The Income Tax Act states that the gross total income of an assessee can be determined after considering income from all the heads of income and certain deductions. The individuals do not have a clear concept of the Chapter VI of Income Tax Act, so as to compute the actual gross total income of an assessee.

Here below is the list of deduction, which is allowable under Chapter VI-A of the Income Tax Act from Section 80C to 80DD.

 

1. Section 80C

This Section was introduced by the Finance Act, 2005, but became effective from April, 1st 2006. Broadly, speaking this section provides a major tax benefits to the assessee.  

Under the aforesaid section 80C deduction of actual investment for premium paid for Life Insurance, for recognized provident fund for post office savings, Investment in National Saving Certificate or Investment in like securities. Life Insurance premium should be for life assured of self, Spouse, Children of self. Individual or HUF assessee can avail the benefit of deduction under sec 80C. 

2. Section 80CCC

This Section is availed in respect to the contribution made in certain pension funds.

Under the aforesaid Sec 80CCC deduction is made in respect to the contribution to certain Pension Fund. Further, no deduction can be allowed for the expenses which are already claimed in 80C. The maximum amount of Deduction is allowed under the aforesaid section is the sum contributed and maximum subjected limited is Rs 1, 50,000.    

3. Section 80CCD

This Section is availed in respect to the contribution made to the notified Pension Scheme of the Central Government.

Under the aforesaid Sec 80CCD deduction is made in respect of contribution to Pension Scheme of Central Government is allowed. The payment or deposit is made by the employee and Central Government under a pension scheme notified by the Central Government. Further, no deduction can be allowed for the expenses which are already claimed in 80C. The maximum amount of deduction is allowed under the aforesaid section to:

1. 10% of Salary or;
2. 10% of Gross Total Income; (which is subjected to maximum of Rs.1,50,000).

An individual assessee who is employed in Central Government can avail the benefit of deduction under sec 80CCC.

4. Section 80CCF 

Under the aforesaid Sec 80CCF deduction is made in respect of Investment in Long Term Infrastructure bonds is allowed. In Sec 80CCF amount Invested by assessee in Infrastructure Bond notified by Central Government. Maximum amount of deduction is allowed under 80CCF is Rs. 20000.

Note that:

The aggregate value of Deduction can be allowed under 80C, 80CC, 80CCD is Rs. 1, 50,000. This aforesaid section is allowed to the individual or a HUF.

5. Section 80D

Under Sec 80D deduction in respect of Medical Insurance Premium for self, spouse or dependent children paid is allowed. The maximum amount of deduction is Rs. 25, 000. In case any individuals specified to be senior citizen (i.e. 65 years or more). The deduction amount is enhanced to Rs.30, 000 for such senior citizens. However, in case any member of the HUF which is covered by the Mediclaim policy is a senior citizen (i.e. 65 years or more). The deduction amount is enhanced to Rs.30, 000. For understanding the details in better manner – Health Insurance Scheme brings more tax benefits to the Individuals.

6. Section 80DD

This section assists to maintain the expenses incurred for medical treatment of the dependant family members of the individual is disabled.

The following table showcase the total amount of deduction made in respect to the individual or HUF:-

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

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