Introduction:
Income Tax Deductions Chart Filing income tax returns can often feel like a daunting task, but with the right information and tools, you can streamline the process and maximize your savings. In this guide, we will walk you through the intricacies of filing your income tax return, focusing on the crucial aspect of income tax deductions. To make things even more accessible, we’ve included an income tax deductions chart that serves as a quick reference for potential savings.
Understanding Income Tax Returns: Income Tax Deductions Chart
Income Tax Deductions Chart Filing Before delving into deductions, let’s clarify the basics of income tax returns. An income tax return is a document that individuals and businesses file with the government, reporting their income, expenses, and other financial information. The goal is to determine the amount of tax owed to the government or, in some cases, the refund owed to the taxpayer.
Income Tax Deductions: Your Path to Savings:
One of the key strategies to reduce your taxable income is by taking advantage of income tax deductions. Deductions are expenses that the government allows you to subtract from your total income, thereby lowering your taxable income. The lower your taxable income, the less tax you owe.
Deduction limits under Section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B) Income Tax Deductions Chart
| Sections | Eligible investments | Deduction Limit |
| 80C | Investment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc. | Rs 1,50,000 |
| 80CCC | Payment made towards pension funds | Rs 1,50,000 |
| 80CCD(1) | Payments made towards Atal Pension Yojana or other pension schemes notified by government | Employed: 10% of basic salary + DASelf-employed: 20% of gross total income |
| 80CCE | Total deduction under Section 80C, 80CCC, 80CCD(1) | Rs 1,50,000 |
| 80CCD(1B) | Investments in NPS (outside Rs 1,50,000 limit under Section 80CCE) | Rs 50,000 |
| 80CCD(2) | Employer’s contribution towards NPS (outside Rs 1,50,000 limit under Section 80CCE) | Central government employer: 14% of basic salary +DAOthers: 10% of basic salary +DA |
Section 80TTA – Interest on Savings Accounts
- Who can claim Section 80TTA deduction?:
Section 80TTA deduction can be claimed by Individuals and HUFs.
Resident Senior Citizens cannot claim deduction under 80TTA but they can claim the deduction under 80TTB.
- Maximum deduction allowed under section 80TTA?:
- Rs 10,000Note: Section 80TTA does not include interest from from fixed deposits, recurring deposits, or interest income from corporate bonds.
Section 80TTB – Interest From Bank Deposits Held by Senior Citizens
Who can claim Section 80TTB deduction?: Section 80TTA deduction can be claimed by Resident Senior Citizens (age 60 or more)
Resident Senior Citizens cannot claim deduction under 80TTA but they can claim the deduction under 80TTB.
Income Tax Deductions Chart Filing Maximum deduction allowed under section 80TTB? Rs 50,000
Note: Interest from banks can be either savings, fixed deposits or recurring
As a result, the threshold limit for TDS deduction under Section 194A for senior citizens has been enhanced to Rs. 50,000. Therefore, if their interest income is below Rs 50,000, TDS will not be deducted.
Section 80GG – Income Tax Deduction on House Rent Paid
- Who is eligible to claim deduction under Section 80GG?
Those who do not receive HRA in their salary structure but live in rented accommodations.
Conditions for claiming Section 80GG:
Taxpayer must be an individual
Taxpayer must be living on rent and paying rent
The taxpayer should not have self-occupied residential property in any other place. Also, the taxpayer, their spouse or minor child or their HUF should not own any residential accommodation in the place where they currently reside.
File Form 10BA
Sources :https://www.incometax.gov.in/iec/foportal/
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