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Guide to Section 80 Deductions

For financial year 2014-15 & 2015-16 (with changes listed for FY 2016-17)
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Deductions on Section 80C, 80CCC & 80CCD

Section 80C
Under section 80C, a deduction of Rs 1,50,000 can be claimed from your total income. In simple
terms, you can reduce up to Rs 1,50,000 from your total taxable income through section 80C.
This deduction is allowed to an Individual or a HUF.
A maximum of Rs 1,50,000 can be claimed for financial year 2014-15. The limit for financial
year 2015-16 and financial year 2016-17 is also Rs 1,50,000.

If you have paid excess taxes, but have invested in LIC, PPF, Mediclaim etc. you can file your
Income Tax Return and get a refund. Click here to start filing your I-T Return and get a
refund.
Click here to see all the investment options to save

Not enough 80C deduction in your Form-16?

If you need help claiming Section 80 Deductions like 80C, investments, mediclaim, or
calculating HRA to save on taxes, cleartaxs CAs can help you claim a refund (if applicable) and
e-file in 48 hours.

Get savings on Income Taxes with a CA to help you file.

Sometimes, you may have deductions or investments eligible for 80C, but you may not have
submitted proofs to your employer, so excess TDS may be deducted. You can still claim these
deductions while e-filing as long as you have the proofs with you.

Section 80CCC: Deduction for Premium Paid for Annuity Plan of LIC or Other Insurer
This section provides deduction to an Individual for any amount paid or deposited in any annuity
plan of LIC or any other insurer. The plan must be for receiving pension from a fund referred to
in Section 10(23AAB).
If the annuity is surrendered before the date of its maturity, the surrender value is taxable in the
year of receipt.

Section 80CCD: Deduction for Contribution to Pension Account

Employee's contribution Section 80CCD(1) Allowed to an Individual who makes deposits to
his/her Pension account. Maximum deduction allowed is 10% of salary (in case of taxpayer
being an employee) or 10% of gross total income (in case of tax payer being self-employed) or
Rs 1,00,000 whichever is less. The limit of Rs 1,00,000 has been increased to Rs 1,50,000
starting financial year 2015-16 (assessment year 2016-17).
Deduction for self contribution to NPS - section 80CCD(1B) A new section 80CCD(1B) has
been introduced for additional deduction for amount deposited by a taxpayer to their NPS
account . Contributions to Atal Pension Yojana are also eligible. Deduction is allowed on
contribution up to Rs 50,000.
Employer's contribution Section 80CCD(2) Deduction is allowed for employer's
contribution to employees pension account up to 10% of the salary of the employee. There is no
monetary ceiling on this deduction.
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Deductions on Interest on Savings Account

Section 80 TTA: Deduction from gross total income for Interest on Savings bank account
A deduction of maximum Rs 10,000 can be claimed against interest income from a savings bank
account. Interest from savings bank account should be first included in other income and
deduction can be claimed of the total interest earned or Rs 10,000, whichever is less. This
deduction is allowed to an individual or HUF. And it can be claimed for interest on deposits in
savings account with a bank, co-operative society or post office. Section 80TTA deduction is not
available on interest income from fixed deposits or recurring deposits or interest income from
corporate bonds.

Deductions on House Rent

Section 80GG: Deduction for House Rent Paid where HRA is not received

This deduction is available for rent paid when HRA is not received. Taxpayer or his
spouse or minor child should not own residential accommodation at the place of
employment.

Taxpayer should not have self-occupied residential property in any other place.

Taxpayer must be living on rent and paying rent.

Deduction available is the minimum of

1. Rent paid minus 10% of total income
2. Rs. 2000/- per month
3. 25% of total income
For Financial year 2016-17 For calculating deduction above, Rs 2,000 per month has been
raised to Rs 5,000 per month. Therefore a maximum of Rs 60,000 per annum can be claimed as a
deduction.

Deductions on Education Loan for Higher Studies

Section 80E: Deduction for Interest on Education Loan for Higher Studies

Deduction is allowed for interest on loan taken for pursuing higher education. This loan may
have been taken for the taxpayer, spouse or children or for a student for whom the taxpayer is a
legal guardian. The deduction is available for a maximum of 8 years or till the interest is paid,
whichever is earlier. There is no restriction on the amount that can be claimed.

Deduction for First Time Home Owners

Section 80EE: Deductions on Home Loan Interest for First Time Home Owners
For Financial Year 2013-14 and Financial Year 2014-15

This section provided deduction on the Home Loan Interest paid. The deduction under this
section is available only to Individuals for first house purchased where the value of the house is
Rs 40lakhs or less and loan taken for the house is Rs 25lakhs or less. And the Loan has been
sanctioned between 01.04.2013 to 31.03.2014. The aggregate deduction allowed under this
section cannot exceed Rs 1,00,000 and is allowed for financial years 2013-14 & 2014-15
(Assessment year 2014-15 and 2015-16).

This deduction is not available for financial year 2015-16 (assessment year 2016-17).
For Financial Year 2016-17
This section was revived in Budget 2016 and is applicable starting FY 2016-17. The deduction
under this section is available only to an Individual who is a first time home owner. The value of
the property purchased must be less than Rs 50 Lakhs and home loan must be less than Rs 35
lakhs. And the Loan must be taken from a financial institution and must be sanctioned between
01.04.2016 to 31.03.2017. Under this section, an additional deduction of Rs 50,000 can be
claimed on home loan interest. This is in addition to deduction of Rs 2,00,000 allowed under
section 24 of the income tax act for a self-occupied house property. There is no restriction on the
number of years for which this deduction can be claimed.

Deductions on Rajiv Gandhi Equity Saving Scheme (RGESS)

Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)
The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget.
Investors whose gross total income is less than Rs. 12 lakhs can invest in this scheme. Upon
fulfilment of conditions laid down in the section, the deduction is lower of, 50% of amount
invested in equity shares or Rs 25,000.

Deductions on Medical Insurance

Section 80D: Deduction for premium paid for Medical Insurance
For financial year 2014-15 - Deduction is available up to Rs. 15,000/- to a taxpayer for insurance
of self, spouse and dependent children. If individual or spouse is more than 60 years old the
deduction available is Rs 20,000. An additional deduction for insurance of parents (father or
mother or both) is available to the extent of Rs. 15,000/- if less than 60 years old and Rs 20,000
if parents are more than 60 years old. Therefore, the maximum deduction available under this
section is to the extent of Rs. 40,000/-. (From AY 2013-14, within the existing limit a deduction
of up to Rs. 5,000 for preventive health check-up is available).
For financial year 2015-16 Deduction is raised from Rs 15,000 to Rs 25,000. The deduction for
senior citizens is raised from Rs 20,000 to Rs 30,000. For uninsured super senior citizens (more
than 80 years old) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction
under section 80D. However, total deduction for health insurance premium and medical expenses
for parents shall be limited to Rs 30,000.

Deductions on Medical Expenditure for a Handicapped Relative

Section 80DD: Deduction for Rehabilitation of Handicapped Dependent Relative
Deduction is available on:
1. Expenditure incurred on medical treatment, (including nursing), training and
rehabilitation of handicapped dependent relative
2. Payment or deposit to specified scheme for maintenance of dependent handicapped
relative.
Where disability is 40% or more but less than 80% - fixed deduction of Rs 50,000.
Where there is severe disability (disability is 80% or more) fixed deduction of Rs 1,00,000.A
certificate of disability is required from prescribed medical authority.
Note: A person with 'severe disability' means a person with 80% or more of one or more
disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities,
protection of rights and full participation)' Act.

Certificate can be taken from a Specialist as specified.

Patients getting treated in a private hospital are not required to take the certificate from a
government hospital.

Patients receiving treatment in a government hospital have to take certificate from any
specialist working full-time in that hospital. Such specialist must have a post-graduate
degree in General or Internal Medicine or any equivalent degree, which is recognised by
the Medical Council of India.

Certificate in Form 10I is no longer required. The certificate must have - name and age of
the patient, name of the disease or ailment, name, address, registration number and the
qualification of the specialist issuing the prescription. If the patient is receiving the
treatment in a Government hospital, it should also have name and address of the
Government hospital.

For financial year 2015-16 The deduction limit of Rs 50,000 has been raised to Rs 75,000 and
Rs 1,00,000 has been raised to Rs 1,25,000.

Deductions on Medical Expenditure on Self or Dependent Relative

Section 80DDB: Deduction for Medical Expenditure on Self or Dependent Relative
A deduction Rs. 40,000/- or the amount actually paid, whichever is less is available for
expenditure actually incurred by resident taxpayer on himself or dependent relative for medical
treatment of specified disease or ailment.
The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by
the taxpayer from any Registered Doctor.
In case of senior citizen the deduction can be claimed up to Rs 60,000 or amount actually paid,
whichever is less.
For financial year 2015-16 for very senior citizens Rs 80,000 is the maximum deduction that
can be claimed.

Deductions for Person suffering from Physical Disability

Section 80U: Deduction for Person suffering from Physical Disability
Deduction of Rs. 50,000/- to an individual who suffers from a physical disability (including
blindness) or mental retardation. In case of severe disability, deduction of Rs. 100,000 can be
claimed. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D. This
is a fixed deduction and not based on bills or expenses.
For financial year 2015-16 The deduction limit of Rs 50,000 has been raised to Rs 75,000 and
Rs 1,00,000 has been raised to Rs 1,25,000.

Deduction for donations towards Social Causes

Section 80G: Deduction for donations towards Social Causes
The various donations specified in Sec. 80G are eligible for deduction up to either 100% or 50%
with or without restriction as provided in Sec. 80G. 80G deduction not applicable in case
donation is done in form of cash for amount over Rs 10,000.
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)

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

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 utilised 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.

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 interest of minority

community

For repairs or renovation of any notified temple, mosque, gurudwara, church or other
place.

Deductions on Contribution by Companies to Political Parties

Section 80GGB: Deduction on contributions given by companies to Political Parties
Deduction is allowed to an Indian company for amount contributed by it to any political party or
an electoral trust. Deduction is allowed for contribution done by any way other than cash.
Political party means any political party registered under section 29A of the Representation of
the People Act. Contribution is defined as per section 293A of the Companies Act, 1956.

Deductions on Contribution by Individuals to Political Parties

Section 80GGC: Deduction on contributions given by any person to Political Parties
Deduction is allowed to a taxpayer for any amount contributed to any political party or an
electoral trust. Deduction is allowed for contribution done by any way other than cash.
Political party means any political party registered under section 29A of the Representation of
the People Act.

Deductions on Income by way of Royalty of a Patent

Section 80RRB: Deduction with respect to any Income by way of Royalty of a Patent
Deduction for any income by way of royalty for a patent registered on or after 01.04.2003 under
the Patents Act 1970 shall be available up to Rs. 3 lakhs or the income received, whichever is
less. The taxpayer must be an individual resident of India who is a patentee. The taxpayer must
furnish a certificate in the prescribed form duly signed by the prescribed authority.

Deductions on Investment in Long Term Infrastructure Bonds [REMOVED]

Section 80CCF: Investment in Long Term Infrastructure Bonds
This section is no longer valid from AY 2012-13.

Section 80 Deduction Table

Section
Section 80C

Deduction on

FY 2015-16
Rs. 1,50,000

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

Section

Deduction on

FY 2015-16

finance

80CC
80CCD(1)
80CCD(2)
80CCD(1B)
80TTA(1)
80GG
80E
80EE
80CCG
80D

Contribution to notified annuity Plan of LIC

Subscription to equity shares/ debentures of an approved eligible issue

Subscription to notified bonds of NABARD

For amount deposited in annuity plan of LIC or any other insurer for pension from a fund referred to in
Section 10(23AAB).
Employee's contribution to NPS account (maximum up to Rs 1,00,000 for FY 2014-15)
Employer's contribution to NPS account
Additional contribution to NPS
Interest Income from Savings account
For rent paid when HRA is not received from employer
Interest on education loan
Interest on home loan for first time home owners
Rajiv Gandhi Equity Scheme for investments in Equities
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

Maximum up to 10% of salary

Rs. 50,000
Maximum up to 10,000
Least of rent paid minus 10% of total income Rs. 2000/- per month 25% of total income
Interest paid for a period of 8 years
Nil
Lower of - 50% of amount invested in equity shares or Rs 25,000
Rs. 25,000
Rs. 30,000

Medical treatment for handicapped dependant or payment to specified scheme for maintenance of
handicapped dependant

80DD

Disability is 40% or more but less than 80%

Disability is 80% or more

Rs. 75,000

Rs. 1,25,000

Lower of Rs 40,000 or the amount actually paid

Lower of Rs 60,000 or the amount actually paid

Lower of Rs 80,000 or the amount actually paid

Rs. 75,000

Rs. 1,25,000

Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD

80DDB

For less than 60 years old

For more than 60 years old

For more than 80 years old

Self suffering from disability:

Individual suffering from a physical disability (including blindness) or mental retardation.

Individual suffering from severe disability

80U

80GGB
80GGC
80RRB

Contribution by companies to political parties

Contribution by individuals to political parties
Deductions on Income by way of Royalty of a Patent

Amount contributed (not allowed in cash)

Amount contributed (not allowed in cash)
Lower of Rs 3,00,000 or income received

Table of Section 80 Deductions Section 80C,

Insurance Premiums (80CCC)
Pension Contribution (80CCD) House Rent (80GG) Loan for Higher Studies (80E) First-Time
Home Owners (80EE) Savings Bank Account (80TTA) Rajiv Gandhi Equity Saving Scheme
(RGESS) (80CCG) Medical Insurance (80D) Medical Expenditure for a Handicapped Relative
(80DD) Medical Expenditure on Self or Dependent Relative (80DDB) Person suffering from
Physical Disability (80U) Income Tax Deduction for Donations (80G) Contributions by
Companies to Political Parties (80GGB) Contributions by Individuals to Political Parties
(80GGC) Income by way of Royalty of a Patent (80RRB)