- Section 80C: According to Section80 C, the investment (up to a particular limit) that you make in certain instruments like life insurance, Public provident fund etc. or an expense like payment of tuition fees that you incur, reduces your Gross total income by that amount. The maximum amount that you can claim under this section is Rs 1 Lac.
- Section 80CCC: The premium that you pay towards pension plans qualifies for tax benefits under Section 80CCC. The maximum amount that you can invest under this section is Rs 1 Lac. Note that the combined investment u/s 80C and 80CCC cannot exceed Rs 1 Lac.
- Section 80D: The premium that you pay towards health insurance for yourself and family (Spouse & dependent children) qualifies for tax benefit under Section 80D. The amount that you can claim under this section is 15,000. Additionally you can claim Rs. 15,000 for premium paid for parents health insurance. In case of senior citizen the limit is enhanced to Rs. 20,000. Hence the maximum amount that you can claim is Rs. 35,000.
- Section 24: Repayment of Interest in home loan up to Rs. 1.5 lacs is tax deductible if the property is self occupied. If the property is rented out, there is no cap on the interest portion that you can claim for deduction i.e. the entire interest portion can be reduced from your taxable income.
- Section 80E: Section 80 E The interest on loans taken for higher education (any course after passing SSC) qualifies for tax benefits. The loan taken for spouse or children’s education also qualifies for the same. Do remember that there is no ceiling to the interest portion for the loan but unlike home-loan, principal repayment gets no tax advantage. Up to FY 2008-09 scopes of higher educations was restricted to full times studies for graduation or post graduation course in select fields.
- Section 80DD: A fixed total of Rs. 50,000 qualifies as deduction irrespective of amount incurred towards expenditure / investment for the medical treatment of handicapped dependant, certified by medical authority. In case the disability is severe deduction is Rs 75,000. In this years budget the limit for severe disability is proposed to be increased to Rs.1, 00,000 from the current Rs.75,000
- Section 80DDB: Deduction upto Rs. 40,000 (for Senior citizen Rs. 60,000) is allowed for medical treatment of specified diseases certified by Government hospital
- Section 80G: A part (50%) or entire donation made to specific Trusts / charities / funds is eligible for deduction under this section. The maximum amount that can be claimed under this section is 10 % of (gross total income (claim under various other sections))
- Section80CCD: The deduction for contributions to a pension scheme of the Central Government is available only to those individual who have been employed by the central government on or after 1st January 2004, and will be allowed for any amount deposited in such a pension scheme. But, in this case, deduction of more than 10 per cent of the employee's salary shall not be allowed. This deduction was hitherto available for only employees of Government and Other non government organizations. Now self employed assesses can also claim this deduction. If the assessee uses the amount received from the Trust to purchase an annuity during the same previous year, then such receipt would not be taxable in the hands of the assessee.
- Section80U: It is deduction in the case of a person with a disability. An individual who is suffering from a permanent disability or mental retardation as specified in the persons with disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 or the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999, shall be allowed a deduction of Rs 50,000. In case of severe disability it is Rs. 75,000.
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