Deductions allowed under the income tax act help you reduce your taxable income. You can avail the deductions only if you have made tax-saving investments or incurred eligible expenses. There are a number of deductions available under various sections that will bring down your taxable income. The most popular one is section 80C of Chapter VIA. Other preferred dedcutions under chapter VIA are 80D, 80E, 80G, 80DDB and so on. In this article, let us discuss some of the important deductions under chapter VIA that a taxpayer can claim.
| Sr.no | Section | Details | Limit |
| 1. | 80C | Payment towards Life Insurance Premium | Rs.150000 |
| 2. | Provident Fund | ||
| 3. | Repayment of Housing Loan (Principal Component) | ||
| 4. | National Savings Certificate (Accrued Interest) | ||
| 5. | National Savings Certificate (New Deposits) | ||
| 6. | Unit Linked Insurance Premium (ULIP) | ||
| 7. | Cumulated Time Deposits | ||
| 8. | Investments made in Debentures/Shares of Companies as approved by CBDT | ||
| 9. | Educational Expenses (including payment of Educational fees for self, spouse and children) | ||
| 10. | Equity Linked Savings Scheme or Mutual Funds approved by CBDT. | ||
| 11. | 80CCC | Deduction in respect of contribution to certain pension funds i.e contribution towards pension funds offered by Public or private sector Insurers. | |
| 12. | 80CCD (1) | Deduction in respect of contribution to certain pension funds u/s i.e Contributions made to Pension plans offered by the Central Government are eligible for tax deductions which are manly National Pension Scheme and Atal Pension Yojana | 10% of the salary (Basic+D.A) or 20% of the Gross Total Income (in case of Self Employed Professional). However this limit shall not exceed beyond Rs.150000 along with Section 80C and 80CCC. |
| 13. | 80CCD(1B) | Additional Deduction for National Pension System Contribution. | Rs.50000/- (This is over and above the limit of Rs.150000/-) |
| 14. | 80CCD(2) | Deduction in respect of employer contribution to pension scheme of Central Government u/s 80CCD(2) | 10% of basic Salary plus Dear Allowance |
| 15. | 80D | Deduction in respect of Medical Insurance Premium | 1.Rs.25000 (for self, Spouse and Children) |
1.Actual Rent paid minus 10% of Adjusted Total Income
