Section 80C to 80U Income Tax Deductions

Section 80C to 80U includes multiple tax saving options with old tax regime that can help you to reduce your tax liability. Majority of these options are available with old tax regime, since new tax regime has reduced tax slab rates. Starting from Employee Provident Fund (EPF), 5 Year Fixed Deposits, Equity Linked Saving Schemes, to saving account interest exemption and donations, you have several options to save income tax.

Let us understand Section 80C to 80U in more detail.

Section 80C

Section 80C of income tax act includes many tax saving options such as EPF (Employee Provident Fund), PPF (Public Provident Fund), NSC (National Saving Certificate), Tax Saving 5 years FD, SCSS (Senior Citizen Saving Scheme), etc.
The limit under section 80C is Rs. 1.5 Lakh in a financial year and these deductions can be claimed only with Old Tax Regime
New Tax Regime does not allow any deductions to be claimed, so make sure you choose Old Tax Regime to claim section 80C deductions

Below is the full list of deductions available under Section 80C of income tax act:

Scheme Name	Tenure	Returns
Employee Provident Fund	Retirement	8.15%
Public Provident Fund (PPF)	15 Years	7.10%
National Saving Certificate (NSC)	5 Years	7.70%
Tax Saving 5 years FD from Banks	5 Years	7.5%
5 years Post Office Time Deposit (POTD)	5 Years	7.5%
Senior Citizen Saving Scheme (SCSS)	5 Years	8.2%
Life Insurance Premium (Term / ULIP)	Flexible	8-10%
National Pension Scheme (NPS) (80CCD1B)	Retirement	10-12%
Equity Linked Savings Scheme (ELSS)	3 Years	10-12%
Tuition fee for 2 children	NA	NA
Stamp duty and registration cost of the House	NA	NA
Home Loan Principal Payment	Flexible	NA
Sukanya Samriddhi Yojana	21 Years	8.2%

Section 80C Deductions List

Section 80CCD

Section 80CCD of Income Tax Act helps us to contribute towards National Pension Scheme (NPS) or Atal Pension Yojana (APY) and claim deductions to save income tax.

This section is further divided in more subsections:

80CCD(1) – Individual’s contribution to NPS or APY from Income
80CCD(2) – Employer’s contribution to NPS on behalf of Employee

While 80CCD(1) can be claimed by employee and self employed individuals, 80CCD(2) can only be claimed by employees.

Below are the deduction limits under Section 80CCD:

Sections	Description	Deduction Limits
80CCD(1)	Employee Contributions to NPS or APY up to 10% of Basic Salary + DA	Rs. 1,50,000
80CCD(1B)	Self Contribution to NPS or APY above the limits of Section 80CCD(1)	Rs. 50,000
80CCD(2)	Employer’s Contribution to NPS or APY	up to 10% Basic Salary + DA

Section 80CCD Deduction Limits

So based on above table, total Deductions with Section 80CCD will be Rs. 2,00,000 that can be claimed in financial year with employee’s contribution – Rs. 1,50,000 with 80CCD(1) which is part of Section 80C and Rs. 50,000 with Section 80CCD(1B).

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Section 80CCC

Section 80CCC of Income Tax Act allows us to claim deduction for insurance premiums paid, if the policy provides us the pension plan
The money spent on this life insurance policy must be spent either to buy a new policy or renew the existing ongoing policy. The premium amount paid can be claimed in a financial year
Section 80CCC has a limit of Rs. 1.5 Lakh in financial year and is part of Section 80C
So you cannot claim 80C and 80CCC amounts separately
Note that any bonus or income from this pension or annuity plan will not be considered as deduction in this section
Also, Section 80CCC is available only with Old Tax Regime. New Tax regime will not allow this deduction

Section 80D

Section 80D of income tax act includes deductions or exemptions that can be claimed with Old Tax Regime for Medical Insurance Premiums and Preventive Health Check ups
Medical insurance helps you to avoid uncertain medical or hospitalizations expenses that can occur anytime as an emergency
You must have medical insurance for your family members to avoid such uncertain expenses, in case your emergency funds are not sufficient
The insurance company provides you with required medical aid in case of expenses occurring due to hospitalization of insured person. To get this benefit, you need to have medical insurance for that person for which you pay premiums regularly.
This payment of premiums can be claimed as deduction or exemption every year under Section 80D with below mentioned limits

Insured	Age below 60 Years	Age above 60 Years
Self, Spouse and Children	Rs. 25,000	Rs. 50,000
Parents	Rs. 25,000	Rs. 50,000
Maximum Deductions	Rs. 50,000	Rs. 1,00,000
Preventive Healthcare Expenses	Rs. 5000	Rs. 5000

Section 80D Deduction Limits

Section 80DD

Section 80DD of income tax act allows us to save income tax by claiming deduction for expenses occurred to take care of disabled person in your family
Differently abled person can be your spouse, children , parents, brother or sister
Only resident Indians can claim this deduction, who can be an Individual tax payer or HUF (Hindu Undivided family)
If differently abled person is claiming the deduction for self than Section 80U is the correct section to claim such deductions
And if the person has claimed Section 80U deduction for self, one cannot claim same deduction again under Section 80DD. Section 80U is for physical disability of self and Section 80DD is for physical disability of dependent family member
It is important to note that while claiming 80DD, the differently abled person must be a dependent person for the tax payer
You can only claim this deduction with Old Tax Regime. New Tax Regime does not allow this deduction to be claimed

Section 80DDB

Section 80DDB of income tax act allows you to claim deduction against the medical expenses occurred for specific diseases.
This section is different from the medical insurance premiums paid under Section 80D. In 80D, you pay the insurance premiums and that amount can be claimed in financial year
Where as under 80DDB, you can claim the expenses occurred for medical treatment in hospital, irrespective of whether you have taken medical insurance or not
If treatment is done for non senior citizen than the limit under Section 80DDB is Rs. 40,000 else for senior citizen treatment, the limit is Rs. 1 lakh in a financial year.
Note that you can claim 80DDB deduction only under Old Tax Regime

Section 80E

Section 80E of Income Tax Act allows us to claim Interest amount of Education Loan that is taken for higher studies
In order to promote higher studies by individuals of India, government provides tax benefits if you take Education Loan for higher studies.
You can take Education loan for self, spouse or children, or any student for whom you are the legal guardian and claim tax benefits on such education loan
Only Interest amount from EMI can be claimed as deduction under Section 80E. This Section does not allow principal amount to be claimed as deduction
You can claim the deduction up to 8 years starting from the year when you started repaying the loan amount
There is no maximum limit to be claimed in a financial year, so you can claim the entire interest amount of loan EMI paid by you in a financial year to save income tax.
If your loan tenure is more than 8 years, then you can claim the interest amounts paid in Emi only for 8 years and not beyond 8 years of interest on your education loan.
You can use the Home Loan EMI calculator to check Loan EMI. It works for Education Loan EMI calculation as well.
This deduction can be claimed with Old Tax Regime. New Tax Regime does not allow this deduction.

Section 80EE

Section 80EE of Income Tax Act allows Tax deduction on Home Loan Interest Amount
So if you have taken a home loan to buy your first house, you can claim this deduction
Maximum of Rs. 50,000 can be claimed as interest amount in a financial year based on this Section mentioned in Income Tax Act
You can claim both Section 24 (maximum limit of Rs. 2 Lakh) and Section 80EE (Rs. 50,000) in same financial year, if you don’t have any other property in your name
If you have multiple properties, than you cannot claim 80EE, but can claim Section 24
This section is only applicable to individual, HUF (Hindu Undivided Family) is not eligible to claim this deduction

Section 80EEA

Section 80EEA of income tax act helps in saving income tax with old tax regime on home loan interest amount paid in a financial year
This section has a maximum limit of Rs. 1.5 lakh that can be claimed as deduction if you pay home loan interest amount
80EEA was introduced to promote home buying in FY 2019, which is the extension of Section 80EE (limit of Rs. 50,000)
This deduction is not applicable for home loan principal amount in EMI that you pay every month
Home loan Principal amount, stamp duty and registration amounts can be claimed in Section 80C with a maximum limit of Rs. 1.5 Lakh in financial year with old tax regime

Section 80G

Section 80G of income tax act allows you to claim tax deduction if you make donations in a financial year
These donations can be made to specific institutions in order to be claimed with old tax regime.
An individual, company or firm, HUF or NRI can claim this deduction to save income tax
Based on the relief fund or charitable institution, the deduction can be claimed as 100% or 50% of amount, with or without upper limit restrictions

Section 80GG

Section 80GG of Income Tax Act allows us to claim house rent amount paid in a financial year to save income tax
If you receive HRA (House Rent Allowance) in your Salary payslip, than you should claim HRA instead of using Section 80GG
But if you don’t receive HRA component in your salary payslip, you can use Section 80GG, if you stay in rented accommodation
Condition to claim Tax Deduction in this section is: you must not own any property in same city. Also you cannot claim both – HRA received from employer and Section 80GG deduction
This section is applicable to both salaried employees and self employed as well. So if you are a business owner, you can still claim deduction under Section 80GG if staying on rent, provided you are no carrying out any business in rented accommodation
You can also stay with your parents, who are having property in their name, pay monthly rent to them and have a rental agreement as well to claim Section 80GG deduction. The income received by your parents will be taxable in their hands
Maximum limit of Section 80GG is Rs. 60,000 in a financial year. If the rent amount goes above Rs. 1 Lakh in financial year, than you need to provide PAN number of landlord

Section 80GGB

Section 80GGB of income tax act allows Indian Company to donate or contribute to political party or electoral trust in India for development purpose
This donation can help the Indian companies to save income tax
For Individuals, the donations and contributions to political parties or electoral trust can be claimed under Section 80GGC to save income tax
Note that there is no maximum limit to be claimed under 80GGB and 100% of the amount donated can be claimed as deduction from gross income
The political party receiving the donation must be a registered political party under the Section 29A of the Representation of the People Act
An electoral trust is a non-profit company
Electoral trust can receive contributions from companies and then reallocate it to the registered political parties
Individuals can make donations to other organizations under Section 80G to claim deductions with old tax regime

Section 80GGC

Section 80GGC of income tax act allows an Individual tax payer to claim deduction against donation paid to political party or electoral trust in India
This donation can help the Individuals to save income tax
For Indian Companies, the donations and contributions to political parties or electoral trust can be claimed under Section 80GGB to save income tax
Note that there is no maximum limit to be claimed under 80GGC and 100% of the amount donated can be claimed as deduction from gross income
However you can only donate maximum of what you earn in a financial year, that is your gross total income. So your donations that can be claimed cannot be more than your gross total income
The political party receiving the donation must be a registered political party under the Section 29A of the Representation of the People Act
An electoral trust is a non-profit company
Electoral trust can receive contributions from companies and then reallocate it to the registered political parties
Individuals can make donations to other organizations under Section 80G to claim deductions with old tax regime as well

Section 80RRB

Section 80RRB of income tax act allows you to claim deduction on income earned from patent royalty
If you have written a book or created an art or music, inventions, and have the legal right as the author (patent), anyone using such material and paying for using it will be received by you since you are the author
Such income earned in financial year can be claimed as deduction with old tax regime due to your exceptional work that will be used within and outside the country of India
Since Indians are known to have some of the best innovative minds, we Indians are encouraged to create such exceptional materials and have them patented to receive non taxable income, anytime it is used by someone else
This source of income is called Royalty Income or Royalty Payments
Royalty is an amount paid to a person by another party or person against the usage of certain work produced by the recipient
Maximum limit of Section 80RRB deduction is Rs. 3 lakh in a financial year or the amount received by you in that year, whichever is less

Section 80TTA

Section 80TTA of Income Tax Act, 1961 allows us to claim deduction related to Savings Account Interest Amount that we earn every quarter.
Since this is one of the component of “Income from other sources” while filing ITR (Income Tax Return), we need to pay tax on this income.
But we also get the relief while paying income tax on this interest amount – we can claim maximum Rs. 10,000 in a financial year with old tax regime, if your age is below 60 years.
For Senior Citizens, we have separate deduction – Section 80TTB that allows maximum of Rs. 50,000 to be claimed in a financial year.

Savings Account Interest Calculation Video

Section 80TTB

Section 80TTB of Income Tax Act, was introduced to provide tax benefits for senior citizens on their interest incomes from deposits
This deduction include deposits such as Savings Account Interest, Fixed Deposits, Recurring Deposits and other such deposits in Banks and Post offices
Maximum of Rs. 50,000 can be claimed in this deduction if your age is 60 years or above any time during the financial year
This deduction helps senior citizens with some financial cushion during their old age when they might have deposits as the only source of income
While 80TTB is applicable for senior citizens (60 years and above) and Super senior citizens as well, but if you are a non senior citizen of age less than 60 years than you can claim on savings account interest amount under Section 80TTA
While in 80TTA, only savings account interest can be claimed, 80TTB for senior citizens allow fixed deposits and recurring deposits interest to be claimed as well
It is important to note that 80TTB can be claimed only with Old Tax Regime

Section 24

Section 24 of Income Tax Act allows you to claim deductions in case of Income from House Property
If the property is bought on Home Loan and you are paying EMI (Equated Monthly Installment), you are eligible to claim deductions against your Home Loan EMI
Section 80C allows the deduction of Principal amount in your Loan EMI
Section 24 allows deduction of Interest amount in your Loan EMI
If the property is self occupied (you stay with your family), than Rs. 2 lakh or the total interest paid in home loan (whichever is lower), can be claimed in a financial year. This is the case when you buy a property. Incase you are taking loan for reconstruction or repair purpose of existing property, than maximum Rs. 30,000 can be claimed in this section
If the property is let out, the entire interest amount paid by you in a financial year can be claimed under Section 24

Home Loan EMI Calculation and Prepayments Video

Section 80U

Section 80U of income tax act allows you to claim tax deduction if you are physically disabled
You must be certified as a person with physical disability by appropriate medical authority
Section 80U is different from Section 80DDB – where medical expenses occurred for specific disease is claimed
Only Individuals can claim this deduction in Section 80U
Also, you must be an Indian Resident to claim this deduction
The appropriate medical authority can fill the Form 10-IA that can help you to claim Section 80U Tax Deduction
Maximum limits that can be claimed is Rs. 75,000 and Rs. 1,25,000 based on your disability percentage

Conclusion

So above is the list of Section 80C to 80U deductions that can help you to save income tax with old tax regime, Please note that new tax regime does not allow majority of the deduction options mentioned above, so ensure that you select old tax regime while calculating your income tax.

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