1. Home
  2. Banking
  3. Tax
  4. Forms
  5. ppf - ssy
  6. Sr. Citizen
  7. Widgets
  8. Misc.
  1. Home ➤ 
  2. Tax ➤ 
  3. Info ➤ 
  4. You Are Here

Deductions Available from Taxable Income

The impact of Deductions available under various sections of Income Tax Act is not same for all. It depends upon applicable tax rates as per the total taxable income and status of assessees. An assessee, whose income is taxable at higher rates will have more tax savings i.e. more impact on his / her tax liability than the assessee whose income is taxable at lower rates. You may use Maximize Tax Savings tool to check the impact of various available deductions on your tax liability.

Deductions Allowable under Chapter VI A

Please click / tap on the section number to view / hide its content and hide content of other section.

Important :

If Section 115BAC is opted (i.e. New Income Tax Rates are opted), only deduction under Section 80CCD2 is available, if applicable.
If Section 115BAC is not opted (i.e. Existing Income Tax Rates are opted), all deductions shown on this page are available, if applicable.

Exemption :Up to 1,50,000 (Subject to overall limit of ₹ 1,50,000 under Section 80C, 80CCC and 80CCD)
Available to :Individual and HUF
  1. Life insurance premium for policy:

    a) in case of individual, on life of assessee, assessee's spouse and any child of assessee

    b) in case of HUF, on life of any member of the HUF

  2. Sum paid under a contract for a deferred annuity:

    a) in case of individual, on life of the individual, individual's spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)

    b) in case of HUF, on life of any member of the HUF

  3. Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]
  4. Contributions by an individual made under Employees' Provident Fund Scheme
  5. Contribution to Public Provident Fund Account in the name of:

    a) in case of individual, such individual or his spouse or any child of such individual

    b) in case of HUF, in the name of any member there of

  6. Contribution by an employee to a recognized provident fund
  7. Contribution by an employee to an approved superannuation fund
  8. Subscription to any notified security or notified deposit scheme of the Central Government.

    For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction. Amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian.

  9. Subscription to notified savings certificates [National Savings Certificates (VIII Issue)]
  10. Contribution for participation in unit-linked Insurance Plan of UTI:

    a) in case of an individual, in the name of the individual, his spouse or any child of such individual

    b) in case of a HUF, in the name of any member thereof

  11. Contribution to notified unit-linked insurance plan of LIC Mutual Fund:

    a) in the case of an individual, in the name of the individual, his spouse or any child of such individual

    b) in the case of a HUF, in the name of any member thereof

  12. Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]
  13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated india, for full time education of any 2 of his/her children
  14. Certain payments for purchase/construction of residential house property
  15. Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses india for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both
  16. Sum paid towards notified annuity plan of LIC or other insurer
  17. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)
  18. Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)
  19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions
  20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in 'eligible issue of capital' referred to above.
  21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.
  22. Subscription to notified bonds issued by the NABARD.
  23. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
  24. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)
Exemption :Up to 1,50,000 (Subject to overall limit of ₹ 1,50,000 under Section 80C, 80CCC and 80CCD(1))
Available to :Individual
Details :Contribution to certain specified Pension Funds of LIC/other insurer (Subject to certain conditions).
Exemption :10% of salary in case of employees
10% of gross total income in case of others
(Subject to overall limit of ₹ 1,50,000 under Section 80C, 80CCC and 80CCD(1))
Available to :Individual
Exemption :Up to ₹ 50,000. This deduction shall be in addition to deduction of ₹ 1,50,000 under Section 80C, 80CCC and 80CCD(1)
Available to :Individual
Exemption :(a) fourteen per cent., where such contribution is made by the Central Government (New)
(b) ten per cent., where such contribution is made by any other employer
Available to :Individual
Exemption :Deduction of 50% of total investment subject to maximum of ₹ 25,000 is allowed for 3 consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed shares or list units of equity oriented funds are first acquired
Available to :Specified Resident Individual - A resident individual whose gross total income for the relevant assessment year is not more than ₹ 12 lacs.
Amendment :No deduction under section 80CCG shall be allowed from assessment year 2018-19. However, an assessee who has claimed deduction under this section for assessment year 2017-18 and earlier assessment years shall be allowed deduction under this section till the assessment year 2019-20 if he is otherwise eligible to claim the deduction as per the provisions of this section.

This amendment will take effect from the 1st April, 2018 and shall accordingly apply in relation to assessment year 2018-19 and subsequent years.

Details :Amount invested by specified resident individuals in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions).
Exemption :In case of Individual, amount paid:
a) For self, spouse and dependent children: Up to ₹ 25,000 [₹ 50,000 if specified person is a senior citizen or very senior citizen for AY 2019-20 ( ₹ 30,000 for AY 2018-19)]

b) For parents: additional deduction of Rs. 25,000 shall be allowed [Rs. 50,000 if parent is a Senior citizen / Very Senior Citizen ( ₹ 30,000 for AY 2018-19) ]

In case of HUF, up to ₹ 25,000 (₹ 50,000/- ( ₹ 30,000/- for AY 2018-19 ) if specified person is a senior citizen or very senior citizen).

The aggregate amount of deduction cannot exceed ₹ 1,00,000/- for AY 2019-20 ( ₹ 60,000 for AY 2018-19 ) in case of an individual
and ₹ 50,000/- for AY 2019-20 ( ₹ 30,000 for AY 2018-19 ) in case of HUF.

Available to :Individual / HUF
Details :Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person*. An individual can also make payment to the Central Government health scheme and/or on account of preventive health check-up.
* specified person means:
- In case of Individual - self, spouse, dependent children or parents
- In case of HUF - Any member thereof
Note:
1. Deduction for preventive health check-up shall not exceed in aggregate ₹ 5,000.
2. Payment on account of preventive health check-up may be made in cash.
3. Within overall limit, deduction shall also be allowed up to ₹ 30,000 towards medical expenditure incurred on the health of specified person provided such person is a very senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person.
4. 'Senior citizen' means an individual resident india who is of the age of sixty years or more at any time during the relevant previous year.
5. 'Very senior citizen' means an individual resident india who is of the age of eighty years or more at any time during the relevant previous year.
Exemption :₹ 75,000 (₹ 1,25,000 in case of severe disability)
Note:
'dependant' means -
(i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
(ii) in the case of a HUF, any member thereof, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year.
Available to :Resident Individual and HUF
Details :a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability
b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability
(Subject to certain conditions).
Exemption :Up to ₹ 40,000 and ₹ 1,00,000 for Senior / Very Senior Citizen
( ₹ 60,000/- for Senior Citizen and ₹ 80,000 for Very Senior Citizen upto 31st March 2017)
Available to :Resident Individual and HUF
Details :Expenses actually paid for medical treatment of specified diseases and ailments for:
a) In case of Individual: Assessee himself or wholly dependent spouse, children, parents, brothers and sisters
b) In case of HUF: Any member of the family who is wholly dependent upon the family
(Subject to certain conditions).
Exemption :The amount of interest paid during initial year and 7 immediately succeeding assessment years (or until the above interest is paid in full).
Available to :Individual
Details :Amount paid out of income chargeable to tax by way of payment of interest on loan taken from financial institution/approved charitable institution for pursuing higher education (Subject to certain conditions).
Exemption :Deduction of up to ₹ 50,000 towards interest on loan.
Available to :Individual
Details :Interest payable on loan taken up to ₹ 35 lakhs by taxpayer from any financial institution, sanctioned during the FY 2016-17, for the purpose of acquisition of a residential house property whose value doesn't exceed ₹ 50 lakhs.
Note:
1. On the date of sanction of loan, taxpayer should not own any other residential house property.
2. The deduction is available from Assessment Year 2017-18 and subsequent assessment years.
Exemption :Deduction of up to ₹ 1,50,000 towards interest on loan.
Available to :Individual
Details :(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2020;
(ii) the stamp duty value of residential house property does not exceed forty-five lakh rupees;
(iii) the assessee does not own any residential house property on the date of sanction of loan.
(iv) The deduction is available from Assessment Year 2020-21 and subsequent assessment years.
Exemption :Deduction of up to ₹ 1,50,000 towards interest on loan.
Available to :Individual
Details :(i) 'Electric Vehicle' means a vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy;
(ii) The deduction is available from Assessment Year 2020-21 and subsequent assessment years.
Exemption :Deduction upto 100% / 50% of the aggregate amount of donation. For details please refer section 80G of Income Tax Act.
Available to :All assessees
Exemption :Least of the following shall be exempt from tax: a) Rent paid in excess of 10% of total income*;
b) 25% of the Total Income; or
c) ₹ 5,000 per month.
Total Income = Gross total income minus long term capital gains, short-term capital gains under section 111A, deductions under sections 80C to 80U (other than 80GG) and income under section 115A
Available to :Individual not receiving HRA
Details :Rent paid for furnished/unfurnished residential accommodation (Subject to certain conditions)
Exemption :Least of the following shall be exempt from tax:
a) In case of Lump sum payment - Amount of royalty income subject to maximum of ₹ 3,00,000
b) In other cases - amount of such income subject to maximum of 15% of value of books sold during the previous year.
Available to :Resident Individual Authors
Details :Royalty income of authors of certain specified category of books other than text books
Exemption :100% of royalty subject to maximum of ₹ 3,00,000
Available to :Resident Individual - Patentee
Details :Royalty in respect of patents registered on or after 01.04.2003 (subject to certain conditions)
Exemption :100% of amount of such income subject to maximum of ₹ 10,000
Available to :Individual and HUF (w.e.f. 01.04.2018 not available to Senior / Very Senior Citizens)
Details :Interest on deposits in saving account with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions)
Exemption :100% of amount of such income subject to maximum of ₹ 50,000
Available to :Senior Citizen Resident Individual and HUF
Details :Interest on deposits in saving account with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions)
Exemption :₹ 75,000 (₹ 1,25,000 in case of severe disability)
Available to :Resident Individual
Details :A resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995]
Exemption :₹ 40,000 in lieu of Transport allowance and Reimbursement of Misc. Medical Expenditure. Increased to ₹ 50,000/- for AY 2020-21.
Available to :Salaried Tax Payers w.e.f. 01.04.2018

Disclaimer : This site does not make any claim that the information provided on its pages is correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.
In case of any doubt / clarification, please visit the official website of Income Tax Department.

Updated : July 24, 2019
You may like to View / Use / Download
Income Tax Calculator AY 2021-22
Calculate Taxable Income and Income Tax Liability of Individuals for AY 2021-22.
Income Tax Slabs / Rates AY 2021-22
View income Tax Rates & Slabs for AY 2021-22 as per Existing and New Tax Regimes.
Advance Tax Calculator AY 2021-22
Calculate Advance Tax payable by Individuals on various due dates.
Interest u/s 234A B C Calculator
Calculate Interest payable under Section 234A, 234B and 234C.
TDS Calculator AY 2021-22
Calculate TDS deductible on Salary and Other payments to different payees for AY 2021-22.
TDS Rates AY 2021-22
TDS Rates (Revised) for all payments and payees for AY 2021-22
Tax Saving Calculator
Calculate Tax savings for various Tax Saving investments.
Post Office Small Saving Calculators
Use Calculators for NSC, PO MIS, SCSS, PO RD, PO TD and KVP Schemes.
PPF Calculator 2020
Use PPF calculator for calculation of Maturity Date, Maturity Value, Interest and Return on Investment.
SSY Calculator 2020
Use SSY calculator for calculation of Maturity Value, Interest and Return on Investment.
Challan 280 in fillable Excel and PDF
Download fillable Income Tax Challan 280 in Excel / PDF
TDS form 16 in Excel with Calculation formulas
Download fillable Income Tax Form 16 in Excel with auto calculation formulas.
PAN & TAN forms and Annexures in fillable PDF
Download fillable PAN and TAN forms
Post Office forms in Fillable PDF
Download fillable Post Office forms
SBI Lending Rates for Perquisite Valuation
View SBI Lending Rates for Perquisite Valuation
PMVVY Calculator
PMVVY (Pradhan Mantri Vaya Vandana Yojana) 2020 Calcultor