Section 80C
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;
1)PPF (Public Provident Fund)EPF (Employees’ Provident Fund)
2)Five year Bank or Post office Tax saving Deposits
3)NSC (National Savings Certificates)
4)ELSS Mutual Funds (Equity Linked Saving Schemes)
5)Kid’s Tuition Fees
6)SCSS (Post office Senior Citizen Savings Scheme)
7)Principal repayment of Home Loan
8)NPS (National Pension System)
9)Life Insurance Premium
11)Sukanya Samriddhi Account Deposit Scheme
12)Section 80CCC(1)
13)Section 80CCD(2)
14)Section 80CCD(1B)[Additional exemption Rs.50,000/- out of 1.5 lakh U/s 80C
The employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be up to 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.
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To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals and Gross income is applicable for non-salaried. The definition of Salary is only ‘Dearness Allowance.’ If your employer also contributes to Pension Scheme, the whole contribution amount (10% of salary) can be claimed as the tax deduction under Section 80CCD (2).
Note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
Section 80D
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, the deduction is allowed for Rs 30,000 toward medical expenditure.
Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).
Section 80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings)who have 40% disability. The tax deduction limit of up to Rs 1.25 lakh in case of severe disability can be availed.
To claim this deduction, you have to submit Form no 10-IA.
Section 80DDB
An individual (less than 60 years of age) can claim up to Rs 40,000 for the treatment of specified critical ailments. This can also be claimed on behalf of the dependents. The tax deduction limit under this section for Senior Citizens is Rs 60,000 and for very Senior Citizens (above 80 years) the limit is Rs 80,000.
To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.
For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
Neurological Diseases where the disability level has been certified to be of 40% and above:-
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinson’s Disease
Malignant Cancers
Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
Chronic Renal failure
Hematological disorders
Hemophilia
Thalassaemia
Section 24 (B)
The interest component of home loans is allowed as the deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as the tax deduction.
Section 80EE
This is a new proposal which has been made in Budget 2016-17. The first time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
The home loan should have been sanctioned in FY 2016-17.Loan amount should be less than Rs 35 Lakh.
The value of the house should not be more than Rs 50 Lakh & the home buyer should not have any other existing residential house in his name.
Section 80U
This is similar to Section 80DD. A tax deduction is allowed for the tax assessee who is physically and mentally challenged.
Section 80GG
As per the budget 2016 proposal, the Tax Deduction amount under 80GG has been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all those
Section 80TTA:- Tax Relief from Savings Bank Interest, who’s Taxable Income less than 5 lakh, they can get the Tax Relief from Bank Savings Interest up to Rs. 10 thousand.
Section 87A:- Tax Rebate up to Rs.5,000/- who’s taxable income less than 5 lakh