{"id":159,"date":"2022-02-11T08:57:00","date_gmt":"2022-02-11T08:57:00","guid":{"rendered":"https:\/\/akhilamitassociates.com\/blog\/?p=159"},"modified":"2023-11-17T08:58:10","modified_gmt":"2023-11-17T08:58:10","slug":"80c-80ccc-80ccd-80d-deduction-under-income-tax-act","status":"publish","type":"post","link":"https:\/\/akhilamitassociates.com\/blog\/80c-80ccc-80ccd-80d-deduction-under-income-tax-act\/","title":{"rendered":"80C, 80CCC, 80CCD, 80D \u2013 Deduction under Income Tax Act \u2013"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\" id=\"why-has-the-government-of-india-has-provided-various-deductions-such-as-80c-80ccc-80ccd-80d\">Why has the government of India has provided various deductions such as 80C, 80CCC, 80CCD, 80D?<\/h1>\n\n\n\n<p>Deduction from 80C, 80CCC, 80CCD, 80D is some of the most used deductions used by an individual to save taxes. The income tax department with an aim to inculcate saving and investment habits among individuals, and spread awareness for health insurance, has provided tax benefits under sections 80C and 80D. In the current era where education cost has increased and people take education loan to cover the cost of education, the government by providing deduction under 80E for the interest paid on education loan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"80c-80ccc-80ccd\">80C &amp; 80CCC, 80CCD<\/h2>\n\n\n\n<p><strong>80C<\/strong>&nbsp;is one of the most favorable sections and can be regarded as a gift to an individual given by Income-Tax Authorities to save some taxes. It is one of the most widely used sections for reducing taxes. Whenever you watch any news channel before the financial budget, you will hear people\u2019s demand to increase the limits provided under Section 80C. The benefit under this section is provided to individuals and HUFs.<\/p>\n\n\n\n<p>Note \u2013 Companies, LLPs, Partnership Firm, AOI, BOI, and other forms of business cannot avail the benefit under this section.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"what-is-the-current-limit-under-80c\">What is the current limit under 80C?<\/h4>\n\n\n\n<ul>\n<li>\u2981 The current overall limit under section 80C is&nbsp;<strong>Rs. 1,50,000.<\/strong><\/li>\n\n\n\n<li>\u2981 Even if you invest under 80CCC, the overall limit is still&nbsp;<strong>Rs. 1,50,000<\/strong>&nbsp;(In easier sense limits combined for both 80C and 80CCC is&nbsp;<strong>Rs. 1,50,000<\/strong>) with an exception that you can avail the extra tax benefit of Rs. 50,000 if you invest in NPS covered under section 80CCD(1B).<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"instrument-covered-under-section-80c\">Instrument covered under section 80C?<\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><br><strong>The instrument for Tax Deduction<\/strong><\/td><\/tr><tr><td><strong>80C<\/strong><\/td><td>Following instrument qualifies for a deduction under section 80C \u2013&nbsp;<strong>Public Provident Fund, Employees Provident Fund (the employees\u2019 contribution, Equity Linked Saving Scheme (ELSS Mutual Fund), Life Insurance Premium, Stamp duty, and registration charges when a new property is purchased, principal payment for housing loan, Sukanya Samriddhi Yojna, National Saving Certificate (NSC), ULIP Policies, Tax Saver FD for 5 years, Infrastructure Bond, Senior citizen savings scheme (SCSS)<\/strong>, etc.<\/td><\/tr><tr><td><strong>80CCC Deduction for life insurance annuity plan.<\/strong><\/td><td>80CCC allows a deduction for payment of premium\/contribution for annuity pension plans.<br><strong>Note \u2013<\/strong>&nbsp;Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.<br><br>Note \u2013 The contribution above is combined with Rs 1.5 Lakh (limit allowed u\/s 80C).<\/td><\/tr><tr><td><strong>80CCD(1) Deduction for NPS<\/strong><\/td><td>Employee\u2019s contribution&nbsp;under NPS is deductible under section 80CCD(1) \u2013<br><br>Maximum deduction allowed is least of the following<br>\u2013 10% of salary (Basic Salary+Dearness Allowances) (in case taxpayer is employed) and<br>\u2013 20% of gross total income (in case of self-employment).<br><br>Note \u2013 The contribution above is combined with Rs 1.5 Lakh (limit allowed u\/s 80C).<\/td><\/tr><tr><td><strong>80CCD(1B) Deduction for NPS<\/strong><\/td><td>Additional deduction of Rs 50,000 per year is allowed for the amount deposited into the NPS account eligible under section 80CCD(1B).<br><br>Note \u2013 Contributions made to Atal Pension Yojana are also eligible for deduction under 80CCD(1B).<\/td><\/tr><tr><td><strong>80CCD(2) Deduction for NPS<\/strong><\/td><td>Benefit in this section is allowed only to&nbsp;<strong>salaried individuals and not self-employed.<\/strong><br><strong>Employers\u2019 contribution<\/strong>&nbsp;is allowed for deduction up to<br>\u2013 10% of basic salary plus dearness allowance.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"80d\">80D<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"80d-deduction-for-payment-of-medical-insurance-premium\">80D \u2013 Deduction for payment of Medical Insurance Premium \u2013<\/h3>\n\n\n\n<p>Section 80D is allowed as a deduction for money spent on maintaining your health and&nbsp;health&nbsp;insurance&nbsp;and assumes great significance in your&nbsp;tax planning and managing personal finance.<\/p>\n\n\n\n<p>The deduction is available for payment of premiums for health insurance policies and medical expenses for senior citizens.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"who-can-avail-the-deduction-for-whom-and-up-to-what-amount\">Who can avail the deduction, for whom and up to what amount?<\/h3>\n\n\n\n<p>\u2981 Any individual or HUF can avail of deduction u\/s 80D.<\/p>\n\n\n\n<p>\u2981 The deduction is available for payment of insurance premium of \u2013<\/p>\n\n\n\n<ul>\n<li>\u2981 Self<\/li>\n\n\n\n<li>\u2981 Spouse<\/li>\n\n\n\n<li>\u2981 Dependant children<\/li>\n\n\n\n<li>\u2981 Parents<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><th>Insured<\/th><th>Deduction Amount in Rs.<\/th><\/tr><tr><td>&nbsp;<\/td><td><strong>Age Below 60 yrs.<\/strong><\/td><td><strong>Age Above 60 yrs.<\/strong><\/td><\/tr><tr><td>Self, Spouse,&nbsp;and&nbsp;Children<\/td><td>25,000<\/td><td>50,000<\/td><\/tr><tr><td>Parents<\/td><td>25,000<\/td><td>50,000<\/td><\/tr><tr><td>Max&nbsp;Deduction<\/td><td><strong>50,000<\/strong><\/td><td><strong>1,00,000<\/strong><\/td><\/tr><tr><td>Opt&nbsp;Preventive Healthcare<sup>*<\/sup><\/td><td>5,000<\/td><td>5,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-is-preventive-heath-checkup-and-what-qualifies-for-deduction\">What is Preventive Heath Checkup, and what qualifies for deduction?<\/h3>\n\n\n\n<p>\u2981 To promote the habit of getting your body checkup every year, the government started giving deductions for a preventive health checkup from 2013-14. The idea of preventive health check-ups is to identify any illness and mitigate risk factors at an early stage through frequent health checkups.<\/p>\n\n\n\n<p>\u2981 The expenditure for health checkups can be made in cash.<\/p>\n\n\n\n<p>\u2981 Maximum deduction for self, spouse, and family is Rs. 5,000 (subject to overall ceiling mentioned above) and Rs. 5,000 for parents (subject to overall ceiling mentioned above).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"can-we-claim-a-deduction-for-medical-expenses-of-parents-who-are-senior-citizen\">Can we claim a deduction for Medical Expenses of Parents who are senior citizen?<\/h3>\n\n\n\n<p>\u2981 In case your parents are senior citizens and they don\u2019t have any active health insurance policy and they are not filing their Income Tax Returns, then you can claim expenditure incurred on their medical treatment as expenses subject to a maximum deduction of Rs. 50,000.<\/p>\n\n\n\n<p>\u2981 Expenditure can be made in cash.<\/p>\n\n\n\n<p>\u2981 Senior citizen includes super senior citizen.<\/p>\n\n\n\n<p>Note \u2013<\/p>\n\n\n\n<ul>\n<li>\u2981 Cash Payment for paying health insurance premiums is not allowed as a deduction, hence the premium has to be paid electronically or cheques.<\/li>\n\n\n\n<li>\u2981 In case premium or expenditure is paid on behalf of grandparents or siblings or working children or any other relative, then the deduction is not allowed.<\/li>\n\n\n\n<li>\u2981 HUF can claim a deduction under Section 80D for a medical insurance taken for any of the members of the HUF.. deduction will be Rs 25,000 if the member insured is less than 60 years, and will be Rs 50,000 if the insured is 60 years of age or more.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"for-other-deductions-available-for-individuals-read-more\">For Other deductions available for individuals \u2013 Read More.<\/h2>\n\n\n\n<ul>\n<li>\u2981&nbsp;Visit us \u2013&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/akhilamitassociates.com\/home.aspx\">https:\/\/akhilamitassociates.com\/home.aspx<\/a>,&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/akhilamitandassociates.com\/\">https:\/\/akhilamitandassociates.com\/<\/a>,&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/akhilamitandassociates.business.site\/\">https:\/\/akhilamitandassociates.business.site\/<\/a><\/li>\n\n\n\n<li>\u2981&nbsp; Follow us on Twitter \u2013&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/twitter.com\/AssociatesAkhil\">https:\/\/twitter.com\/AssociatesAkhil<\/a><\/li>\n\n\n\n<li>\u2981&nbsp; Follow us on LinkedIn \u2013&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/www.linkedin.com\/in\/akhilamitandassociates1\/\">https:\/\/www.linkedin.com\/in\/akhilamitandassociates1\/<\/a>,&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/www.linkedin.com\/company\/akhilamitandassociates\/\">https:\/\/www.linkedin.com\/company\/akhilamitandassociates\/<\/a><\/li>\n\n\n\n<li>\u2981&nbsp;&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/g.page\/r\/CTz-lW4qAGHQEAE\">Follow us on Google<\/a>&nbsp;(Chinchwad Branch),&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/g.page\/r\/CfnjQWeJwmHLEAE\" target=\"_blank\" rel=\"noreferrer noopener\">Follow us on Google<\/a>&nbsp;(Wakad Branch).<\/li>\n\n\n\n<li>\u2981&nbsp;&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20230324101810\/https:\/\/www.facebook.com\/akhilamitandassociates\/\">Follow us on Facebook<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Why has the government of India has provided various deductions such as 80C, 80CCC, 80CCD, 80D? Deduction from 80C, 80CCC, 80CCD, 80D is some of the most used deductions used by an individual to save taxes. The income tax department with an aim to inculcate saving and investment habits among individuals, and spread awareness for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/posts\/159"}],"collection":[{"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/comments?post=159"}],"version-history":[{"count":1,"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/posts\/159\/revisions"}],"predecessor-version":[{"id":160,"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/posts\/159\/revisions\/160"}],"wp:attachment":[{"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/media?parent=159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/categories?post=159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/akhilamitassociates.com\/blog\/wp-json\/wp\/v2\/tags?post=159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}