Deductions under Chapter VI-A of the Income Tax Act, 1961, allow taxpayers to reduce their taxable income by claiming various deductions. Here are some of the key sections under Chapter VI-A
Section 80C
Limit :- Up to ₹1,50,000
Eligible Investments/Expenses :-
Life Insurance Premiums
Employee Provident Fund (EPF)
Public Provident Fund (PPF)
National Savings Certificates (NSC)
Equity Linked Savings Scheme (ELSS)
Principal repayment on home loan
Tuition fees for children
Fixed deposits for 5 years or more with banks and post offices
Section 80CCC
Limit :- Up to ₹1,50,000 (combined with Section 80C)
Eligible Investments :- Contributions to certain pension funds.
Section 80CCD
80CCD(1) :- Contributions to the National Pension System (NPS) by the individual (up to ₹1,50,000, combined with Section 80C and 80CCC).
80CCD(1B) :- Additional deduction of ₹50,000 for contributions to NPS.
80CCD(2) :- Employer’s contribution to NPS (up to 10% of salary).
Section 80D
Limit :-
Up to ₹25,000 for self, spouse, and dependent children.
Additional ₹25,000 for parents (₹50,000 if parents are senior citizens).
Eligible Expenses :- Health insurance premiums and preventive health check-ups.
Section 80DD
Limit :-
₹75,000 for expenses on medical treatment of a dependent with disability.
₹1,25,000 for severe disability.
Eligible Expenses :- Medical treatment, training, and rehabilitation of a dependent with disability.
Section 80DDB
Limit :-
Up to ₹40,000 for medical treatment of specified diseases.
₹1,00,000 for senior citizens.
Eligible Expenses :- Medical treatment of specified diseases for self or dependent.
Section 80E
Limit :- No upper limit.
Eligible Expenses :- Interest on education loans for higher education.
Section 80G
Limit :- Varies based on the type of donation.
Eligible Donations :- Donations to specified funds, charitable institutions, etc.
Section 80GG
Limit :- Least of the following:
₹5,000 per month.
25% of total income.
Rent paid minus 10% of total income.
Eligible Expenses :- Rent paid for accommodation if HRA is not received.
Section 80GGA
Limit :- No upper limit.
Eligible Donations :- Donations for scientific research or rural development.
Section 80GGC
Limit :- No upper limit.
Eligible Donations :- Contributions to political parties.
Section 80TTA
Limit :- Up to ₹10,000.
Eligible Income :- Interest on savings accounts.
Section 80TTB
Limit :- Up to ₹50,000.
Eligible Income :- Interest on deposits for senior citizens.
Section 80U
Limit :-
₹75,000 for individuals with disability.
₹1,25,000 for severe disability.
Eligible Expenses:-Medical treatment, training, and rehabilitation of self with disability.
These deductions can significantly reduce your taxable income, thereby lowering your tax liability. It’s important to keep proper documentation and receipts for all eligible expenses and investments to claim these deductions.
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