All the deduction U/S 80C to 80U. How many deductions are available in income tax in India?
Are you a tax payer in India. If yes there is a good news for you. Our today's discussable topic is Deduction under section 80c to 80u. What is it? In 80c to 80u there is 15-20 section from where you can apply for some concession for paying income tax.
Now the question is how and why for those sections are required! If you are a taxpayer you know that in India you have to pay tax ₹12500 + 10% of total income exceeding ₹5,00,000. ₹37500 + 15% of total income exceeding ₹7,50,000. ₹62500 + 20% of total income exceeding ₹10,00,000.
You have to pay those taxes with a website incometax.gov.in // while you pay taxes you got some sections that can help you to reduce your tax. The sections are as follows:
U/S 80C
Maximum Limit- 150,000
Conditions:
You can apply this if you have
- You or your wife or your child(adult/non adult) have a life insurance. You can apply for maximum deduction of total insurance policies 20%.
- Non commutable deferred annuity plan
- Statutory provident fund or recognised provident fund
- Public provident fund
- Approved superannuation fund
- National saving certificate (issue VIII or IX)
- UTI unit Trust of India are LIC Premium in ULIP
- UTI any mutual fund
- Any life insurance policies from other financial institute as bank
- National housing bank loan
- Tuition fee payment of childrens in any education institution situated in India
- Any payment in Housing Board
- Any term deposit above for 5 years minimum
- Investment in bonds in NABARD
- Any deposit in post office for above 5 years minimum
All the above list's total amount and 150,000 whichever is lower is to be deductible under section 80c.
U/S 80CCC
Maximum Limit- 100,000
Conditions:
You can apply this if you have Invested in any annual plan or deposit like as NPS( National pension scheme), APY( Atal Pension Yojana)
U/S 80D
Maximum limit(for check up)- 5000
Maximum limit(for general mediclaim)- 25,000
Maximum limit(for general mediclaim, senior citizen)- 50,000
If all above are applied then maximum limit- 50,000
Conditions:
You can apply this if you have Mediclaim Life Insurance policy. And you are claiming your policy money.
U/S 80DD
Limit- 75000 to 125,000
Conditions:
You can apply this if you have maintenance medical treatment of a person with disability or if you are a person with disability.
If PWD percentage is between 40% to below 80% you can apply for a deduction of rupees 75000 and if PWD percentage is 80% or above 80% then you can apply for the direction of rupees 125,000
U/S 80 E
Maximum the interest on Loan in privious year
Conditions:
You can apply this if your child is studying after HS and you are paying his or her tuition fee from taking a loan with a bank. (Maximum 7 years interest can be deducted)
U/S 80 EE
Maximum the interest on loan or 50,000 whichever is lower
Conditions:
You can apply for this deduction if you were taking a loan for buying house between the date April 1, 2016 to March 31, 2017 and the loan amount is between 35 lacs to 50 lacs.Then you can apply for exemption for interest on loan or 50,000 whichever is lower.
U/S 80 EEA
Maximum Limit- 150,000 or interest on loan whichever is lower
Conditions:
You can apply this if you were taking a loan for buying a house and house stamp duty is below 45 lakhs. Then you can apply for this deduction for exemption interest on loan or 150,000 whichever is lower.
U/S 80 GG
Maximum limit- 50,000 or 25% of total earning
Conditions:
You only apply for this deduction if you have no house in your ownership and you are self employed or you are a service man and your employer did not give you the house rent allowance.
U/S 80 G
No limit
Conditions:
There is only one condition you have to donate your money into any national fund or CM fund for Prime Minister fund
U/S 80U
Maximum Limit- 75000 - 125,000
In the case of permanent physical disability including blindness fixed deposit of rupees 75000 and a higher deduction of 125000 is allowed in respect of a person with severe disability
U/S 80 GGA
In which donation for scientific research or rural development is made, actual amount paid during the previous year will be deductible.
U/S 80 GGB
Any amount contributed by an Indian company to a political party will be deducted in full in the previous year in which such contribution is made
U/S 80 GGC
Any amount contributed by the person accept local authority and artificial judicial person wholly and partly funded by the government to a political party will be deducted in full in the previous year in such contribution is made.
All the above deduction only made if the conditions are made in previous year.
