Deductions under chapter VIA FY 2019-20

Deductions under chapter VIA

Chapter VIAA deductions FY 2019-20

Deductions under chapter VIA FY 2019-20, are the savings ,that allow a tax payer to reduce tax liability as per income tax laws.

Section 80C :

There are the following components of section 80C :

  • Amount  deposited towards life insurance.
  • GPF : GOVT. Provident Fund.
  • Public Provident Fund, (PPF).
  • contribution by the assessee to an approved superannuation fund,
  • subscription to National Savings Certificates,(NSC)
  • Tuition fees.
  • payment/ repayment for purposes of purchase or construction of a residential house .(Only Principal amount of loan is deductible

Note :

The total amount of deduction under section 80C, 80CCC and 80CCD(1) shall not cross Rs. 1,50,000.

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80CCC :

Deduction towards  Payment of premium for annuity plan of LIC or any other insurer.

Deduction is available upto a maximum of Rs. 150,000/.

Section 80CCD(1) Under NPS :

Deduction for contribution to new pension scheme notified by the Government.

Amount contributed to NPS must be  of 10% of Basic pay + DA.

80CCD(1B) :

An additional deduction of rs. 50,000,if you have exhausted rs. 150,000 under sections 80C.

And this amount is above the rs. 150,000.

80D:

Case-1 . This section allows a maximum deduction of rs.

25,000,if the premium paid toward health insurance is for self,spouse and children.

And all of them are below 60 years.

Case-2: rs. 25,000 for parents having age below 60 years.

Case-3: rs. 30,000 for parents having age above 60 years.

Section 80DD:

Medical treatment of disabled : rs. 75,000 if 80% disabilty and rs. 125,000 if disability is > 80%:

Section 80DDB:

Medical treatment of self and dependent:

rs. 40,000 for below 60 yrs and 1 lakh for above 60 yrs. :

Section 80E :

Loan taken by self,spouse and children for persuing higher studies.

only Interest of loan is allowed as deduction. No limit of interest amount.

Section 80EE :

Under this section you can take maximum deduction of rs. 50,000 against repaying home loan interest while following the below conditions:

  • loan must be sanctioned between 01.04.2016 to 31.03.2017.
  •  Value of the house should be Rs 50 lakhs or less.
  •  The loan must be sanctioned by a Financial Institution or a Housing Finance Company.
  •  Loan taken for the house must be Rs 35 lakhs or less .
  • As on the date of the sanction of loan, no other house property must be owned by you.
  • This deduction (up to Rs. 50,000) is over and above the Rs 2 lakh limit under section 24 of the income tax act.
  • You can not avail deduction under both sections 80EE And 80EEA at the same time along with section 24.

80EEA :

This section allows a tax payer a deduction of upto 1.5 lakhs and it is above the total deduction of rs. 2 lakhs under section 24.

But you have to Follow the below conditions :

  • Time period starts from FY 2019-20 Onwards
  • The concerned individual taxpayer can not be eligible to claim any deductions under the existing Section 80EE of the Income Tax Act.
  • Stamp duty value of such property must not cross 45 lakhs.
  • Loan must be for residential house, not for consruction of residential house.
  • The assessee should not own any residential house properties on the date of sanctioning the home loan.

80EEB Starting from FY 2019-20

Loan taken to buy elctric vehicle:

Maximum limit of loan Interest is 1.5 lakhs.

Condition : Loan must be taken from 01/04/2019 to 31/03/2023.

Section 80G :

Donation made towards specified funds and institutions only .

Note: Donation made more than of rs. 2000 requires checque,draft or online payment:

Case -1

50% of donation with no max. limit e.g. Gujrat drought etc.

Case -2

100% of donation with no max. limit e.g. PM Relief fund etc.

Case -3

50% of donation subject to 10% of Adjusted gross total income e.g Temple,Gurudwara etc.

Case -4

100% of donation subject to 10% of Adjusted gross total income.

For more information about section 80G,click the below link:

Income tax deduction under section 80G

Section 80GG:

This section is applicable to those tax payers who are not getting HRA in their salary.

Further, the deductible amount will be least of the following :

  1. rs. 60,000 per year.
  2. 25% of AGI.
  3. Rent paid – 10% of AGI

NOTEAGI means adjusted gross income . I.e the income after deducting all deductions from GTI,except 80GG deduction.

Section 80TTA:

Rs. 10,000 deduction is allowed under this section. provided that assessie is below 60 years.

Section 80TTB:

Rs. 50,000 deduction is allowed under this section. provided that assessie is above 60 years.

Section 80U:

Physically Handicapped (Self) : Deduction of rs. 75,000 allowed if disability is 40% and if disability is 80% and more, then rs. 125,000 allowed as deduction.

Final Words :

Finally we come to a conclusion regarding deductions under chapter VIA FY 2019-20 that taxpayer has plenty of options to reduce tax liability.

So as far as for FY 2019-20 is concerned,your tax liability will be zero,if your total income is 5 lakhs.

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

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