The document outlines the rules and various sections (80C to 80U) under which taxpayers can claim deductions from their gross total income to compute their taxable income. It includes specific deductions for life insurance, pension contributions, medical insurance, disability expenditures, educational loans, and charitable donations, among others. Each category specifies the maximum allowable amounts and conditions for claiming these deductions.

1. DEDUCTIONS IN
RESPECT OF CERTAIN
PAYMENTS
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2. INTRODUCTION
The Aggregate income from all the heads of income is known as Gross Total
Income.
In Computing the Total Taxable Income on an assessee, certain deductions
under sections 80C to 80U are allowed from his Gross Total Income. It means
, firstly, that the income of the assessee shall be calculated under 5 specific
Heads of income and incomes from all heads are put together and then from
this total, certain deductions are made and after making deductions whatever
remains shall be the total income or total taxable income.

3. The following essential rules have to be kept in mind while calculating
deductions under sec. 80C to 80U. :
1. The aggregate amount of the deductions under this Chapter shall not, in any
case, exceed the gross total income of the assessee.
2. No such deduction shall be allowed to him unless he furnishes a return of his
income for such assessment year on or before the due date
These Deductions are divided into 3 categories :
• Deductions in respect of certain PAYMENTS.
• Deductions in respect of certain INCOMES.
• Other Deductions.

4. DEDUCTIONS IN RESPECT OF CERTAIN
PAYMENTS (SECTION 80)
 Deduction In Respect Of Life Insurance Premia, Deferred Annuity,
Contributions To Provident Fund, Subscription To Certain Equity Shares
Or Debentures, Etc. [SEC. 80 C ]
In computing the total income of an assessee, being an individual or a Hindu
undivided family, there shall be deducted the whole of the amount paid or
deposited in the previous year, being the aggregate of the sums as does not
exceed one lakh rupees (Rs. 1,00,000 ).
However, amount of deduction u/s 80C is…
Gross Qualifying Amount or
Rs. 1,00,000
whichever is LESS.

5.  Deduction In Respect Of Contribution To Certain Pension Funds. [Sec. 80 CCC]
1. Where an assessee paid or deposited any amount out of his income chargeable to tax for any
annuity plan of Life Insurance Corporation of India or any other Insurance Company for
receiving pension from the fund, he shall be allowed a deduction in the computation of his
total income, of the whole of the amount paid or deposited (excluding interest or bonus
accrued or credited to the assessee’s account, if any) as does not exceed the amount of (Rs.
1,00,000) one lakh rupees in the previous year.
2. Where any amount received by the assessee or his nominee—
(a) on account of the surrender of the annuity plan whether in whole or in part, in any
previous year, or
(b) as pension received from the annuity plan,
the whole of the amount shall be the income of the assessee or his nominee in that previous
year in which such withdrawal is made shall be chargeable to tax as income of that previous
year.

6.  Deduction In Respect Of Contribution To Pension Scheme Of Central Government Or Any Other
Employers [ Sec. 80 CCD ]
 Where an assessee on or after the 1st day of January, 2004, has in the previous year paid or deposited
any amount in his account under a pension scheme notified by the Central Government, he shall be
allowed a deduction in the computation of his total income, of the whole of the amount so paid or
deposited as does not exceed ten per cent ( 10%) of his salary in the previous year.
 If the Central Government or any other employer makes any contribution to his account the assessee
shall be allowed a deduction in the computation of his total income, of the whole of the amount
contributed by the Central Government or any other employer as does not exceed ten per cent (10%) of
his salary in the previous year.
 Where any amount standing to the credit of the assessee in his account , in respect of which a deduction
has been allowed in whole or in part, in any previous year,—
(a) on account of closure or his opting out of the pension scheme; or
(b) as pension received from the annuity plan purchased or taken on such closure or opting out,
the whole of the amount shall be deemed to be the income of the assessee or his nominee, and shall
accordingly be charged to tax as income of that previous year.

7.  Deduction In Respect Of Health Or Medical Insurance Premia [ Sec.
80 D ]
Medical Pocity should taken on the health of the following persons:---
Tax Payer Insured Person
Individual On the health of the taxpayer, spouse,
patents or dependent children of the
taxpayer
Hindu Undivided Family (HUF)
On the health of any member of the family

8. Amount of Deduction
Individual HUF
Taxpayer, Spouse,
and Dependant
Children
Parents of the
Taxpayer whether
dependent or not
Any member of
family
Maximum amount
deductible
Rs. 15,000 Rs. 15,000 Rs. 15,000
Additional amount
which is deductible
when policy is taken
on the health of a
senior citizen
Rs. 20,000 Rs. 20,000 Rs. 20,000

9. Deduction In Respect Of Maintenance Including Medical Treatment Of
A Dependant Who Is A Person With Disability [Sec. 80 DD]
Where an assessee, being an individual or a Hindu undivided family, who is a
resident in India, has, during the previous year,-
 incurred any expenditure for the medical treatment (including nursing),
training and rehabilitation of a dependant, being a person with disability; or
paid or deposited any amount under a scheme framed in this behalf by the
Life Insurance Corporation or any other insurer or the Administrator or the
specified and approved by the Board in this behalf for the maintenance of a
dependant, being a person with disability.
The assessee shall be allowed a deduction of a sum of fifty thousand rupees
(Rs.50,000) from his gross total income in respect of the previous year:
Rs.1,00,000 where such dependant is a person with severe disability
exceeding 80%

10.  Deduction In Respect Of Medical Treatment, Etc. [Sec. 80 DDB]
Where an assessee who is resident in India has, during the previous year,
actually paid any amount for the medical treatment of such disease or
ailment
for himself or a dependant, in case the assessee is an individual: or
for any member of a Hindu undivided family (HUF) , in case the assessee is a
Hindu undivided family (HUF),
the assessee shall be allowed a deduction of the amount actually paid or a
sum of forty thousand rupees (Rs.40,000), [ Rs. 60,000 for Senior Citizen]
whichever is less
Provided that no such deduction shall be allowed unless the assessee
furnishes with the return of income

11.  Deduction In Respect Of Interest Of Loan Taken For Higher
Education [Sec. 80 E ]
Any amount paid in the previous year, out of the income chargeable to tax,
by way of interest on loan taken by him from any financial institution or
any approved charitable institution for the purpose of pursuing his higher
education shall be allowed in computing the total income
in respect of the initial assessment year and seven assessment years
immediately succeeding the initial assessment year or
until the interest is paid by the assessee in full, whichever is earlier.

12.  Deduction In Respect Of Donations To Certain Funds, Charitable
Institutions, Etc. [ Sec. 80 G ]
The Claim in respect of such Donation to the Prime Minister’s National Relief
Fund, the Chief Minister’s Relief Fund, or the Lieutenant Governor’s Relief
Fund will be admissible u/s 80G of the Income Tax Act,1961 on the basis of
the certificate issued by the Drawing and Disbursing Officer (DDO) /
Employer in this behalf.
Amount of Deduction : 50% of Donation. Income some cases Donation is
restricted to 10% of Gross Totoal Income. 100% in some cases like National
Defence Fund.
 Applicable to All Assessee.
 Deduction is allowed only if made in Cheque / Draft.

13.  Deductions In Respect Of Rents Paid. [ Sec. 80 GG ]
In computing the total income of an assessee, there shall be deducted any
expenditure incurred by him in excess of –
• 10% of his total income towards payment of rent in respect of any furnished
or unfurnished accommodation occupied by him for the purposes of his own
residence,
• to the extent to which such excess expenditure does not exceed two
thousand rupees ( Rs. 2000 ) per month or twenty-five percent ( 25%). of his
total income for the year, whichever is less.
[ No Exemption is allowed to those who are in receipt of HRA & Claiming
Deduction U/s 10(13A) ]