2. Section 80C: Investments

This is the most popular section for tax-saving investments. Available to Individuals & HUFs.

Eligible Investments:

• Life Insurance Premium (LIP)
  Premium paid for self, spouse, children.
• Provident Fund (PF/PPF)
  Contribution to Public Provident Fund, Employee's PF.
• Housing Loan Principal
  Principal repayment of a home loan.
• Tuition Fees
  For full-time education of up to 2 children in India.

The total deduction under 80C, 80CCC, and 80CCD(1) is capped at ₹1,50,000.

3. Other 80C Investments

The ₹1,50,000 limit also includes:

• National Savings Certificates (NSC)
• Sukanya Samriddhi Yojana
• Senior Citizens Savings Scheme
• 5-Year Tax-Saving Fixed Deposits
• Equity Linked Savings Scheme (ELSS) Mutual Funds.

Sec 80CCC: Pension Funds

Contribution to annuity plans of LIC or other insurers for receiving pension. This also falls under the combined ₹1,50,000 limit.

4. Sec 80CCD: NPS

Deduction for contribution to the National Pension System (NPS).

Employee's Contribution

• Sec 80CCD(1): Up to 10% of salary (or 20% of GTI for self-employed). This is part of the ₹1,50,000 limit.
• Sec 80CCD(1B): An additional deduction of up to ₹50,000. This is over and above the ₹1.5 Lakh limit.

Employer's Contribution

Sec 80CCD(2): Deduction for employer's contribution is allowed up to 10% of salary (14% for Govt. employees). This is available in both tax regimes.

5. Sec 80D: Medical

Deduction for health insurance premium and medical expenses.

For Self, Spouse, Children

Deduction up to ₹25,000. This limit becomes ₹50,000 if any person is a senior citizen (60+ years).

For Parents

An additional deduction up to ₹25,000. This limit also becomes ₹50,000 if parents are senior citizens.

Includes a deduction for preventive health check-up up to ₹5,000 within the overall limits.

6. Other Health & Education

Sec 80DD: Disabled Dependent

Flat deduction for maintenance/medical treatment of a disabled dependent relative.

• Normal Disability: Flat ₹75,000.
• Severe Disability (80%+): Flat ₹1,25,000.

This is a flat deduction, not based on actual expense.

Sec 80E: Education Loan

Deduction for the full interest amount paid on a loan for higher education of self, spouse, or children. Available for a maximum of 8 years.

7. Sec 80G: Donations

Deduction for donations to specified funds and charitable institutions.

Donation Categories

• 100% Deduction, No Limit
  e.g., PM National Relief Fund, National Defence Fund.
• 50% Deduction, No Limit
  e.g., PM Drought Relief Fund.
• 100% Deduction, With Limit
  e.g., Donations for promoting family planning.
• 50% Deduction, With Limit
  e.g., Donations to most other charitable trusts.

Donations in cash over ₹2,000 are not eligible.

8. Interest Deductions

Sec 80TTA

Deduction up to ₹10,000 on interest earned from savings bank accounts. Available to Individuals (non-senior citizen) & HUFs.

Sec 80TTB

Deduction up to ₹50,000 on interest earned from any deposits (savings, FDs, etc.). Available only to resident senior citizens.

9. Other Key Deductions

Sec 80U: Person with Disability

A resident individual suffering from a disability can claim a flat deduction.

• Normal Disability: Flat ₹75,000.
• Severe Disability (80%+): Flat ₹1,25,000.

Sec 80JJAA: New Employees

Deduction of 30% of additional employee cost for 3 years for businesses subject to tax audit. This is available in both tax regimes.