Outlook Money OLM - FEBRUARY 2018 | Page 27

Know Your Tax Deductions

Sections
Deductions
Maximum Limit
Description
80C
Investment in several schemes
`1,50,000
Deduction of up to `1,50,000 is allowed under this section to an individual in respect of amount paid or deposited by him in certain schemes or insurance policies during the financial year
80CCC
Contribution to pension funds
Deduction on purchase of a new policy or continuation of an existing policy that pays pension after maturity of the policy
80CCD ( 1B )
Investment in National Pension Scheme
`50,000
An additional deduction of `50,000 over and above this limit is allowed to an employee for amount deposited by him to his NPS account
80CCG
Investment in RGESS ( Rajiv Gandhi Equitylinked Saving Scheme )
`25,000
The amount of deduction is capped at 50 % of the amount invested in equity shares / units subject to maximum deduction of `25,000 .
80D Medical Insurance `60,000
All individuals can claim deduction under Section 80D in respect of the premium paid by them for medical insurance policy taken for self , spouse , dependent children and parents .
80DD
Medical treatment of disabled dependents
`75,000 to 1,25,000
Tax break on expenditure incurred by an individual to support disabled family members ( spouse , children , parents or siblings ) dependent on him for support and maintenance
80DDB
Medical expenditure on critical diseases
`40,000 to 60,000
This deduction is allowed to a taxpayer if he incurs expenses on his own medical treatment of specified critical diseases ( i . e cancer , AIDS , Thalassemia , etc ) or for dependent family members
80E
Interest on loan for higher education
Actual amount paid
Deduction is allowed to a taxpayer only if he has taken the education loan from a bank , an approved charitable institution or an approved financial institution for his own education or higher education of spouse or children
80EE Interest on home loan `50,000
This deduction is allowed to an individual taxpayer who has taken a housing loan for purchase or construction of residential house property in FY 2016-17
80G
Donation made to funds
50 % to 100 % of actual amount paid
Any taxpayer making donations to specified institutions , funds or for charity can claim the deduction , subject to certain limits set down by the government
80GG
House rent
`60,000 ( 5,000 per month )
Allowed to an individual taxpayer who is living in a rented house but does not receive any house rent allowance from employers
80GGA
Donation for Scientific Research
Actual amount paid
Deduction from his gross total income in respect of donations made for scientific research or rural development subject to certain conditions
80GGC
Donation to political parties
Actual amount paid
Allows an individual to claim deduction of any amount of contribution made by him to a political party ( or an electoral trust )
80TTA
Interest on deposits in savings account
`10,000
Deduction of up to `10,000 in respect of interest earned on deposits in a savings account
80U
Deduction to disabled person
`75,000 to 1,25,000
Available to a resident individual who is certified by the medical authority as disabled
Source : Taxmann
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