Income Tax Deduction

 

Income Tax Deductions for Salaried/Professionals

 

Deductions are allowed only those choose old regimen.  Under new regimen one claim deduction under 80CCD (2).

Deduction Header	Items/Remarks	Amount
80C Savings	Life Insurance Premium PPF ELSS NSC Tuition Fees Housing Loan Principal	Combined deduction limit of 1,50,000
80 CCC Annuity Pension Schemes	Annuity plan towards Pension scheme
80 CCD(1) NPS	Pension scheme of central government
80 CCD(1B) NPS	Pension scheme of central government excluding amount claimed under 80 CCD(1)	50,000
80CCD(2) NPS	Deduction towards contribution made by an employer(PSU,State Govt.) to pension scheme of Central Government.	Deduction limit of 10% of salary.
	If employer is central Govt	Deduction limit of 14% of salary
80D Health insurance premium and preventive health checkup.	For Self/Spouse/ dependent children.	25000 50000 (Senior Citizen)
	For Parents	25000 50000 (Senior Citizen)
80 DDB Medical Treatment	Self or Dependent for specified disease	40,000 1,00,000 (Senior Citizen)
Thus one can claim upto 50,000 under health insurance (Family+Parents) & upto 75,000 if parents are senior citizen. If both family & parents are aged more than 60 you can claim upto 1,00,000.
80E Education Loan	Interest payment of self or relative	Total amount paid towards interest on loan taken.
80EE Residential Property	Interest payment for home loan sanctioned between 1st April 2016 to 31 March 2017.	Deduction upto 50,000.
80EEA Residential Property	Interest payment for first time home loan sanctioned between 1st April 2019 to 31 March 2022. No deduction should have been claimed inder 80EE.	Deduction upto 1,50,000.
80 EEB Electric Vehicle	Interest payment for loan sanctioned between 1st April 2019 to 31 March 2023.	Deduction upto 1,50,000.
80 G Donations	To prescribed funds, charitable trust.	Donations more 2000 in cash cannot be claimed. Deductions can be claimed upto 100 -50% with or without qualifying limit depending on the fund.
80 GG House Rent	Deduction towards rent paid for house who are self employed or HRA is not part of salary.	Least amount among below calculation can be claimed ·       5000/month ·       Yearly rent minus 10% of tax payer adjusted total income or 25% of adjusted total income. Whichever is lower.
80TTA Savings Account	Deduction on interest earned on savings account.	10,000
80TTB Savings Account	Deduction on interest earned on savings account for senior citizen.	50,000.