Permissible Deductions from Gross Total Income u/s 80-C to 80U

INTRODUCTION

The Income-tax Act of 1961 provides numerous deductions to lower taxable income, promote investments and savings, and assist Indian taxpayers. Comprehending these segments is imperative for making knowledgeable financial choices and optimizing your tax preparation approach, regardless of whether you are an employee or a business proprietor. From Section 80C to Section 80U, there are numerous ways for taxpayers to reduce their tax obligation using these deductions.

Tax deductions are particular costs or investments that lower a person’s taxable income and, as a result, the amount of income tax they must pay. The government permits certain deductions in order to motivate people to invest, save, buy insurance, and make contributions to particular funds and programs[1].

DEDUCTIONS UNDER 80C

By making smart investments, you can take advantage of tax advantages under Section 80C of the Income Tax Act of 1961. You can lower your tax obligations and gain from financial growth with this part. You can claim a deduction under Section 80C up to ₹ 1.5 lakh every financial year by diversifying your assets in products like the Public Provident Fund (PPF), Life Insurance Plan, and National Savings Certificate (NSC).

Under the Income Tax Act of 1961, HUFs are recognized as distinct assessable entities and are eligible to receive advantages under Section 80C, which allows for a deduction of up to ₹ 1.5 lakh each financial year. In order to be eligible for this section’s deductions, HUFs are free to invest in a variety of products, including equity linked savings schemes (ELSS), tax-saving Fixed Deposits (FDs), and life insurance[2].

DEDUCTIONS UNDER SECTION 80CCC

An assessee may be eligible for a deduction under this section if the following criteria are met:

The taxpayer must be a person;
He must have paid or deposited money under an annuity plan of the Life Insurance Corporation of India or any other insurer in order to get a pension during the previous year.
If section 80C deductions have not been claimed.

In the event that the aforementioned requirements are met, the deposited amount, or Rs. 150000, whichever is less, is deductible. In the year of receipt, the assessee’s or his nominee’s pension amount will be subject to taxation.

DEDUCTIONS UNDER 80CCD

If the following requirements are met, new central government employees may deduct under this section:

The taxpayer must be a person
He began working for the Central Government on January 1, 2004, or later;
He paid or deposited any amount into his account in the preceding year under a pension plan that the Central Government had announced.

The total amount deductible is:

Total employee’s contribution and employer’s contribution to the notified pension scheme during the year,
Or 10% of salary / 20% of the GTI of employee, whichever is less

DEDUCTIONS UNDER 80CCE

In order to reduce their tax obligations, taxpayers can take advantage of a number of deductions and exemptions under the Income Tax Act of 1961. Section 80CCE is one such clause that enables taxpayers to deduct certain contributions and investments. We will go into great detail on Section 80CCE in this article, including its investment possibilities, deduction limit, and eligibility requirements.

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In order for taxpayers to be eligible for deductions under Section 80CCE, they must meet the following requirements:

Section 80CCE allows resident people and Hindu Undivided Families (HUFs) to seek deductions.
The deductions allowed by Section 80CCE are restricted to taxpayers who have contributed to or invested in the designated instruments.

Under Section 80CCE, taxpayers may deduct up to Rs. 1.5 lakhs in total. It is crucial to remember that the deduction cap extends to other sections as well, such as Sections 80C, 80CCD, and 80CCC, in addition to Section 80CCE[3].

DEDUCTIONS UNDER 80D

Under this section, an assessee may claim a deduction if the following requirements are met.

The taxpayer is an individual or a Hindu undivided family;
The taxpayer pays the insurance premium in line with the plan that the Central Government has authorized and that the General Insurance Corporation of India has prepared in this regard.
The insurance coverage is referred to as a “mediclaim” scheme.
The Development Authority may also deduct the amount put in a comparable plan of any other insurer that has been authorized by the Insurance Regulatory.
The aforementioned premium is paid by check.
The taxpayer’s health as well as the health of their spouse, dependent parents, or dependent children are covered by the mediclaim coverage.

DEDUCTIONS UNDER 80DD

The provisions under this section are as follows:

Only Indian residents who are Individuals or HUF are eligible for this deduction.
If the assessee is reliant on a person with a disability, he receives this deduction.
According to the Persons with Disabilities Act of 1995, a person with a disability includes those who have mental retardation, autism, cerebral palsy, and other conditions.
The assessee has paid or deposited any amount under any scheme framed by the LIC of India or any other insurer for the payment of an annuity or a lump sum amount for the benefit of such dependent.
The assessee has incurred expenses for the medical treatment (including nursing), training, and rehabilitation of a disabled dependent.
The assessee must provide a certificate by the deadline specified

If the above mentioned conditions are satisfied the amount of deduction is fixed at:

Rs. 75,000 irrespective of actual expenditure
And in case of severe disability (above 80%), a higher deduction of Rs. 1,25,000 is allowed.

DEDUCITON UNDER 80 DDB

Deduction is possible if the conditions below are met.

The assessee has really paid for the medical treatment of the specified disease or ailment, for himself or any dependent*, or in the case of a HUF, any member of the family.
The assessee is an individual or HUF resident in India.
Together with the income return, the assessee provides a certificate in the required format from the designated authority.

a)The amount paid;

b) or Rs. 40,000, whichever is less;

A deduction of the amount paid, or Rs. 100,000, whichever is less, must be permitted where the payment relates to a senior citizen.

The deduction will be less any money that was paid by the employer or received from an insurer for the medical care of the individual covered by this section.

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DEDUCTIONS UNDER 80 E

There is a deduction possible if the assessee is a person.

He has borrowed money from a bank or other financial institution as well as a recognized nonprofit organization.
He is taking out the loan in order to continue his further studies.
He paid back a portion of the interest on the loan during the previous year; this portion was deducted from his tax-liable income.

The deduction should be allowed for maximum of 8 years.

DEDUCTION UNDER 80 U

In the event that an individual taxpayer becomes disabled, Section 80U provides tax benefits; in the event that an individual taxpayer’s dependent family member(s) becomes disabled, Section 80DD provides tax benefits. The main topic of this essay is the tax advantages provided by Section 80U. Section 80U permits a resident who has received medical authority certification as a person with a disability to claim the tax benefit. A person who is certified by medical authorities to have a disability of at least 40% falls under the definition of a person with a disability for the purposes of this section. For individuals with disabilities, a deduction of Rs. 75,000 is permitted, and for those with severe disabilities, a deduction of Rs. 1,25,000[4].

[1] https://www.kotaklife.com/insurance-guide/savingstax/income-tax-deductions-list.

[2] https://www.iciciprulife.com/insurance-library/income-tax/what-is-section-80c-of-income-tax-act.html.

[3] https://margcompusoft.com/m/section-80cce-of-income-tax-act/.

[4] https://cleartax.in/s/section-80u-deduction.