deduction under Section 80D \">Income Tax Deduction under Section 80D <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Section_80D_Payment_for_the_medical_insurance_premium_and_health_check-ups\" title=\"Section 80D Payment for the medical insurance premium and health check-ups\">Section 80D Payment for the medical insurance premium and health check-ups<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Section_80EE_Interest_on_loan_taken_for_the_purchase_of_residential_property\" title=\"Section 80EE: Interest on loan taken for the purchase of residential property\">Section 80EE: Interest on loan taken for the purchase of residential property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Section_80GG_Tax_exemption_for_leases_purchased_in_favors_of_FY-20-21\" title=\"Section 80GG: Tax exemption for leases purchased in favors of FY-20-21\">Section 80GG: Tax exemption for leases purchased in favors of FY-20-21<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Summary_of_Different_type_of_Income-tax_exemption_as_per_the_Income-tax_Act_1961\" title=\"Summary of Different type of Income-tax exemption as per the Income-tax Act, 1961\">Summary of Different type of Income-tax exemption as per the Income-tax Act, 1961<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Summary_View_on_Tax_Exemption_on_the_bases_of_residence_status\" title=\"Summary View on Tax Exemption on the bases of residence status\u00a0\">Summary View on Tax Exemption on the bases of residence status\u00a0<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#Deduction_us_80CCD_of_Income_Tax_Act_1961\" title=\"Deduction u\/s 80CCD of Income Tax Act, 1961\">Deduction u\/s 80CCD of Income Tax Act, 1961<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/income-tax-deduction-u-s-80c-80u\/#New_TDS_deduction_No_cash_transactions_exceeding_1_Crore_-Section_194N\" title=\"New TDS deduction No cash transactions exceeding 1 Crore -Section 194N\">New TDS deduction No cash transactions exceeding 1 Crore -Section 194N<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Section80C-infographic-Content.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9274\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Section80C-infographic-Content-462x1024.jpg\" alt=\"www.carajput.com; Income Tax Deduction\" width=\"1108\" height=\"2455\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Section80C-infographic-Content-462x1024.jpg 462w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Section80C-infographic-Content-135x300.jpg 135w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Section80C-infographic-Content-768x1702.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Section80C-infographic-Content.jpg 798w\" sizes=\"(max-width: 1108px) 100vw, 1108px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"INCOME_TAX_DEDUCTION_UNDER_SECTION80C-80U_TO_INDIVIDUALS_HUF\"><\/span><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/www.incometaxindia.gov.in\/Charts%20%20Tables\/Deductions.htm\">INCOME TAX DEDUCTION<\/a> UNDER SECTION80C-80U TO INDIVIDUALS, HUF<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax_Deduction\"><\/span><span style=\"color: #000080;\"><strong>Income Tax Deduction<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The income<a href=\"https:\/\/carajput.com\/blog\/all-about-tan\/amp\/\"> Tax deduction<\/a> is a decrease in tax liability from the gross taxable income. Tax deductions are reduced from total income, also known as adjusted gross income.<\/p>\n<p>As per the provision of the income tax act, 1961 the amount of tax deductions varies as per different earnings are handled accordingly. An additional deduction of Rs. 1, 50,000 for home loan interest is given for the purchasing of affordable houses of up to Rs.45,00,000 for the current year ended on March 2020.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Section_80C-80U\"><\/span>Section 80C-80U<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Section_80C\"><\/span><span style=\"color: #000080;\"><strong>Section 80C<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Section 80C is by far the most commonly used choice for income tax savings. In this case, a person or a HUF (Hindu Undivided Families) who invests or spends on fixed tax-saving schemes can claim a tax deduction of up to Rs. 1.5 lakh.<br \/>\nWith effect from 1<sup>st<\/sup> April 2016, the income tax abolished section 88 and introduced the new Section 80C in this place. This section analyzed the payment made under this provision. Eligible taxpayers are entitled to require gross deductions of up to Rs. 1,50,000 per year.<\/p>\n<p>The Indian Government also supports some of them as tax-saving instruments (PPF, NPS, etc.) to enable individuals to save and accumulate in retirement. Spendings\/investment u \/ s 80C is not approved as a deduction from profits resulting from capital gains.<\/p>\n<p>This ensures that if the individual&#8217;s income consists of capital gains on its own, Section 80C can not be used for the purposes of saving tax. Any of the investments mentioned below are eligible for exemption under Section 80C, 80CCC, and 80CCD(1) up to a limit of Rs 1.5 lakh. All the individuals and Hindu undivided families are eligible for deduction under section 80C of the income tax act, 1961.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Best_Section_80C_instruments_That_can_reduce_your_tax_Burden\"><\/span><span style=\"color: #000080;\">Best Section 80C instruments That can reduce your tax Burden\u00a0\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\">The following investments and expenditures are included in this section:<\/span><\/p>\n<h3 class=\"text-center\"><span class=\"ez-toc-section\" id=\"Tax_Saving_Investment_Options_under_section_80C\"><\/span>Tax Saving Investment Options under section 80C<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table class=\"table\" style=\"height: 657px;\" width=\"1030\">\n<tbody>\n<tr>\n<th>80C Investment Option<\/th>\n<th>Lock-In Period<\/th>\n<th>Return<\/th>\n<th>Risk<\/th>\n<th>Taxability<\/th>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/tax2win.in\/guide\/public-provident-fund-ppf\" target=\"_blank\" rel=\"noopener noreferrer\">PPF<\/a><\/td>\n<td>15 Years<\/td>\n<td>7.9%<\/td>\n<td>Risk-Free<\/td>\n<td>Interest: Exempt Withdrawal: Exempt<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/tax2win.in\/guide\/sukanya-samriddhi-yojana\" target=\"_blank\" rel=\"noopener noreferrer\">SSY<\/a><\/td>\n<td>21 Years<\/td>\n<td>8.4%<\/td>\n<td>Risk-Free<\/td>\n<td>Interest: Exempt Withdrawal: Exempt<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/tax2win.in\/guide\/elss-equity-linked-saving-schemes\" target=\"_blank\" rel=\"noopener noreferrer\">ELSS<\/a><\/td>\n<td>3 Years<\/td>\n<td>10-15% (approx)<\/td>\n<td>Risky<\/td>\n<td>Dividend is exempt<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/tax2win.in\/guide\/income-tax-on-fixed-deposit-interest\" target=\"_blank\" rel=\"noopener noreferrer\">FD<\/a><\/td>\n<td>5 Years<\/td>\n<td>7-8% (approx)<\/td>\n<td>Risk-Free<\/td>\n<td>Interest is taxable<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/tax2win.in\/guide\/nsc-national-savings-certificate\" target=\"_blank\" rel=\"noopener noreferrer\">NSC<\/a><\/td>\n<td>5 Years<\/td>\n<td>7.9%<\/td>\n<td>Risk-Free<\/td>\n<td>Interest is taxable<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/tax2win.in\/guide\/senior-citizen-saving-scheme\" target=\"_blank\" rel=\"noopener noreferrer\">SCSS<\/a><\/td>\n<td>5 Years<\/td>\n<td>8.6%<\/td>\n<td>Risk-Free<\/td>\n<td>Interest is Taxable<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/tax2win.in\/guide\/unit-link-insurance-plan-ulip\" target=\"_blank\" rel=\"noopener noreferrer\">ULIP<\/a><\/td>\n<td>5 Years<\/td>\n<td>8-10% (approx)<\/td>\n<td>Risky<\/td>\n<td>Returns are taxfree subject to certain conditions taxable<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/tax2win.in\/guide\/nps-national-pension-scheme\" target=\"_blank\" rel=\"noopener noreferrer\">NPS<\/a><\/td>\n<td>Till Retirement<\/td>\n<td>8-10% (approx)<\/td>\n<td>Risk<\/td>\n<td>Return: Partially exempt<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"well\">\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Income-Tax-Deductions-Financial-Year-2020-2021.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9276\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Income-Tax-Deductions-Financial-Year-2020-2021.jpg\" alt=\"www.carajput.com; Income Tax Deduction\" width=\"1077\" height=\"1021\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Income-Tax-Deductions-Financial-Year-2020-2021.jpg 637w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/Income-Tax-Deductions-Financial-Year-2020-2021-300x284.jpg 300w\" sizes=\"(max-width: 1077px) 100vw, 1077px\" \/><\/a><\/p>\n<\/div>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Investment_in_Public_Provident_Fund\"><\/span><span style=\"color: #000080;\"><strong>Investment in Public Provident Fund<\/strong>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">You will claim a deduction for Rs. 1,50,000 per year for contributions made in the Public Provident Fund account. Receipts are tax-free on maturity and withdrawal.<\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Investment_in_National_Savings_Certificate\"><\/span><span style=\"color: #000080;\"><strong>Investment in National Savings Certificate<\/strong><\/span>:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">under section 80C, the National Savings Certificate is liable for deductions in the year of acquisition. Interest earned on such certificates is liable for tax deductions, but it becomes taxable at the date of retirement.<\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong>Fixed deposit investment<\/strong>:<\/span> According to section 80C, interest received\u00a0on fixed deposits for a period of not less than five years is eligible for a tax deduction. Tax-exemption on interest earnings on deposits with banks has been raised from 10,000 to 50,000 only for senior citizens. In addition, under section 194A, TDS is not required to be excluded and it has been applied to both FD and RD schemes.<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"The_premium_on_a_Life_insurance_policy\"><\/span><span style=\"color: #000080;\"><strong>The premium on a Life insurance policy<\/strong>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">As per section 80C of the income tax act, 1961, You will claim a refund for the premium charged for a life insurance policy.<\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong>Contribution to Employee Provident Fund<\/strong>:<\/span> You will demand a tax exemption for the payment made under section 80C to the Employee Provident Fund. The government will contribute 12% of the EPF contribution to new workers (with less than 3 years of employment) in all sectors. In contrast to the contribution made 12 percent earlier, for new women employers (with less than 3 years of employment) contribute just 8 percent of the wage as an EPF contribution.<\/li>\n<li><span style=\"color: #000080;\"><strong>Equity-oriented mutual funds:<\/strong><\/span> A tax-deductible can be claimed on contributions made in any mutual fund unit, whether or not it is listed on the stock exchange.<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Repayment_of_the_principal_on_the_housing_loan\"><\/span><span style=\"color: #000080;\"><strong>Repayment of the principal on the housing loan<\/strong>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">You will demand a tax deduction under section 80C for the principal amount charged on the home loan.<\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong>Payments of Tuition fees<\/strong>:<\/span> You can demand a tax deduction for the tuition fees charged under section 80C. The deduction for each individual is available for 2 children. Thus, a deduction can be requested for up to 4 children, 2 for each parent.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"ADDITIONAL_DEDUCTION_CAN_BE_CLAIMS_NOT_COVERED_US_80C\"><\/span><span lang=\"EN-US\" style=\"font-size: 16pt; line-height: 115%; color: #000080;\">ADDITIONAL DEDUCTION CAN BE CLAIMS NOT COVERED U\/S 80C<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>Section 80CCC and 80CCD : <a href=\"https:\/\/carajput.com\/learn\/deductions-under-section-80ccd-of-income-tax-act.html\">Tax deductions U\/s 80CCC and 80CCD for investments in pension fund<\/a><\/strong><\/span><\/p>\n<figure id=\"attachment_9272\" aria-describedby=\"caption-attachment-9272\" style=\"width: 996px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/investments-to-save-tax-under-section-80c.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9272\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/investments-to-save-tax-under-section-80c.png\" alt=\"www.carajput.com; Income Tax Deduction\" width=\"996\" height=\"625\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/investments-to-save-tax-under-section-80c.png 663w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/investments-to-save-tax-under-section-80c-300x188.png 300w\" sizes=\"(max-width: 996px) 100vw, 996px\" \/><\/a><figcaption id=\"caption-attachment-9272\" class=\"wp-caption-text\">www.carajput.com; Income Tax Deduction<\/figcaption><\/figure>\n<p><span style=\"color: #000080;\"><strong>\u00a0<\/strong><\/span>For the contribution made in Pension Funds, you can claim a tax deduction under Section 80CCC and 80CCD. If you have contributed any amount to earn a pension under any insurance plan, then you will demand a tax exemption under 80CCC.<\/p>\n<p>Even so, if you have paid up to 10 percent of your income to any pension fund launched by the Govt, such as the National Pension Scheme, then you can claim a tax deduction U\/s 80CCD.<\/p>\n<p><strong>Note:<\/strong> According to the Income-tax act, 1961, a Total deduction that can be demanded under Sections 80C, 80CCC and 80CCD is Rs. 1, 50,000. Under section 80CCD, an exclusive tax advantage is available for NPS subscribers.<\/p>\n<p>As per the Income-tax act, 1961, Tier 1 account holders earn an extra savings allowance of up to Rs.50, 000 in NPS. This Tax deductions under Section 80CCC and 80CCD is over and above the deduction applicable U\/s 80C i.e of Rs. 1, 50,000.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Section_80TTA_Interest_on_savings_accounts\"><\/span><span style=\"color: #000080;\"><strong>Section 80TTA: Interest on savings accounts<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under Section 80TTA, you will demand a tax deduction on interest received on a savings bank account. A maximum amount of Rs.10,000\/- is entitled to the deduction. The income received will first be added under the head of income other sources, only after that, the deduction will be asserted.<\/p>\n<p><span style=\"color: #000080;\"><strong>Section 80CCF: Investment\u00a0made in long-term infrastructure bonds<\/strong><\/span><\/p>\n<p>Under section 80CCF, you can claim a tax exemption on an investment made in government-notified long-term infrastructure bonds. An overall deduction of up to around Rs. 20,000 can be claimed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Section_80CCG_Investment_made_in_equity_saving_scheme\"><\/span><span style=\"color: #000080;\"><strong>Section 80CCG: Investment made in\u00a0equity saving scheme<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The deduction is also known as the Rajiv Gandhi Equity Saving Scheme. For an investment made in listed shares or mutual funds, you will demand a tax deduction. The amount of deduction is 50% of amt. invested in equity share. However, the maximum deduction permitted under the provision cannot exceed Rs. 25,000.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Income_Tax_Deduction_under_Section_80D\"><\/span><span style=\"color: #000080;\"><strong>Income Tax Deduction under Section 80D <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There could be Five various situations U\/s 80D for claiming the deduction; these are:<\/p>\n<ul>\n<li>If the individual and parents are both aged more than 60 years, the deduction available is Rs.25,000 each, i.e. a total of Rs.50,000.<\/li>\n<li>If the individual, family, and parents all are aged more than 60 years, then the deduction available is of \u20b950k each, i.e., a total of \u20b91,00,000.<\/li>\n<li>The individual and family are aged less than 60years, but the parents are aged more than 60 years, then the deduction for self and family is Rs. 25000, in addition to Rs.50,000 for parents. The cumulative deduction is allowed is Rs.75k.<\/li>\n<li>For HUF members, the total deduction is Rs. 25,000 each (self and family plus parents), i.e. a total of Rs. 50k.<\/li>\n<li>The available deduction is also Rs. 25,000 each for non-resident individuals, i.e. a total of Rs. 50k.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Section_80D_Payment_for_the_medical_insurance_premium_and_health_check-ups\"><\/span><span style=\"color: #000080;\"><strong>Section 80D Payment for the medical insurance premium and health check-ups<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under this section, you can claim a tax deduction for the payment of medical insurance premiums for yourself, your spouse, or any child. In addition, tax exemptions that may not surpass Rs.5k can also be demanded on money spent on health check-ups.<\/p>\n<p><span style=\"color: #000080;\"><strong>Section 80E: Interest paid on the Education Loan<\/strong><\/span><\/p>\n<p>Under section 80E, you will claim a tax deduction on interest paid on\u00a0the repayment of the Education Loan. The deduction may be demanded only on the interest paid on the repayment of the loan and not on the amount of the principal.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Section_80EE_Interest_on_loan_taken_for_the_purchase_of_residential_property\"><\/span><span style=\"color: #000080;\"><strong>Section 80EE: Interest on loan taken for the purchase of residential property<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under section 80EE, you can demand a tax deduction for interest payable on a loan taken for the purchase of a residential property. The overall claimed deduction is Rs. 50k under the income tax Act.<\/p>\n<p><span style=\"color: #000080;\"><strong>Section 80G and Other: Deduction on made donations Under Section 80G, 80GGA, 80GGB and 80GGC <\/strong><\/span><\/p>\n<ul>\n<li>For a general contribution received within a financial year, you will demand a tax deduction under section 80G.<\/li>\n<li>If a contribution is made for scientific research or rural development, deductions under section 80GGA may be demanded.<\/li>\n<li>If contributions are made to any political party, deductions under sections 80GGB and 80GGC may be demanded<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Section_80GG_Tax_exemption_for_leases_purchased_in_favors_of_FY-20-21\"><\/span><span style=\"color: #000080;\"><strong>Section 80GG: Tax exemption for leases purchased in favors of FY-20-21<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For the house rent expenses, you can demand a tax deduction under section 80GG. Nevertheless, in Section 80GG, you can only demand a deduction if you have not earned a house rent allowance. If you earn an HRA, you are not entitled to a deduction in\u00a0this section. Under section 80 GG, you can demand a deduction, if<\/p>\n<ul>\n<li>rent paid by you is greater than 10% of your total income subject to a maximum of Rs. 5,000 per month or<\/li>\n<li>25% of your total income, <span style=\"color: #000080;\"><strong>whichever is less.<\/strong><\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Summary_of_Different_type_of_Income-tax_exemption_as_per_the_Income-tax_Act_1961\"><\/span><span style=\"color: #000080;\"><strong>Summary of Different type of Income-tax exemption as per the Income-tax Act, 1961<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_9282\" aria-describedby=\"caption-attachment-9282\" style=\"width: 984px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/a619db63177956c443c5f6994a097bce-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9282\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/a619db63177956c443c5f6994a097bce-2.jpg\" alt=\"www.carajput.com; Income Tax Deduction\" width=\"984\" height=\"516\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/a619db63177956c443c5f6994a097bce-2.jpg 731w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/a619db63177956c443c5f6994a097bce-2-300x157.jpg 300w\" sizes=\"(max-width: 984px) 100vw, 984px\" \/><\/a><figcaption id=\"caption-attachment-9282\" class=\"wp-caption-text\">www.carajput.com; Income Tax Deduction<\/figcaption><\/figure>\n<table style=\"height: 1012px;\" width=\"1071\">\n<tbody>\n<tr>\n<td width=\"66\"><span style=\"color: #000080;\"><strong>Section<\/strong><\/span><\/td>\n<td width=\"264\"><span style=\"color: #000080;\"><strong>Permissible limit<\/strong><\/span><\/td>\n<td width=\"216\"><span style=\"color: #000080;\"><strong>Type of investment, expense, or income<\/strong><\/span><\/td>\n<td width=\"220\"><span style=\"color: #000080;\"><strong>Eligible claimants<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80C<\/td>\n<td width=\"264\">Maximum \u20b9 1,50,000 (aggregate of 80C, 80CCC and 80CCD)<\/td>\n<td width=\"216\">PPF, EPF, Bank FD&#8217;s, NSC, LIC premium, tuition fees<\/td>\n<td width=\"220\">Individuals, HUFs<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80CCC<\/td>\n<td width=\"264\">Maximum \u20b9 1,50,000 (aggregate of 80C, 80CCC and 80CCD)<\/td>\n<td width=\"216\">Pension funds<\/td>\n<td width=\"220\">Individuals<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80CCD<\/td>\n<td width=\"264\">Maximum \u20b9 1,50,000 (aggregate of 80C, 80CCC and 80CCD)<\/td>\n<td width=\"216\">Pension fund initiated by the central government<\/td>\n<td width=\"220\">Individuals<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80TTA<\/td>\n<td width=\"264\">Up to \u20b9 10,000 per year<\/td>\n<td width=\"216\">Interest on bank savings account<\/td>\n<td width=\"220\">Individuals and HUFs<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80CCG<\/td>\n<td width=\"264\">50% of amount invested subject maximum of \u20b9 25,000<\/td>\n<td width=\"216\">Equity saving schemes<\/td>\n<td width=\"220\">Individuals<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80CCF<\/td>\n<td width=\"264\">Up to \u20b9 20,000<\/td>\n<td width=\"216\">Long term infrastructure bonds<\/td>\n<td width=\"220\">Individuals and HUFs<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80D<\/td>\n<td width=\"264\"><strong><span style=\"color: #000080;\">For individual taxpayers<\/span>&#8211;<\/strong>\u00a0Premium up to \u20b9 25,000 in case of individuals and up to \u20b9 50,000 for senior citizens<br \/>\n<span style=\"color: #000080;\"><strong>For HUFs-<\/strong> <\/span>Premium up to \u20b9 25,000 and up to \u20b9 50,000 in case the member insured is a senior citizen or super senior, citizen<\/td>\n<td width=\"216\">Medical insurance premium and Health check-up<\/td>\n<td width=\"220\">Individuals and HUFs<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80E<\/td>\n<td width=\"264\">No limit defined<\/td>\n<td width=\"216\">Interest on repayment of Education loan<\/td>\n<td width=\"220\">Individuals<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80EE<\/td>\n<td width=\"264\">Maximum \u20b9 50,000<\/td>\n<td width=\"216\">Interest on loan payable for acquiring a residential house property<\/td>\n<td width=\"220\">Individuals<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80G<\/td>\n<td width=\"264\">Differs with the amount of donation<\/td>\n<td width=\"216\">General donations of any recognized society<\/td>\n<td width=\"220\">Individuals, HUF&#8217;s, Companies, Firms<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80GGA<\/td>\n<td width=\"264\">Depending on the quantum of donation<\/td>\n<td width=\"216\">Donations to Scientific Research or Rural development<\/td>\n<td width=\"220\">Those who do not have income from business or profession<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80GGB<\/td>\n<td width=\"264\">Depending on the quantum of donation<\/td>\n<td width=\"216\">Donations to political parties<\/td>\n<td width=\"220\">Indian companies<\/td>\n<\/tr>\n<tr>\n<td width=\"66\">80GG<\/td>\n<td width=\"264\">\u20b9 5,000 per month or 25% of total income whichever is less<\/td>\n<td width=\"216\">Rent paid if HRA is not received<\/td>\n<td width=\"220\">Individuals not receiving HRA<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Summary_View_on_Tax_Exemption_on_the_bases_of_residence_status\"><\/span><span style=\"color: #000080;\">Summary View on Tax Exemption on the bases of residence status\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/24297_20140103_tax_deductions__w430__.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9278\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/24297_20140103_tax_deductions__w430__.png\" alt=\"www.carajput.com; Income Tax Deduction\" width=\"1052\" height=\"1333\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/24297_20140103_tax_deductions__w430__.png 430w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/24297_20140103_tax_deductions__w430__-237x300.png 237w\" sizes=\"(max-width: 1052px) 100vw, 1052px\" \/><\/a><\/p>\n<p>The above list of tax deductions under the income tax law makes us the most of tax deductions with careful tax planning which will decrease your tax liability &amp; you may save on taxes<\/p>\n<p>Popular Blog:-<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Deduction_us_80CCD_of_Income_Tax_Act_1961\"><\/span><a href=\"https:\/\/carajput.com\/learn\/deductions-under-section-80ccd-of-income-tax-act.html\">Deduction u\/s 80CCD of Income Tax Act, 1961<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"New_TDS_deduction_No_cash_transactions_exceeding_1_Crore_-Section_194N\"><\/span><a href=\"https:\/\/carajput.com\/learn\/new-tds-deduction-provision-prevent-cash-transactions-of-more-than-1-crore-section-194n.html\">New TDS deduction No cash transactions exceeding 1 Crore -Section 194N<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><\/h4>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>INCOME TAX DEDUCTION UNDER SECTION80C-80U TO INDIVIDUALS, HUF Income Tax Deduction The income Tax deduction is a decrease in tax liability from the gross taxable income. Tax deductions are reduced from total income, also known as adjusted gross income. As per the provision of the income tax act, 1961 the amount of tax deductions varies &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[9378],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/9270"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=9270"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/9270\/revisions"}],"predecessor-version":[{"id":25456,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/9270\/revisions\/25456"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=9270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=9270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=9270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}