Income Tax Deductions in India for Individuals

Income Tax Deductions in India for Individuals

Here are the various tax deductions in India. You can simply print out this page or simply save it on your desktop for the future references. Before doing a tax planning, keep in mind the following Tax deductions available for the Individuals in India.

Section 80C – Maximum Deduction allowed per Year – Rs.1 Lakh

Life Insurance premium

Contribution to Employee Provident Fund (EPF)

Contribution to Public Provident Fund (PPF)

National Savings Certificate (NSC)

Unit Linked Insurance Plans (ULIPs)

Repayment of Home Loan Principal

Equity Linked Savings Schemes (ELSS)

5 Year Bank FDs

Pension Funds

Section 80CCF – Up to Rs.20,000 per Annum

Long Term Infrastructure Bonds

Section 80D - Actual premium paid, up to Rs. 40,000 (if both self and parents are senior citizens)

Mediclaim premium for self and family

Section 80DD - Rs. 50,000 or Rs. 1 lakh depending on severity of disability

Expense on treatment of a disabled relative, or payment of insurance premium for said relative

Section 80DDB - Actual expense incurred, up to Rs.40,000 (Up to Rs. 60,000 in case of senior citizen)

Expenses incurred on medical treatment for yourself or for a dependent relative (not necessarily disabled).

Section 80E - Full interest amount paid during the year, for a limit of 8 years

Interest of an education loan taken for yourself, your spouse or your child

Section 80G - 100% or 50% of donation given, depending on the institution, subject to limitations

Donation to certain charitable institutions

Section 80U - Rs. 50,000 or Rs. 1 lakh, depending on severity of disability

Deduction in case of a disabled assessee