Deductions on Section 80C, 80CCC, 80CCD & 80D – FY 2022-23 (AY 2023-24)
Section 80 Deduction List
ection 80C is one of the most popular and favorite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses.
- Who can claim Section 80C deduction?: Section 80C deduction can be claimed by Individuals and HUFs
- Maximum deduction allowed under section 80C?: Rs 1.5 lakh every year from the taxpayer’s total income. Companies, partnership firms, and LLPs cannot avail the benefit of this deduction.
Note: The maximum deduction under Section 80C, 80CCC and 80CCD (1) put together is Rs 1.5 lakhs. However, you may claim an additional deduction of Rs 50,000 allowed u/s 80CCD(1B)
Deduction limits under Section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B)
| Sections | Eligible investments for tax deductions | Maximum Deduction |
|---|---|---|
| 80C | Investment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc. | Rs 1,50,000 |
| 80CCC | Payment made towards pension funds | Rs 1,50,000 |
| 80CCD(1) | Payments made towards Atal Pension Yojana or other pension schemes notified by government | Employed: 10% of basic salary + DA Self-employed: 20% of gross total income |
| 80CCE | Total deduction under Section 80C, 80CCC, 80CCD(1) | Rs 1,50,000 |
| 80CCD(1B) | Investments in NPS (outside Rs 1,50,000 limit under Section 80CCE) | Rs 50,000 |
| 80CCD(2) | Employer’s contribution towards NPS (outside Rs 1,50,000 limit under Section 80CCE) | Central government employer: 14% of basic salary +DA Others: 10% of basic salary +DA |
Here are some investment options that are allowed as deduction u/s 80C. They not only help you with saving taxes but also help you grow your money. A quick comparison of the options is tabulated below:
Section 80C Deductions List
| Investment options | Average Interest | Lock-in period for | Risk factor |
| ELSS funds | 12% – 15% | 3 years | High |
| NPS Scheme | 8% – 10% | Till 60 years of age | High |
| ULIP | 8% – 10% | 5 years | Medium |
| Tax saving FD | Up to 8.40% | 5 years | Low |
| PPF | 7.90% | 15 years | Low |
| Senior citizen savings scheme | 8.60% | 5 years (can be extended for other 3 years) | Low |
| National Savings Certificate | 7.9% | 5 years | Low |
| Sukanya Samriddhi Yojana | 8.50% | Till girl child reaches 21 years of age (partial withdrawal allowed when she reached 18 years) | Low |
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Sometimes, you may have deductions or investments eligible for 80C but haven’t submitted proof to your employer. This may cause additional TDS deductions. You can still claim these deductions while e-filing, as long as you have the proofs with you.
Section 80TTA – Interest on Savings Accounts
- Who can claim Section 80TTA deduction?: Section 80TTA deduction can be claimed by Individuals and HUFs.
Resident Senior Citizens cannot claim deduction under 80TTA but they can claim the deduction under 80TTB. - Maximum deduction allowed under section 80TTA?: Rs 10,000
Note: Section 80TTA does not include interest from from fixed deposits, recurring deposits, or interest income from corporate bonds.
Section 80TTB – Interest From Deposits Held by Senior Citizens
- Who can claim Section 80TTB deduction?: Section 80TTA deduction can be claimed by Resident Senior Citizens (age 60 or more)
Resident Senior Citizens cannot claim deduction under 80TTA but they can claim the deduction under 80TTB. - Maximum deduction allowed under section 80TTB?: Rs 50,000 against interest income from banks, post office, or a co-operative society engaged in banking business.
Note: Interest from banks can be either savings, fixed deposits or recurring
As a result, the threshold limit for TDS deduction under Section 194A for senior citizens has been enhanced to Rs. 50,000. Therefore, if their interest income is below Rs 50,000, TDS will not be deducted.
Section 80GG – Income Tax Deduction on House Rent Paid
- Who is eligible to claim deduction under Section 80GG? Those who do not receive HRA in their salary structure but live in rented accommodations.
- Conditions for claiming Section 80GG:
- Taxpayer must be an individual
- Taxpayer must be living on rent and paying rent
- The taxpayer should not have self-occupied residential property in any other place. Also, the taxpayer, their spouse or minor child or their HUF should not own any residential accommodation in the place where they currently reside.
- File Form 10BA
- How much deduction is available Under Section 80GG?
The least of the following is available as deduction:- Rent paid (-) 10% of adjusted total income*
- Rs 5,000/- per month
- 25% of adjusted total income*
*Adjusted Gross Total Income =
Gross Total Income
Less:
– LTCG, if any, included in total gross income
– STCG u/s 111A
– Deductions u/s 80C to 80U except deduction under section 80GG
– Incomes of NRIs and foreign companies are taxed at a special tax rate, such as incomes u/s 115A, 115AB, 115AC, or 115AD.
An online ITR e-filing software like that of ClearTax can be extremely easy as the limits are auto-calculated. So, you do not have to worry about making complex calculations.
Section 80E – Interest on Education Loan
- Who is eligible to claim deduction under Section 80E? An individual can claim deduction of interest paid on education loan taken for pursuing higher education.
- The education loan can be taken for the taxpayer, their spouse or children or for a student for whom the taxpayer is a legal guardian.
- 80E deduction is available for a maximum of 8 years (beginning the year in which the interest starts getting paid) or till the entire interest is paid, whichever is earlier. There is no ceiling limit on the amount of interest that can be claimed.
Section 80EEA – Interest on Home Loan For First-Time Home Owners
This is Section 80EEA, which provides taxpayers with an extra deduction for paying interest on a house loan. Whereas Section 24 exempted interest on home loans up to Rs 2 lakh, this section exempts home buyers who take out a home loan and pay interest on the loan an additional Rs 1.5 lakhs.
Section 80D – Deduction on Medical Insurance Premium
| Policy for? | Deduction for self & family | Deduction for parents | Preventive Health check-up | Maximum Deduction |
| Self & Family (below 60 years) | 25,000 | – | 5,000 | 25,000 |
| Self & Family + Parents (all of them below 60 years) | 25,000 | 25,000 | 5,000 | 50,000 |
| Self & Family (below 60 years) + Parents (above 60 years) | 25,000 | 50,000 | 5,000 | 75,000 |
| Self & Family + Parents (above 60 years) | 50,000 | 50,000 | 5,000 | 1,00,000 |
You (as an individual or HUF) can claim a deduction of Rs.25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000, if they are less than 60 years of age. If the parents are aged above 60, the deduction amount is Rs 50,000.
In case, both taxpayer and parent(s) are 60 years or above, the maximum deduction available under this section is up to Rs.1 lakh.
Example: Rohan’s age is 65 and his father’s age is 90. In this case, the maximum deduction Rohan can claim under section 80D is Rs. 100,000.
From FY 2015-16 a cumulative additional deduction of Rs. 5,000 is allowed for preventive health check.
Section 80DD – Deduction for Medical Treatment of a Dependent with Disability
- Section 80DD deduction is available to a resident individual or a HUF
- Deduction: Expenditure incurred on medical treatment (including nursing), training and rehabilitation of handicapped dependent relative
| Disability | Level of Disability | Amount of Deduction |
| Normal Disability | 40% – 79% | Rs 75,000 |
| Severe Disability | 80% or more | Rs 1,25,000 |
- Payment or deposit to specified scheme for maintenance of handicapped dependent relative.
- To claim this deduction a certificate of disability is required from the prescribed medical authority.
Section 80DDB – Deduction for Medical Treatment etc
- Who is eligible to claim Section 80DDB deduction?: 80DDB deduction is available to a resident individual or a HUF. You can get a deduction for any money you spend on medical treatments for yourself or your dependents. If you’re a part of a Hindu Undivided Family (HUF), you can also get a deduction for medical expenses spent on these specific ailments for any member of the HUF.
- Quantum of deduction under 80DDB?:
| Age | Amount of deduction |
| < 60 years | Amount paid or 40,000, whichever is less |
| 60 and above | Amount paid or 1,00,000, whichever is less |
For reimbursement claims: Any reimbursement of medical expenses by an insurance company or employer shall be reduced from the quantum of deduction the taxpayer can claim under this section. Also, remember that you need to get a prescription for such medical treatment from the concerned specialist to claim such a deduction. Read our detailed article on Section 80DDB.
Section 80U – Deduction for Disabled Individuals
| Disability | Level of Disability | Amount of Deduction |
| Normal Disability | 40% – 79% | Rs 75,000 |
| Severe Disability | 80% or more | Rs 1,25,000 |
A deduction of Rs.75,000 is available to a resident individual who suffers from a physical disability (including blindness) or mental retardation. In case of severe disability, one can claim a deduction of Rs 1,25,000.
Section 80G – Income Tax Benefits Towards Donations for Social Causes
The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction.
From FY 2017-18, any donations made in cash exceeding Rs 2,000 will not be allowed as a deduction. Donations above Rs 2000 should be made in any mode other than cash to qualify for an 80G deduction.
a. Donations with 100% deduction without any qualifying limit
- National Defence Fund set up by the Central Government
- Prime Minister’s National Relief Fund
- National Foundation for Communal Harmony
- An approved university/educational institution of National eminence
- Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
- Fund set up by a State Government for the medical relief to the poor
- National Illness Assistance Fund
- National Blood Transfusion Council or to any State Blood Transfusion Council
- National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
- National Sports Fund
- National Cultural Fund
- Fund for Technology Development and Application
- National Children’s Fund
- Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
- The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
- The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6,1993
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
- Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
- Prime Minister’s Armenia Earthquake Relief Fund
- Africa (Public Contributions — India) Fund
- Swachh Bharat Kosh (applicable from financial year 2014-15)
- Clean Ganga Fund (applicable from financial year 2014-15)
- National Fund for Control of Drug Abuse (applicable from financial year 2015-16)
b. Donations with 50% deduction without any qualifying limit
- Jawaharlal Nehru Memorial Fund
- Prime Minister’s Drought Relief Fund
- Indira Gandhi Memorial Trust
- The Rajiv Gandhi Foundation
c. Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income
- Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
- Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India
d. Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income
- Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
- Government or any local authority to be utilised for any charitable purpose other than the purpose of promoting family planning
- Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
- Any corporation referred in Section 10(26BB) for promoting the interest of minority community
- For repairs or renovation of any notified temple, mosque, gurudwara, church or other places.
Section 80GGB – Company Donation to Political Parties
Section 80GGB deduction is allowed to an Indian company for the amount contributed by it to any political party or an electoral trust. A deduction is allowed for donations done by any mode of payment other than cash.
Section 80GGC – Deduction on Donations By a Person to Political Parties
- What is Section 80GGC Deduction? 80GGC provides deduction for any amount donated to a political party or an electoral trust. You can avail this deduction only if you pay by any mode other than cash.
- Who can claim deduction under section 80GGC? Only an individual taxpayer can claim deduction under section 80GGC. It is not available for companies, local authorities and an artificial juridical person wholly or partly funded by the government. They may claim the deduction under Section 80GGB.
Section 80RRB – Deduction on Income via Royalty of a Patent
80RRB Deduction for any income by way of royalty for a patent, registered on or after 1 April 2003 under the Patents Act 1970, shall be available for up to Rs.3 lakh or the income received, whichever is less. The taxpayer must be an individual patentee and an Indian resident. The taxpayer must furnish a certificate in the prescribed form duly signed by the prescribed authority.
Section 80 Deductions Summary Table
| Section | Deduction on | Allowed Limit (maximum) FY 2022-23 |
|---|---|---|
| 80C | Investment in PPF – Employee’s share of PF contribution – NSCs – Life Insurance Premium payment – Children’s Tuition Fee – Principal Repayment of home loan – Investment in Sukanya Samridhi Account – ULIPS – ELSS – Sum paid to purchase deferred annuity – Five year deposit scheme – Senior Citizens savings scheme – Subscription to notified securities/notified deposits scheme – Contribution to notified Pension Fund set up by Mutual Fund or UTI. – Subscription to Home Loan Account scheme of the National Housing Bank – Subscription to deposit scheme of a public sector or company engaged in providing housing finance – Contribution to notified annuity Plan of LIC – Subscription to equity shares/ debentures of an approved eligible issue – Subscription to notified bonds of NABARD | Rs. 1,50,000 |
| 80CCC | For amount deposited in annuity plan of LIC or any other insurer for a pension from a fund referred to in Section 10(23AAB) | |
| 80CCD(1) | Employee’s contribution to NPS account (maximum up to Rs 1,50,000) | |
| 80CCD(2) | Employer’s contribution to NPS account | Maximum up to 10% of salary |
| 80CCD(1B) | Additional contribution to NPS | Rs. 50,000 |
| 80TTA(1) | Interest Income from Savings account | Maximum up to 10,000 |
| 80TTB | Exemption of interest from banks, post office, etc. Applicable only to senior citizens | Maximum up to 50,000 |
| 80GG | For rent paid when HRA is not received from employer | Least of : – Rent paid minus 10% of total income – Rs. 5000/- per month – 25% of total income |
| 80E | Interest on education loan | Interest paid for a period of 8 years |
| 80EE | Interest on home loan for first time home owners | Rs 50,000 |
| 80D | Medical Insurance – Self, spouse, children Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old | – Rs. 25,000 – Rs. 50,000 |
| 80DD | Medical treatment for handicapped dependent or payment to specified scheme for maintenance of handicapped dependent – Disability is 40% or more but less than 80% – Disability is 80% or more | – Rs. 75,000 – Rs. 1,25,000 |
| 80DDB | Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD – For less than 60 years old – For more than 60 years old | – Lower of Rs 40,000 or the amount actually paid – Lower of Rs 1,00,000 or the amount actually paid |
| 80U | Self-suffering from disability : – An individual suffering from a physical disability (including blindness) or mental retardation. – An individual suffering from severe disability | – Rs. 75,000 – Rs. 1,25,000 |
| 80GGB | Contribution by companies to political parties | Amount contributed (not allowed if paid in cash) |
| 80GGC | Contribution by individuals to political parties | Amount contributed (not allowed if paid in cash) |
| 80RRB | Deductions on Income by way of Royalty of a Patent | Lower of Rs 3,00,000 or income received |