Income Tax Deductions Under Section 80C To 80U

Every tax payer should know Income Tax Deductions Under Section 80C  To 80U.

If you are a government employee then you can save tax intelligently if you have some knowledge about tax saving sections 80C and 80U.

Let us have a thorough explanation about Section 80C To 80U.

Section 80C:

under this section tax payer can take 1,50000 rs  deductions as basically includes:

  • GPF or CPF or PPF deductions
  • tuition fees for two children.
  • LIC POLICY premium deduction.
  • PLI
  • payment paid for construction of residential property.

Section 80CCC:

This section refers to tax deduction for pension funds up to 1.5 lakh.

Section 80CCD:

In order to encourage taxpayers to invest and save money in pension schemes,it is highly recommended investment plan.

But deduction under this section must be less than 10% of basic pay.

Section 80CCF:

under this section tax payer can claim 20000 rs deductions for subscription in long term infrastructure bonds as notified by the central govt.

Section 80CCG:

investments for equity saving schemes.25,000 rs can be deducted under this section.

Section 80D:

This section relates with deduction of amount spent for

paying premium for health insurance.

Health insurance POLICY may be in the name of  yourself,spouse,children or parents.

visit Here for more information.

Section 80DD:

IT REFERS to deductions of amount paid for the treatment of dependent disabled person.Or premium amount paid for health insurance policy for such person.

Further if the disable person is with normal disability,you can claim Rs 75,000 deduction. And in severe disability Rs 1.25 lakh one can claim as deduction.

Section 80DDB:

If you have a family member or yourself is suffering from serious diseases like Cancer,neurological diseases.

Then you can claim 40,000 as deduction and if the sufferer is senior citizen then amount increases to Rs 60,000.

 Section 80E:

Only if you are an individual,then you can claim this deduction. It is not available to HUF .

And the loan should be taken for the higher education of self, spouse or children or the student for whom the individual is a legal parent or guardian.

Thus parents can easily claim this deduction for the loan taken for the higher studies of their children.

Special Note: it does not matter if loan is taken  to pursue higher studies in India or Abroad.You can claim deduction of interest amount of EMI paid in a financial year.

There is no limit of minimum amount.

Moreover for 8 years you can claim deduction on interest of EMI.

If loan is paid within 5 years then you can claim deductions for only 5 years not 8 years.

Section 80G:

If you want to take tax benefit from donation under section 80G then this article is really special for you.

And Therefore as you know after taking full deduction from section 80c for saving you made in a financial year.

And all want to reduce their taxes using various sections like 80G that we will discuss today in detail.

Section 80G refers to donations we can make to certain notified institutions govt. or non govt or NGOs.

Condition-1:You must be resident of india

Condition-2:You must be an individual or HUF(hindu undivided family).

For complete information please refer to this article on Section 80G

Section 80GG:

Before getting this deduction you will have to file form 10BA.

In case you are a govt employee and you are not getting house rent allowance then you can claim deduction by calculating least of  these conditions:

  1. 5000 per month
  2. 25% of total income that is after deducting section 80C to 80U.
  3. Rent paid less 10% of total income that is after deducting section 80C to 80U.

Section 80TTA:

This deduction is handy if you are getting interest from income in a saving bank account.

Rs 10,000 per year can be claimed as deduction.Provided you enter principal amount in “Income from other sources” while e-filing.

Section 80U:

If the tax payer is handicapped then he/she can claim flat Rs 75,000 as deduction per year and if he/she is having severe disability then 1.25 lakh per year he/she can claim.

Kuldeep Singh

is a professional blogger,teacher and income tax expert

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