Chapter VI A deductions and Tax Slab Rates for FY 2015-2016 (AY 2016-2017) for Individuals

Section

Eligible Assessee

Particulars

Remarks

80C

Individual / HUF

Sums paid or deposited in PY:

- Employee Provident Fund.

- Pension/ Annuity Schemes.

- Life insurance premium (upto 10% of sum assured and in case of severe disabilty upto 15% of sum assured).

- Tax Saving mutual fund (ELSS).

- Home loan principal payment.

- Sukanya Samriddhi Account.

- Tuition fees of children.

- PPF Account Contribution.

- National Saving  Certificate.

- Tax-saving fixed Deposit.

- Post office time deposits.

80CCC

Individual

Contribution to Certain Pension Funds:

Paid towards annuity plan of LIC or any other for receiving pension.

80CCD(1)

Individual

Contribution to Pension Scheme of CG:

Paid towards notified Pension Scheme for example National Pension Scheme.

- Amount of deduction is limited to 10% of salary or 10% gross income (if not salaried).

- Limit cap of deduction u/s 80CCD(1) upto Rs. 1,00,000 is removed by Finance Act, 2015 w.e.f 1-4-2016.

80CCE

Total deduction u/s 80C, 80CCC, 80CCD(1) is limited to Rs. 1,50,000

80CCD(1B)

Individual

An additional deduction of up to Rs. 50,000 over and above the Section 80C, 80CCC and 80CCD cap of Rs. 1,50,000, is allowed.

80CCD(2)

Individual

Contribution To Pension Plan By employer

Amount of deduction is limited to 10% of the Salary

80CCG

Resident individual being a new retail investor

Rajiv Gandhi Equity Saving Scheme (RGESS):

- Payment made for acquisition of listed equity shares or equity oriented fund.

- Deduction Eligible:- 50% of Amount invested or Rs. 25,000 , whichever is lower.

- Deduction is available for 3 Consecutive AY's

Conditions:

1) Gross Total Income <= Rs. 12 Lacs

2) Lock in Period : 3 Years

80D

individual / HUF

Medical Insurance Premium and Health Check -up:

(a) Paid for medical insurance premium and preventive health check-up:

- For Self, Spouse, Dependent Children, maximum allowed Rs. 25,000.

- For Parents, maximum allowed Rs. 25,000.

- For Health Checkup, maximum deduction shall not exceed Rs. 5,000.

- In case of Senior Citizens, maximum deduction of Rs. 30,000 allowed.

(b) In case where no amount is paid for the medi-claim insurance, amount of medical expenditure on the health of the person who is a super senior citizen:

- For Self, Spouse, Dependent Children, maximum allowed Rs. 30,000.

- For Parents, maximum allowed Rs. 30,000.

- Maximum deduction in respect of (a) and (b) shall not exceed more than:

1) For Self, Spouse, Dependent Children, maximum allowed Rs. 30,000.

2) For Parents, maximum allowed Rs. 30,000.

-  The payments cannot be made in cash mode except for preventive health check-up.

80DD

Resident individual / HUF

Maintenance including medical treatment of a dependant disabled or Deposit in any schemes framed for same purpose:

-Flat deduction of Rs. 75,000.

- In case of severe disabilty (80% or more disabilty), flat dedcution of Rs. 1,25,000

Conditions:

1) Certificate from Doctor.

2) Incur the expenditure.

80DDB

Resident individual / HUF

Deduction of medical treatment of specified diseases or ailments:

- In case of Individual : self, spouse, children, parents, brothers, sisters

- In case of HUF : Any family member

Maximum deduction allowed:

1) Actual Paid or Rs. 40,000 whichever is less

2) In case of senior citizen: Actual Paid or Rs. 60,000 whichever is less.

3) In case of super senior citizen: Actual Paid or Rs. 80,000 whichever is less. Inserted by Finance Act, 2015 w.e.f 1-4-2016.

Any amount reimbursed by Insurance Company or the employer will be reduced from the above amount.

Conditions:

Prescribtion from Doctor or other specialist to be obtained.

80E

Individual

Interest on Loan taken for higher education:

- For Self, spouse, children

- Eligible in initial AY and additional upto 7 AY's or till the interest is paid, whichever is earlier.

Conditions:

Loan can be taken from Financial Institution or approved charitable institution.

80G

All Assessees

Donation to certain funds, charitable institutions etc:

The various donations specified in Sec. 80G

are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G.

80GG

Individual

Deduction on House Rent Paid:

Least of the following:

- Rent paid less 10% of the Total Income

- Rs. 2,000 per month (Increased to Rs. 5,000 from AY 17-18)

- 25% of the Total Income

Conditions:

1) Assessee or his spouse or minor child should not own residential accommodation at the place of employment.

2) Should not get a house rent allowance (HRA).

3) Should not have self occupied residential premises in any other place.

80GGC

Any Person

Contribution to Political Parties:

Amount contributed to political party or electoral trust.

If given in Cash, deduction is not allowed.

80TTA

individual / HUF

Interest on deposits in Savings accounts:

Deposits with Bank or Co-operative society or post office.

Deduction allowed actual interest amount subject to maximum of Rs. 10,000.

Not for Time Deposits (Fixed Deposits)