Earning money in today’s time is important, filing ITR is also important for being compliance tension free, but saving tax is more important than all these things to keep more money with you. You can save so much of money by saving taxes with help of deductions and exemptions. There are so many deductions and exemptions in Income Tax Act, 1961. These all deductions are covered in chapter VI (A) of Income Tax Act.
What is Chapter VI (A)?
Chapter VI (A) of income tax covers sub sections of section 80, these sections allows tax payers to get relief from tax burden by get some deductions and exemptions in tax. You can avail these deductions by investing money in tax saving schemes, eligible expense, charities or donations and so more. These deductions are covered in section 80C, 80CCC, 80CCD, 80CCE, 80D to 80U
| Sections | Income Tax Deduction | Eligible person | Maximum deduction |
| Section 80C | Investing in options like LIC, PPF, Sukanya Samriddhi Account, Mutual Funds, FD, child tuition fee, ULIP, etc | Individual Or HUF | Upto Rs 1,50,000 |
| Section 80CCC | Investment in Pension Funds | Individuals | Upto Rs 1,50,000 |
| Section 80CCD (1) | Atal Pension Yojana and National Pension Scheme Contribution | Individuals | Upto Rs 1,50,000 |
| Section 80CCD(1B) | Atal Pension Yojana and National Pension Scheme Contribution (additional deduction) | Individuals | Upto Rs 50,000 |
| Section 80CCD(2) | National Pension Scheme Contribution by Employer | Individuals | Amount Contributed or 14% of Basic Salary + Dearness Allowance (in case the employer is Government) 10% of Basic Salary+ Dearness Allowance(in case of any other employer) – Whichever is lower |
| Section 80D | Medical Insurance Premium, preventive health checkup and Medical Expenditure | Individual Or HUF | Upto Rs 25,000 and Up to 50,000 for Senior Citizen Parents |
| Section 80DD | Medical Treatment of a Dependent with Disability | Individual Or HUF | Normal Disability (atleast 40% or more but less than 80%): Rs 75000/- Severe Disability (atleast 80% or more) : Rs 125000/- |
| Section | Medical expenditure for | Individual Or HUF | Senior Citizens: Upto Rs 1,00,000 |
| 80DDB | treatment of SpecifiedDiseases | Individual Or HUF | Others: Upto Rs 40,000 |
| Section 80E | Interest paid on Loan taken for Higher Education | Individual | No limit (Any amount of interest paid on education loan)upto 8 assessment years |
| Section 80EE | Interest paid on Housing Loan | Individual | Upto Rs 50,000 subject to someconditions |
| Section 80EEA | Interest Paid on Housing Loan | Individual | Upto Rs 1,50,000/- subject to someconditions |
| Section 80EEB | Interest paid on Electric Vehicle Loan | Individual | Upto Rs 1,50,000 subject to someconditions |
| Section 80G | Donation to specified funds/institutions. Institutions | All Assessee (Individual, HUF, Company, etc) | 100% or 50% of the Donated amount or Qualifying limit, Allowed donation in cash upto Rs.2000/- |
| Section 80GG | Income Tax Deduction for House Rent Paid | Individual | Rs. 5000 per month25% of Adjusted Total Income Rent paid – 10% of Adjusted Total Income – whichever is lower |
| Section 80GGA | Donation to Scientific Research & Rural Development | All assessees except those who have an income (or loss) from a business and/or a profession | 100% of the amount donated. Allowed donation in cash upto Rs.10,000/- |
| Section 80GGB | Contribution to Political Parties | Companies | 100% of the amount contributed No deduction available for the contribution made in cash |
| Section 80GGC | Individuals on contribution to Political Parties | Individual HUF AOP BOI Firm | 100% of the amount contributed. No deduction available for the contribution made in cash |
| Section 80RRB | Royalty on Patents | Individuals (Indian citizen or foreign citizen being resident in India) | Rs.3,00,000/- Or Specified Income – whichever is lower |
| Section 80QQB | Royalty Income of Authors | Individuals (Indian citizen or foreign citizen being resident | Rs.3,00,000/- Or Specified Income – whichever is lower |
| Section 80TTA | Interest earned on Savings Accounts | Individual Or HUF (except senior citizen) | Upto Rs 10,000/- |
| Section 80TTB | Interest Income earned on deposits(Savings/ FDs) | Individual (60 yrs or above) | Upto Rs 50,000/- |
| Section 80U | Disabled Individuals | Individuals | Normal Disability: Rs. 75,000/- Severe Disability: Rs. 1,25,000/- |
