Deductions under Chapter VI-A of the Income Tax Act

Every individual tax payer always looking for the way to legally minimize their liability. Here, there are several deductions available under Chapter VI-A of the Income Tax Act that can lower your income tax. The amount of tax you have to pay can be reduced by lowering your gross total income through investments in certain plans or expenditure on qualified expenses.

One must know that, many sections for deductions are not available for those who opt for New Tax Regime tax payers.

Section	Feature
80C	Tax-saving investments and expenses
80CCC	Pension fund payments
80CCD(1), 80CCD(1B), 80CCD(2)	NPS contributions (self and employer)
80D	Medical insurance premium
80DD	Medical care of disabled dependents
80DDB	Treatment of specified diseases
80E	Interest on education loan
80EE	Interest on home loan (first home, FY 2016-17)
80EEA	Interest on housing loan
80EEB	Interest on electric vehicle loan
80TTA	Savings account interest
80TTB	Senior citizens’ deposits interest
80GG	Rent (without HRA)
80U	Deduction for disabled individuals
80G	Donations to charities
80GGB / 80GGC	Donations to political parties
80RRB	Royalty on patents
80QQB	Royalty income for authors

Section 80C – Deductions on Investments and Expenses

For tax savings, Section 80C is the most popular choice. Up to ₹1.5 lakh can be claimed annually for investments and payments, including Sukanya Samriddhi Yojana, EPF contributions, PPF deposits, life insurance premiums, ELSS mutual fund investments, NSC, tax-saving FDs, and Senior Citizens Savings Scheme.

Deductions are also available for principal repayments on home loans, stamp duty/registration costs, and tuition for two children.

Section 80CCC and 80CCD – Pension Schemes

A deduction for pension fund payments is permitted under Section 80CCC, up to a total of ₹1.5 lakh when paired with Section 80C.

The National Pension System (NPS) or Atal Pension Yojana contributions are deductible under Section 80CCD(1). Up to 10% of their salary may be claimed by salaried workers, and up to 20% of their gross total income may be claimed by independent contractors.

Additional payments to NPS are eligible for an additional ₹50,000 deduction under Section 80CCD(1B).

Employers are permitted to contribute to NPS under Section 80CCD(2); these contributions are not included in the ₹1.5 lakh limit.

Section 80D – Medical Insurance Premium

Premiums for health insurance are deductible under Section 80D. You and your family are eligible to receive up to ₹25,000 (or ₹50,000 if you are an elderly person), and your parents are eligible for an additional ₹25,000 or ₹50,000. Preventive health examinations are also eligible for up to ₹5,000 in reimbursement. You can receive up to ₹1 lakh in combined benefits if you and your parents are both elderly.

Medical Care for Dependents with Disabilities Under Section 80DD, deductions are permitted under Section 80DD if you spend money on a disabled dependant’s medical care, education, or rehabilitation. For a standard disability, you can get ₹75,000, and for a severe disability, ₹1.25 lakh.

Section 80DDB – Medical Treatment of Specified Diseases

The costs of treating some serious illnesses, such as cancer or kidney failure, can be deducted under Section 80DDB. If you are under 60, you can claim up to ₹40,000, and if you or your dependant are an elderly person, you can claim up to ₹1 lakh.

Section 80E – Education Loan Interest

For yourself, your spouse, your children, or a student for whom you are a legal guardian, Section 80E permits you to deduct interest paid on an education loan taken out for further education. From the year you begin loan repayment, you can take use of this benefit for eight years.

Section 80EE / 80EEA – Interest on Home Loan

Only homeowners (individuals) who owned a single home on the loan approval date are eligible for the deduction under section 80EE.

Only if the loan was taken out during FY 2016–17 can this deduction be claimed starting in FY 2016–17.

An extra ₹1.5 lakh can be deducted from interest paid on loans taken out for affordable housing under Section 80EEA.

Section 80EEB – Interest on Electric Vehicle Loan

A deduction of up to ₹1.5 lakh can be made under Section 80EEB for interest paid on loans for the purchase of electric vehicles. This encourages people to take eco-friendly transportation.

Section 80TTA / 80TTB – Interest on Deposits

Individuals and HUFs may deduct up to ₹10,000 in interest from savings accounts under Section 80TTA.

Senior adults are eligible for a higher deduction limit of ₹50,000 on interest generated from bank and post office accounts under Section 80TTB.

Section 80GG – Rent Paid

If you do not receive House Rent Allowance (HRA) from your employer, you can deduct the amount of your rent under Section 80GG. There are limitations on the deduction depending on your income and rent amount.

Section 80U – Deduction for Disabled Individuals

According to Section 80U, individuals with disabilities are eligible to receive ₹75,000 for a normal disability and ₹1.25 lakh for a severe disability.

Section 80G – Donations to Charitable Institutions

Donations made to authorised charitable organisations and funds are deductible under Section 80G. Depending on the fund’s eligibility, you can claim either 100% or 50% of the donation amount. You must use banking channels to make donations beyond ₹2,000.

Section 80GGB / 80GGC – Political Contributions

Companies that donate to political parties or electoral trusts may deduct their expenses under Section 80GGB.

The same advantage is offered to individual taxpayers under Section 80GGC.

Section 80RRB – Royalty on Patents

Section 80RRB permits you to claim up to ₹3 lakh or the actual income, whichever is less, if you get royalties from a registered patent.

Authors of books (excluding textbooks) can claim a deduction of up to ₹3 lakh under Section 80QQB on their royalty income.