Income Tax Deduction Section List

Provisions in the Income Tax Act 1961 also provide for various deductions under specified sections. Deductions can be claimed against Investments, Allowances, etc., which can reduce the taxable amount of an individual. Here is the list of various sections mentioned under the Income Tax Act 1961:

1. Section 80C: A maximum deduction of ₹1,50,000 (including 80CCC and 80 CCD) can be claimed under this section. Certain investments, saving schemes and some expenditures are allowed under this section. Some of them are:

• Amount paid towards premium of life insurance
• Amount paid towards premium or subscription for deferred annuity for self or immediate family
• Contribution made to Employee’s Provident Fund Scheme
• Contribution made to Public Provident Fund
• Contribution made to any recognised provident fund
• Investments done in Post Office Savings Bank (deposits) for 10 years or 15 years
• Investments made to any recognised securities or deposits scheme (Eg. National Savings Scheme)
• Investments made to any notified savings certificate, Unit Linked Savings Certificate (Eg. NSC VIII)
• Investments made to ULIPs (Unit Linked Insurance Plans) of any Mutual Fund
• Contribution made to the fund set up by the National Housing Scheme
• Payments against the principal of any housing loan
• Payments towards the tuition fees of any two children’s full-time education in institutes based in India

2. Section 80CCC: Deductions under this section are mainly:

• Payment of premium to any insurance company towards annuity plans.
• Payment of premium for annuity plan of LIC or any other insurer (maximum cap of ₹1,00,000)

Premium paid in those plans must be kept deposited in order to avail a deduction.

3. Section 80CCD: Any contribution made in a pension scheme notified by the central government by the assessee or the employee comes under this section. The limit under this section is:

•  In the case of an employee, 10% of the salary in the previous year.
• 10% of gross total income in any other case.

4. Section 80D: In this section of the Income Tax Act 1961, deductions can be claimed for a maximum amount of ₹40,000 on medical insurance. It further states:

• Deduction allowed for self, spouse and dependent children: ₹15,000 (₹20,000 for senior citizens)
• Deduction allowed for parents (individual or both): ₹ 5000 (₹20,000 for senior citizens)
• Deduction allowed for preventive health check-ups (within the ₹40,000 limit) : ₹ 5000

5. Section 80DDB: In this section, deductions can be claimed on the amount not exceeding ₹40,000 spent on medical expenses that arise for treatment of a disease or ailment mentioned in Rule 11DD of the Act.

6. Section 80E: Under this section, a claim can be made on the amount paid as interest on loans taken for the cause of higher education for self or a relative.

7. Section 80EE: Under this section, first-time homeowners can claim a deduction on their taxable income. Individuals having their first home purchased of value not more than ₹40 Lakh and the loan taken for which is ₹25 Lakh or less are eligible to claim a deduction under this section.

8. Section 80RRB: Under this section, tax can be saved up to an amount of ₹3,00,000 on receiving any income by way of royalties or patents registered under the Patents Act, 1970

9. Section 80TTA: Under this section, any income earned through an interest in a savings bank account, post office, or cooperative society up to ₹10,000 can be claimed for deduction.

10. Section 80U: This section specifically provides a flat deduction on income tax only applied to disabled people. Up to ₹1,00,000 can be claimed for deduction depending on the severity of the disability.

Income Tax is a direct tax that is levied on any individual’s or entity’s income during a financial year. It is directly paid to the government, like all the other direct taxes.