Tax Deductions available under section 80 of Income Tax As
per New Finance Budget 2015
Download Automated Master of Form 16 Part B for Financial Year 2015-16 and Assessment year 2016-17 [ This Excel Uitility can prepare at a time 100 employees Form 16 Part B as per New Finance Budget 2015]
Section 80C
In all, total deductions
under section 80C, 80CCC and 80CCD (1) cannot exceed Rs 1.50 lakh for the
current assessment year. Which means total investments, expenses and payments
up to a limit of Rs 1.50 lakh are eligible for tax deductions mentioned in the above
mentioned sections. These sections cover many savings schemes like National
savings certificates (NSCs), Public Provident Fund (PPF) and other pension
plans, life insurance premiums, government bond investments. Here’s a
section-wise breakup of deductions and exemptions available under the above
mentioned codes:
Section 80CCC
This section provides tax
deductions under any investments made in an annuity plan or Life Insurance
Corporation (LIC) or pension received under funds mentioned in Section
10(23AAB), Raised the limit Up to Rs. 1.5 Lakh
Section
80CCD (1)
The deductions under this
section are aimed at encouraging people to save. These deductions are allowed
to people who avail the National Pensions savings scheme (NPS). Under this an
individual can avail a deduction of up to 10 percent of his/her salary or Rs
1.50 lakh whichever is lower, if the person is employed or the lower of Rs 1.50
lakhs or 10 percent of gross income, if the individual is self employed.
Section 80CCD (2)
This is applicable in case of
employer’s contribution. Maximum deduction of 10% of salary.
Section
80CCD (1B)
For financial year 2015-16 or
assessment year 2016-17, this new section provides for additional tax deduction
for amount contributed to NPS of up to Rs 50,000. So for AY2016-17, total
deductions under Section 80 are available up to Rs 200,000.
Section
80D
Deduction up to Rs.25,000 for
self, spouse and dependent children and separate deduction of Rs.30,000 for
parents is allowed for premium paid towards medical insurance.
Section
80DD
Deduction of expenses
incurred on medical treatment of Dependent Relative is fixed at
Rs.75,000 for 40% disability and Rs.1,25,000 for severe i.e. 80%
disability. Claimant is required to furnish certificate of disability from prescribed
authority.
Section
80DDB
Deduction in respect of
specified disease for self or dependent relatives is allowed lower of Rs.60,000
or actual amount paid. This deduction amount increases to Rs.80,000 in case of
senior citizen.
Section
80E
Deduction is also available
on interest outgo on education loan for higher studies. This loan could be
taken by the assessee, spouse or children or a student for whom the assessee is
a legal guardian.
Section
80G
Donations given to various
specified institutions and organizations are allowed to be deducted from your
income. The deductions are segregated under two categories i.e. 100% or 50% but
cash donations exceeding Rs.10,000 is not allowed to claim.
Section
80GG
A deduction on house rent
paid is available to those who are not paid house rent allowance (HRA) by the
employer. An individual, spouse or minor children shouldn’t own a home at the
place of employment of the assessee to claim this deduction. Neither the
assessee should have a self-occupied residence at any other place. The
deduction available is limited to: rent minus 10% of total income or 25% of
total income or Rs 2000 (whichever is lower).
Section
80TTA
Any interest earned (up to Rs
10,000) on your deposits in a savings bank account, co-operative society or
post office is tax deductible. This excludes fixed deposit interest
income.
Section 80U
Physically Disabled persons
can claim deductions under 80U of Rs.75,000/- and Sr.Citizen Rs. 1,25,000/-
Assessee is required to obtain certificate from Government Doctor.
