Income Tax Calculation 2023-24 

पगारदार आणि इतर भारतीय नागरिकांना आकारात मिळणारी वजावाट:-

१) स्टॅन्डर्ड डीडक्शन:- 50000 + 2500 (प्रोफेशनल टॅक्स) =52500.

२) 80 C अंतर्गत सुट (150000) LIC, आणि इतर  आयुर्विमा चा हप्ता, मुलांची ट्यूशन फीस, गृह कर्जाची प्रिन्सिपल रक्कम, पी. एफ, पी. पी. एफ, म्युच्युअल फंड आणि NPS मधील (80CCD वजा जाता उर्वरित रक्कम) 

३) 80 D अंतर्गत सुट (100000, सतः आणि अवलंबून असेलले पालकांच्या आयुर्विमा साठीचा खर्च) 

४) 80 CCD(1B) फक्त NPS धारकांन साठी. स्वतःचे कॉन्ट्रिब्युशन (जास्तीतजास्त 50000) 

५) 80 CCD (2)फक्त NPS धारकांन साठी Employer's कॉन्ट्रिब्युशन (@बेसिक +डी.ए .च्या पासून १४% NPS धारकांसाठी २०२० पासून)

६) गृह कर्जाचे व्याज. (200000 पर्यंत) 

७) 80 G. (डोनेशन, पगाराच्या 10% पर्यंत)

८) (89A) अंतर्गत मागील वर्षातील थकबाकी वरील सुट(यासाठी 10E हा फॉर्म भरावा लागतो) 

९) एकूण जर टॅक्सेबल उत्पन्न ५.०० लाखाच्या आत असेल तर 87A अंतर्गत 12500 टॅक्स चा लाभ मिळतो. 

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Deductions on Section 80C, 80CCC & 80CCD

For the financial year 2021-22 (including budget amendments)

There are various deductions a taxpayer can claim from his total income which would bring down his taxable income and thereby reduce his tax outgo. Discussed in this article are some of the important deductions under Section 80C that a taxpayer is eligible to claim.

Sec 80c Investment

Sec 80CCC Insurance Premium

Sec 80CCD Pension Contribution

Sec 80TTA Interest on Savings Account

Sec 80GG House Rent Paid

Sec 80E Interest on Education Loan

Sec 80EE Interest on Home Loan

Sec 80CCG RGESS

Sec 80D Medical Insurance

Sec 80DD Disabled Dependent

Sec 80DDB Medical Expenditure

Sec 80U Physical Disability

Sec 80G Donations

Sec 80GGB Company Contribution

Sec 80GGC Contribution to Political Parties

Sec 80RRB Royalty of a Patent

Sec 80TTB Interest Income 

1. Section 80C

Deductions on Investments

Under section 80C, a deduction of Rs 1,50,000 can be claimed from your total income. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income through section 80C. This deduction is allowed to an Individual or a HUF. A maximum of Rs 1, 50,000 can be claimed for the FY 2018-19, 2017-18, and FY 2016-17 each. If you have paid excess taxes, but have invested in LIC, PPF, Mediclaim, incurred towards tuition fees, etc., and have missed claiming a deduction of the same under 80C, you can file your Income Tax Return, claim these deductions and get a refund of excess taxes paid. 

2. Section 80CCC 

Deduction for Premium Paid for Annuity Plan of LIC or Other Insurer

This section provides a deduction to an individual for any amount paid or deposited in any annuity plan of LIC or any other insurer. The plan must be for receiving a pension from a fund referred to in Section 10(23AAB). 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.

3. Section 80CCD

Deduction for Contribution to Pension Account

a. Employee’s contribution – Section 80CCD (1) is allowed to an individual who makes deposits to his/her pension account. The maximum deduction allowed is 10% of salary (in case the taxpayer is an employee) or 20% of gross total income (in case the taxpayer is self-employed) or Rs 1, 50,000, whichever is less. FY 2016-17 and earlier years – In the case of a self-employed individual, the maximum deduction allowed is 10% of gross total income. b.Deduction for self-contribution to NPS – section 80CCD (1B) A new section 80CCD (1B) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible. c. Employer’s contribution to NPS – Section 80CCD (2) Additional deduction is allowed for employer’s contribution to employee’s pension account of up to 10% of the salary of the employee. There is no monetary ceiling on this deduction.

4. Section 80 TTA

Deduction from Gross Total Income for Interest on Savings Bank Account

A deduction of a maximum of Rs 10,000 can be claimed against interest income from a savings bank account. Interest from a savings bank account should be first included in other income and a deduction can be claimed of the total interest earned or Rs 10,000, whichever is less. This deduction is allowed to an individual or a HUF. It can be claimed for interest on deposits in savings accounts with a bank, cooperative society, or post office. Section 80TTA deduction is not available on the interest income from fixed deposits, recurring deposits, or interest income from corporate bonds.

5. Section 80GG

Deduction for House Rent Paid Where HRA is not Received

a. This deduction is available for rent paid when HRA is not received. The taxpayer, spouse, or minor child should not own residential accommodation in the location where he/she is employed. 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 incomes, long-term capital gains, and income relating to non-residents and foreign companies. Online e-filing software like that of ClearTax can be extremely easy as the limits are auto-calculated and you do not have to worry about making complex calculations. From FY 2016-17, the available deduction has been raised to Rs 5,000 a month from Rs 2,000 per month.

6. Section 80E

Deduction for Interest on Education Loan for Higher Studies

A deduction is allowed to an individual for interest on a loan 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. The 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.

7. Section 80EE

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 this section is available only to an individual who is a first-time homeowner. The value of the property purchased must be less than Rs 50 lakh and the home loan must be less than Rs 35 lakh. The loan must be taken from a financial institution and must have been sanctioned between 01 April 2016 to 31 March 2017. There is an additional deduction of Rs 50,000 available on your home loan interest on top of the deduction of Rs 2 lakh (on the interest component of home loan EMI) allowed under section 24. As per Section 80EE(4), a deduction under section 24 cannot be availed if the deduction is claimed under this section. (4) Where a deduction under this section is allowed for any interest referred to in subsection (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year FY 2013-14 and FY 2014-15 This section provides a deduction on the home loan interest paid. The deduction under this section is available only to individuals for the first house purchased where the value of the house is Rs 40 lakh or less and the loan taken for the house is Rs 25 lakh or less. The loan must be sanctioned between 01 April 2013 to 31 March 2014. The aggregate deduction allowed under this section cannot exceed Rs 1,00,000 and is allowed for FY 2013-14 and FY 2014-15.

8. Section 80CCG

Rajiv Gandhi Equity Saving Scheme (RGESS)

The deduction under this section is available to a resident individual. Investors whose gross total income is less than Rs. 12 lakhs. To avail of the benefits under this section, the following conditions should be met: a. The assessee should be a new retail investor as per the requirement specified under the notified scheme. b. The investment should be made in such listed investor as per the requirement specified under the notified scheme. c. The minimum lock-in period concerning the other investment is three years from the date of acquisition by the notified scheme. Ufulfilmentment of the above conditions, a deduction, which is lower than the following is allowed.

50% of the amount invested in equity shares; or

Rs 25,000 for three consecutive Assessment Years.

Rajiv Gandhi Equity Scheme has been discontinued starting from 1 April 2017. Therefore, no deduction under section 80CCG will be allowed from FY 2017-18. However, if you have invested in the RGESS scheme in FY 2016-17, then you can claim a deduction under Section 80CCG until FY 2018-19.

9. Section 80D

Deduction for the premium paid for Medical Insurance

Deduction under this section is available to an individual or a HUF. A deduction of Rs. 25,000 can be claimed for health insurance of self, spouse, and dependent children. An additional deduction for health insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age or Rs 50,000 (has been increased in Budget 2018 from Rs 30,000) if parents are more than 60 years old. In case, a taxpayer's age and parents' age is 60 years or above, the maximum deduction available under this section is to the extent of Rs. 100,000. From FY 2015-16, a cumulative additional deduction of Rs. 5,000 is allowed for the preventive health check to individuals.

10. Section 80DD

Deduction for Rehabilitation of Handicapped Dependent Relative

This deduction is available to a resident individual or a HUF and is available on: a. Expenditure incurred on medical treatment (including nursing), tratrainingnd rehabilitation of handicapped dependent relative b. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

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

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

To claim this deduction a certificate of disability is required from the 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.

11. Section 80DDB

Deduction for Medical Expenditure on Self or Dependent RelaSuchs deduction is available to a resident individual or a HUF. The deduction that can be claimed is Rs 40,000. Such deduction, for an individual, is available in respect of any expenses incurred towards the treatment of certain specified medical diseases or ailments for himself or any of his dependents. For a HUF, such deduction is available in respect of medical expenses incurred towards these prescribed ailments, for any of the members of the HUF. In case the individual on behalf of whom such expenses are incurred is a senior citizen, a deduction up to Rs 1 lakh can be claimed by the individual or HUF taxpayer. Earlier i.e. 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 otherwise means, now it is a common deduction available up to Rs 1 lakh for all senior citizens (including super senior citizens) unlike earlier. 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 to be able to claim such a deduction. Read our detailed article on Section 80DDB

12. Section 80U

Deduction for a 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, a deduction of Rs. 1,25,000 can be claimed. 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.

13. Section 80G

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 as provided in section 80G. From FY 2017-18, any donations made in cash exceeding Rs 2,000 will not be allowed as a deduction. Donations above Rs 2000 should be made in any mode other than cash to qualify as a deduction u/s 80G.

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 is constituted in any district under the chairmanship of the Collector of that district

Fund set up by a State Government for 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 concerning 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 the earthquake in Gujarat

Any trust, institution, or fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made between 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 the financial year 2014-15)

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

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

b. Donations with a 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 to promote family planning

Donation by a Company to the Indian Olympic Association or 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 a 50% deduction subject to 10% of adjusted gross total income

Any other fund or any institution which satisfies the 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 to dealsatisfysatisfying the need for housing accommodation or 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.

14. Section 80GGB

Deduction on contributions given by companies to Political Parties

The deduction is allowed to an Indian company for the amount contributed by it to any political party or an electoral trust. The deduction is allowed for contributions done in any way other than cash.

15. Section 80GGC

Deduction on contributions given by any person to Political Parties

Deduction under this section is allowed to a taxpayer except for a company, local authority, and an artificial juridical person wholly or partly funded by the government, for any amount contributed to any political party or an electoral trust. The deduction is allowed for contributions done in any way other than cash.

16. Section 80RRB

Deduction concerning any Income by way of Royalty of a Patent

Deduction for any income by way of royalty for a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available up to Rs. 3 lakhs or the income received, whichever is less. The taxpayer must be an individual resident of India who is a patentee. The taxpayer must furnish a certificate in the prescribed form duly signed by the prescribed authority.

17. Section 80 TTB

Deduction of Interest on Deposits for Senior Citizens

A new section 80TTB has been inserted vide Budget 2018 wherein, a deduction in respect of interest income from deposits held by senior citizens will be allowed as a deduction from the total income The limit for this deduction is Rs. 50,000. Further, no deduction under section 80TTA shall be allowed. In addition to section 80 TTB, section 194A of the Act will also be amended to increase the threshold limit for deduction of tax at source on interest income payable to senior citizens from the existing limit of Rs 10,000 to Rs. 50,000.

18. Deductions-Summary

Section 80 Deduction Table

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 the 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 the amount deposited in the 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 adjusted total income

Rs. 5000/- per month

25% of adjusted total income

80E Interest on education loan Interest paid for 8 years

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

80CCG Rajiv Gandhi Equity Scheme for investments in Equities Lower of:

50% of the amount invested in equity shares; or

Rs 25,000

80D

Medical Insurance – Self, spouse, children

Medical Insurance – Parents more than 60 years old

Rs. 25,000

Rs. 50,000

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

A Lower of Rs 1,00,000 or the amount paid

80U Self-suffering from disability :

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

An individual suffering from a 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 the 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 made an 80C investment on 30 April 2018. For which year can I claim this investment as a deduction?

You can claim a deduction for investments made in the return of income for the year in which you have invested. Therefore, if you invested on 30 April 2018, you will be eligible to claim such investment as a deduction during FY 2018-19. Also On account of the pandemic, the government has extended the due date to make investments for FY 19-20 up to 31st July 20. So in case, you have made an investment relating to FY 19-20 after 31st March 20 but on or before 31st July 20 then the same can be declared in your return and availed as deductions

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

A deduction of interest paid on an 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 of a loan from your employer will not entitle you to claim the interest under Section 80E.

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

Law has not prescribed any upper limit for claiming 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 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 benefit of Section 80C.

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

Deduction under Section 80C is available in respect of life insurance premiums 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 a deduction of the stamp duty paid for the purchase of a house property

You can go ahead claiming the stamp duty for the 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 the medical insurance premiums for a medical policy taken in my name, my wife, and my children's. I am also paying a 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, your spouse, and your children are eligible for a deduction under Section 80D up to a maximum of Rs 25,000. In addition to this, you will also be eligible to claim a deduction of the premium paid on the policy taken for your senior citizen parents up to 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.