Deduction under Chapter VIA of Income Tax Act will be allowed either based on Investment or based on expense done as per specified in Income Tax Act. All subsections of sec 80 are covered under Chapter VIA. Deduction under Chapter VI A of Income Tax Act is restricted to Gross Total Income (other than Income from Capital Gain and Wining from Lottery or horse race etc) and No carry forward of deduction is allowed.

 

Sec 80C: - Deduction allowed for Certain Specified Investments (maximum of Rs. 1,50,000)

Any Individual or Hindu Undivided Family (HUF) had invested in

1. Life Insurance Premium Paid subject to

20% of Sum Insured if Policy is issued before 01/04/2012 or

10% of Sum Insured if Policy is issued after 01/04/2012 or

15% of Sum Insured if Policy is issued after 01/04/2013 for (a) person with Disability defined under sec 80U of Income Tax Act or (b) person suffering from disease specified under Sec 80 DDB.

2. Any amount deposited in Public Provident Fund for Self, Spouse and Children.

3. Employees Contribution to Provident Fund.

4. Any amount Invested in National Saving Certificate.

5. Repayment of Principal Portion of Housing Loan Repayment.

6. Tution fees of Children, maximum deduction will be allowed for maximum two children.

7. Contribution to Unit Linked Insurance Plan (ULIP).

8. Investment in Notified Mutual Funds

9. Investment in Pension scheme of Notified Mutual Fund.

10. Deposit in Sukanya Samriddhi Account.

11. Investment in Tax Saving Fixed Deposit in Scheduled Bank or Post office.

12. Any money deposited in Notified NABARD Bond.

 

Sec 80 CCC: - Contribution by Individual to Pension Fund of Life Insurance Corporation of India or any IRDAI Approved Insurer subject to maximum deduction of Rs. 1,50,000.

 

Sec 80CCD: -  Contribution by Individual to Pension Schemes of Central Government (i.e. New Pension Scheme named as Atal Pension Yojana). Deduction will be allowed lower of : -

Employees Contribution Subject to Maximum of 10% of Salary In case of Salaried Employees.

Asseessee's Contribution subject to Maximum of 10% of Gross Total Income in case of Individual other than Salaried Employees.

Salary means Basic Salary including any Dearness Allowance.

Sec 80CCD (1B): - Additional Deduction shall be allowed subject to Maximum of Rs. 50000 apart from Deduction allowed under Sec 80CCD of Income Tax Act.

 

Sec 80CCD(2): - Any Contribution to National Pension Scheme by Employer will be allowed as Deduction subject to Maximum of 10% of Salary only and only when such Contribution is included in Income of Assessee.

Salary means Basic Salary including any Dearness Allowance.

Note: - 40% of amount withdrawal by Employee on closure of Account will be exempted from Tax and balance is taxable. 100% of of amount withdrawal by any person other than Employee will be taxable on closure of Account.

Any amount received by legal heirs or nominee of Employee or any person other than Employee on death of asseessee (contributor) is fully exempted from Tax.

 

Sec 80CCE: - This sec defines maximum deduction allowed under sec 80C, 80CCC, 80CCD (1) is Rs. 1,50,000.

 

Sec 80CCG: - 50% of Investment subject to Maximum deduction of Rs. 50000 will be allowed as deduction for 3 consecutive year after satisfying conditions described under sec 80CCG.

Conditions Prescribed under Sec 80CCG of Income Tax Act: -

1. Asseessee should be New Retail investor

2. Asseessee's Gross Total Income should not exceed Rs. 12 Lakh

3. Lock in Period of 3 Years

 

Sec 80D: - Deduction in respect of Premium paid for Medical or Health Insurance and Preventive Health Check Up. Deduction shall be allowed for Premium paid for Self, Spouse, Children subject to Maximum of Rs. 25,000 and Parents subject to Maximum of Rs. 25,000 only when premium paid in any mode other cash and Deduction of Health Check Up shall be allowed for self, Spouse, Children and Parents subject to Maximum of Rs. 5,000, payment mode be any form of Payment. Deduction of medical Expenses done senior citizens  whose age is more than 80 year also allowed subject to Maximum of Rs 30,000 only when no Premium paid for Medical or Health Insurance.

 

Sec 80DD: - Any Resident Individual or Hindu Undivided Family (HUF) done Expenditure on Medical Treatment and Maintenance of Handicapped Depend can claim flat Deduction of Rs. 75,000 in case of Normal Disability and Rs. 1,25,000 in Case of Severe Disability. Dependent may Spouse, Children, Brother, Sister, Mother, Father in case of Individual and any Member in case of Hindu Undivided Family (HUF).

Sec 80DDB: - Any Resident Individual or Hindu Undivided Family (HUF) done Expenditure on Medical Treatment of Specified Diseases of Dependent can claim flat Deduction of Rs. 75,000 in case of Normal Case  and Rs. 60,000 in case of  Dependent is Senior Citizen having Age more than 60 Year but less 80 Year and Rs. 80,000 in case of  Dependent is Senior Citizen having Age more than 80 Year. Dependent may Spouse, Children, Brother, Sister, Mother, Father in case of Individual and any Member in case of Hindu Undivided Family (HUF).

Sec  80U: - Any Resident Individual who is Handicapped Assessee can claim Deduction of Rs. 75,000 in case of Normal Disability and Rs. 125000 in Case of Severe Disability.

Sec 80E: - Any Individual can claim deduction of Interest Paid on Education Loan for higher Education in India or abroad. Deduction of Interest can be claimed for 8 consecutive year from year in which assessee started paying Interest. Deduction can be claimed for Loan Taken for Higher Education of Self, spouse, Children and Dependent whom assessee is legal guardian.

Sec 80EE: - Any Individual can claim Deduction in Respect of Interest Paid on Housing Loan subject maximum of Rs. 50,000 on satisfying condition specified under Sec 80EE after claiming deduction under sec 24(b) of Income Tax Act.

Condition to Claim deduction under Sec 80EE

1.       Loan should be taken for Purchase/Acquisition of Residential Property from Bank or Financial Institutions.

2.       Loan amount should not be more than Rs. 35 Lakh

3.        Purchase Price Should not be more than Rs. 50 Lakh.

4.        Loan should be Sanctioned after 1st April 2016 but before 31st March 2017

5.        Assessee should possess any Residential Property other than acquiring property on the Date of Loan Sanction.

Sec 80G: - Any type of Assessee who has donated any money to specified Fund or Charaitable Trust. Asseesee can claim deduction of 50% or 100% of Donation done depending upon whom amount donated.

Sec 80GGA: - Any type of Assessee not having Income under Head Profit & Gains from Business and Profession claim deduction of 100% of Donation made to Scientific Research or Rural Development, Donation should not be in cash if amount of Donation Exceed Rs. 10000

Sec 80TTA: - Any Individual or Hindu Undivided Family (HUF) can claim deduction of Interest on Saving Account subject maximum of Rs. 10000. Saving Account should be maintained with Bank or Post Office.

 

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