This overview presents key deductions available to individual taxpayers and Hindu Undivided Families (HUFs) under the Income Tax Act, 1961. It includes tax provisions under Chapter VI-A and other sections aimed at reducing taxable income through qualifying expenditures.
Section 80C: Investment-Based Deductions
- Offers a maximum deduction of ₹1.5 lakh per financial year for eligible investments and expenses, available only to individuals and HUFs.
- Qualifying options include:
- Equity Linked Savings Schemes (ELSS)
- Public Provident Fund (PPF)
- National Savings Certificate (NSC)
- Sukanya Samriddhi Yojana (SSY)
- Life insurance premiums
- Principal repayment on home loans
- Tuition fees for two children
- Registered provident funds, and similar instruments.
- Contributions across these instruments cumulatively cannot exceed ₹1.5 lakh.
Section 80D: Health Insurance Premiums
- Deduction limits:
- ₹25,000 for self, spouse, and children (if under 60)
- ₹50,000 for senior citizens (self/spouse/children, if over 60)
- Up to ₹5,000 for preventive health check-ups, included within the overall limit.
- Premiums must be paid using non-cash modes; check-up expenses may be paid in cash.
- Available to individuals and HUFs.
Section 24: Home Loan Interest
- Deduction up to ₹2 lakh per financial year for self-occupied properties.
- For let-out (rented) properties, interest is fully deductible, subject to overall loss limit of ₹2 lakh.
- Pre-construction interest can be claimed over five years after completion, subject to conditions.
Section 80E: Interest on Education Loans
- Only the interest component is deductible; principal payments are not eligible.
- No upper limit on the deduction.
- Available for loans from recognized financial institutions or charitable entities.
- Applicable for self, spouse, children, or legal wards.
- Deduction allowed for up to eight assessment years, starting from the year repayment begins.
Other Notable Deductions
- Section 80G: Donations to specified charitable organisations.
- Section 80TTA: Interest on savings account (limit proposed to rise to ₹50,000).
- Section 80U: Deduction for individuals with disability.
- Section 87A: Rebate for resident individuals whose total income does not exceed ₹5 lakh.
Summary Table (Revised & Verifiable)
| Section | Description | Maximum Deduction / Notes |
| 80C | Investments and principal repayment | ₹1.5 lakh (combined limit for eligible instruments) |
| 80D | Health insurance premiums and check-ups | ₹25k / ₹50k, includes ₹5k check-up |
| 24 | Home loan interest (self-occupied property) | ₹2 lakh (full interest for rented property) |
| 80E | Education loan interest (higher studies) | No cap; up to 8 years, interest only |
| 80G | Donations to charitable institutions | As eligible |
| 80TTA | Interest on savings accounts | Proposed: ₹50k |
| 80U | Disability-related deduction | As per disability status |
| 87A | Rebate for low-income individuals | Income ≤ ₹5 lakh |
Disclaimer This document is for informational purposes only and does not constitute financial/tax advice or an offer to purchase any financial product. Investments in securities markets are subject to market risks. Read all related documents carefully before investing. Past performance is not indicative of future results. Illustrations in this article are for educational purposes only and do not constitute investment advice.
Sources:
https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1