Income Tax Deductions and Exemptions
Income Tax allows for multiple deductions and exemptions based on various sections.
House Deduction
Section 24(b) allows for Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. However, this deduction is not available for person opting for New Tax Regime.
| Nature of Property | When loan was taken | Purpose of loan | Allowable (Maximum limit) |
|---|---|---|---|
| Self-Occupied | On or after 1/04/1999 | Construction or purchase of house property | ₹ 2,00,000 |
| On or after 1/04/1999 | For Repairs of house property | ₹ 30,000 | |
| Before 1/04/1999 | Construction or purchase of house property | ₹ 30,000 | |
| Before 1/04/1999 | For Repairs of house property | ₹ 30,000 | |
| Let Out | Any time | Construction or purchase of house property | Actual value without any limit |
Tax Deductions
80C, 80CCC, 80CCD (1)
| Section | Deduction Type |
|---|---|
| 80C | Life Insurance Premium |
| 80C | Provident Fund |
| 80C | Subscription to certain equity shares |
| 80C | Tuition Fees |
| 80C | National Savings Certificate, |
| 80C | Housing Loan Principal |
80C | Other various items | | 80CC | Annuity plan of LIC or other insurer towards Pension Scheme | | 80CCD(1) | Pension Scheme of Central Government |
You can claim a Combined deduction limit of ₹ 1,50,000
80CCD(1B)
You can claim deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1) for a maximum amount of 50,000
80CCD(2)
You can claim deduction towards contribution made by an employer to the Pension Scheme of Central Government
- If Employer is a PSU, State Government or Others group
- Deduction limit of 10% of salary
- If Employer is Central Government group
- Deduction limit of 14% of salary
80D
You can claim deduction towards payments made to Health Insurance Premium & Preventive Health check up
- For Self / Spouse or Dependent Children
group
- ₹ 25,000 (₹ 50,000 if any person is a Senior Citizen)
- ₹ 5,000 for preventive health check up, included in above limit
- For Parents
group
- ₹ 25,000 (₹50,000 if any person is a Senior Citizen)
- ₹ 5,000 for preventive health check up, included in above limit
One cam claim deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
- For Self/ Spouse or Dependent Children
group
- Deduction limit of ₹ 50,000
- For Parents
group
- Deduction limit of ₹ 50,000
Other Deductions
