Income Tax Deduction

What is the Standard Deduction in Income Tax?

Under the Income Tax Act, the tax deductions are considered as the reductions on the overall taxable income of individuals, businesses, and all other entities to decrease their tax liabilities. All deductions in income tax come under Sections 80C to 80U as per the income tax deduction list. 

While calculating their taxable income, individuals and businesses can claim their deduction from the Income Tax Department. These types of deductions in income tax alleviate the tax burdens and lower the tax obligations.

Deduction Chart for Section 80

These deductions are divided into different sections, each of which caters to specific investments or expenses:

• Section 80C: Maximum deduction is up to Rs 1.5 lakhs for individuals or HUFs. It includes common investments such as LIC, PPF, and mutual funds, among others.
• Section 80CCC: Pension fund investments by individuals.
• Section 80CCD(1): Contributions to National Pension Scheme and Atal Pension Yojana by individuals.
• Section 80CCD(1B): Additional deduction on Section 80CCD(1), up to Rs 50,000.
• Section 80CCD(2): It includes the Employer's contribution to the National Pension Scheme.
• Section 80D: It includes the medical insurance premiums and health check-ups.
• Section 80DD: Medical expenses for dependent people with disabilities.
• Section 80DDB: Medical expenses on specified diseases, up to Rs 40,000 and up to Rs 1 lakh for senior citizens.
• Section 80E: Interest paid on education, there is no upper limit.
• Section 80EE: Interest paid on housing loans, up to Rs 50,000.
• Section 80EEA: Additional deduction on Interest paid on housing loans, up to 1.5 lakhs.
• Section 80EEB: Interest paid on loans for electric vehicles, up to 1.5 lakhs.
• Section 80G: Donations given to the institutions and funds.
• Section 80GG: Rent paid on the living space is eligible for deduction.
• Section 80GGA: Donations for scientific research or the development of villages.
• Section 80GGB: Company's contributions to political parties are eligible for complete deduction.
• Section 80GGC: Contributions to political parties by individuals, AOPs, HUFs, BOIs, and firms are eligible for a 100% deduction.
• Section 80RRB: Royalty income on patents, up to Rs 3 lakhs.
• Section 80QQB: Royalty income of authors, up to Rs 3lakhs.
• Section 80TTA: Up to Rs 10,000 for HUFs and individuals (except senior citizens) on the interest earned on savings accounts.
• Section 80TTB: Up to Rs 50,000 on the interest income deposits like savings and FDs for senior citizens.
• Section 80U: Deductions for disabled people, up to Rs 1,25,000 or Rs 75,000 based on the disability.