Ten Deduction under section 80 of income tax Act 1961.

Deduction under section 80 of income Tax Act

Section 80 of the Income Tax Act, 1961 allows taxpayers to claim various deductions from their total taxable income, thereby reducing their tax liability. Here are some common deductions available under Section 80:

Ten Deduction under section 80

1. Section 80C: This section allows taxpayers to claim deductions for investments made in specified instruments such as EPF, PPF, NSC, ELSS, etc. The maximum limit for deduction is Rs. 1.5 lakhs.
2. Section 80CCC: This section allows taxpayers to claim deductions for contributions made to annuity plans of an insurance company. The maximum limit for deduction is Rs. 1.5 lakhs.
3. Section 80CCD: This section allows taxpayers to claim deductions for contributions made to the National Pension System (NPS). The maximum limit for deduction is 10% of the salary or gross income (for self-employed individuals) or Rs. 1.5 lakhs.
4. Section 80D: This section allows taxpayers to claim deductions for health insurance premiums paid for themselves, spouse, and dependent children. The maximum limit for deduction is Rs. 25,000. If the policyholder or any of the covered individuals is a senior citizen, the limit is increased to Rs. 50,000.
5. Section 80DD: This section allows taxpayers to claim deductions for expenses incurred on the medical treatment of a dependent who is differently-abled. The maximum limit for deduction is Rs. 75,000.
6. Section 80DDB: This section allows taxpayers to claim deductions for expenses incurred on the treatment of specified diseases for themselves or their dependents. The maximum limit for deduction is Rs. 1 lakh.
7. Section 80E: This section allows taxpayers to claim deductions for interest paid on education loans taken for higher studies. There is no limit on the amount of deduction.
8. Section 80G: This section allows taxpayers to claim deductions for donations made to specified institutions such as charitable trusts and political parties. The maximum limit for deduction is either 100% or 50% of the donation amount, depending on the institution.
9. Section 80GG: This section allows taxpayers to claim deductions for rent paid when they don't receive House Rent Allowance (HRA) from their employer. The maximum limit for deduction is Rs. 60,000 per year.
10. Section 80TTA: This section allows taxpayers to claim deductions for interest earned on savings bank accounts. The maximum limit for deduction is Rs. 10,000.

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