Deductions Under Chapter VI-A
Introduction
• What is Chapter VI-A?
• Chapter VI-A of the Income Tax Act provides various
deductions that reduce taxable income.
• Objective of Deductions:
• To encourage savings, investments, and social
welfare contributions.
• Scope:
• Deductions from Section 80C to 80U.
Table of Deductions
• | Section | Description | Limit |
• | 80C | Investments & Payments | ₹1,50,000 |
• | 80CCC | Pension Fund Contribution | Part of ₹1.5L |
• | 80CCD(1B) | NPS Contribution | ₹50,000 |
• | 80D | Health Insurance | ₹25,000/₹50,000 |
• | 80DD | Disabled Dependent | ₹75,000/₹1,25,000 |
• | 80DDB | Treatment of Diseases | ₹40,000/₹1,00,000 |
• | 80E | Education Loan Interest | No limit |
• | 80G | Donations | Varies |
• | 80GG | House Rent | ₹5,000/month or limit |
• | 80RRB | Patent Royalty | ₹3,00,000 |
• | 80QQB | Book Royalty | ₹3,00,000 |
• | 80TTA | Savings Interest | ₹10,000 |
• | 80TTB | Senior Citizen Interest | ₹50,000 |
• | 80U | Disabled Individual | ₹75,000/₹1,25,000 |
Section 80C – Investments and
Expenditures
• Eligible Investments:
• - Life Insurance Premium
• - Employee Provident Fund (EPF)
• - Public Provident Fund (PPF)
• - Equity-linked Savings Scheme (ELSS)
• - Tuition fees for children
• - Principal repayment of home loan
Section 80CCC – Contribution to Pension
Funds
• Eligible Contribution:
• Contributions to pension funds of LIC or any
other insurer.
Section 80CCD – Contributions to National
Pension Scheme (NPS)
• 80CCD(1): Employee contribution (₹1,50,000
limit with 80C & 80CCC).
• 80CCD(1B): Additional ₹50,000 exclusively for
NPS contribution.
• 80CCD(2): Employer’s contribution – no limit
under 80C.
Section 80D – Medical Insurance Premium
• Eligible Premium:
• Health insurance for self, spouse, children, and
parents.
• Preventive health checkup
Limits:
• ₹25,000 for self, spouse, children
• ₹50,000 if parents are senior citizens
• ₹5,000 - Preventive health checkup – included in
limit of 25,000 and 50,000
Section 80DD – Maintenance of Disabled
Dependents
• Eligible Expenses:
• Medical treatment, training, and rehabilitation
of a dependent with disability.
• Limits:
• ₹75,000 (Normal Disability - 40% to 79%)
• ₹1,25,000 (Severe Disability – 80%+ disability)
Section 80DDB – Medical Treatment for
Specific Diseases
• Eligible Medical Treatment:
• Diseases like cancer, AIDS, chronic renal
failure, etc., as per prescribed list.
• Limits:
• ₹40,000 (General)
• ₹1,00,000 (Senior Citizens)
Section 80E – Education Loan Interest
• Eligible Interest Paid On:
• Loan for higher education for self, spouse, or
children.
Section 80GG – House Rent Paid
• Applicable To:
• Individuals not in receipt of HRA.
• Deduction Amount:
• Least of:
• ₹5,000 per month
• 25% of total income
• Actual rent paid minus 10% of total income
Section 80RRB – Royalty Income
• Eligible Income:
• Patent royalty income.
• Patents are legal rights issued to inventors to
protect their inventions from anyone else
claiming them for a certain time.
• Limit:
• ₹3,00,000 per year
Section 80QQB – Royalty on Books by
Authors
• Eligible Income:
• Royalty income from books authored by
resident individuals.
• Limit:
• ₹3,00,000 per year
Section 80TTA – Interest on Savings
Account
• Eligible Interest:
• Interest from savings account with bank, co-op
bank, or post office.
• Limit:
• ₹10,000 per year
Section 80TTB – Interest for Senior Citizens
• Eligible Interest:
• Interest from deposits (savings or fixed) for
senior citizens.
• Limit:
• ₹50,000 per year
Section 80U – Deduction for Disabled
Individuals
• Eligible Individuals:
• Resident individual with disability
• Limits:
• ₹75,000 (Normal Disability)
• ₹1,25,000 (Severe Disability)
Section 80G – Donations to Charitable
Institutions
• Eligible Donations:
• Donations to approved charitable institutions
and relief funds.
• Deduction Type:
• - 100% or 50% depending on institution.