Income Tax 2020-21 (FY) – Exempted Income and Deductions allowed
Income Tax 2020-21 (FY) Assessment Year 2021-22 – Income eligible for Tax benefit and Deductions allowed in the Gross Total Income
Investments / Payments / Incomes on which I can get tax benefit
Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. However, this deduction is not available for person opting for New Tax Regime.
Interest on loan u/s 24(b) allowable is tabulated below
| Nature of Property | When loan was taken | Purpose of loan | Allowable (Maximum limit) |
| Self-Occupied | On or after 1/04/1999 |
Construction or purchase of house property |
₹ 2,00,000 |
| On or after 1/04/1999 | For Repairs of house property | ₹ 30,000 | |
| Before 1/04/1999 | Construction or purchase of house property | ₹ 30,000 | |
| Before 1/04/1999 | For Repairs of house property | ₹ 30,000 | |
| Let Out | Any time | Construction or purchase of house property | Actual value without any limit |
Tax deductions specified under Chapter VIA of the Income Tax Act
These Deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC, except for deduction u/s 80CCD (2) which will be applicable for New Tax Regime as well
| 80C, 80CCC, 80CCD (1) | |||||||
|---|---|---|---|---|---|---|---|
|
Deduction towards payments made to
|
Combined deduction limit of ₹ 1,50,000 | ||||||
| 80CCD(1B) | |
|---|---|
| Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1) | Deduction limit of ₹ 50,000 |
| 80CCD(2) | ||||
|---|---|---|---|---|
|
Deduction towards contribution made by an employer to the Pension Scheme of Central Government
|
| 80D | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Deduction towards payments made to Health Insurance Premium & Preventive Health check up
Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
|
| 8DD | |
|---|---|
|
Deduction towards payments made towards Maintenance or Medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme |
Flat deduction of
₹ 75,000 available for a person with Disability, irrespective of expense incurred |
| The deduction is
₹ 1,25,000 if the person has Severe Disability (80% or more). |
|
| 80DDB | |
|---|---|
|
Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases |
Deduction limit of ₹ 40,000 (₹ 1,00,000 if Senior Citizen) |
| 80E | |
|---|---|
| Deduction towards interest payments made on loan for higher education of Self or relative | Total amount paid towards interest on loan taken |
| 80EE | |
|---|---|
| Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017 | Deduction limit of ₹ 50,000 on the interest paid on loan taken |
| 80EEA | |
|---|---|
| Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE | Deduction limit of ₹ 1,50,000 on the interest paid on loan taken |
| 80EEB | |
|---|---|
| Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023 | Deduction limit of ₹ 1,50,000 on the interest paid on loan taken |
| 80G | ||||||
|---|---|---|---|---|---|---|
|
Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc. Donation are eligible for deduction under the below categories
Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/- |
| 80GG | |||
|---|---|---|---|
|
Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary Least of the following shall be allowed as deduction
Note: Form 10BA to be filled for claiming this deduction.
|
| 80GGA | |||||
|---|---|---|---|---|---|
|
Deduction towards Donations made for Scientific Research or Rural Development Donation are eligible for deduction under the below categories
|
Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession
| 80GGC | |
|---|---|
|
Deduction towards Donations made to Political Party or Electoral Trust |
Deduction towards Donations made to Political Party or Electoral Trust |
| 80TTA | |
|---|---|
|
Deduction on interest received on saving bank accounts by Non-Senior Citizens |
Deduction limit of ₹ 10,000/- |
| 80TTB | |
|---|---|
|
Deduction on interest received on deposits by Resident Senior Citizens |
Deduction limit of ₹ 50,000/- |
| 80U | |
|---|---|
|
Deductions for a resident individual taxpayer with Disability |
Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred |
Source: www.incometax.gov.in
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