Section 80C provides the deductions up to ₹ 1,50,000/- on various
investment and expenses provided by Income Tax department. It is one
of the most popular sections availed by most taxpayers. Find below a
list of investment & expenses options available under Sec 80C.
Investment Option |
Details |
Provident Fund (EPF/VPF) |
A government managed retirement saving scheme to secure a better future for employees. |
Public Provident Fund (PPF) |
A Central Government Saving Scheme under the PPF Act of 1968. |
LIC Premium |
Amount paid periodically to the life insurer by the insured for covering risk. |
National Savings Certificate(NSC) |
Fixed income investment scheme that can be opened with any post office. |
Tax Savings 5 year FD from Bank |
Fixed deposit scheme with 5 year lock-in. |
Senior Citizen Savings Scheme (SCSS) |
Government of India Savings Scheme for Senior Citizens for receiving fixed quarterly interest. |
Sukanya Smriddhi Yojona (SSY) |
Government Backed deposit scheme for Girl child. |
Unit Link Insurance Plan (ULIP)
| Investment Plan from Life Insurance companies offering investment in Equity as well as Life Coverage. |
Equity Link Savings Scheme |
Investment in Equity Oriented Mutual Fund with 3 years lock-in. |
Principal Amount payment towards home loan |
Principal portion of Home Loan EMI paid for the Year. |
Stamp Duty & Registration Charges for purchase of Property |
Deduction for stamp duty and registration charges paid in the year |
Tuition Fee for maximum 2 children |
Parents can claim the tuition fee paid by them towards their children’s education as education |
Individuals can claim deductions up to ₹ 1,50,000/- for
contributions paid toward pension plans that offered by life insurers
Under Sec 80CCD(1b) an individual employee or self-employed can
claim an additional deduction of ₹ 50,000/- when they contribute to
NPS or Atal Pension Yojana. This deduction is over and above the
amount that can be claimed under Section 80CCD(1).
80CCD(1) allows deduction for contributions towards the National
Pension Scheme. Under this section an employee can contribute
10% of Salary or a self employed can Contribute 20% of gross total
income but up to ₹ 1,50,000/- is eligible for deduction under this
scheme. Investor can also claim deductions for investing in Atal
Pension Yojana under this claim.
Please note the overall deduction limit is ₹,1,50,000/- under 80C, 80CCC
& 80CCD(1).
Under Sec 80CCD(2) an Individual who is an employee can claim
deductions for contribution towards NPS by his employer up to
10% of his basic salary plus dearness allowance to the extent of
Rs. 7.5 Lac. It is not available for self employed.
An individual or HUF can claim a deduction of up to ₹ 25,000/- under Section 80D
on insurance for self, spouse and dependent children and ₹ 50,000/- if above 60
years. One can get an additional deduction up to
₹ 25,000/- for premium paid
towards medical insurance of parents, if they are less than 60 years of age and if above 60
years, the deduction amount is up to ₹ 50,000/-.
If your total insurance premium paid is less than the maximum allowed limits for any of the
categories, then up to ₹ 5,000/-can be claimed for preventive health check of your family in
the financial year, within the said limits.
Age Criteria |
up to to 60 parents also below 60 |
up to 60 but parents above 60 |
Both Individual and parents above 80 |
Deduction under Sec 80D for Self |
₹ 25,000/- |
₹ 25,000/- |
₹ 50,000/- |
Deduction under Sec 80D for Parents |
₹ 25,000/- |
₹ 50,000/- |
₹ 50,000/- |
Maximum Deduction Allowed under Sec 80D |
₹ 25,000/- |
₹ 75,000/- |
₹ 1,00,000/- |
Under Sec 80DD of income tax act, a Resident Individual or HUF can claim deduction for
medical expenses for dependent relatives. If disablement is between 40 - 80% then he is
eligible for deduction of ₹ 75,000/- and above 80% disablement deductions allowed of
₹ 1,25,000/-. One needs to have a disability certificate from authorised doctor for
availing this facility.
Under Sec 80DDB an individual or HUF can claim deduction for self or
dependent, on expenses for treatment of specified diseases. If the age of the
person receiving treatment is below 60 years, assessee can claim up to ₹
40000/- and above 60 can claim up to ₹ 1,00,000/-. If your claim is reimbursed
from medical insurance then the reimbursed amount is not eligible for
deduction.
Section 80E provides provision for deduction of interest of educational loan.There is no
upper limit for this deduction. Deduction is available for amaximum of 8 yea₹ from where
interest repayment starts. An individual cantake loan for himself, spouse or children or
anyone where the assessee is a legal guardian
Section 80EE provides deduction up to ₹ 50,000/- annually on interest portion of home loan
to the individual taxpayer owning only one house property. This is an additional deduction
available to individual taxpayer above ₹ 2,00,000/-deduction available under Sec 24.
Sec 80G provides deduction on donations made towards Charitable
organizations and relief funds. Donations under this Section either qualify for
100% or 50% as per rules of Income Tax Act 1961.
If an employee stays in rent but doesn’t get HRA in his salary then he can claim for
deduction under Section 80GG towards for rent.
Donations made towards scientific research or rural development are
eligible for 100% deduction under Section 80GGA. Individuals who do not have
an income from business or profession are qualified for such deductions.
Sec 80GGB provides deduction on donations made by
Indian Companies or Enterprise towards political parties.
Sec 80GGB provides deduction on donations made by
Individuals towards political parties. One can avail this
deduction only if he pays any mode other than cash.
Under Section 80RRB deduction can be claimed by
resident individuals, for any income as royalty or patent.
The amount of deduction allowed under Section 80RRB is
up to ₹ 3 lakhs.
Under Sec TTA(1) an individual can claim for deduction
on interest income of up to ₹ 10,000/- per annum from
savings accounts held in a Bank, Post Office or Cooperative.
Under Section 80 TTB, individuals over the age of 60
are eligible to avail tax deductions up to ₹ 50,000 on
interest income from the deposit held by them.
Under Sec 80U, Individuals can avail deductions, who
are suffering from certain disabilities. Individuals with
disabilities can avail deduction of ₹ 75,000/- and
individuals with severe disabilities can avail deduction
of ₹ 1,25,000.