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. Section 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:  

Section 80C - Deductions on Investments: Section 80C is a favorite section for all taxpayers as it helps them to reduce the taxable burden with relevant tax-saving instruments or on allowed expenses. A taxpayer can have a maximum deduction of Rs 1.5 lakh every year from the total income.  

Individuals and HUFs can take benefit from this deduction. Companies, partnership firms, and LLPs are not allowed to avail the benefit of this deduction.  

Section 80TTA - Interest on Savings Accounts: As an individual or as a HUF, you can claim a deduction of a maximum of Rs 10,000 against interest income from your savings account with a bank, cooperative society, or post office. You have to mention the interest from a savings bank account as other income.

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

Section 80TTB - Interest from Deposits Held by Senior Citizens: For senior citizens (age 60 or more), Section 80TTB provides a deduction of up to Rs 50,000 for interest income earned on deposits in a banking firm, a post office, and so on. Therefore, for senior citizens under Section 194A, the maximum TDS deduction has been raised to Rs. 50,000. At the same time, no deduction under section 80TTA is permitted. It is important to know that senior citizens aged 75 and above who are surviving on only pension and interest income are exempt from ITR filing because the banks deduct the tax at the source.

Section 80GG - Income Tax Deduction on House Rent Paid: 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

The taxpayer has to meet several conditions such as, he/she should not have self-occupied residential property in any other place, the taxpayer must be living on rent and paying rent, etc.

Section 80E - Interest on Education Loan: This section allows an individual to have a deduction for interest on loans taken for the purpose of higher education. This loan might have been taken by the taxpayer, spouse, or children or for a student for whom the taxpayer is a legal guardian.

80E allows a deduction for a maximum period of 8 years (from the interest starting period) or till the entire interest is repaid, whichever comes first. With respect to the amount, there is no restriction that can be claimed.

Section 80EE/80EEA - Interest on Home Loan for First-Time Home Owners: Section 80EEA provides an extra deduction for paying interest on a house loan. This section exempts an additional Rs 1.5 lakhs interest on the loan for home buyers on the home loan. This deduction is applicable in FY 2017-18 if the loan was taken in FY 2016-17. Under section 24 up to Rs 2 lakh interest is exempted on home loans.

The deduction under section 80EE is applicable to individuals owning only one house property on the date of sanction of the loan. It should satisfy the following conditions the property value must not be more than Rs 50 lakh and the home loan should be lower than Rs 35 lakh. The loan must have been sanctioned between 1 April 2016 and 31 March 2017.

During financial years FY 2013-14 and FY 2014-15, the deduction available under this section was for first-time homes valued Rs 40 lakh or less. The loan amount should be Rs 25 lakh or less and the loan must have been sanctioned between 1 April 2013 and 31 March 2014. The total deduction under this section cannot exceed Rs 1 lakh and is allowed for FY 2013-14 and

FY 2014-15.

Section 80D - Deduction on Medical Insurance Premium: 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 of up to Rs 25,000 is available for medical insurance of parents less than 60 years of age. If your parents are aged above 60, then you can claim the deduction amount of Rs 50,000.

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

Section 80DD - Deduction for Medical Treatment of a Dependent with Disability: Section 80DD deduction is available to a resident individual or a HUF for expenditure incurred on medical treatment (including nursing), training, and rehabilitation of handicapped dependent relative.

If the disability is 40% or more but less than 80% - a fixed deduction of Rs 75,000.

In case of severe disability (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.

Section 80DDB - Deduction for Specified Diseases: For individuals and HUFs below age 60: A deduction up to Rs.40,000 is available with respect to any expense incurred towards the treatment of specified medical diseases or ailments for himself or any of his dependents.

For senior citizens and super senior citizens: The individual or HUF taxpayer can claim a deduction of up to Rs 1 lakh. 

Section 80U - Deduction for Disabled Individuals: This section allows a deduction of Rs.75,000 to an individual who suffers from a physical disability (including blindness) or mental retardation. Depending on the severity of a disability, one can claim a deduction of Rs 1,25,000.

Section 80G - Income Tax Benefits Towards Donations for Social Causes: The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction.

Any donations made in cash up to Rs 2,000 will be allowed as a deduction. Donations above Rs 2000 have to be in any mode except cash to qualify for an 80G deduction. The section gives details of where donations can be made in the following manner,

• Donations with 100% deduction without any qualifying limit.
• Donations with a 50% deduction without any qualifying limit.
• Donations are eligible for 100% deduction subject to 10% of adjusted gross total income.
• Donations are eligible for a 50% deduction subject to 10% of adjusted gross total income.

Section 80GGC - Deduction on Donations by a Person to Political Parties: An individual taxpayer for any amount contributed to a political party or an electoral trust can claim a deduction under Section 80GGC. It is only available for individual taxpayers and not available for companies, local authorities, etc. And this deduction is available only if the payment mode is any other and not in cash. 

Section 80RRB - Deduction on Income via Royalty of a Patent: For the taxpayer who is an individual patentee and an Indian resident can claim Rs.3 lakh or up to the received income whichever is less, under section 80RRB for the royalty of a patent, registered on or after 1 April 2003 under the Patents Act 1970. The taxpayer has to produce a certificate in the prescribed form duly signed by the respective authority.

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