Section 80 Income Tax Deductions

Saving income tax every year is a cakewalk for some while a nightmare for the others. Most of the Indians use up Section 80C deductions to save income tax. But beyond the 80C deductions, the income tax act has other Section 80 income tax deductions that can be used to your advantage as well.

Let’s take a quick look at Section 80 Income Tax Deductions

Section 80D is for Health Insurance Premiums

Section 80D is for deductions available for premium payments towards health insurance.

If you are less than 65 years of age, the maximum you can claim is Rs 25,000.  For people aged more than 65 years (senior citizens), the deduction is Rs 50,000. This is valid for health insurance that you have taken for you, your spouse or children.

Over and above this, you can claim Rs 25,000 for buying health insurance for your parents. If either of your parents is a senior citizen, then the deduction will be Rs 50,000.

So under Section 80D, the total deduction can go to Rs 75,000. That is neat when clubbed with Section 80C deductions of Rs 1,50,000.

Section 80DD is for medical treatment of handicapped dependents

If you have a handicapped person on whom you are spending money for treatment, this can be claimed as well. The deduction is on actuals to the maximum of Rs 75,000 but is some cases of severe disability, this goes to Rs 1,50,000.

The deduction is meant for parents, spouse, siblings and children.

Section 80DDB is for treatment of specified diseases

Under Section 80DDB, you can claim deduction for money spent on specified diseases.

The diseases covered are cancer, renal failure, Parkinson’s disease, neurological disease, AIDS and thalassaemia.

Note that if you are receiving any claim from an insurance provider, you cannot claim this. Also note that this amount is Rs 150,000 for senior citizens and Rs 75,000 otherwise.

Section 80E is for interest paid on educational loans

If you have taken a loan for higher education for yourself, your spouse and children, then you can claim deduction on the interest paid on the loan. Note that the higher education for which the loan is taken should be a graduate or post-graduate program in engineering, medicine or management or a post-graduate course in pure or applied sciences.

There is no limit on the amount of deduction you can claim.

Section 80G is for donations to charitable institutions

You can claim a deduction for any donation that you might have made to a charitable fund or institution.

You need to provide documentary proof of the donations that you have made. Also note that the donations have to be made to specified institutions. Of the donated amount, you can claim either 100% or 50%  as deduction.

Section 80U is if you have a disability

The deduction allowed under Section 80U is Rs. 75,000 or Rs. 150,000 depending on the extent of your disability. While Rs. 75,000 is generally allowed if you have a disability, it goes to Rs. 150,000 if your disability is severe.

The definition of disability has been defined and so make sure you check before you use this. You need to produce a certificate of disability from medical authorities to claim this deduction.

Section 80GG is for deductions in rent paid

Remember that salaried individuals who pay rent use the house rent allowance (HRA) deductions to their benefit. But if you are not salaried, and you are paying rent, then you can use Section 80GG for deductions.

The amount allowed as deduction is the minimum of the following :

– Rent  paid minus 10% of your total income
– Rs. 2,000 per month
– 25% of your total income

Hope you found this article useful.

Are you aware of any other Section 80 deduction that you want included in here ?