Income Tax Deductions List – Deductions on Section 80C, 80CCC, 80CCD & 80D – FY 2021-22 (AY 2022-23)

Section 80C – Deductions on Investments 

Section 80C is one of the most popular and favorite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses. 

• Who can claim Section 80C deduction: Section 80C deduction can be claimed by Individuals and HUFs
• Maximum deduction allowed under section 80C: Up to Rs.150,000 can be claimed as a deduction every year from the Gross total income. 
• This deduction is only for individuals and HUFs.
• Companies, partnership firms, and LLPs cannot avail the benefit of this deduction.

Deduction Limits Under Section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B)

Section 80CCC and Section 80CCD provide deductions for the investments in the pension scheme either by yourself or by way of the employer’s contribution.

The maximum deduction under Section 80C, 80CCC and 80CCD(1) put together is Rs 1.5 lakhs. However, you may claim an additional deduction of Rs 50,000 allowed u/s 80CCD(1B) for contributions made to NPS(National Pension Scheme). Thus, the maximum deduction limit is Rs 2 lakhs under Section 80C+80CCC+80CCD(1) + Section 80CCD(1B).

Here are some investment options that are allowed as deduction u/s 80C. They not only help you with saving taxes but also help you grow your money. A quick comparison of the options is tabulated below:

Section 80C Deductions List

Section 80TTA – Interest on Savings Accounts

• Who can claim Section 80TTA deduction: Section 80TTA deduction can be claimed by an individual or HUF. 
• Maximum deduction allowed under section 80TTA: Rs 10,000

Section 80TTB – Interest From Deposits Held by Senior Citizens

• Who can claim Section 80TTB deduction: Section 80TTB deduction can be claimed by a resident senior citizen aged 60 years and above at any time during the financial year.
• Maximum deduction allowed under section 80TTB: Rs 50,000 

Section 80GG – Income Tax Deduction on House Rent Paid

• Who is eligible to claim deduction under Section 80GG: Those who do not receive HRA in their salary structure but live in rented accommodations. 
• Conditions for claiming Section 80GG: 
  • Taxpayer must be self-employed or salaried individual who does not receive HRA
  • Taxpayer must be paying rent for residential purpose only
  • The taxpayer should not have self-occupied residential property in any other place. Also, the taxpayer, their spouse or minor child or their HUF should not own any residential accommodation in the place where they currently reside.
  • File Form 10BA - 
• How much deduction is available Under Section 80GG:   
  The least of the following is available as deduction:
  • Rent paid (-) 10% of adjusted total income*
  • Rs 5,000/- per month
  • 25% of adjusted total income*   
    
    *Adjusted Gross Total Income =    
    Gross Total Income    
    Less:   
    - LTCG, if any, included in total gross income   
    - STCG u/s 111A   
    - Deductions u/s 80C to 80U except deduction under section 80GG   
    - Incomes of NRIs and foreign companies are taxed at a special tax rate, such as incomes u/s 115A, 115AB, 115AC, or 115AD.

An online ITR e-filing software like that of ClearTax is extremely easy as the limits are auto-calculated. So you do not have to worry about making complex calculations.

Section 80E – Interest on Education Loan

• Who is eligible to claim deduction under Section 80E: An individual can claim a deduction of interest paid on an education loan taken for pursuing higher education. 
• The education loan can be taken for the taxpayer, their spouse or children or for a student for whom the taxpayer is a legal guardian.
• 80E deduction is available for a maximum of 8 years (beginning the year in which the interest starts getting paid) or till the entire interest is paid, whichever is earlier. There is no ceiling limit on the amount of interest that can be claimed.

Section 80EEA – Interest on Home Loan For First-Time Home Owners

Section 80EEA, which provides taxpayers with an extra deduction for paying interest on a house loan. Whereas Section 24 exempted interest on home loans up to Rs.2 lakhs, this section provides a tax exemption of up to Rs1.5 lakhs per financial year to individuals on the interest paid on home loans for purchasing/constructing an affordable house. Deduction can be claimed for the housing loan taken between 1st April 2019 to 31st March 2022. Read in detail here.

80EE- Interest on Home Loan For First-Time Home Owners

This deduction can be claimed from FY 2016-17 and onwards only if the loan has been taken in FY 2016-17.

The deduction under section 80EE is available only to home-owners (individuals) having only one house property on the date of sanction of the loan. The value of the property must be less than Rs 50 lakh and the home loan must be less than Rs 35 lakh. The loan taken from a financial institution must have been sanctioned between 1 April 2016 and 31 March 2017.

There is an additional deduction of Rs 50,000 available on your home loan interest on top of the deduction of Rs 2 lakh (on the interest component of home loan EMI) allowed under section 24.

Click here know more about section 80EE

Section 80EEB - Interest paid on Electric Vehicle Loan

To encourage the purchase and usage of electric vehicles, deduction is allowed for interest paid on vehicle loan availed to purchase the electric vehicles up to Rs.150,000.

Click here to know more on the condition specified for claiming deduction.

Section 80D – Deduction on Medical Insurance Premium

You (as an individual or HUF) can claim a deduction of Rs.25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000, if they are less than 60 years of age. If the parents are aged above 60, the deduction amount is Rs 50,000.

In case, both taxpayer and parent(s) are 60 years or above, the maximum deduction available under this section is up to Rs.1 lakh.

In case of senior citizens, the amount paid on account of medical expenditure incurred is allowed as deduction under Section 80D provided health insurance is not taken on them.

MODE OF PAYMENT

Premium Payment to be made in any mode other than cash, however for preventive health check-up cash payments are acceptable.

Example: Rohan’s age is 65 and his father’s age is 90. In this case, the maximum deduction Rohan can claim under section 80D is Rs. 100,000.

From FY 2015-16 a cumulative additional deduction of Rs. 5,000 is allowed for preventive health check but within the specified limit.

Section 80DD – Deduction for Medical Treatment of a Dependent with Disability

• Section 80DD deduction is available to a resident individual or a HUF
• Deduction: Expenditure incurred on medical treatment (including nursing), training and rehabilitation of specially-abled (handicapped) dependent relative

• To claim this deduction a certificate of disability is required from the prescribed medical authority.