CTAC 2024 Valencia - Henrik Hanke - Reduce to the max - slideshare.pdf
Tax deductions
1. GIDC RAJJU SHROFFROFELINSTITUTE OF
MANAGEMENTSTUDIES
INCOME TAX DEDUCTION IN INDIA
Submitted To:- Submitted By:-
DR. AABHA SINGHVI JAINAB KHALIFA 21
ANJALI SINGH 64
KAJAL R. TIWARI 67
3. INTRODUCTION
Income tax
deductions are a
specified amount of
certain expenses
incurred by the
taxpayer during the
financial year that
can be subtracted
from their gross
income to calculate
the tax liability.
4. SECTION 80C : DEDUCTION ON INVESTMENT
It’s the most popular income tax
deduction. Deduction under this
section is allowed to individual
and HUF. The maximum amount
that can be claimed under 80C is
Rs.1,50,000.
5. SECTION 80CCC : INSURANCE PREMIUM
Income tax deduction for the
contributions made in specified
pension plans can be claimed. The
tax deduction can be claimed by
individuals (whether resident or
non-resident) and is to be clubbed
in the overall ceiling of Rs 1.5
lakhs under section 80C.
It applicable to individual.
6. SECTION 80CCD (1) : PENSION CONTRIBUTION
Employee’s contribution
under Section 80CCD (1):-
You can claim this if you deposit
in your pension account.
Maximum deduction you can avail
is 10% of salary (in case the
taxpayer is an employee) or 20%
of gross total income (in case the
taxpayer being self-employed) or
Rs. 1.5 lakh - whichever is less.
Until FY 2016-17, maximum
deduction allowed was 10% of
gross total income for self-
employed individuals.
It applicable to individual.
•
7. SECTION 80CCD (1B) : PENSION CONTRIBUTION
It gives you the additional tax
saving benefit up to Rs 50,000 for
contributions to NPS account. It is
over and above the limits of
section 80C and this is the reason
section 80CCD has gained so
much attention.
It applicable to individual.
9. SECTION 80D : MEDICALINSURANCE
It is amongst the most popular tax
saving options. Under this tax
benefit is allowable for individual
or HUF
Medical Insurance Premiums
Expenditure on Preventive Health
Check-up
Other Medical Expenditure
10. SECTION 80DD : DISABLED DEPENDENT
It provides an income tax benefit
to the extent of Rs 75,000 & Rs
1,25,000 in the case of normal and
severe disability respectively. The
benefit can be availed for incurring
medical expenditures for a
disabled dependent relative. For
diseases covered, documents
required and other information.
It applicable to individual or HUF.
11. SECTION 80DDB : MEDICALEXPENDITURE
It serves as financial help for those
who are suffering from a severe
disease or are taking care of such
dependent family members.
Income tax deduction of Rs
1,00,000 in case of senior citizens
(aged 60 years or above) and Rs
40,000 in other cases are available
under this section.
It applicable to individual or HUF.
12. SECTION 80E : INTEREST ON EDUCATION LOAN
The interest paid on higher
education loan taken for self,
spouse or child is eligible for
income tax deduction under
section 80E. The tax benefit is
available for the next 8
Assessment Years, without any
maximum limits.
It applicable to individual.
13. SECTION 80EE : INTEREST ON HOME LOAN
An additional deduction of upto
Rs 50,000 is available. The
deduction is available on interest
repayment of home loan.
It applicable to individual.
14. SECTION 80G : DONATIONS
Deduction under this section is
available to all types of tax-payers
(individual/ firm/ LLP or any other
person).
The deduction amount is based on the
category in which the fund falls i.e.
with or without any qualifying limit.
The donation should be made in any
mode of payment other than cash if it
exceeds Rs. 10,000. Donations in kind
are not eligible for deduction under
this section.
It applicable to all assessee (individual
, HUF, company etc.)
15. SECTION 80GG : HOUSE RENT PAID
The cases where income tax
benefit in respect of HRA(House
Rent Allowance) or RFA(Rent
Free Accommodation) has not
been taken. Deduction u/s 80GG
can be claimed to the extent of Rs
5,000 per month for the house rent
paid.
It applicable to individual.
16. SECTION 80TTA: INTEREST ON SAVINGSACCOUNT
It allows deduction in respect of
interest income on deposits in
Savings Bank Accounts of Banks,
Co-Operatives Banks or Post
Office. The quantum of deduction
allowed under this section is Rs.
10,000 or the actual interest
earned, whichever is lower. This
deduction can be availed by both
individual and HUF.
It applicable to individual or HUF
(except senior citizen)
17. SECTION 80TTB : INTEREST INCOME
It allows a deduction upto Rs
50,000/- in respect of interest
income from deposits held by
resident senior citizens (age 60
years or more) Consequently, limit
of tds deduction u/s 194A for
senior citizens has been raised to
Rs. 50,000. However, no
deduction under section 80TTA
shall be allowed in these cases.
It applicable to individual (60
years or above)
