Deductions under chapter VIA 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
The total amount of deduction under section 80C, 80CCC and 80CCD(1) shall not cross Rs. 1,50,000.[maxbutton id=”3″ ]
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.
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.
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.
Medical treatment of disabled : rs. 75,000 if 80% disabilty and rs. 125,000 if disability is > 80%:
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.
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:
50% of donation with no max. limit e.g. Gujrat drought etc.
100% of donation with no max. limit e.g. PM Relief fund etc.
50% of donation subject to 10% of Adjusted gross total income e.g Temple,Gurudwara etc.
100% of donation subject to 10% of Adjusted gross total income.
For more information about section 80G,click the below link:
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 :
- rs. 60,000 per year.
- 25% of AGI.
- Rent paid – 10% of AGI
NOTE : AGI means adjusted gross income . I.e the income after deducting all deductions from GTI,except 80GG deduction.
Rs. 10,000 deduction is allowed under this section. provided that assessie is below 60 years.
Rs. 50,000 deduction is allowed under this section. provided that assessie is above 60 years.
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.