Deduction Available for Reducing Income Tax Liability
It’s the tax saving season and most of us will be wondering about the options available to us.
Here I have compiled a list of various options along with maximum limits one can avail to reduce their taxability.
Hope you will find it useful in making your decisions.
Sections | Details | Quantum of Deduction |
80C | Life Insurance Premium, PPF, NSC,EPF, 5-yr Fixed Deposit, Post Office Senior Citizen Saving Scheme, ELSS, Tution Fees including Admission fees or college fees paid for full time education of any two children’s, Housing Loan Principal Repayment, | Max Rs 100000 |
80CCC | Deduction in respect of contribution to certain pension funds | Max Rs 100000 |
80CCD | Notified pension scheme like NPS | Max 10% of salary or 10% of GTI, as case may be |
80CCE | Includes section 80C,80CCC &80CCD | Deduction u/s 80C,80CCC & 80CCE cannot exceed Rs 100000 |
80D | Medical Insurance Premium | Individual –Max Rs 15000 for self, spouse & dependent childrens+ Rs 15000 for parents. For senior citizens- Additional Rs 5000 each |
80CCF | Long term Infrastructure Bonds by notified institutions | Max Rs 20000 |
80DD | Deduction for expenses towards a dependent person with disability. The expenses includes medical treatment also | Rs 50000 Rs 100000 in case of severe disability |
80DDB | Deduction towards medical treatment etc for self or dependent on some specified disease or ailment. Dependent includes spouse, children’s, brothers’, sisters’ & parents’ | Max Rs 40000 Additional Rs 20000 for senior citizens |
80G | Donations made to certain charitable institutions, fund etc. | 100% or 50% of eligible donations Options a) With qualifying limit of 10% of GTI b) Without any qualifying limit |
80U | Deduction available to person with disability | Rs 50000 Rs 100000 with severe disability |
and what about Home Loan Interest paid. I heard the limit for this is 150K.
Anonymous
Yes, you get deduction up to Rs 1.5 lakh p.a.through home loan interest repayment.However the benefit is not applicable to under construction properties.
thanks
My brother wants to gift me Rs.12,00,000.00 which he paid Rs.3,00,000.00 to me and now rest he wants to pay me in three instalments . It will be taxable or I have to take partly in Sons or Wife name. but wife is working approx Rs.4lacs/year. Please help.
Rajesh,
Gift from a brother is exempted from Gift Tax as per the income tax provision. So you won’t be liable for any tax on this gifted amount. For more clarity You can read through exempted list of relatives under Gift Tax provisions of Income Tax or take assistance from a tax expert.