The Income Tax Act provides a few deductions to the assessee which assist them to save their taxes and invest the same for future purposes.

Here below is the list of deduction, which is allowable under Chapter VI of the Income Tax Act.

1. Section 80DDB

Under the aforesaid Section 80DDB deduction is made in respect to the medical treatment for special ailments (such as AIDS, cancer and neurological diseases) of assessee and their relative. The maximum deduction is allowed of Rs. 40,000 (if treatment is done of individual who is not senior citizen) and Rs. 60,000 (if treatment is done of senior citizen). 

2. Section 80E

Under the aforesaid Section 80E deduction is made in respect of payment of Interest on Education Loan taken by assessee for Higher Education. In Section 80E any amount paid for Interest on Loan taken from Financial Institution or from Bank. This deduction is available for a maximum period of 8 years or until the amount of Interest is repaid by the individual in full. An Individual assessee can avail the benefit of deduction under sec 80C.

3. Section 80G

Under the aforesaid Section 80G deduction is made in respect of 100% or 50% Donations to certain Funds or Charitable Institutions is allowed. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. All assessee can avail the deduction under sec 80G except those companies who had taken deduction under Sec 80G (2) (C). 

4. Section 80GG

Under the aforesaid Section 80GG deduction is made in respect of rent paid even if he/she doesn’t get HRA.  The maximum amount deduction is allowed under sec 80GG is lower of three:

• 5000/-
• 25% of the total Income of the tax payer for the year.
• Rent paid – 10% total income.

5. Section 80GGA

Under the aforesaid Section 80GGA deduction is made in respect of certain donation made towards Scientific Research or Rural Development. This deduction is allowed to all assessee except those who have income (or loss) from business and profession. 100% of the amount that is donated or contributed is considered eligible. All type of assessee can avail the benefit of deduction under Sec 80GGA. 

6. Section 80GGB

Under the aforesaid Section 80GGB deduction is made in respect of donation by Indian company to Political Party or Electoral Trust. The donation amount should be paid in the form of cheque. The maximum amount of deduction under sec 80GGB is 100% of amount of donation to political party by Indian Company. Indian Company can avail the benefit of deduction under Sec 80GGB. 

7. Section 80GGC

Under the aforesaid Section 80GGC deduction is made in respect of donation by any person to Political Party or Electoral Trust. The donation amount should be paid in the form of cheque. The maximum amount of deduction under sec 80GGC is 100% of amount donation to Political Party by any person. Any type of assessee except local authority or body funded by government can avail the benefit of deduction under Sec 80GGC. 

8. Section 80U

This section assists to maintain the expenses incurred for medical treatment of the person’s disability.

The following table showcase the total amount of deduction made-

SL.No	Category	Amount of Deduction
1.	Any Disabled Individual (A person with 40% or more of one or more disability)	Rs.75,000
2.	Any Severely Disabled Individual (A person with 80% or more of one or more disability)	Rs. 1,25,000

 

No Medical bills or insurance premium receipts are required to be submitted at the time of filing of Income Tax Return for claiming deduction under Section 80U.

 

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