Section 80C to 80U: A Complete Guide to Income Tax Deductions
The Income Tax system as proposed by the Indian government, provides a wide array of exemptions and deductions to reduce liability and ease the tax burden. In India, the concentration of people who pay taxes is quite high so to ease the burden, authorities reward the individuals with certain reductions to give them some relief from complex tax amounts. The most significant sections of the Income Tax Act in this regard are from Sections 80C to 80U. This article highlights all the important income tax deductions under section 80C to 80U.
Section 80C: Tax Deduction on Investments and Expenses
The tax deductions on investments and expenses of Section 80C provides exemptions and relief to taxpayers up to ₹1.5 lakhs. The list of expenses and investments eligible under Section 80C are mentioned below:-
- Provident Funds (EPF, PPF)
- Life Insurance Premiums
- National Savings Certificate (NSC)
- Equity Linked Savings Scheme Mutual Funds
- 5-Year Tax-Saving Fixed Deposit
- Tuition Fees for Children
- Sukanya Samruddhi Yojana
- Home Loan Principal Repayment
Tax Deductions for Disabled Individuals:- Disabilities eligible under the criteria includes
- BlindnessLow Vision
- (B)Leprosy cured
- Hearing Impairment
- Locomotor Disability
- Mental Retardation
- Autism, Cerebral Palsy, Multiple Disabilities
This exemption is exclusively applicable to Individual Taxpayers and Hindu Undivided Families(HUFs’) i.e. the families who pool their assets together to redeem tax benefits. The maximum deduction these taxpayers can enjoy is quite high up to ₹1,50,000 per financial year.
Section 80CCD: National Pension System (NPS) and Atal Pension Yojana (APY)
The employee who makes self-contribution to the National Pension Scheme gets tax deductions till ₹1.5 lakh. Along with this under 80CCD (1B) the contributors can claim additional deductions of ₹50,000 for voluntary contributions.
Section 80DD: Deduction for Disabled Individuals
For the expenses spent on the medical treatment, training or even insurance for a disabled person the deduction is up to ₹75,000 for individuals having 40%-80% dependent. Along with tax exemption up to ₹1,25,000 for individuals suffering from 80% and more disability.
Section 80DDB: Medical Expenses for Specific Diseases
The Governmental bodies helps people suffering from specific critical diseases such as Cancer, Renal Failure, Parkinson’s etc.to redeem major tax deductions which will help them to save a lot of money and invest it in their respective treatments. The deductions limits are as follows:-
₹40,000 (for individuals below 60 years) and ₹1,00,000 (for senior citizens or individuals above 60).
Section 80E: Education Loan Interest Deduction
Education is the foundation for future development. So, the government encourages banks to provide Educational loans to students. It can be easily relayed by students after their respective courses once they start earning. There’s no upper limit. Also this benefit can only be availed by students till 8 years from the first year of repayment.
Section 80G: Donations to Charitable Organizations
For the financial contributions made to charitable organisations the range of deduction is quite high. It can range from 50% or 100% depending on the recipient organization.
Donations made to government organized initiatives such as PM CARES, National Relief Fund, and similar ones makes an individual eligible for 100% deduction.
Section 80TTA: Interest on Savings Account
This Section is really helpful for the Savings Account holders. The deduction of up to ₹10,000 is laid on the interest earned from the Savings Accounts.
Along with this it is also applicable for individuals and HUFs, but not senior citizens.
Section 80 TTB: Interest on Deposits for Senior Citizens
Under this Section the Senior Citizens can enjoy ₹50,000 deduction on interest from Bank/Post Office deposits for senior citizens. This section also includes Savings, Fixed and recurrent deposits.
Section 80U: Deduction for Disabled Individuals
This section is crafted to cater the requirements of only the individuals with disability. Fixed Deduction amounts are present for them.
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Hence, it can be concluded that Section 80C to 80U are the most important deductions under the Income Tax. On one hand, Section 80C covers various investments such as EPF, PPF, FDs’ and so on. Whereas other sections focus on deductions available on Charitable Funding, Interest on Savings Account, deduction for persons with disabilities along with many others. Reach out to TaxDunia to claim the available deductions and reduce the taxable income in 2025.
