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.