Tax Ready Reckoner

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

Applicable to: Individual taxpayers buying their first home This section provides an additional tax benefit for interest paid on home loans, specifically targeting first-time buyers of affordable housing. Key Features (AY 2025-26) 1.  Eligibility Criteria First-time homebuyer(no other property owned at loan sanction date) Loan sanctioned between: 1 April 2016 to 31 March 2017(Original 80EE) 1 April 2019

Applicable to: First-time homebuyers of affordable housing This section provides an enhanced tax benefit for interest paid on home loans, specifically targeting purchases of budget-friendly properties. Key Features (AY 2025-26) 1.   Eligibility Criteria Property must be “affordable” as per government definition: Stamp duty value ≤ ₹45 lakh Loan sanctioned between 1 April 2019 to 31 March 2022 First-time

Applicable to: Individual taxpayers This section provides a deduction for interest paid on loans taken to purchase electric vehicles (EVs), encouraging eco-friendly transportation. Key Features (AY 2025-26) 1.   Eligibility Criteria Loan must be for purchasing an electric vehicle(2-wheeler, 4-wheeler, or commercial EV) Loan must be sanctioned between 1 April 2019 to 31 March 2023 Vehicle must be new(not used/second-hand)

Applicable to: All taxpayers (Individuals, HUFs, Companies, etc.) This section provides tax benefits for donations made to approved charitable funds and institutions, encouraging philanthropy. Key Features (AY 2025-26) 1.   Types of Donations & Deduction Rates DONATION TO DEDUCTION CONDITIONS 100% Deduction (No Limit) • National Defence Fund 100% No upper limit • PM’s National Relief Fund 100% No