Deductions from Gross Total Income

Deductions from Gross Total Income under the Indian Income Tax Act are provisions that allow taxpayers to reduce their total taxable income by certain amounts, thereby lowering their tax liability. These deductions are provided for various expenses, investments, donations, and other activities that contribute to the socioeconomic development or welfare of the taxpayer or society at large.

Section 80C Deductions:

• Under Section 80C, taxpayers can claim deductions for investments made in specified instruments such as:
  • Employee Provident Fund (EPF)
  • Public Provident Fund (PPF)
  • Equity Linked Savings Schemes (ELSS)
  • National Savings Certificate (NSC)
  • Tax-saving Fixed Deposits
  • Life Insurance Premiums
  • Sukanya Samriddhi Yojana (SSY)
  • Principal Repayment of Home Loan, etc.
• The maximum deduction allowed under Section 80C is Rs. 1.5 lakh per financial year.

Section 80D Deductions:

• Section 80D allows deductions for premiums paid towards health insurance policies for self, spouse, children, and parents.
• An additional deduction is available for preventive health check-ups.
• The maximum deduction varies based on the age of the insured and the type of policy.

Section 80E Deductions:

• This section allows deductions for interest paid on loans taken for higher education.
• The deduction is available for a maximum of 8 assessment years or until the interest is fully paid, whichever is earlier.

Section 80G Deductions:

• Deductions under Section 80G are available for donations made to specified charitable institutions or funds.
• The deduction can be claimed up to either 100% or 50% of the donated amount, depending on the recipient organization’s eligibility.

Section 80TTA and 80TTB Deductions:

• Section 80TTA allows deductions of up to Rs. 10,000 on interest income from savings accounts held with banks, co-operative societies, or post offices.
• Section 80TTB allows deductions of up to Rs. 50,000 on interest income for senior citizens.

Section 24 Deductions:

• Section 24 provides deductions for interest paid on home loans for the purchase, construction, repair, or renovation of a residential property.
• The maximum deduction for self-occupied property is Rs. 2 lakh per annum. There’s no limit for rented or deemed rented properties.

Section 80GGA Deductions:

• Deductions under this section are available for donations made for scientific research or rural development.
• The donation should be made to specified entities approved by the government.

Section 80GG Deductions:

• This section allows deductions for rent paid by individuals who do not receive House Rent Allowance (HRA) as part of their salary.
• The deduction is subject to certain conditions and limitations.

Section 80DDB Deductions:

• Deductions under Section 80DDB are available for expenses incurred on medical treatment of specified diseases for self or dependents.
• The deduction is subject to certain conditions and limits.

Section 80U Deductions:

Section 80U allows deductions for individuals with disabilities, providing relief based on the severity of the disability.

Section 80RRB Deductions:

Deductions under this section are available for royalties received by authors of certain specified works.

Section 80QQB Deductions:

Deductions under this section are available for royalties received by resident individuals for patents registered on or after April 1, 2003.

Section 80IA to 80IE Deductions:

These sections provide deductions for profits and gains from specified businesses, such as infrastructure development, industrial parks, hotels, etc.

Other Deductions:

Deductions are also available for contributions to the National Pension System (NPS), interest on education loans, expenses related to disabilities, and certain other specified expenses.