Types of deductions which can be claim on INCOME TAX RETURN


Types of deductions which can be claim on INCOME TAX RETURN.

Primarily all the Taxes are playing the major role in our economy. At the regime of taxes the INCOME TAX covers the most important part in our economy, which mean our government expect a reasonable tax on the income which we earns, as we know that government have already fixed a particular slab rate for every registered person but if their income are exceeds the slab rate, it mean the individual must have to pay tax on their income. But there are also a good thing about the income tax return is we can take several deductions as well according to the expenses which we have spent from our earnings.

Now here we are going to know about all the deductions. Which we can mention while filling the annual income tax return only if we are eligible for that. However by taking the benefit of these deductions we can easily reduce our rate of liability and able to pay lesser tax than earlier. Mainly these deductions encourage the people to invest into different kind of investment schemes so that they can contribute their wealth to grow the economy system of the country.


  • Section 80C:- Investment

Deduction on investment mean If the tax payer have any kind of investment which is specified by the government then they could take deduction on that particular investment and This deductions has been made just for the Hindu undivided family and individuals in which both can claim deduction up to 1, 50,000 annually. There are few investments given below which is specified by the government to claim deduction.

  • Tuition fee for maximum two children.
  • Provident fund contribution.
  • Repayment of house loan.
  • Investments on any senior citizen saving schemes.
  • Investments in equity
  • Investment in fixed deposit but the minimum period should be 5years.
  • Investment in life insurance policy for self or spouse, children.
  • Section 80GG:-house rent payment

This deduction has made for the individuals who are living at rented property and not receiving any HRA from their company than that individual can take deduction of 25% of the adjusted amount or 5000 per month whichever is lesser.

  • Section 80TTA:- Interest on saving bank account

This deduction is for HUF and individual both are eligible to take the deduction of this section.

If any individual and HUF are earning income from interest from their saving account or post office till the amount of 10,000 than they can take deduction under section 80TTA but if the earning exceeds the amount of 10,000 then they have to pay tax on that. This deduction is not eligible for the income from interest from any corporate bond, fixed deposit and recurring deposit.

  • Section 80E:- interest on education loan

This deduction is provided to the every individual who want to pursue any higher study and want to take deduction on their education loan for self, children, spouse and paying interest on that loan. Than they can take deduction of that entire paid interest on the loan.

  • Section 80EE:- Interest on home loan

If any individual have a house on loan and paying interest on that particular loan then they can take deduction of the paid interest but there are few conditions applicable by the government on the tax payer to avail deduction.

The condition is the tax payer should have only house loan to take deduction. And the value of that property should be less than 50lakhs and the loan on that property should be less than 35lakhs.

  • Section 80DDB:- Expense on medical

For the senior citizens (above 60 years) of any HUF or individual can take deduction on the expense on their medical till the amount of 1lakh. And for individuals and HUF member who are less than 60 years old for them the tax rebate has defined till Rs. 40,000. They can avail deduction on their medical expense for self, members or dependants.

  • Section 80U:- physical disability

The person who are physical disable including mental retard, blind, handicap etc. for them the amount of deductions has been defined as 75000. For the severe disable person who can’t even do the normal work for them the amount of deduction has been defined as 1, 25,000 annually.

  • Section 80DD:- disabled dependent

To claim this deduction the disabled person should have the certificate of disability from a licensed medical authority and the rebate is applicable as per disability range. The deduction can be claim 75000 if the range of disability is 40%-80% but for the severe disability whose range of disability is more than 80% then the deduction amount will be till 125000. There are few disabilities which is defined by the government to avail deduction.

  • Low vision
  • Leprosy
  • Blindness
  • Loco-motor disability
  • Mental retardation
  • Hearing-impaired
  • Section 80D:- medical insurance

All the individuals and HUFs are eligible for the deduction for 25,000 if they have taken any medical insurance for self, spouse or children. For the parents who are less than 60 years the deduction amount is 25,000 whereas if the parents are above 60years than the deduction amount is 50,000. Now if the taxpayer and the parents both are above the 60years than the amount of deduction amount will be 1, 00,000.

  • Section 80GGB:- company’s contribution

Company can contribute into politics and electoral trust and take the deduction of that amount but the contribution should not be done in the cash.

  • Section 80G:- donation

Tax payers can take deductions of their donation but the maximum limit of the donation in cash 2000. The donation should not be more than 2000 in cash it should be by other mean.

But the only condition is to claim deduction the trust should be registered under the section 12A.

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