Skip links
Customer Support
info@eadvisors.in

Send a message

    EAdvisors

    How to save Income Tax

    Author
    Published on:
    Published in: Income Tax
    5 min read

    Here are the deductions mentioned below which can help you save on tax. Many of you may not be aware that the Income Tax Department gives various benefits on personal expenses made by a person like heath checkups, for paying stamp duty for home. Gain knowledge by going through the complete article stating tax saving ways.

    Let’s get started with the deductions starting from deduction under Section 80 C to Section 80U of the Income Tax Act.

    Deduction under Section 80 C

    Section 80 C
    Eligible AssesseeIndividual Or HUF
    Eligible Investment-PPF
    -EPF
    -LIC
    -Equity linked saving scheme
    -Premium amount for home loan
    -Stamp duty and registration charges for property
    -Sukanya Samriddhi Yojana
    -National Saving Certificate
    -Senior Citizen Saving Scheme
    -Unit Linked Insurance Plan
    -Tax Saving Fixed Deposit for 5 years
    -Infrastructure bonds
    Allowed DeductionUp to Rs. 1,50,000

    Deduction under Section 80 CCC

    Section 80 CCC
    Eligible AssesseeIndividuals
    Eligible InvestmentInvestment in Pension Funds
    Allowed DeductionUp to Rs. 1,50,000

    Deduction under Section 80CCD

    Section 80 CCD
    Eligible AssesseeIndividuals
    Eligible InvestmentAtal Pension Yojana
    National Pension Scheme Contribution
    Allowed DeductionEmployee’s Contribution under Section 80 CCD (1). The maximum deduction allowed is least of the following
    -10% of salary (in case taxpayer is an employee)
    -20% of gross total income (in case of self-employed person)
    -Rs. 1,50,000

    Deduction under Section 80CCD (1B)

    Section 80 CCD (1B)
    Eligible AssesseeIndividuals
    Eligible InvestmentAtal Pension Yojana
    National Pension Scheme Contribution
    Allowed DeductionUp to Rs. 50,000

    Deduction under Section 80CCD (2)

    Section 80 CCD (2)
    Eligible AssesseeIndividuals
    Eligible InvestmentNational Pension Scheme Contribution by Employer
    Allowed DeductionAmount Contributed or 14% of Basic Salary plus Dearness Allowance (in case the employer is CG), or Dearness Allowance (in case of any other employer) whichever is lower.

     

    Deduction under Section 80D

    Section 80 D
    Eligible AssesseeIndividuals Or HUF
    Eligible InvestmentMedical Insurance Premium
    Medical Expenditure
    Allowed DeductionUp to Rs. 1,00,000

    Deduction under Section 80DD

    Section 80 DD
    Eligible AssesseeIndividuals Or HUF
    Eligible InvestmentMedical Treatment of a dependent with disability
    Allowed DeductionNormal Disability Rs. 75,000

    Severe Disability Rs. 1,25,000

    Deduction under Section 80 DDB

    Section 80 DDB
    Eligible AssesseeIndividuals Or HUF
    Eligible InvestmentSpecified Diseases
    Allowed DeductionSenior Citizen:Up to Rs. 1,00,000

    Others:Up to Rs. 40,000

    Deduction under Section 80E

    Section 80 E
    Eligible AssesseeIndividuals
    Eligible InvestmentInterest paid on loan taken for higher education
    Allowed Deduction100% of the interest paid up to 8 assessment years

    Deduction under Section 80EE

    Section 80 EE
    Eligible AssesseeIndividuals
    Eligible InvestmentInterest paid on housing loan
    Allowed DeductionUp to Rs. 50,000 subjects to some conditions

    Deduction under Section 80EEA

    Section 80 EEA
    Eligible AssesseeIndividuals
    Eligible InvestmentInterest paid on housing loan
    Allowed DeductionUp to Rs. 1,50,000 subject to some conditions

    Deduction under Section 80EEB

    Section 80 EEB
    Eligible AssesseeIndividuals
    Eligible InvestmentInterest paid on electric vehicle loan
    Allowed DeductionUp to Rs. 1,50,000 subject to some conditions

     

    Deduction under Section 80G

    Section 80G
    Eligible AssesseeAll assessee (individual, HUF, Company)
    Eligible InvestmentDonation to charitable Institutions
    Allowed Deduction100% or 50% of the donated amount or qualifying limit OR Allowed deduction in cash up to Rs. 2000.

    Deduction under Section 80GG

    Section 80GG
    Eligible AssesseeIndividuals
    Eligible InvestmentIncome Tax Deduction on house rent paid
    Allowed DeductionRs. 60,000 25 % of total income OR Rent paid – 10% of total income whichever is lower.

    Deduction under Section 80GGA

    Section 80GGA
    Eligible AssesseeAll assesse except those who have an income or loss from business or profession
    Eligible InvestmentDonation to scientific research & rural development
    Allowed Deduction100% of the amount donated. Allowed deduction in cash up to Rs. 10,000/-

    Deduction under Section 80GGB

    Section 80GGB
    Eligible AssesseeAll assesse except those who have an income or loss from business or profession
    Eligible InvestmentContribution to political parties
    Allowed DeductionNo deduction given where donation is made in cash

    Deduction under Section 80GGC

    Section 80GGC
    Eligible AssesseeIndividuals, HUFs, Association of Person (AOP), Body of Individual (BOI), Firm
    Eligible InvestmentIndividuals on contribution made to political parties
    Allowed Deduction100% of the amount contributed. No deduction shall be allowed if donation is made in cash.

    Deduction under Section 80IA

    Section 80IA
    Eligible AssesseeIndustrial undertakings engaged in specified businesses
    Eligible InvestmentProfits and Gains from Industrial undertaking engaged in infrastructure development, etc.
    Allowed Deduction100% of the profit for 10 consecutive years out of 15 years beginning from year of commencement

    Deduction under Section 80IAB

    Section 80IAB
    Eligible AssesseeSEZ Developers
    Eligible InvestmentProfits and Gains to SEZ Developers
    Allowed Deduction100% of the profit for 10 consecutive years out of 15 years beginning from year in which SEZ has been notified by CG.

    Deduction under Section 80IAC

    Section 80IAC
    Eligible AssesseeCompany or Limited Liability Partnership (LLP) engaged in eligible business subject to some conditions
    Eligible InvestmentEligible startups
    Allowed Deduction100% of the profit for 3 consecutive years out of 7 years beginning from year of commencement.

    Deduction under Section 80IB

    Section 80IB
    Eligible AssesseeSpecified Industrial Undertaking
    Eligible InvestmentProfits and Gains from certain industrial undertakings other than infrastructure development undertakings
    Allowed Deduction25%, 30% or 100% of the profit for such periods as such may be specified subject to certain conditions.

    Deduction under Section 80IBA

    Section 80IBA
    Eligible AssesseeIndividual, HUF, AOP, BOI, Company, Firm, any other person engaged in the business of housing projects
    Eligible InvestmentProfits from Housing Projects
    Allowed Deduction100% of the profit

    Deduction under Section 80IC

    Section 80IC
    Eligible AssesseeCertain Industrial Undertakings
    Eligible InvestmentCertain undertakings in special category status
    Allowed Deduction-Sikkim- 100% of profit for 10 years
    -Himachal Pradesh/ Uttaranchal- 100% of profit for first 5 years, 25% for next 5 years, 30% in case of companies
    -North Eastern States- 100% of the profit for 10 years.

    Deduction under Section 80ID

    Section 80ID
    Eligible AssesseeHotel or Convention Centre
    Eligible InvestmentProfits and Gains of Hotels/ Convention Centers in specified areas.
    Allowed Deduction100% of the profit for 5 consecutive years beginning from the year of operation

    Deduction under Section 80IE

    Section 80IE
    Eligible AssesseeUndertakings engaged in manufacture/ provision of specified goods/Services or undertake substantial expansion, in North Eastern States
    Eligible InvestmentCertain undertakings in Northern Eastern States
    Allowed Deduction100% of the profit for 10 consecutive years beginning from the year of commencement of expansion as may be applicable.

    Deduction under Section 80JJA

    Section 80JJA
    Eligible AssesseeSpecified Business
    Eligible InvestmentProfit and Gains of Specified Business
    Allowed Deduction100% of the profit for 5 consecutive years beginning from the year of commencement.

    Deduction under Section 80JJAA

    Section 80JJAA
    Eligible AssesseeEmployer who was subject to tax audit u/s 44AB
    Eligible InvestmentEmployment of New Employees
    Allowed Deduction30% of additional employee cost for 3 years including the year in which employment of provided.

    Deduction under Section 80LA

    Section 80LA
    Eligible AssesseeOffshore Banking Units in SEZ or unit of IFSC
    Eligible InvestmentCertain Income of Offshore Banking Units in SEZ and IFSC
    Allowed Deduction-Offshore Banking Unit – 100% of the income for 5 consecutive years 50% of the income (for next 5 years)
    -IFSC – 100% of the income for 10 consecutive years out of 15 years beginning from the year in which permission is obtained

    Deduction under Section 80PA

    Section 80PA
    Eligible AssesseeProducer Companies engaged in eligible business
    Eligible InvestmentCertain Income of Producer Companies
    Allowed Deduction100% of the profit

    Deduction under Section 80RRB

    Section 80RRB
    Eligible AssesseeIndividuals (Indian Citizen or foreign citizen being residents in India)
    Eligible InvestmentRoyalty on Patents
    Allowed DeductionRs. 3,00,000 or Specified income whichever is lower

    Deduction under Section 80QQB

    Section 80QQB
    Eligible AssesseeIndividuals (Indian Citizen or foreign citizen being residents in India)
    Eligible InvestmentRoyalty Income of Authors
    Allowed DeductionRs. 3,00,000 or Specified income whichever is lower

    Deduction under Section 80TTA

    Section 80TTA
    Eligible AssesseeIndividuals earned on Savings Accounts
    Eligible InvestmentIndividual or HUF (except senior citizen)
    Allowed DeductionUp to Rs. 10,000/-

    Deduction under Section 80TTB

    Section 80TTB
    Eligible AssesseeInterest income earned on deposits (Savings/FDs)
    Eligible InvestmentIndividual (60 years or above)
    Allowed DeductionUp to Rs. 50,000/-

    Deduction under Section 80U

    Section 80U
    Eligible AssesseeIndividuals
    Eligible InvestmentDisabled Individuals
    Allowed DeductionNormal Disability: Rs. 75,000/-
    Severe Disability: Rs. 1,25,000/-

    All in all, you can claim the deduction as mentioned above in various sections which also helps in reducing the tax payable resulting in a reduction ofthe gross total income.

    So, if you are an eligible taxpayer then, here is everything you must know about. While filing your Income Tax Returns, their deductions need to be claimed. In order to claim it, Contact EAdvisors and file your Income Tax Return and avail the benefit of deductions.

    [ld_spacer height=”22px” md_height=”30px”][ld_banner show_button=”yes” ib_style=”btn-default” ib_title=”Know more” use_custom_fonts_title=”true” title=”Contact EAdvisors regarding any query.” ib_link=”url:https%3A%2F%2Fwww.eadvisors.in%2Fincome-tax-return-filing%2F|title:Income%20Tax%20Return%20Filing|target:%20_blank|” image=”15947″ bg_color=”rgb(0, 0, 0)” title_color=”rgb(255, 255, 255)” ib_css=”.vc_custom_1656146575746{background-color: #c7d8d5 !important;}”]

    You may also like

    Leave a comment

    🍪 This website uses cookies to improve your web experience.