The government would take taxes from the people to finance various government schemes and to make public welfare schemes accessible to the people and to develop the country. People are taxed at different rates according to income, but there are many sections in the Income Tax Act, on the basis of which you can claim tax deduction, so the information related to this is being given through this article. is.
Section 80 c
As per Section 80C of the Income Tax Act 1961, a taxpayer can get a deduction of Rs 1.5 lakh on his total taxable income. If the taxpayer is a beneficiary under Section 80C, the Income Tax Department refunds the excess amount to the taxpayer’s bank account. This applies only to individuals and Hindu undivided families (HUFs).
section Tax deduction under 80C
When you pay for any of the following, you can claim tax deduction under Section 80C.
- Life insurance
- Public Provident Fund (PPF)
- Employees Provident Fund (EPF)
- National Savings Letter (NSC)
- National Pension System (NPS)
Section 80C is further divided into sub-sections. Each sub class applies different criteria. Under this section you can claim a total of 1.5 lakh rupees.
Section 80 ccc
It is a sub-section of Section 80C. This section allows a tax deduction on payments made to pension funds.
Tax deduction under Section 80 CCC
This section focuses specifically on pension funds. You can claim tax deduction under this section if you contribute to annuity plans or pension schemes of Life Insurance Corporation (LIC) or any other registered insurance companies in India. This applies to residents and immigrants.
How to make a claim under Section 80 CCC?
In order to take advantage of the pension scheme must be paid from taxable income. The amount received after maturity along with interest and bonus is also taxable. It can only be claimed once after meeting all the criteria.
Section 80 CCD
Under this section, you are eligible for tax deduction on contribution to National Pension Scheme (NPS). NPS is a pension program run by the central government for self-employed, government employees and private sector employees.
How to claim tax deduction under Section 80CD?
- Section 80 CCD (1) – Under Section 80CDC (1), a deduction of up to a maximum of 10% of salary for salaried employees and up to a maximum of 20% of their income for self-employed persons is fixed. In both cases, this amount cannot exceed 1.5 lakhs in a financial year.
- Section 80 CCD (1B) – Under this, there is a benefit of deduction on self contribution to NPS. An amount of Rs 50,000 is deducted from the contribution.
- Section 80 CCD (2) – Applies to employers. An employee can be claimed to have contributed 10% of salary to NPS.
Under this, there is a benefit of tax deduction on medical insurance. This benefit is available on personal insurance as well as family insurance.
Claim of tax deduction under section 80D
Any person can claim a deduction of Rs 25,000 for taking medical insurance for himself and his family. There is a separate plan on getting medical insurance for parents. If the parents are over 60 years of age, then a deduction of Rs 50,000 can be claimed. If they are less than 60 years of age, then a deduction of 25 thousand rupees can be claimed. If there is a case in which both the parents and the tax payer are more than 60 years of age, a deduction of Rs 1 lakh can be claimed.
Section 80 DDB
Under this, the taxpayer gets the benefit of deduction on medical expenses. It consists of self as well as dependent family.
Claim for deduction of tax under section 80 DDB
In case of persons below 60 years of age, the deductible amount is Rs. 40,000. This amount can be deducted from the expenses incurred on any specified medical condition. If the age of the person or related dependent is more than 60 years, then a deduction of Rs 1 lakh can be made.
section 80 AD
For higher studies under this section, tax deduction can be claimed on the educational loan taken.
section Claim of tax deduction under 80E
This can be availed only on loan interest. The loan should be from a registered financial institution. Under this section, the benefit of deduction is available only for 8 years. That is, even after 8 years, if the taxpayer continues to repay the loan, the benefit of deduction will not be available. The amount to be claimed depends on the interest portion of the monthly EMI. This amount should not exceed Rs 40,000.
section 80 CE
Under this section, there is a benefit of tax deduction on home loans. This applies only to individuals and first time home buyers. Which means that the taxpayer should not have the house property before the loan is approved.
section Claim for tax deduction under 80EE
Under this section, tax deduction can be claimed on the interest of home loan. During a financial year, a maximum deduction of up to Rs 50 thousand can be done. The value of the house should be 50 lakhs or less and the total loan amount should be 35 lakhs or less.
Apart from these sections, there are other sections on the basis of which you can claim tax deduction.