INCOME TAX SAVING RULES 80C,80CCD(2),80CCF,80D,80E,80G,80GGA,80U etc.
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INTRODUCTION:- I have tried to explain two slot of income tax. First for below 5
lakh & Second for more than Rs. 5 lakh.All references are taken from Income Tax
Saving Rules section wise . From here you can see all rules. Section 80C is applicale
for income less than Rs. 5 lakh. And Section 80CCD(2), 80CCF, 80D, 80DD,
80DDA, 80DDB, 80E, 80G, 80GGA, 80U are applicable for income more than Rs. 5
lakh. I have tried to make errorless article, But there is a chance of mistake. So before
any type of investment, it has been advised to check every Income Tax sections
personally. For your investment, this blog don't take any responsibility.
TAX SAVING SCHEME UNDER 80C FOR SAVING UP TO RS.1,50,000:-
1. Contribution by an employee to an approved superannuation fund or in
NPS
2. Sum deducted from salary payable to Government servant for securing deferred
annuity or making provision for his wife/children [qualifying amount limited to 20% of
salary]
3. Life insurance premium for policy
4. Contributions by an individual made under Employees' Provident Fund Scheme
5. Subscription to notified savings certificates [National Savings Certificates (VIII
Issue)]
6. Certain payments for purchase/construction of residential house property(HBA)
There are three ways. 1. The principal amount re-paid in the current financial year is
included under Section 80C, offering a deduction up to Rs. 1,50,000.2. The interest
portion offers a deduction up to Rs. 1,50,000 separately under Section 24. 3. If you took
first home loan, you can get another loan for the second house. Best thing, there is no
limit on income tax deduction on the interest payment o the second home loan.
7. Contribution to Public Provident Fund Account
8. Tuition fees (excluding development fees, donations, etc.) paid by an individual to
any university, college, school or other educational institution situated in India, for full-
time education of any 2 of his/her children
9. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI
(Equity Linked Saving Scheme, 2005)
10. Contribution to notified unit-linked insurance plan such as PLI,by UTI etc
11. Subscription to notified deposit scheme or notified pension fund set up by
National Housing Bank[Home Loan Account Scheme/National Housing Banks(Tax
Saving) Term Deposit Scheme, 2008]
12. Subscription to any notified security or notified deposit scheme of the Central
Government.For this purpose, Sukanya Samriddhi Account Scheme has been notified
vide Notification No.9/2015,dated 21.01.2015.
Saving Schemes after Rs. 1,50,000.00 money saving for income Range more than
Rs.5 lakhs:- 1. 80CCD(2):-Govt. Contribution on Rebate (NPS) :-
o An additional deduction for investment up to Rs. 50000.00 in NPS( Tier-I
account) has been provided under section 80CCD(1B). This is over and above the
deduction of Rs.1.5 lakh available under 80CCE. It means that you can save total
2.0 lakhs.
2. 80CCF :- Infrastructure Bond (Max Rs. 20,000.00) :-
Upto Rs.20,000 deduction for subscription of long-term infrastructure bonds as
may, for the purposes of this section, be notified by the Central Government.
3. 80D:-GIC Mediclaim Premium :-
i) Upto Rs. 15,000 deduction per annum in case of premium paid for yourself, wife
& kids (Rs. 20,000 if you’re a senior citizen) ii) Additional deduction for premiums
you are paying for your parents (Rs. 20,000 if they are senior citizens, Rs. 15,000 if
they are not).
4. 80E:-Interest on Education loan:-
There is no upper limit on the amount. The education loan for higher studies is
applicable for the deduction if taken for self, spouse or children and the student for
whom the individual is the legal guardian..
5. 80DD:-Treatment of Handicapped dependent:-
(i) Upto Rs.75,000 deduction for medical treatment of a dependant in case of normal
Disability. (ii) Upto Rs.1,25,000 deduction for maintenance including medical
treatment of a dependant in case of severe Disability.
6. 80GGA: Donations for Scientific R & D Development:-
Deduction in respect of certain donations for scientific research or rural
development are being governed by various section of Income Tax Department such
as Section 35, 35AC, 35CCA & 35CCB.
7. 80G:-Various type of Donations :-
Deduction in respect of donations to certain funds, charitable institutions, etc. are
being governec by Section - 80G, Income-tax Act, 1961-2016. There are various
types donation to different type of funds.If u are more interested go to this section.
8. 80U:-Physically Handicapped Person:-
(i) Upto Rs.75,000 deduction for maintenance including medical treatment of a
dependant in case of normal Disability. (ii) Upto Rs.1,25,000 deduction for
maintenance including medical treatment of a dependant in case of severe
Disability. MEANING OF SEVERE DISABILITY IS MENTIONED BELOW.
(i) a person with eighty per cent or more of one or more disabilities, as referred to in
sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities,
Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or (ii) a person
with severe disability referred to in clause (o) of section 2 of the National Trust for
Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple
Disabilities Act, 1999 (44 of 1999).
9. 80DDA: Maintenance of Handicapped dependent:-
(i) Upto Rs.75,000 deduction for maintenance including medical treatment of a
dependant in case of normal Disability. (ii) Upto Rs.1,25,000 deduction for
maintenance including medical treatment of a dependant in case of severe
Disability.
10. 80DDB:-Medical Treatment:-
(i) Upto Rs.40,000 deduction (ii) Upto Rs. 60,000 deduction in case of Senior Citizen
(more than 60 years) (iii) Upto Rs. 60,000 deduction in case of Very Senior Citizen
(more than 80 years), For actually paid Medical Bills for such medical treatment
from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or
such other specialist, as may be prescribed.