IT Deductions

Chapter VI-A of the Income Tax Act, 1961, provides various deductions from Gross Total Income (GTI) to arrive at Total Income. These deductions are categorized under Section 80A to 80U and are available to individuals, HUFs, and other eligible taxpayers based on specific investments, expenditures, or incomes. Key Deductions Under Chapter VI-A 1. General Provisions (Section 80A) Governs the overall […]

The deductions under Chapter VI-A (Sections 80A to 80U) are subject to certain overarching rules that govern their applicability, limits, and conditions. The key provisions are: 1. Section 80A – General Rules for Deductions This section lays down the fundamental conditions for claiming deductions under Chapter VI-A: Key Provisions: Deduction cannot exceed Gross Total Income (GTI) The total of

Applicable to: Individuals & HUFs Section 80C is one of the most popular tax-saving sections, allowing deductions up to ₹1.5 lakh for specified investments, expenditures, and payments. Eligible Investments/Payments Under Section 80C 1.   Life Insurance Premiums Premiums paid for self, spouse, or children. Policy must be in the name of taxpayer or family. Only premiums up to 10% of sum

Applicable to: Individuals This section allows a deduction for contributions made to approved pension funds (like LIC Pension Plan, SBI Life Saral Pension, etc.) to encourage retirement savings. Key Features of Section 80CCC 1.   Eligible Investments Premiums paidfor annuity plans of IRDAI-approved insurers (e.g., LIC, ICICI Prudential, HDFC Life). Must be a pension scheme(deferred annuity plan). 2.  Deduction Limit Maximum deduction:

Applicable to: Individuals (Salaried & Self-Employed) This section provides tax benefits for contributions to: National Pension System (NPS) Atal Pension Yojana (APY) Other notified pension schemes Key Subsections & Benefits 1.  Section 80CCD(1) – Employee/Self-Employed Contribution Deduction Limit: Salaried Individuals:Up to 10% of Salary (Basic + DA) Self-Employed:Up to 20% of Gross Income Max Deduction:₹1.5 lakh (shared with Sec

Applicable to: All Individual & HUF Taxpayers This section caps the total deductions available under three popular investment sections to prevent excessive tax benefits. Key Rules of Section 80CCE 1.   Combined Deduction Limit: ₹1.5 Lakh Applies to the sum of deductionsunder: Section 80C(ELSS, PPF, LIC, etc.) Section 80CCC(Pension plans) Section 80CCD(1)(Employee’s NPS contribution) SECTION COVERAGE SHARED LIMIT? 80C PPF,

Applicable to: Individuals & HUFs This section provides tax benefits for health-related expenditures, including insurance premiums and preventive healthcare. Key Deduction Structure (AY 2025-26) 1.   Health Insurance Premiums CATEGORY DEDUCTION LIMIT ADDITIONAL FOR SENIOR CITIZENS Self, Spouse, Dependent Children ₹25,000 ₹50,000 (if insured is senior citizen) Parents ₹25,000 ₹50,000 (if parent is senior citizen) Maximum Combined

Applicable to: Individuals & HUFs This section provides tax relief for expenses incurred on the care of dependents with disabilities (including mental illness). Key Features (AY 2025-26) 1.  Who Qualifies as a “Dependent”? Spouse Children(including adopted/stepchildren) Parents Siblings(if dependent on taxpayer) 2.  Disability Criteria Must have ≥40% disability certified by: Medical Authority (Form 10-IA) Neurologist/Psychiatrist (for mental disability) 3.  Deduction

Applicable to: Individuals & HUFs (for self or dependent relatives) This section provides tax relief for expenses incurred on treating specified critical diseases like cancer, neurological disorders, and chronic renal failure. Key Features (AY 2025-26) 1.   Eligible Diseases Specified illnesses include: Cancer Chronic Kidney Disease (Stage V) Hematological Disorders (Thalassemia, Hemophilia) Neurological Diseases (Parkinson’s, Dementia, ALS) AIDS Other notified

Applicable to: Individual taxpayers This section provides a deduction for interest paid on loans taken for higher education, easing the financial burden on students/parents. Key Features (AY 2025-26) 1.  Eligible Loans Higher educationin India or abroad for: Self Spouse Children Legal guardian (for student) Courses:Graduation, Post-graduation, Vocational, Professional (Engineering/Medical/MBA etc.) 2.  Deduction Amount 100% of interest paid(no