Section 80 Deductions – Claim deductions other than under Section 80C

As mentioned earlier Section 80C allows deductions of up to ₹2,00,000 in your taxable income. There are a few other tax saving opportunities other than Section 80C to claim a deduction. Before writing this article even I did not know about a few deductions which are listed below –

Section 80D – Insurance Premium

Under Section 80D an individual can claim a deduction for medical insurance of self, spouse, kids or parents. Taking a medical insurance benefits you in both ways – helps you save tax and insure your health. Deductions under Section 80D are over and above of those listed under Section 80C. An individual can claim following benefits under Section 80D –

1. Up to ₹25,000 for self + spouse + kids and up to ₹25,000 for parents below 60 years
2. Up to ₹25,000 for self + spouse + kids and up to ₹50,000 for parents above 60 years
3. Up to ₹1,00,000 in total if the family and parents are all above 60 years of age

An HUF can claim up to ₹25,000 deduction for a under 60 year old member and up to ₹30,000 for a 60+ year old member.

An individual is entitles to a deduction of up to ₹5,000 for a health check up which is a part of the net ₹25,000 deduction.

Section 80DD – Disabled Person Health Expenses

1. Deduction of ₹75,000 is allowed if disability is more than 40% and less than 80%
2. Deduction of ₹1,25,000 is allowed if disability is more than 80%

To avail deductions under Section 80DD below conditions need to be met –

1. Deductions allowed are irrespective of the expenditure.
2. Deduction is not allowed for taxpayer but for the dependant(unless he/she has already claimed under Section 80U)
3. Dependant should be spouse, child, parent or sibling of the taxpayer
4. Disability of the dependant has to be more than 40% and should be defined under Section2(i) of Persons of Disabilities Act, 1995
5. Expense for dependant should be either for medical treatment, training or any insurance policy.

Section 80DDB – Specific Disease Expenditure

1. A deduction of up to ₹40,000 is allowed for an individual or HUF. Deduction is available for any expenses made towards treatment of specific diseases or ailments for self or dependants.
2. For senior citizens – A deduction of up to ₹1,00,000 is allowed for an individual or HUF. Deduction is available for any expenses made towards treatment of specific diseases or ailments for self or dependants.

To be eligible for deduction, one needs to get a certificate from a specialist.

Section 80U – Disabled Individuals

Section 80U provides benefits to an individual who is disabled while Section 80DD offers tax benefits to a taxpayer where one of his dependants is disabled.

Here the benefits are same as Section 80DD, just the difference is here the benefit is to the taxpayer(disabled) and there the benefit is to the taxpayer(dependant is disabled).

To get the benefit one needs to just submit the medical certificate showing the severity of disability. Following are the deductions allowed –

1. Deduction of ₹75,000 is allowed if disability is more than 40% and less than 80%
2. Deduction of ₹1,25,000 is allowed if disability is more than 80%

Section 80E – Education Loan Interest

Under Section 80E an individual can claim a deduction of the interest amount that is paid on the education loan. There is no limit to the amount of deduction but it should be limited to only the interest and deduction is eligible only for a maximum of 8 years or till the loan repayment is being done(only for interest)

Eligibility Criteria for Section 80E –

1. Only an individual can claim this deduction
2. Loan should be for higher education of self, spouse, kid or for a child whose legal guardian is the taxpayer
3. Loan should be taken from an approved financial institution or bank

Section 80EE – Home Loan Interest

Under Section 80EE an individual can claim a deduction of up to ₹50,000 for the interest paid on a home loan. Deductions here can be clubbed with Section 24 deductions to save more taxes.

Following criterias need to be met –

1. Loan amount should be less than ₹35 Lakhs & Home Value should be less than ₹50 Lakhs
2. At the time of loan sanction this should be the only house on the name of taxpayer.

Section 80G & Section 80GGA – Donations

1. Under Section 80G an individual can claim deductions for contributions made to relief funds, charitable institutions, disaster relief funds etc as specified.
2. While under Section 80GGA, an individual can claim deduction for donations towards rural development or scientific research.
3. Section 80GGA is allowed for everyone except those who have an income from business/profession
4. Under Section 80G, a maximum of ₹2000 cash donation is allowed while under Section 80GGA a maximum of ₹10,000 is allowed. For bigger transactions other payment modes have to be used.
5. Under Section 80G donations are eligible for a deduction of eother 100% or 50% while for section 80GGA all deductions are eligible for 100% but up to a limit of 10% of Adjusted Total Income*

Section 80GGC – Political Party Donations

1. Only individuals can claim deduction under Section 80GGC
2. To claim tax benefits, the donation should not be made in cash
3. Donation should be made to a registered political party
4. There is no limit to deduction under Section 80GGC

Section 80GG – House Rent

Deductions are to be claimed under this section if you do not receive HRA as a part of your salary or are self employed and make rent payments for your accommodation.

1. Taxpayer has to be self employed or salaried
2. HRA should not be a part of taxpayer’s salary
3. Taxpayer or any of the family members should not own a residential property

Deduction will be lowest of the 3 mentioned below –

1. ₹5,000 per month
2. 25% of Adjusted Total Income*
3. (Actual rent – 10% of income)

Section 80QQB – Book Royalty

1. Deduction available will be lower of the ₹3 Lakhs or amount of royalty income received (lump sum)
2. If the payment is not lump sum then there is a cap of 15% of the total revenue by book sales
3. To get the deduction individual should have authored or co authored the book that falls under genre of literary, artistic or scientific and should not be a journal, guide, newspaper, textbook etc.
4. For royalties from foreign country, it can be claimed if the payments are received within 6 months of the completion of financial year.

Section 80RRB – Patents Royalty

1. Under Section 80RRB an individual can claim a deduction of up to ₹3 Lakhs or actual amount of royalties received whichever is lower
2.  Under Section 80RRB only original patent holders an claim a deduction
3. For royalties from foreign country, it can be claimed if the payments are received within 6 months of the completion of financial year.

Section 80TTA & Section 80TTB – Interest from Deposits

1. Under Section 80TTA, deduction up to ₹10,000 can be claimed ONLY for interest earned on bank savings account or post office savings account
2. Under Section 80TTB – deduction up to ₹50,000 can be claimed for interest on any type of deposits but only applicable for Senior Citizens

As you can see above so many different types of documents need to be maintained to avail maximum tax benefits, it is advisable to use document organizers such as Sorted AI.

*What is Adjusted Total Income?

An aggregate of the following –

1. Income under all Heads(Add)
2. LTCG(Long Term Capital Gains)(Subtract)
3. Exempt Income(Subtract)
4. Deductions Under Section 80CCC to Section 80U(Subtract)
5. Income from foreign companies(Subtract)