The income tax department with a view to encouraging savings and investments amongst the taxpayers has provided various deductions from the taxable income under chapter VI A deductions. 80C being the most famous, there are other deductions that are beneficial for the taxpayers to reduce their tax liability. Let us understand these deductions in detail:  

 80c

Section 80C

Investments

 Insurance Premium

Section 80CCC

Insurance Premium

 Insurance Premium

Section 80CCD

Pension Contribution

 nterest on Savings Account

Section 80TTA

Interest on Savings Account

 House Rent Paid

Section 80GG

House Rent Paid

 Interest on Education Loan

Section 80E

Interest on Education Loan

 Interest on Home Loan

Section 80EE

Interest on Home Loan

 Medical Insurance

Section 80D

Medical Insurance

 Handicapped Dependent Relative

Section 80DD

Disabled Dependent

 Medical Expenditure

Section 80DDB

Medical Expenditure

 Physical Disability

Section 80U

Physical Disability

 individual Contribution to Political Parties

Section 80G

Donations

 individual Contribution to Political Parties

Section 80GGB

Company Contribution

 Companies Contribution tp political parties

Section 80GGC

Contribution to Political Parties

 Royalty of a Patent

Section 80RRB

Royalty of a Patent

 Interest Income

Section 80TTB

Interest Income

 frequently

Frequently Asked Questions

Section 80C – Deductions on Investments

Section 80C is one of the most popular and favourite sections amongst the taxpayers as it allows to reduce taxable income by making tax saving investments or incurring eligible expenses. It allows a maximum deduction of Rs 1.5 lakh every year from the taxpayers total income. 

The benefit of this deduction can be availed by Individuals and HUFs. Companies, partnership firms, LLPs cannot avail the benefit of this deduction. 

Section 80C includes subsections , 80CCC, 80CCD (1) , 80CCD (1b) and 80CCD (2). 

It is important to note that overall limit including the subsections for claiming deduction is Rs 1.5 lakh except an additional deduction of Rs 50,000 allowed u/s 80CCD(1b)

Section 80CCC – Insurance Premium /Section 80CCD – Pension Contribution

  Eligible investments for tax deductions

80 C 80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds etc

80CCC Deduction for life insurance annuity plan. 80CCC allows deduction for payment towards annuity pension plans Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.

80CCD (1) Deduction for NPS Employee’s contribution under section 80CCD (1) Maximum deduction allowed is least of the following

10% of salary (in case taxpayer is employee)

20& of gross total income (in case of self employed)

Rs 1.5 Lakh ( limit allowed u/s 80C)

80CCD (1b) Deduction for NPS Additional deduction of Rs 50,000 is allowed for amount deposited to NPS account 

Contributions to Atal Pension Yojana is also eligible for deduction.

80CCD (2) Deduction for NPS Employers contribution is allowed for deduction upto 10% of basic salary plus dearness allowance under this section. Benefit in this section is allowed only to salaried individuals and not self employed.

 Section 80CCE Here are some investment options that are allowed as deduction u/s 80C. They not only help you with saving taxes but also help you grow your money. A quick comparison for the options is tabulated below :

Investment options Average Interest Lock in period for Risk factor

ELSS funds 12% – 15% 3 years High

NPS Scheme 8% – 10% Till 60 years of age High

ULIP 8% – 10% 5 years Medium

Tax saving FD 7% – 8% 5 years Low

PPF 7.10% 5 years Low

Senior citizen savings scheme 7.4% 5years (can be extended for other 3 years) Low

National 6.8% 5 years Low

Sukanya Samriddhi Yojana 8.4% Till girl child reaches 21 years of age 

(partial withdrawal allowed when she reached 18 years) Low

Get Savings on Income Taxes With a Tax Expert to Help You File

Sometimes, you may have deductions or investments eligible for 80C, but haven’t submitted the proofs to your employer. This may cause to additional TDS deductions. You can still claim these deductions while e-filing, as long as you have the proofs with you.

I WANT AN EXPERT TO HELP ME FILE

Section 80 TTA – Interest on Savings Account

Deduction from Gross Total Income for Interest on Savings Bank Account

If you are an individual or an HUF, you may claim a deduction of maximum Rs 10,000 against interest income from your savings account with a bank, co-operative society, or post office. Do include the interest from savings bank account in other income.

Section 80TTA deduction is not available on interest income from fixed deposits, recurring deposits, or interest income from corporate bonds.

Section 80GG – House Rent Paid

Deduction for House Rent Paid Where HRA is not Received

a. Section 80GG deduction is available for rent paid when HRA is not received. The taxpayer, spouse or minor child should not own residential accommodation at the place of employment

b. The taxpayer should not have self-occupied residential property in any other place

c. The taxpayer must be living on rent and paying rent

d. The deduction is available to all individuals

Deduction available is the least of the following:

a. Rent paid minus 10% of adjusted total income

b. Rs 5,000/- per month

c. 25% of adjusted total income*

*Adjusted Gross Total Income is arrived at after adjusting the Gross Total Income for certain deductions, exempt income, long-term capital gains and income related to non-residents and foreign companies.

An online e-filing software like that of ClearTax can be extremely easy as the limits are auto-calculated. So, you do not have to worry about making complex calculations.

From FY 2016-17 available deduction has been raised to Rs 5,000 a month from Rs 2,000 per month.

Section 80E – Interest on Education Loan

Deduction for Interest on Education Loan for Higher Studies

A deduction is allowed to an individual for interest on loans taken for pursuing higher education. This loan may have been taken for the taxpayer, spouse or children or for a student for whom the taxpayer is a legal guardian.

80E deduction is available for a maximum of 8 years (beginning the year in which the interest starts getting repaid) or till the entire interest is repaid, whichever is earlier. There is no restriction on the amount that can be claimed.

Easy and Accurate ITR Filing on ClearTax

File in 7 Mins | Minimal Data Entry | 100% Paperless

E-File ITR For FREEGet an Expert Assisted Plan

Section 80EE – Interest on Home Loan

Deductions on Home Loan Interest for First Time Home Owners

FY 2017-18 and FY 2016-17 This deduction is available in FY 2017-18 if the loan has been taken in FY 2016-17. The deduction under section 80EE is available only to home-owners (individuals) having only one house property on the date of sanction of the loan. The value of the property must be less than Rs 50 lakh and the home loan must be less than Rs 35 lakh. The loan taken from a financial institution must have been sanctioned between 1 April 2016 and 31 March 2017. There is an additional deduction of Rs 50,000 available on your home loan interest on top of deduction of Rs 2 lakh (on interest component of home loan EMI) allowed under section 24. 

FY 2013-14 and FY 2014-15 During these financial years, the deduction available under this section was first-time house worth Rs 40 lakh or less. You can avail this only when your loan amount during this period is Rs 25 lakh or less. The loan must be sanctioned between 1 April 2013 and 31 March 2014. The aggregate deduction allowed under this section cannot exceed Rs 1 lakh and is allowed for FY 2013-14 and FY 2014-15. 

Section 80D – Medical Insurance

Deduction for the premium paid for Medical Insurance

You (as an individual or HUF) can claim a deduction of Rs.25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000, if they are less than 60 years of age. If the parents are aged above 60, the deduction amount is Rs 50,000, which has been increased in Budget 2018 from Rs 30,000.

In case, both taxpayer and parent(s) are 60 years or above, the maximum deduction available under this section is up to Rs.1 lakh.

Example: Rohan’s age is 65 and his father’s age is 90. In this case, the maximum deduction Rohan can claim under section 80D is Rs. 100,000. 

From FY 2015-16 a cumulative additional deduction of Rs. 5,000 is allowed for preventive health check.  

Section 80DD – Disabled Dependent

Deduction for Rehabilitation of Handicapped Dependent Relative

Section 80DD deduction is available to a resident individual or a HUF and is available on:

a. Expenditure incurred on medical treatment (including nursing), training and rehabilitation of handicapped dependent relative

b. Payment or deposit to specified scheme for maintenance of handicapped dependent relative.

i. Where disability is 40% or more but less than 80% – fixed deduction of Rs 75,000.

ii. Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1,25,000.

To claim this deduction a certificate of disability is required from prescribed medical authority. From FY 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1,00,000 has been raised to Rs 1,25,000. 

Section 80DDB – Medical Expenditure

Deduction for Medical Expenditure on Self or Dependent Relative

a. For individuals and HUFs below age 60

A deduction up to Rs.40,000 is available to a resident individual or a HUF. It is available with respect to any expense incurred towards treatment of specified medical diseases or ailments for himself or any of his dependents. For an HUF, such a deduction is available with respect to medical expenses incurred towards these prescribed ailments for any of the HUF members.

b. For senior citizens and super senior citizens

In case the individual on behalf of whom such expenses are incurred is a senior citizen, the individual or HUF taxpayer can claim a deduction up to Rs 1 lakh. Until FY 2017-18, the deduction that could be claimed for a senior citizen and a super senior citizen was Rs 60,000 and Rs 80,000 respectively. This has now become a common deduction available upto Rs 1 lakh for all senior citizens (including super senior citizens) unlike earlier.

c. For reimbursement claims

Any reimbursement of medical expenses by an insurer or employer shall be reduced from the quantum of deduction the taxpayer can claim under this section.

Also remember that you need to get a prescription for such medical treatment from the concerned specialist in order to claim such deduction. Read our detailed article on Section 80DDB.

Section 80U – Physical Disability

Deduction for Person suffering from Physical Disability

A deduction of Rs.75,000 is available to a resident individual who suffers from a physical disability (including blindness) or mental retardation. In case of severe disability, one can claim a deduction of Rs 1,25,000.

From FY 2015-16 – Section 80U deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1,00,000 has been raised to Rs 1,25,000. 

Section 80G – Donations

Deduction for donations towards Social Causes

The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction.

From FY 2017-18 any donations made in cash exceeding Rs 2,000 will not be allowed as deduction. The donations above Rs 2000 should be made in any mode other than cash to qualify for 80G deduction.

a. Donations with 100% deduction without any qualifying limit

National Defence Fund set up by the Central Government

Prime Minister’s National Relief Fund

National Foundation for Communal Harmony

An approved university/educational institution of National eminence

Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district

Fund set up by a State Government for the medical relief to the poor

National Illness Assistance Fund

National Blood Transfusion Council or to any State Blood Transfusion Council

National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities

National Sports Fund

National Cultural Fund

Fund for Technology Development and Application

National Children’s Fund

Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory

The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996

The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6,1993

Chief Minister’s Earthquake Relief Fund, Maharashtra

Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat

Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or

Prime Minister’s Armenia Earthquake Relief Fund

Africa (Public Contributions — India) Fund

Swachh Bharat Kosh (applicable from financial year 2014-15)

Clean Ganga Fund (applicable from financial year 2014-15)

National Fund for Control of Drug Abuse (applicable from financial year 2015-16)

b. Donations with 50% deduction without any qualifying limit

Jawaharlal Nehru Memorial Fund

Prime Minister’s Drought Relief Fund

Indira Gandhi Memorial Trust

The Rajiv Gandhi Foundation

c. Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income

Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning

Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India

d. Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income

Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)

Government or any local authority to be utilized for any charitable purpose other than the purpose of promoting family planning

Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both

Any corporation referred in Section 10(26BB) for promoting the interest of minority community

For repairs or renovation of any notified temple, mosque, gurudwara, church or other places.

Section 80GGB – Company Contribution

Deduction on contributions given by companies to Political Parties

Section 80GGB deduction is allowed to an Indian company for the amount contributed by it to any political party or an electoral trust. Deduction is allowed for contribution done by any way other than cash. 

Section 80GGC – Contribution to Political Parties

Deduction on contributions given by any person to Political Parties

Deduction under section 80GGC is allowed to an individual taxpayer for any amount contributed to a political party or an electoral trust. It is not available for companies, local authorities and an artificial juridical person wholly or partly funded by the government. You can avail this deduction only if you pay by any way other than cash. 

Section 80RRB – Royalty of a Patent

Deduction with respect to any Income by way of Royalty of a Patent

80RRB Deduction for any income by way of royalty for a patent, registered on or after 1 April 2003 under the Patents Act 1970, shall be available for up to Rs.3 lakh or the income received, whichever is less. The taxpayer must be an individual patentee and an Indian resident. The taxpayer must furnish a certificate in the prescribed form duly signed by the prescribed authority.

Section 80 TTB – Interest Income

Deduction of Interest on Deposits for Senior Citizens

A new section 80TTB has been inserted vide Budget 2018 in which deductions with respect to interest income from deposits held by senior citizens will be allowed. The limit for this deduction is Rs.50,000.

No further deduction under section 80TTA shall be allowed. In addition to section 80 TTB, section 194A of the Act will also be amended so as to increase the threshold limit for TDS on interest income payable to senior citizens. The earlier limit was Rs 10,000, which was increased to Rs 50,000 as per the latest Budget.

Deductions-Summary

Section 80 Deduction Table

Edit

Section Deduction on Allowed Limit (maximum) FY 2018-19

80C Investment in PPF

– Employee’s share of PF contribution

– NSCs

– Life Insurance Premium payment

– Children’s Tuition Fee

– Principal Repayment of home loan

– Investment in Sukanya Samridhi Account

– ULIPS

– ELSS

– Sum paid to purchase deferred annuity

– Five year deposit scheme

– Senior Citizens savings scheme

– Subscription to notified securities/notified deposits scheme

– Contribution to notified Pension Fund set up by Mutual Fund or UTI.

– Subscription to Home Loan Account scheme of the National Housing Bank

– Subscription to deposit scheme of a public sector or company engaged in providing housing finance

– Contribution to notified annuity Plan of LIC

– Subscription to equity shares/ debentures of an approved eligible issue

– Subscription to notified bonds of NABARD Rs. 1,50,000

80CCC For amount deposited in annuity plan of LIC or any other insurer for a pension from a fund referred to in Section 10(23AAB) –

80CCD(1) Employee’s contribution to NPS account (maximum up to Rs 1,50,000) –

80CCD(2) Employer’s contribution to NPS account Maximum up to 10% of salary

80CCD(1B) Additional contribution to NPS Rs. 50,000

80TTA(1) Interest Income from Savings account Maximum up to 10,000

80TTB Exemption of interest from banks, post office, etc. Applicable only to senior citizens Maximum up to 50,000

80GG For rent paid when HRA is not received from employer Least of :

– Rent paid minus 10% of total income

– Rs. 5000/- per month

– 25% of total income

80E Interest on education loan Interest paid for a period of 8 years

80EE Interest on home loan for first time home owners Rs 50,000

80D Medical Insurance – Self, spouse, children

Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old – Rs. 25,000

– Rs. 50,000

80DD Medical treatment for handicapped dependent or payment to specified scheme for maintenance of handicapped dependent

– Disability is 40% or more but less than 80%

– Disability is 80% or more – Rs. 75,000

– Rs. 1,25,000

80DDB Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD

– For less than 60 years old

– For more than 60 years old – Lower of Rs 40,000 or the amount actually paid

– Lower of Rs 1,00,000 or the amount actually paid

80U Self-suffering from disability :

– An individual suffering from a physical disability (including blindness) or mental retardation.

– An individual suffering from severe disability – Rs. 75,000

– Rs. 1,25,000

80GGB Contribution by companies to political parties Amount contributed (not allowed if paid in cash)

80GGC Contribution by individuals to political parties Amount contributed (not allowed if paid in cash)

80RRB Deductions on Income by way of Royalty of a Patent Lower of Rs 3,00,000 or income received

Frequently Asked Questions

Can I claim the 80C deductions at the time of filing return in case I have not submitted proof to my employer?

Proofs for making investments are submitted to the employer before the end of a Financial Year (FY) so that the employer considers these investments while determining your taxable income and the tax deduction that needs to be made. However, even if you miss submitting these proofs to your employer, the claim for such investments made can be done at the time of filing your return of income as long as these investments have been made before the end of the relevant FY.

I have made an 80C investment on 30 April 2018. For which year can I claim this investment as a deduction?

You can claim deduction for investments made in the return of income for the year in which you have made the investment. Therefore, if you have made the investment on 30 April 2018, you will be eligible to claim such investment as a deduction during FY 2018-19.

I have availed a loan from my employer for pursuing higher education. Can I claim the interest paid on such loan as a deduction under Section 80E?

A deduction of interest paid on education loan under Section 80E can be made only if the loan has been availed from a financial institution for pursuing higher education. Therefore, availing a loan from your employer will not entitle you to claim the interest under Section 80E.

Is there any restriction or maximum limit upto which I can claim a deduction under Section 80E?

Law has not prescribed any upper limit for making a claim of deduction under Section 80E. Hence, the actual interest paid during a year can be claimed as a deduction.

Can a company or a firm take the benefit of Section 80C?

The provisions of Section 80C apply only to individuals or a Hindu Undivided Family (HUF). Hence, a company or a firm cannot take the benefit of Section 80C.

I have been paying life insurance premium to a private insurance company. Can I claim 80C deduction for the premium paid?

Deduction under Section 80C is available in respect of life insurance premium paid to any insurer approved by the Insurance Regulatory and Development Authority of India, whether public or private. Hence, the insurance premium you are paying will also help you claim an 80C deduction.

In which year can I claim deduction of the stamp duty paid for purchase of a house property

You can go ahead claiming the stamp duty for purchase of a house in the year in which the payment is made towards stamp duty under Section 80C.

Can a company claim a deduction for donations made under Section 80G

Any taxpayer making donations towards specified institutions, funds etc will be eligible to claim a deduction under Section 80G.

I am paying medical insurance premium for a medical policy taken in my name, my wife and children. I am also paying premium on a medical policy taken in the name of my parents who are above 60 years. Can I claim a deduction for both premiums paid?

The premium you have paid on the policy taken for yourself, spouse and children is eligible for a deduction under Section 80D upto a maximum of Rs 25,000. In addition to this, you will also be eligible to claim deduction of premium paid on the policy taken for your senior citizen parents upto a maximum of Rs 50,000 (this limit was Rs 30,000 until FY 2017-18. Hence, you can claim both premiums paid as a deduction under Section 80D.

Is my FD interest exempt under Section 80TTB?

If you are a senior citizen above 60 years of age, then your interest income from a Fixed Deposit is exempt under Section 80TTB.

What do you mean by 80C deduction under chapter VI A?

Income tax department allows reducing of the taxable income of the taxpayer in case the taxpayer makes certain investments or eligible expenditures allowed under Chapter VI A. 80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds etc.

How to calculate deduction u/s 80c?

For section 80C- The amount of eligible investment or expenditure as specified is fully allowed for deduction subject to the limit of Rs 1.5 lakh.

The limit of Rs 1.5 lakh deduction of Section 80C includes 80CCC (contribution towards pension plan) and 80CCD (1), 80CCD (1b) and 80CCD (2).

Section 80CCCD (1) is a contribution towards the National pension scheme by the employee or self employed and is limited to 10% of salary (basisc + DA) or 20% of gross total income for self employed.

Section 80CCD (1b) provides additional deduction of Rs 50,000 for contributions towards NPS , Atal pension Yojana etc. This deduction is over and above Rs 1.5 lakh. Hence total of deduction including 80C and 80CCD (1b) can be maximum Rs 2 lakh for a single year.

Section 80CCD (2) is deduction allowed to salaried for contributions made by their employer for NPS , this is also allowed at 10 % of salary (basic +DA) . However it is important to note that there is no upper limit in 80CCD (2)

Hence for investment in 80C only , the limit is Rs 1.5 Lakh. For investment together in 80C, 80CCD (1) and 80CCD (1b), one may invest upto Rs 2 lakh in total. Whereas, a salaried employee can avail more deduction without restriction of limit of Rs 2 lakh under section 80CCD (2) if the employer contributes towards NPS account subject to 10% of salary.

Further please note that per Budget 2020, any contribution towards EPF, NPS and superannuation will be added to the salary as “perquisites” and taxable under salaries in the hands of employees.

Can you claim HRA under section 80?

Yes , if you do not receive HRA as a part of a salary component, Rent paid can be claimed as deduction under section 80GG. However the maximum amount of deduction allowed is Rs 60,000 per annum.

What is 80GG in income tax? What is rent paid under 80GG ?

80GG allows you to claim deduction for rent paid even if your salary does not include HRA component or by self employed individuals having income other than salary. The condition is that you should not own any residential accommodation in the place of residence to claim deduction under 80GG.

How to calculate 80GG? How to claim 80GG?

80GG deduction will be allowed as lowest of below mentioned :

Rs 5,000 per month

25% of the adjusted total Income (excluding long-term capital gains, short-term capital gains under section 111A and Income under Section 115A or 115D and deductions under 80C to 80U. Also, income is before making a deduction under section 80GG).

Actual rent less 10% of Income

Who can claim deduction in 80GG?

Deduction under 80GG is available for employees who do not get HRA as a component of salary because of jobs in the informal sector or to self employed persons. The person claiming this deduction should not own a house in the place of residence.

What is section 80CCD ?

80CCD is a subsection of 80C which allows deduction for contributions to national pension schemes as notified by the central government. The deduction is allowed for contributions made by an employee, employer or voluntary self contribution. Overall limit of deduction allowed in section 80C is Rs 1.5 lakh plus an additional deduction of Rs 50,000 u/s 80CCD (1b) for self contribution to NPS or Atal pension yojana.

What is section 80CCD (1b)?

Section 80CCD (1b) specifically deals with contributions made by an individual (employee or self employed) to pension schemes as notified by the central government. This section provides additional deduction of Rs 50,000 over and above 80C limit of Rs 1.5 Lakh. Which mean an individual can claim total deduction of Rs 2 lakh by making investments in 80C and contribution for national pension scheme u/s 80CCD (1b)

What is section 80CCD (1) ?

Section 80CCD (1) is a deduction for employees as well as self-employed for making contributions to the National Pension scheme. An employee can claim deduction under 80CCD (1) at a maximum of 10% of basic salary plus dearness allowance. For self employed , the limit for deduction is 20% of their income subject to Rs 1.5 lakh maximum limit of section 80C.

What is section 80CCD (2)?

Section 80CCD deals with tax deductions available to employers with respect to contributions made to the pension scheme for its employees. i,e if your employer contributes to its employees pension account, deduction ,maximum upto 20% of total income of the employer can be availed.

What is section 80TTB?

Section 80TTB provides deduction upto Rs 50,000 on interest income earned on fixed deposit or savings account specifically to Senior citizens.

What is rebate u/s 87A?

A rebate under section 87A is one of the income tax provisions that help low income earning taxpayers reduce their income tax liability. Taxpayers earning an income below a certain limit have the benefit of paying marginally lower taxes. A Taxpayer can claim the benefit of rebate under section 87A for FY 2019-20 and 2020-21 only if the following conditions are satisfied:

You are a resident individual

Your total income after reducing the deductions under chapter VI-A (Section 80C, 80D and so on) does not exceed Rs 5 lakh in an FY

The tax rebate is limited to Rs 12,500. This means, if your total tax payable is less than Rs 12,500, then you will not have to pay any tax. Do note that the rebate will be applied to the total tax before adding the health and education cess of 4%.

Who is eligible for rebate u/s 87a?

A Taxpayer can claim the benefit of rebate under section 87A for FY 2019-20 and 2020-21 only if the following conditions are satisfied:

You are a resident individual which means HUF and firms cannot claim this rebate.

Your total income after reducing the deductions under chapter VI-A (Section 80C, 80D and so on) does not exceed Rs 5 lakh in an FY

Finish your E-filing for FREE with ClearTax  

Finish your E-filing for FREE with ClearTax

ClearTax makes it very easy to E-File your ITR

E-Filing takes only a few minutes

Our experts help you on live chat and email

START YOUR TAX RETURN NOW

ALL ARTICLES

Section 80TTB Deduction for Senior Citizens – Budget 2018

Budget 2018 introduced Section 80TTB which provides for a deduction of Rs 50000 from total income of senior citizens of interest from bank deposits. Read on

Post Office Fixed Deposit – Interest Rates & Benefits

The post office fixed deposit (POFD), also known as ‘post office time deposit’ is a convenient alternative to the fixed deposits provided by banks. Know more about the Features & Benefits, benefits for senior citizens and Post Office Interest Rates tables

How to make a donation to PM CARES Fund

you can make a donation to the PM CARES Fund for COVID-19 coronavirus pandemic. You can claim deduction for donation under section 80G of income tax Act

NPS Calculator

NPS Calculator (National Pension Scheme Calculator) – This pension calculator helps in calculating monthly pension and lumpsum amount to be received on retirement when you invest in the National Pension Scheme. ClearTax NPS calculator uses compound interest formula to calculate the NPS returns.

Section 80M of the Income Tax Act- Inter corporate dividends

Section 80M has been inserted in the Finance Act by our FM Nirmala Sitharaman in the Union Budget 2020. Read our detailed article on section 80M.

ppf-calculator-amp

PPF calculator AMP

Allowances and deductions available to a salaried person & documents they need to submit to avail them

Read about the allowances and deductions available to a salaried person and documents they need to submit to avail them in this article.

NPS subscribers can self-certify their FATCA declaration online

Every NPS account holder who has opened the account on or after 1 July 2014 must self-certify to comply with FATCA. Read here to know more.

Section 80EEB – Deduction in respect of interest paid on loan taken for the purchase of electric vehicle

A new section 80EEB has been introduced allowing a deduction for interest paid on loan taken for the purchase of electric vehicles. Read to know more.

Section 80EEA – Deduction for interest paid on home loan for affordable housing

The government has now extended the interest deduction allowed for low-cost housing loans under section 80EEA. Read here to know more about 80EEA.

NPS Login (National Pension Scheme) – NSDL & Karvy Login Process

Read here to more about the NPS Login, registration methods. Also, how to login into E-NPS account through NSDL, KARVY and internet banking.

5 Tax savers over and Above the 80C Limit

Apart from the deductions available under Section 80C, there are various other Section 80 deductions that can also be claimed to save on income tax. These deductions include health insurance premiums, tax benefits on home loans

Income Tax Deductions under Sec 80 CCD(1B)

Section 80 CCD (1B) is one such deduction which pertains to the contributions made towards NPS. Read on to know more on NPS and NPS account types.

Deductions under Section 80GGB

To encourage more contributions towards political parties, there is a provision of exemption from taxation under Sec 80 GGB. Kow more on Tax deductions and conditions to claim.

Section 80CCC of the Income Tax Act 1961

Section 80CCC of the Income Tax Act provides deductions of up to Rs. 1.5 lakhs per annum. Read on to know more on eligibility, section 10 (23AAB) & more.

Deductions under Section 80CCD of Income Tax

Contributions made to the National Pension Scheme (NPS) or the Atal Pension Yojana (APY) comes under 80CCD deductions. Know more on this and Section 80CCD (1) & (2).

Deductions under Section 80RRB

Royalty payment is one source of income for many citizens. Income Tax deduction on these royalty payments is 80RRB. Know more about eligibility and deductions under 80RRB.

80c-80-deductions-amp

80c-80-deductions-amp

NPS, National Pension Scheme – Basics, NPS Login, Features, Tax Benefits & Rules

NPS – National Pension Scheme is a government-sponsored pension scheme account is a tax saving option under Section 80C. Know about its NPS Login, Tax Benefits, Contribution, what is NPS (National Pension System). Visit now for more information on ClearTax.

Section 80D – Medical Insurance – Applicability, Deductions & Policies

80D – Read this article to know about medical insurance under Section 80D, its applicability, quantum of deductions, preventive health check up and other health insurance policies.

Post Office Fixed Deposit – Interest Rates & Benefits

The post office fixed deposit (POFD), also known as ‘post office time deposit’ is a convenient alternative to the fixed deposits provided by banks. Know more about the Features & Benefits, benefits for senior citizens and Post Office Interest Rates tables

How to Open a Sukanya Samriddhi Yojana Account in HDFC ?

Open Sukanya Samriddhi Account with HDFC Bank for your Girl child at an attractive interest rate of 7.6% p.a. which is fully exempted from tax under section 80C. Read this article to known more about how to open Sukanya Samriddhi Account with HDFC Bank.

Unit Link Insurance Plan ( ULIP )

ULIP is an investment product that also gives insurance benefits.In ULIP, a part of the money goes towards insurance and the rest towards investments.

Section 80TTB Deduction for Senior Citizens

Budget 2018 introduced Section 80TTB which provides for a deduction of Rs 50000 from total income of senior citizens of interest from bank deposits. Read on

Section 80P – Deduction for Co-operative Societies

One of the deductions available under Chapter Vi A is section 80P which is available for co-operative societies. Read more on eligible deductions, exception

Superannuation – How it Works, Types and Tax Benefits

Superannuation benefit is among the retirement benefits offered to employees by their employers where employer contributes for /on behalf of employees.

Sukanya Samriddhi Yojana (SSY) – Eligibility, Tax Benefits & Rules

To further the objective of the Beti Bachao Beto Padhao initiative, the government launched Sukanya Samriddhi Yojna ( SSY account ). Investment in this scheme allows a tax benefit under Section 80C upto Rs 1.5 lakhs.

Senior citizen savings scheme ( SCSS ) – Details, Benefits, Interest Rate & Opening SCSS Account

Senior Citizens Savings Scheme (SCSS) is primarily for senior citizens of India that offers regular income. Read more about fixed deposit Interest rates, Eligibility, benefits, investment amount, Banks applicable and how to open the SCSS account.

Post Office Saving Schemes – RD, TD, MIS, SCSS, PPF, NSC, KVP, SSA – Overview, Benefits & Comparison

The Post Office Saving Schemes come under central government run savings portfolio that offer a high amount of reliability. Read on to know more about its tax saving plans, interest rates & benefits.

Section 80U – Tax Deduction for Disabled Individuals

The article gives a detailed understanding on the kinds of disabilities and eligibility for claiming deductions. It also lays out the difference between section 80DD and Section 80U

Tax Saving Calculator

Tax Saving Calculator

Savings Calculator – Calculate your Wealth Accumulated

Savings Calculator : Plan your future wealth accumulated with ClearTax Savings Calculator. Know about benefits of calculating your savings & get to know how much you should save for your/ family future.

Section 80AC – Introduced in the Budget 2018

There is a proposal in Budget 2018 that no deduction under Section 80IA to 80RRB would be available if the return of income is not filed within the due date

Budget 2018 – Expectations on Section 80C

The individual taxpayers are eagerly hoping that the Budget 2018 be a more common man friendly one when compared to that of last year… Section 80C

UAN – UAN Login, Portal Registration, EPFO Universal Account Number Activation, Generate UAN & Check Status

UAN / Universal Account Number is a 12 digit identification number to all employees entitled to EPF. Know more about the features, benefits, documents required for UAN, EPFO member portal login

All You Need to Know About Saving Income Tax

There’re many ways that individuals can save income tax. Learn more about Section 80 deductions, HUF, Mutual funds, PPF ELSS & other tax savings schemes

What are Zero Coupon Bonds? Who Should Invest in Them?

Zero coupon bonds are bonds that don’t offer interest, but can be purchased at a discount on the face value. Find out who should invest in them.

Home Loan Taken from Friends or Relatives

Have you taken home loan from any of your friends and relatives? This article will help you understand the deduction that can be claimed for the repayments.

Section 80CCG – Phasing Out of RGESS

The deduction under section 80CCG i.e Rajiv Gandhi Equity Savings Scheme ( RGESS ) available under Chapter 6A has been discontinued starting from 1st April 2017.

How to Reach Rs 1,50,000 under Section 80C with No Investments?

Find out how to reach Rs. 1,50,000 under section 80C with no investments. Check out how section 80c offers tax relief on some of your expenses.

Tax Benefit to Employee on Medical Reimbursement of up to Rs.15,000

Find out the income tax benefits to Employee on Medical Reimbursements. Check out how much amount can be claimed under medical expenses deduction.

Section 80TTA – All about Claiming Deduction on Interest

Find out which deductions are allowed and which are not under section 80TTA. Check out how can you claim this deduction and the maximum deduction allowed.

Section 80GG – Deduction for Rent Paid Under 80GG

80GG is a deduction under Chapter 6A of the Income Tax Act – Find out how you can claim deductions under section 80gg for rent paid. Check out the conditions that must be fulfilled and deductions under this section.

Who can claim a deduction under section 80DD?

Section 80DD Deductions | Find out if you are eligible to claim a deduction under section 80DD or not. Check out the conditions you must meet to avail this deduction for FY 2020-21 (AY 2021-22 )

Should I include employer’s contribution to NPS in my taxable salary?

FInd out if you should include employer’s contribution to NPS in your taxable salary. Check out if you can claim deduction on employer’s contribution.

Section 80DDB – How to Get a Certificate for Claiming Deduction under Section 80DDB

Deductions Under Section 80DDB can be claimed with respect to the expenses incurred in medical expenses. Know more on how to claim and whom to take the certificate from.

How to save tax when you miss the income tax proof submission deadline

You can claim deductions and save tax even when you have missed income tax proof submission deadline. Find out how you can do this.

Tax Benefits on Children Education Allowance, Tuition fees & School Fees

Find out the tax benefits on children education allowance, tuition fees & school fees. Know about the tuition and fees deduction under section 80c.

Section 80 C – Income Tax Deductions under Sec 80C

Section 80 C : Find out the Investments and payments that are eligible for 80C deductions. Compare the popular 80C investments in terms of risk, returns, lock-in.

Tax Benefit on Stamp Duty & Registration Charges of a Property

Find out the stamp duty exemption & registration charges which are related to the transfer of property are allowed as a deduction under Section 80C.

Section 80EE Income Tax Deduction for Interest on Home Loan

Section 80EE allows tax benefits for first time home buyers. Income tax deduction can be claimed on home loan interest. want to know more about the income tax india, tax benefits on home loan and deduction on home loan,interest on home loans and Income Tax Deduction

Section 80G – Donations Eligible Under Section 80G and 80GGA

Find out the mode of payment and eligible donations under section 80g and 80gga deductions. Check the list of Prescribed funds & institutions under 80g

Section 80E Income Tax Deduction or Interest on Education Loan

Find out the Tax Benefits of Education Loan under Section 80E Income Tax deductions. See if you are eligible to claim this deduction.

Partial withdrawal from NPS exempt from tax -Introduced in Budget 2017

Partial NPS withdrawals will be tax free – Budget 2017. Find out the withdrawal limit and tax treatment on or before retirement and upon death of Subscriber

How to add i-SIP URN number in SBI Netbanking

Step by step guide on how to add i-sip URN number for mutual fund investments in your SBI netbanking.

How to add i-SIP URN number in Kotak Netbanking

Here is a Step by step guide on how to add i-sip URN number for mutual fund investments in your kotak netbanking account.

Making the most of your Public Provident Fund (PPF)

PPF is very popular with its twin benefits of tax saving and long term secure investment. clearTax totally recommends it!

Can I pay rent to my parents to save tax?

‘Claim HRA when living in parent’s house. How to save tax on HRA by paying rent to parents. Download and prepare rent receipts from parents.’

Tax saving under Section 80C

Investments and payments that are eligible tax-saving deductions under Section 80C. A taxpayer can save up to Rs 1.5 lakh by availing these deductions.

What to do when you miss the income tax proof submission deadline

Claim Deductions and Save Tax even when you missed income tax proof submission deadline

Section 87A Tax Rebate for FY 2017-18 & for FY 2016-17

Find out Who can claim Income Tax Rebate U/s. 87a for FY 2017-18 and FY 2016-17. Know how to claim section 87A rebate in ClearTax Software.

Saving tax on charitable donations

If you have been a generous soul in the past year, you can save some amount of tax. clearTax tells you how!

Saving tax if you pay Interest on Home Loan

Did you know you can save on tax if you have a Home Loan? Read on to find out more!

Section 80E Deduction for Interest on Education Loan

The Section 80E Deduction (for interest paid on loan taken for higher education) explained, how you can save on the tax you are paying