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Tax Deductions and Exemptions Guide

The document outlines various tax deductions and exemptions available under Indian tax law, including specific sections like 80C, 80D, and 80TTA. It details the eligibility criteria, deduction limits, and conditions for different types of income and expenses, such as bank interest, family pension, and medical expenses. Additionally, it highlights expenses that are not allowed as deductions and compares benefits under the old and new tax regimes.

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Parth Shah
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0% found this document useful (0 votes)
14 views6 pages

Tax Deductions and Exemptions Guide

The document outlines various tax deductions and exemptions available under Indian tax law, including specific sections like 80C, 80D, and 80TTA. It details the eligibility criteria, deduction limits, and conditions for different types of income and expenses, such as bank interest, family pension, and medical expenses. Additionally, it highlights expenses that are not allowed as deductions and compares benefits under the old and new tax regimes.

Uploaded by

Parth Shah
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Category Details Deductions Allowed

Deduction under Sec 80TTA


Bank Interest Interest from savings bank up to ₹10,000 (for individuals
(Savings A/c) accounts ≤60 years & HUF)

Interest on Fixed
Deposits (FDs), RDs, Senior Citizens: Deduction up
Post Office deposit Fully taxable at slab rates to ₹50,000 under Sec 80TTB

Interest on If not taxed under PGBP → taxable Actual related expenses


Securities under IFOS allowed

Deduction: Lower of (i)


₹15,000 (₹25,000 in new
Pension received by family after regime), or (ii) 1/3rd of
Family Pension death of employee pension

Lottery, Crossword
Puzzles, Card
Games, Gambling,
Horse Races Winnings of any form No expense allowed

Dividend from shares, mutual funds Interest expense allowed up to


Dividends etc. 20% of dividend income

Cash > ₹50,000 taxable; Gifts in


Gifts (Sec 56(2)(vi)) kind > ₹50,000 taxable at FMV No deduction

Rental Income –
Plant, Machinery,
Furniture, If separable from business Repairs, insurance,
Composite letting premises → IFOS depreciation allowed

Keyman Insurance Amount including bonus (not taxed


Policy under PGBP) None

Interest on
Compensation /
Enhanced Interest received on delayed
Compensation compensation 50% deduction allowed

Compensation for
Termination of
Employment Any compensation received None specific

Interest on Income
Tax Refund Paid by IT Dept on excess tax paid None
Employer
Contributions not
deposited (EPF,
Superannuation, Contributions received from
ESI) employees but not deposited None

Expenses Not Allowed as Deductions


●​ Expenses for earning casual income (lottery, gambling, horse races, etc.).​

●​ Interest on dividend income beyond 20% of dividend received.​

●​ Personal expenses of the taxpayer.​

●​ Interest paid outside India without TDS deduction.

DEDUCTIONS

Eligible Deduction / Key Conditions /


Section Expenditure Deduction Limit Notes

Life insurance premium,


Deferred annuity, PF
(Employee/Recognised),
PPF, Superannuation fund,
Sukanya Samriddhi, Notified
securities, ULIP, Tuition fees
(max 2 children), House
property (loan repayment),
LIC annuity, ELSS, 5-yr bank Up to ₹1,50,000
FD, Senior Citizen Savings (combined limit
Scheme, NPS Tier-II (for with 80CCC & Available to
80C Govt employees) 80CCD(1)) individuals & HUF

Contribution to certain Subject to overall


Pension Funds of LIC/other Up to ₹1,50,000 ceiling under Sec
80CCC insurers (combined) 80CCE

Lower of (i)
₹1,50,000 or (ii)
10% of salary
(14% for Govt
80CCD( Employee/self contribution to employees) / 20%
1) NPS of GTI (for Part of 80CCE limit
non-employees)

Over and above


80CCE limit;
available even for
deposits in minor’s
80CCD( account (from AY
1B) Additional NPS contribution ₹50,000 extra 2026-27)

Up to 10% (private
employees) or
14% (Govt
80CCD( Employer’s contribution to employees) of Not part of 80CCE
2) NPS salary limit

Contribution to Agniveer
Corpus Fund (self + Govt 100% of Entire amount
80CCH contribution) contribution deductible

Self/family:
₹25,000 (₹50,000
if senior citizen).
Parents: additional
₹25,000 (₹50,000
Health insurance premium if senior citizen).
(self, spouse, children, Preventive
parents) + Preventive health check-up: within Payment must be
check-up + Medical overall limit, max non-cash (except
80D expenses for senior citizens ₹5,000 preventive check-up)

Maintenance, medical
treatment, rehabilitation of ₹75,000 (Normal
dependent with disability; disability) Dependent = spouse,
Contribution to approved ₹1,25,000 (Severe children, parents,
80DD LIC/insurer scheme disability) brothers, sisters

Medical expenses for Up to ₹40,000


specified diseases (₹1,00,000 if
80DDB (assessee or dependent) senior citizen) Subject to conditions

Entire interest paid


for 8 years (AY of Loan from approved
Interest on education loan repayment + 7 financial/charitable
80E (higher education) succeeding years) institution
Interest on home loan (loan
≤ ₹35 lakh; house ≤ ₹50 Assessee must not
80EE lakh; FY 2016-17) Up to ₹50,000 own another house

Interest on home loan (loan


sanctioned 01-04-2019 to
31-03-2022; house ≤ ₹45 Not eligible if claiming
80EEA lakh) Up to ₹1,50,000 under 80EE

Interest on loan for electric


vehicle (loan sanctioned
80EEB 01-04-2019 to 31-03-2023) Up to ₹1,50,000 Only for individuals

50% or 100% of
donation
Donations to notified (depending on No deduction for cash
80G institutions/funds institution) donation > ₹2,000

TI excludes LTCG,
STCG u/s 111A,
Least of: (i) Rent – deductions under
10% of TI, (ii) 25% 80C–80U (except
Rent paid (if HRA not of TI, (iii) 80GG), and income
80GG received) ₹5,000/month under 115A

Donations for scientific


research or rural No deduction for cash
80GGA development 100% of donation donation > ₹2,000

Donations to political parties Cash donations not


80GGC or electoral trusts 100% of donation eligible

Savings account interest


(banks, post office, Not available to
80TTA co-operative banks) Up to ₹10,000 senior citizens

Interest on deposits
(savings, FD, RD, post
office) – only for senior Includes all deposit
80TTB citizens Up to ₹50,000 interest

₹75,000 (Normal
disability)
Resident individual with ₹1,25,000 (Severe Must be certified by
80U disability disability) medical authority
Exemptions / New Tax Regime (Sec
Deductions Old Tax Regime 115BAC)

Rebate u/s 87A Up to ₹5 lakh (₹12,500) Up to ₹7 lakh (₹25,000)

₹75,000 (salaried &


Standard Deduction ₹50,000 pensioners)

✅ Available ❌ Not available


House Rent Allowance
(HRA)

✅ Available ❌ Not available


Leave Travel Allowance
(LTA)

Section 80C (LIC, PPF,

✅ Up to ₹1.5 lakh ❌ Not available


EPF, ELSS, NSC,
tuition fees, etc.)

✅ ₹50,000 extra ❌ Not available


NPS Contribution
(80CCD(1B))

Employer’s NPS

✅ Available ✅ Available
Contribution
(80CCD(2))

✅ Available ❌ Not available


Medical Insurance
Premium (80D)

✅ Available ❌ Not available


Home Loan Interest
(80EEA/80EE/24(b))

✅ Available ❌ Not available


Education Loan Interest
(80E)

Savings Account

✅ Available ❌ Not available


Interest (80TTA /
80TTB)

✅ Available ❌ Not available


Disability Benefits (80U,
80DD, 80DDB)

✅ Available ❌ Not available


Donations (80G,
80GGA, etc.)

Agricultural Income ✅ Available ✅ Available


Exemption

✅ Available ❌ Not available


EPF / PPF / VPF
Exemptions

✅ Available ❌ Not available


Meal Coupons / Food
Allowance

LTCG Exemption on

✅ Available ✅ Available
Equity (u/s 112A, up to
₹1 lakh)

✅ Available ✅ Available
Transport Allowance
(Disabled employees)

Family Pension

✅ Available ✅ Available
Deduction (₹15,000 or
1/3rd)

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