Products Tools Knowledge Center Guides Pricing Contact Log In Sign Up

Maximize Your Income Tax Refund

File Your Taxes with the Experts

Start Today

Home  Income Tax  Income Tax Deductions  Income Tax Deductions List - Section 80C to 80U Deductions FY 2023-24 (AY 2024-25)

Income Tax Deductions List:

Deductions on Section 80C,
80CCC, 80CCD & 80D - FY 2023-24
(AY 2024-25)
Updated on: 26 Jun, 2024 12:36 PM

deduction under chapter vi a, chapter vi a deductions, deductions under sec 80c to 80u,
income tax deduction list

The Income Tax Department, recognizing the significance of fostering savings and investments, has
incorporated a comprehensive set of income tax deductions under Chapter VI A of the Income Tax Act.
While deduction under 80C stands out as a widely known provision, several other deductions exist,
providing taxpayers with opportunities to strategically reduce their tax liabilities. These deductions
under section 80C to 80U serve as powerful incentives, allowing individuals to optimize their financial
planning and contribute to the nation's economic growth. In this article, we will present the 80C
deduction list as well as discuss in detail the chapter VI A deductions.

Contents
What is Income Tax Deduction under Chapter VI A of Income Tax Act?

Section 80 Deduction List - Who can Claim Income Tax Deductions?

Investments that Qualify for Deductions under Section 80C

Expenses that Qualify for Tax Deductions under Section 80C

Features of Income Tax Deduction u/s 80

FAQs on Deductions Under Sections 80C to 80U?

What is Income Tax Deduction under Chapter

VI A of Income Tax Act?
Income Tax Deduction under Chapter VIA of Income Tax Act refers to a reduction in the taxable income
of an individual or a business entity, which results in a lower tax liability. The Indian Income Tax Act
provides for various deductions under sections 80C to 80U, which can be claimed by an individual or a
business entity while calculating their taxable income.

Let us take an example of tax saving for individuals with yearly salaries up to 20 lakhs.

Tax saving calculation for yearly income-20 lakhs

Gross Salary 2,000,000

Less:

HRA 200,000

LTA 40,000

Reimbursements 24,500

Children education and hostel allowance 9,600

Standard Deduction 50,000

Professional Tax 2400

Taxable Salary Income

Less: Deductions

80C (Refer Note below) 150,000

80D 50,000

80E 22,000

Net Taxable Income 14,51,500

Tax on the above income 2,57,868

Rebate u/s 87A Not applicable

Total Tax 2,57,868

Apart from this, you can also claim these tax deductions if eligible:

Interest on home loan EMIs under Section 24b -2,00,000

Principal amount of the home loan under section 80EEA -1,50,000

National Pension Scheme (NPS) investments u/s 80CCD(1B) -50,000

Section 80 Deduction List - Who can Claim

Income Tax Deductions?
Only eligible taxpayers can claim these deductions in their income tax returns. Such eligible taxpayers
have been specified under various sections of the Act. It is pertinent to note that the taxpayers who opt
to pay tax under the new tax regime can claim only deductions under sections 80CCD(2) and 80JJAA.

Income tax deduction needs to be claimed at the time of filing your Income Tax Return, and no
separate disclosure compliances are required for claiming such deductions. The number of deductions
should be reduced from the gross income to reach the taxable amount.

Sections Income Tax Deduction for FY Eligible person Maximum

2023-24(AY 2024-25) deduction
available for
FY 2023-24(AY
2024-25)

Section Investing into very common and Individual Upto Rs

80C popular investment options like Or 1,50,000
LIC, PPF, Sukanya Samriddhi HUF
Account, Mutual Funds, FD,
child tuition fee, ULIP, etc

Section Investment in Pension Funds Individuals

80CCC

Section Atal Pension Yojana and Individuals

80CCD (1) National Pension Scheme
Contribution

Section Atal Pension Yojana and Individuals Upto Rs 50,000

80CCD(1B) National Pension
SchemeContribution (additional
deduction)

Section National Pension Individuals Amount

80CCD(2) SchemeContribution by Contributed
Employer 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 Medical Insurance Premium, Individual Upto Rs

80D preventive health checkup and Or 1,00,000
Medical Expenditure HUF

Section Medical Treatment of a Individual Normal

80DD Dependent with Disability Or Disability
HUF (atleast 40% or
more but less
than 80%): Rs
75000/-
Severe
Disability
(atleast 80% or
more) : Rs
125000/-

Section Medical expenditure for Individual Senior Citizens:

80DDB treatment of Specified Diseases Or Upto Rs
HUF 1,00,000
Others: Upto
Rs 40,000

Section Interest paid on Loan taken for Individual No limit (Any

80E Higher Education amount of
interest paid on
education
loan)upto 8
assessment
years

Section Interest paid on Housing Loan Individual Upto Rs 50,000

80EE subject to some
conditions

Section Interest Paid on Housing Loan Individual Upto Rs

80EEA 1,50,000/-
subject to some
conditions

Section Interest paid on Electric Vehicle Individual Upto Rs

80EEB Loan 1,50,000
subject to some
conditions

Section Donation to specified All Assessee 100% or 50% of

80G funds/institutions. Institutions (Individual, HUF, the Donated
Company, etc) amount or
Qualifying limit,
Allowed
donation in
cash upto
Rs.2000/-

Section Income Tax Deduction for Individual Rs. 5000 per

80GG House Rent Paid month
25% of
Adjusted Total
Income
Rent paid -
10% of
Adjusted Total
Income
- whichever is
lower

Section Donation to Scientific Research All assessees 100% of the

80GGA & Rural Development except those who amount
have an income donated.
(or loss) from a Allowed
business and/or a donations in
profession cash upto
Rs.10,000/-

Section Contribution to Political Parties Companies 100% of the

80GGB amount
contributed
No deduction
available for the
contribution
made in cash

Section Individuals on contribution to Individual 100% of the

80GGC Political Parties HUF amount
AOP contributed.
BOI No deduction
Firm available for the
contribution
made in cash

Section Royalty on Patents Individuals (Indian Rs.3,00,000/-

80RRB citizen or foreign Or
citizen being Specified
resident in India) Income
- whichever is
lower

Section Royalty Income of Authors Individuals (Indian Rs.3,00,000/-

80QQB citizen or foreign Or
citizen being Specified
resident in India) Income
- whichever is
lower

Section Interest earned on Savings Individual Upto Rs

80TTA Accounts Or 10,000/-
HUF (except
senior citizen)

Section Interest Income earned on Individual (60 yrs Upto Rs

80TTB deposits(Savings/ FDs) or above) 50,000/-

Section Disabled Individuals Individuals Normal

80U Disability: Rs.
75,000/-
Severe
Disability: Rs.
1,25,000/-

If you want to know about more such tax-saving options and want to maximize your tax refund,
file your ITR with Tax2win’s tax experts and never fall prey to penalties.

Investments that Qualify for Deductions under

Section 80C
Tax saving options under Section 80C

There are several options you can choose to save tax under Section 80C of the Income Tax Act. The
Income Tax deduction list include:

1. Equity Linked Saving Scheme (ELSS)

2. National Pension Scheme (NPS)

3. Unit Linked Insurance Plan (ULIP)

4. Public Provident Fund (PPF)

5. Sukanya Samriddhi Yojana (SSY)

6. National Savings Certificate (NSC)

7. Fixed Deposit (FD)

8. Employee Provident Fund (EPF)

Please note that these benefits are available if you have chosen the “Old Tax Regime.”

Expenses that Qualify for Tax Deductions

under Section 80C
Life Insurance Premiums

Employee Provident Fund (EPF) contributions

Public Provident Fund (PPF) investments

National Savings Certificate (NSC) investments

Equity-Linked Savings Scheme (ELSS) investments

Sukanya Samriddhi Yojana (SSY) investments

5-Year Fixed Deposit with Banks

Senior Citizens Savings Scheme (SCSS) investments

Tuition Fees for up to two children

Home Loan Principal Repayment

Stamp Duty and Registration Charges for a Home

Features of Income Tax Deduction u/s 80

Section 80C: This section provides a deduction of up to Rs. 1.5
lakh for investments in specified instruments such as EPF, PPF,
NSC, ELSS, tax-saving fixed deposits, etc.

An income tax deduction list consisting of the investments that are eligible for deduction
under section 80 is given below -

1) Premium paid for life insurance policy Premium paid on insurance policies of self,
spouse, or child (minor or major). If you pay a premium for your parents, then you will
not be allowed to take a deduction under chapter vi a. If In the case of HUF, the
premium paid for any member. It can be either a life policy or an endowment policy.

2) Any amount invested in the Sukanya Samriddhi Scheme in the name of your
daughter or any girl child for whom you are a legal guardian.

3) Contribution to:
- Public Provident Fund
- Approved superannuation fund
- Unit-linked Insurance Plan, 1971
- Unit-linked Insurance Plan of LIC Mutual Fund
- Approved annuity plan of LIC
- Pension fund, which is set up by a mutual fund or by the administrator or the specified
company
- National Housing Bank Term Deposit Scheme, 2008
- additional account under NPS
- Senior Citizens Savings Scheme Rules, 2004

4) Subscription to:
- National Savings Certificates (VIII issues)
- units of any mutual fund or from the administrator or the specified company
- notified deposit scheme of a public sector company that provides long-term finance
for construction or purchase or construction of houses for the construction or purchase
or construction of houses for residential purposes in India or any other deposit scheme
concerned with housing accommodation or planning, improvement, or development of
cities, towns, and villages, or both.
- specified equity shares or debentures or units of mutual fund
- notified bonds issued by NABARD

5) Investment in a five-year fixed deposit (FD) of a Scheduled Bank or Post Office

6) Repayment of housing loan principal amount(including stamp duty, registration fee,

and other expenses)

7) Payment of tuition fees to any college, school, university, or other educational

institutions within India for full-time education for maximum 2 children

Check the detailed guide on section 80 C deduction.

Section 80CCC: This section provides a deduction for contributions

made to annuity plans of LIC or any other insurer for receiving
pension.

Under section 80CCC income tax deduction for the contributions made in specified pension
plans can be claimed. The tax deduction can be claimed by individuals (whether resident or
non-resident). Maximum permissible deduction under sections 80C, 80CCC, and 80CCD(1) put
together is Rs. 1,50,000

Section 80CCD(1): An income tax deduction for contributions made

by individuals to eligible NPS

The contribution made to eligible NPS account is tax-deductible up to Rs 1.5 lakhs under
section 80CCD(1). The deductions shall be restricted to the amount contributed or the below-
given percentage, whichever is less. However, this tax benefit is within the overall ceiling limits
of section 80CCE, i.e., Rs. 1,50,000. To know the computation of the exempt amount, eligibility,
and much more. Read more

Section 80CCD(1B): Additional Income tax deduction for

contributions made by individuals to eligible NPS

Section 80CCD(1B) gives you the additional tax saving benefit of up to Rs 50,000 for
contributions to the NPS account. It is over and above the limits of section 80C,i.e., It shall not
be subjected to the ceiling limit of Rs. 1,50,000. This section 80CCD has gained so much
attention as you can invest up to Rs. 2 lakh in an NPS account and claim a deduction of the full
amount, i.e., Rs. 1.50 lakh under Sec 80CCD(1) and Rs. 50,000 under Section 80CCD(1B). Click
to know more.

Section 80CCD(2): An income tax deduction for contributions by an

employer to eligible NPS

The contribution to NPS is deductible under 80CCD(1), and 80CCD(1B), and the amount
contributed by your employer towards your NPS account is also tax-deductible under section
80CCD(2). Read to know more details. The deduction amount shall be restricted to 14% of
salary(Basic salary + DA) in the case of Govt. employees and 10% in case of any other
employees.

Section 80D: Income Tax benefit for medical insurance premium

Section 80D is amongst the most popular tax-saving options. Under this tax, the benefit is
admissible for

. Medical Insurance Premiums

. Expenditure on Preventive Health Check-up

. Other Medical Expenditure

The admissible deductions under this section are as under:

In
In the
the case
case of
of an
an individual
individual

. Case I – If your self/spouse or dependent children are below 60 Years of age, then
the maximum deduction is Rs. 25,000, and if your parents are also below 60 years of
age, then the maximum deduction is Rs. 25,000. Therefore, the aggregate deduction
shall be a maximum of Rs. 50,000.

. Case II – If your self/spouse or dependent children are below 60 Years of age, then
the maximum deduction is Rs. 25,000. If parents are 60 years or above, the maximum
deduction is Rs. 50,000. Therefore, the aggregate deduction shall be a maximum of
Rs. 75,000.

. Case III – If your self/spouse or dependent children are 60 years or above, then the
maximum deduction is Rs. 50,000. If your parents are also 60 years or older, the
maximum deduction is Rs. 50,000. Therefore, the aggregate deduction shall be a
maximum of Rs. 1,00,000.

. Deduction up to Rs. 5,000 shall be allowed for payment made towards preventive
health check-ups of self, spouse, dependent children, or dependent parents made
during the previous year. However, the said deduction of Rs. 5,000 shall be within the
overall limit of Rs. 25,000 or Rs. 50,000 specified above.

In
In the
the case
case of
of HUF,
HUF,

The maximum deduction available to a HUF in respect of premium paid to insure the health of
any member of the family would be Rs. 25,000, and in case any member is a senior citizen,
then Rs. 50,000.

Notes:
Notes:

. You can also claim a deduction of upto Rs. 50,000 under section 80D even if you do
not have any health insurance policy, provided any amount is incurred towards:
- medical treatment expenditure of self, spouse, and dependent children (who is of
the age of sixty years or more and not having medical insurance cover)
- medical treatment expenditure of any parent(s) (who is of the age of sixty years or
more and not having medical insurance cover)

. Deduction where the health insurance premium is paid in lump sum: Deduction shall
be apportioned towards all the years for which the premium is paid.

Read to know further details.

Section 80DD: Income Tax Deduction for Medical Treatment of a

Dependent with Disability

Section 80DD provides an income tax benefit to the extent of Rs 75,000 (Where disability is
40% or more but less than 80%) & Rs 1,25,000 (Where there is a severe disability (disability is
80% or more), respectively. The benefit can be availed for incurring medical expenditures for a
disabled dependent relative. For diseases covered, documents required, and other
information, please refer to the detailed guide.

Section 80DDB: Income Tax Deduction for Specified Diseases

The income tax deduction under section 80DDB serves as financial help for those suffering
from a severe disease or taking care of such dependent family members. The deduction is
allowed regarding the amount paid for the medical treatment of such disease or ailment of the
specified persons. The maximum deduction is summarized hereunder:

Dependant
Dependant Maximum
Maximum limit
limit (Rs.)
(Rs.)

A senior citizen (being a resident individual) 1,00,000

Other than a senior citizen 40,000

No such deduction shall be allowed unless a prescription is obtained for such medical
treatment from a neurologist, oncologist, urologist, hematologist, immunologist, or other
specialists, as may be prescribed. Read more to know the eligibility and other qualifying
criteria.

Section 80E: Income Tax Deduction for Interest paid on Higher

Education Loan
The interest paid on higher education loans taken for self, spouse, child, or student of whom
you are a legal guardian is eligible for income tax deduction under section 80E. The tax
benefit is available for the 8 Assessment Years. i.e., The current year and the next 7 years,
without maximum limits. Read to know more.

Section 80EE: Income Tax Deduction for Home Loan

Section 80EE provides an additional deduction of up to Rs. 50,000 in respect of the interest
on a loan taken by an individual to acquire residential house property from any financial
institution. Read insights here. 80EE deduction is in addition to the deduction available under
section 24 while computing ‘income from house property’. The conditions for availing
deduction of interest are: here.

Section 80EEA: Income Tax Deduction for first time home buyers
This section is Section 80EEA, which allows an additional deduction to taxpayers for paying
interest on a home loan availed by them. While Section 24 allowed for interest exemption on
home loans up to INR 2 lakhs, this section allows an additional exemption of Rs 1.5 lakhs to
home buyers who avail of a home loan and pay interest on the loan.
Other conditions for availing deduction of interest:

Section 80EEB: Income Tax Deduction for Repayment of Electronic

Vehicle Loan
This section was introduced to promote the purchase of electric vehicles among individuals by
giving them tax relief on the interest paid on loans taken to purchase such vehicles from any
financial institution from 01/04/2019 to 31/03/2023. The limit of deduction is up to Rs 1.5 lakhs.

Section 80G: Deduction in respect of donations made to specified

funds and charitable institutions etc
. Deduction under this section is available to all types of taxpayers (individual/ firm/ LLP
or any other person).

. The deduction amount is based on the category in which the fund falls, i.e., with or
without any qualifying limit.
Where the funds are subject to a qualifying limit, the formula for calculation of
deduction = Gross Qualifying Amount - Net Qualifying Amount

 . The donation should be made in any mode of payment other than cash if it exceeds

Rs. 2,000. Donations in kind are not eligible for deduction under this section.