Friends, We are back with an article on deductions.
We are going to discuss here the deductions which are available relevant for Assessment Year 2019-2020. So let’s start:
Deductions under Section 80C
Maximum amount of deduction available is Rs. 1,50,000 or amount invested, whichever is lower.
Items eligible for deductions under section 80C are:
a) Investment in LIC
b) Mutual Fund
c) Tution Fee
d) Investment in National Saving Certificates
e) Housing loan principal repayment
f) Investment in PF
g) Investment in Equity Linked Saving Scheme
Let’s understand this with an example:
Suppose your Gross Income is Rs. 6,50,000/- and made investment under section 80C in eligible items of Rs. 1,55,000/-. Maximum allowed deduction is Rs. 1,50,000/-. Thus, taxable income is Rs. 6,50,000 – 1,50,000 = Rs. 5,00,000/-
Deductions under section 80D:- Mediclaim
Amount eligible for deduction under section 80D is Rs. 25,000/-. Eligible amount of deduction for senior citizens is Rs. 50,000/- . Read below for clarification:-
When medical insurance premium is paid by individual for himself, spouse and dependent children is Rs. 25,000/- allowed as deduction. Insured person is senior citizen, then deduction allowed is Rs. 50,000/-
When medical insurance premium is paid by assesses for parents is Rs. 25,000/- allowed as deduction. If parents are senior citizen then amount allowed as deduction is Rs. 50,000.
Deductions under section 80E:- Interest on loan on higher education
Interest on loan paid up to 8 Assessment Year or until interest is paid in full, whichever is earlier is allowed as deduction
Deductions under section 80U:- Person with disability
Person having disability of at least 40% is allowed maximum deduction under this section of Rs. 75,000/- and disability of at least 80% Rs. 1,25,000/-
Deductions under section 80TTA:- Interest in saving account
Up to Rs. 10,000/- is allowed as deduction to individuals and HUF as interest in saving bank account.
These are all important sections under which you can claim a deduction on your taxes !!
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By Neha Kumari- TruFins Expert