This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.

1. Dr. P. Ravichandran
M.Com., M.B.A., M.A (Astrology)., M.Phil., Ph.D.,
D.C.P., D.L.L & A.L., P.G.D.C.A., P.G.D.P.M & I.R.,
S.B.K. College, Aruppukottai – 626101.
 9443424090 & 9080030090
 e-mail id.- prcapk@gmail.com
Deductions from
Gross Total Income

3. What is a deduction?
 Deductions are just business expenses that you
claim on your taxes.
 Claiming deductions saves your money by reducing
your taxable income so you can pay less in taxes
to the government.
 The best part is that you are probably already
paying for these expenses, you just need the right
information to turn them into valid tax deductions.

4. Introduction
 Provided by the Income Tax Act, 1961.
 Contained in Chapter VI – A and in the form of
deductions from section 80-C to 80-U.
 They are the permissible amount by which the
gross total income is reduced to arrive at the
total income liable to tax.
 They are intended to act as incentive to the
assessee for achieving certain economic
objectives.

5. Basic Rules
Rule 1
 The aggregate amount of deductions under
sections 80-C to 80-U cannot exceed gross
total income.
Rule 2
 These deductions are to be allowed only if the
assessee claims these and gives the proof of
such investments/ expenditure/ income.

6. Categories of Deductions
1. To encourage savings
2. For certain personal expenditure
3. For socially desirable activities
4. For physically disabled persons

10. The gross qualifying amount under this section refer
to the payment/investment under some of the
following schemes:-
 Life Insurance Premium Paid.
 Deferred Annuity Contract.
 Statutory Provident Fund and Recognized Provident Fund.
 15 Year Public Provident Fund.
 Approved Superannuation Fund.
 National Savings Certificates.
 Unit-linked Insurance Plan (Ulip).
 Dhanraksha Plan of LIC Mutual Fund.
 Jeevan Dhara, Jeevan Akshay, New Jeevan Dhara.
 Notified Units of Mutual Fund (or) UTI.

11. Amount Of Deduction
Add the amounts invested / spent in above
mentioned schemes and this amount is known
as Gross qualifying amount. The amount
deductible is
a) Gross qualifying amount;
(or)
b) ` 1,50,000 Whichever is less

12. Deduction u/s 80-CCC
 Deduction in respect of Contribution to
certain Pension Funds.
 Individual
 Eligible Amount – Amount paid/deposited
under an annuity plan of the LIC of India
(or) any other insurer for receiving
pension.

13. SECTION 80CCD – PAYMENT TO
NATIONAL PENSION SCHEME (NPS)

14. What is NPS?
 NPS is designed to give a way for all citizens of
India to contribute towards pension & enjoy
pension benefits during their old age retirement.
 NPS is managed by Pension Fund Regulatory and
Development Authority (PFRDA), the apex body
established by Govt. of India to regulate and
develop the pension sector in India.
 To provide old age income;
 Reasonable market based returns over the long term;
 Extending old age security coverage to all citizens.

15. CONTRIBUTION TO THIS SCHEME

16. Deduction u/s 80-CCD
 Deduction in Respect of Contribution to Pension
Scheme of Central Government.
 Individual who is an employee of Central
Government on (or) after 1.1.2004.
 Eligible Amount – Deposit made under a
pension scheme notified by the Central
Government.

17. 80-CCD Conditions
 No deduction must have been claimed u/s 80C.
 Any amount received from the scheme, is taxable in
the hands of the assess in that year (or) receipt.
 Salary for the purpose of this section includes
dearness allowance if under the terms of
employment.
Amount of Deduction
 Aggregate of amount deposited by the employee and
the Central government, (or) 10% of the salary,
whichever is lower.

18. Sec.80-CCD – Contribution to NPS
80-CCD
80-CCD(1)
( ` 1,50,000 Limit
Applicable)
80-CCD(1B)
Newly inserted
w.e.f. AY:2016-17
10% of Salary
` 50,000 Additional
deduction for contribution
to NPS by Individual

19. Additional deductions
u/s 80-CCD(1B)
 From the AY:2016-17 an additional deduction up to
` 50,000 for contributions made by any
individual assessee under the NPS.
 On this additional contribution, the ceiling of
` 1,50,000 is not applicable.

20. SECTION 80-CCE – LIMIT ON DEDUCTIONS
 The aggregate amount of deductions under
80C, 80CCC and 80CCD put together cannot
exceed ` 1,50,000 as per Sec.80CCE.

21. DEDUCTIONS FOR CERTAIN PERSONAL
EXPENDITURE
 Under Section 80-D, 80-DD, 80-DDB, 80-E and
80-GG of IT Act 1961 some deductions are
allowed in respect of personal expenditure
such as Medical Insurance, Medical
treatment of handicapped dependent, etc.
 These deductions are allowed to give impetus to
threshold areas like education, health &
housing.

22. 80-D  Conditions
 The amount should be paid by cheque out of the
taxable income.
 The policy is taken on the health of the assessee, on
the health of spouse, dependent parents (or)
dependent children of the assessee. In case of HUF
on the health of any member of the family.
Amount of Deduction
 100% of premium paid subject to a maximum of
` 30,000;
 ` 25,000 General deductions;
 ` 5,000 additional deduction in case of senior
citizens ( 60 years (or) more).

23. SECTION 80DD – Disabled Dependent
Medical treatment
 Persons with disability means a person who
suffers 40% (or) more of any of the following -
blindness, low vision, leprosy-cured, hearing
impairment, loco motor disability, mental
retardation and mental illness.
 Exp. on medical treatment [including nursing],
training & rehabilitation of disabled
dependent.
 Dependent means the spouse, children, parents
and siblings in case of individuals, (or) any
member of the family in case of HUF.

24. Amount of Deduction – 80DD
 ` 75,000 (Fixed) in case of normal disabilities and
 ` 1,25,000 (Fixed) in case of severe disabilities,
(i.e. disability over 80 %)
 This is irrespective of the amount expended.
 Disability may be present from birth (or) a
person may acquire it at any time in life.

25. Deduction u/s 80DDB
 Expenditure incurred for the medical treatment of
such diseases specified in Rule 11D (e.g.
Parkinson's disease, malignant cancers, full blown
AIDS, chronic renal failure, etc) for self (or)
dependent individual.
 The deduction shall be reduced by the amount
received, if any, under an insurance from an
insurer for the medical treatment of person
mentioned in this section (or) reimbursed by the
employer.

26. Amount of Deduction – 80DDB
 100% of the expenses incurred subject to a
maximum of:
 Actual expenditure on medical treatment (or)
 ` 40,000;
 ` 60,000 for Senior citizens ( 60 years (or) more);
 ` 80,000 for Super Senior citizens (80 years (or)
more).

27. SECTION 80E – Higher education
Repayment of loan & interest
 Higher education means full-time studies for any
graduate (or) post-graduate course in
engineering, medicine, management (or) for
post-graduate course in applied science (or)
pure sciences including mathematics and
statistics.
 Such education must be of the assessee himself,
his spouse (or) his children for any study in
India (or) outside India.

28.  Deduction is available if:-
 Assessee is an individual.
 He has taken a loan from any bank, financial institution
(or) an approved charitable institution.
 Financial institution means banking company (or)
financial institution notified by the central
government.
 Approved Charitable Institutions means an institution
referred u/s 10(23C) of the act.
 The loan is taken is for the purpose of pursuing higher
education. Such education must be of the assessee
himself, his spouse (or) his children.
Conditions

29. Amount of deduction – 80E
 The entire amount paid by way of interest on such loan
is deductible. (i.e., Actual interest paid)
 Such amount is paid out of his income chargeable to
tax.
 The deduction shall be allowed for the previous year in
which the assessee starts repaying the loan (or)
interest thereon and seven previous years
immediately succeeding it (or) until the loan
together with interest thereon is paid by the assessee
in full ,whichever is earlier.
 i.e., Deduction on interest for 8 successive years.

30. Sec.80EE - Interest on loan taken
for Residential House Property
Additional deductions ` 50,000 for new
home loan u/s 80EE w.e.f., AY:2017-18
Eligibility Conditions
 House value should be less than ` 50 lakhs;
 House loan must be less than ` 35 lakhs;
 Loan must be sanctioned on (or) after 1-4-2016;
 Loan must be taken from Financial Institution;
 Assessee does not have house on loan sanctioned date.

31. Home Loan
Deduction
Principal Interest
Maximum
` 1.5 lakhs
u/s 80C
Up to ` 2 lakhs
u/s 24
Addl. Ded. of
` 50,000 u/s 80EE
(1st Home buyer)

32. DEDUCTIONS FOR SOCIALLY DESIRABLE
ACTIVITIES
 There are various funds created by Governments to take
care of natural calamities like earthquake, floods, etc.
 Similarly certain funds have been created to promote social
& economic welfare, & education.
 To promote these funds and so that people contribute liberally
to these funds, deduction has been provided in Section 80G
for donations given by assessee to these funds.

33. Deduction for Donation u/s 80G
No Limit
Limit subject to
10% of AGTI
100% 50% 100% 50%

34. Gross Total Income
Less: Deductions u/s 80C to 80U except 80G
Long-term Capital Gains ( LTCG )
Short-term Capital Gains covered under STT
Incomes referred to in Sec.115A, AB, AC, AD
Incomes on which income tax is not payable
Adjusted Gross Total Income
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
Xxxxx
Adjusted Gross Total Income

35. Deductions U/S 80 G
Particulars Amount (` ) Amount (`)
Amount (` )
Gross Total Income
Less: Deductions U/S 80 G
I) No limit donations
100% deductions
50% deduction
II) Limit donations
Actual donations
Family Planning
Approved Institutions
Total donations (a)
(or)
10% of AGTI (b)
WEL (a) or (b)
(-)Family Planning & Indian Olympic
Association (100%)
Balance @ 50%
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxxx
xxxx
TOTAL INCOME XXXX

36. Other Donations
Scientific Research
(or)
Rural Development
Political parties
(or) Electoral Trust
By Individuals
80-GGA 80-GGB 80-GGC
Political parties
(or) Electoral Trust
By Companies
Actual amount
donated (100%)
 Note: Donations made only by Cheques

37. SECTION 80GGA – DONATION FOR SCIENTIFIC
RESEARCH (OR) RURAL DEVELOPMENT
 Donations / Contributions to an approved
research institution, university (or) college
used for scientific research (or) rural
development.
 Contribution can also be given for eligible
project / scheme of notified National Fund
for Rural Development or National Urban
Poverty Eradication Fund.
 100% is deductible.
 Cash contribution exceeding 10,000 is not
eligible for deduction u/s 80GGA.

38. DONATIONS TO POLITICAL PARTIES
u/s 80GGC
If donation is given to registered political party
in India (or) donation to electoral trust is
eligible for deduction @ 100%
Deduction = Actual amount donated

39. Deduction in respect of contribution
given by any person to political parties
(Section 80GGC)
Any amount of contribution made by the
assessee being a person except local authority
and every artificial juridical person wholly (or)
partly funded by the government shall be
allowed as deduction while computing the total
income of such person.
 From the AY: 2014-15, no deduction shall be
allowed in respect of any sum contributed by
way of cash.

40. 80GG-Deduction for house rent
paid where HRA is not received
 The tax payer, spouse (or) minor child should not
own residential accommodation the place of
employment;
 Not have S/O residential property in any other place;
 Must be living on rent and paying rent.
Amount of deduction – Least-
 Rent paid minus 10% of AGTI;
 5,000 per month;
 25% of AGTI.

41.  The deduction is available to an individual resident in
India who has received income by way of royalty as
an author (or) co-author (or) for granting a
copyright of a book to the publisher.
 Further, the book may be written in any language and
authored by him is work of literacy, artistic (or)
scientific nature.
Amount of deduction
 100% of such royalty income (or) ` 3,00,000,
whichever is less.
SECTION 80QQB – ROYALTY INCOME OF
AUTHORS OF BOOKS

42. Royalty Income Earned From Outside India
 In cases, where the author has earned royalty (or)
copyright fee from any source outside India, the
deduction under section 80QQB of the Act shall
be allowed to the extent the income is brought into
India by, (or) on behalf of, the author in
convertible foreign exchange within a period of
six months from the end of the accounting year in
which such income is earned (or) within such
further period as the Reserve Bank of India (RBI)
allows in this behalf.

43. Deduction in respect of
Royalty on Patents (Sec.80RRB)
 The deduction is available to an individual who is
resident in India and is a Patentee.
 The patent should be registered on (or) after
1-4-2003 under the Patents Act, 1970.
Amount of deduction
 100% of such royalty income (or) ` 3,00,000,
whichever is less.

44. Deduction on Interest on Savings account
 Deduction from gross total income of an individual (or)
HUF, up to a maximum of ` 10,000/- in respect of
interest on deposits in savings account (not time
deposits) with a bank, co-operative society (or) post
office.

45. SECTION 80U – Disabled assessee
 Persons suffer 40% (or) more of any disability of -
blindness, low vision, leprosy-cured, hearing
impairment, locomotors disability, mental
retardation, mental illness, Autism etc.
 Fixed Deduction of ` 75,000;
` 1,25,000 for severe disability (more than 80%)

46. Section Deductions
Rate/Amount of
deduction
80 C
Deductions from approved savings like
Life Insurance premiums, Provident fund,
Pension, etc.
Maximum ` 1,00,000
as per Sec.80 CCE80 CCC
Contribution to Pension fund-LIC or other
insurance pension plan
80 CCD
Contribution to New Pension Scheme of
Government employee
80 CCG
Investment made in notified Equity
Savings Scheme (ESS) –
(GTI not exceeding ` 10,00,000)
50% of investment or
` 25,000 WEL
80 D
Medical Health Insurance Premium paid
by cheque
Maximum ` 15000. For
senior citizen
` 20000.
80 DD
Medical treatment of handicapped
dependent
Fixed ` 50000 for
severe disability (over
80%) ` 100000
80 DDB Medical treatment of specified diseases
Maximum ` 40000. For
senior citizen
` 60000.
80 E
Interest on loan taken for higher
education
Actual amount paid.
I. Deductions in respect of certain payments:
Deductions on account of certain payments are allowed u/s 80 C to 80 GGC.

47. 80 G
Donations-
1) No limit donations:
a) Fund setup by the Govt., or fund for
Public causes.
b) JNMF, IGMT, RGF, PMDRF.
2) Limit donations:
a) For promoting family planning
and to the Indian Olympic
association.
b) Approved charitable institution,
Notified temple, Mosque, Church
and any other charitable purposes.
100%
50%
100%
50%
80 GG Rent paid for residential house
1) ` 2000 p.m
2) 25% of the adjusted
total income.
3) Rent paid minus
10% adjusted total
income which ever is
less.
80 GGA
Donation to Scientific research or Rural
development by the persons without
business income.
100%
80 GGB
Donations given by companies to political
parties or an Electoral trust
100%
80 GGC
Donation given by any person to political
parties or an Electoral trust
100%

48. II. Deductions in respect of certain incomes:
Deductions on account of certain incomes which are already included in GTI are
covered under sections 80 IA to 80 U.
Section Profits and Gains
% of Profit /Amount to
be deducted
80 IA
Profit and gains of industries of
infrastructure development
100% for 10 consecutive
AYs out of 15 yearsInfrastructure facility
Telecommunication Services
100% for first 5 AYs and
30% for next 5 AYs out of
15 years.
Industrial Park and Power Sector
100% for 10 consecutive
AYs out of 15 years.
80 IAB
Profits and gains to developers of
SEZs.
100% for 10 AYs out of 15
years.
80 IB
Profits and gains of newly
established undertakings
100% for first 5 AYs and
25% for next 5 AYs (30%
for company)
80 IC
Profits and gains of certain
undertakings or certain special
category states 100% for first 10 AYs.
80 ID
Profits and gains of hotels and
convention centres.
100% for first 5 AYs
80 IE
Profits and gains from North
Eastern States.
100% for first 5 AYs

49. 80 JJA Profits and gains of bio- waste 100% for first 5 AYs
80 JJAA
Employment of new workmen by a
company (atleast 100 workmen)
30% of additional wages
paid to new regular
workmen for 3 years
80 LA
Incomes of Off-shore banking units
and International Finance Service
Centres.
100% for first 5 AYs and
50% for the next
5 AYs.
80 P Income of a Co-operative society.
1) Consumer co-operative
society ` 100000.
2) Other co-operatives
` 50000.
3) Banking and Agro-
based co-operatives-100%
of income.
80 QQB
Royalty Income of Authors –
Royalty from books of literary,
artistic or scientific nature.
Actual or ` 3,00,000
which ever is less
80 RRB Royalty on Patents
Actual or
` 3,00,000 which ever is
less.
80TTA
Interest on deposits in savings a/c
with banks, co-operative banks,
post-offices.
Actual interest or
` 10000 p.a
whichever is less
80 U
Income of disabled persons
(Blindness, low vision, Leprosy-
cured, Hearing impairment,
Locomotor’s disability, mental
retardation, mental illness)
Fixed ` 75,000.
` 1,25,000 for severe
disability or disability
over 80%.