Income Tax Deductions: -
Income Tax Deductions means Subtraction i.e an amount that is eligible to reduce taxable income. It is a concession in the Income of Person. The amount of deduction is first included in the gross total income and then deducted from it to arrive at the total income.
Income Tax Deductions Chart
- Deduction on Investment, LIC premium, contribution to provident fund, tuition fees, etc.
- Who is entitled: - Available for Individuals or HUF.
- Quantum of Deduction: - Deduction can claim of Rs1.5lakh per financial year under Sec 80 C of the Income Tax. This deduction is not allowed to partnership, companies & other corporate bodies.
- Deduction for the Premium paid for Medical Insurance.
- Who is entitled: - Income Tax Deductions chart is for Individual or HUF.
- Quantum of Deduction: - Deduction of Rs 25,000 on insurance for self, spouse, and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000 if they are less than 60 years of age, the deduction amount is Rs 50,000.
- Deduction for Rehabilitation of Handicapped Dependent Relatives.
- Who is entitled: - Individual or HUF
- Quantum of Deduction: - Payment or deposit to specified scheme for maintenance of handicapped dependent relative.
- When disability is 40% or more but less than 80% then Fixed Deduction of Rs75,000.
- When disability is 80% or more then the Fixed Deduction of Rs1,25,000.
- Deductions for Interest on Education Loan for Higher Studies.
- Who is entitled to Deduction: - Individual
- Quantum of Deduction: - Available for a maximum of 8 years (beginning the year in which the interest starts getting repaid) or till the entire interest is repaid, whichever is earlier. There is no restriction on the amount that can be claimed.
- Deductions on Home Loan Interest for First Time Home Owner.
- Who is entitled: - Homeowners (Individual) having only one house property on the date of sanction of loan
- Quantum of Deduction: - The value of Property must be less than 50 lakh. The home loan must be less than 35 lakh. It taken from a financial institution must have been sanctioned between 1st April 2016 & 31st March 2017. The aggregate deduction allowed under this section cannot exceed Rs2 lakh.
- Deduction for Donations.
- Who is entitled: - To all Assessee.
- Quantum of Deduction:- Donation with 100% Deduction–
- National Defence Fund.
- Chief Minister Relief Fund.
- Prime Minister National Relief Fund.
- National Illness Assistance Fund.
- National Sports Fund.
- Donation with 50% Deduction-
- Indira Gandhi Memorial Fund.
- Jawaharlal Nehru Memorial Fund.
- The Rajiv Gandhi Foundation.
- Prime Minister’s Drought Relief Fund.
- House Rent Paid, Deduction for House Rent Paid where House Rent Allowance is not received.
- Who is entitled to Deduction: - All Individuals
- Quantum of Deduction: - Deduction available is the least one of the following: -
- Rent Paid minus 10% of Adjusted Total Income.
- Rs 5,000/- per month.
- 25% of Adjusted Total Income.
- Deductions from Gross Total Income for Interest on Saving Bank Account.
- Who is entitled to Deduction: - Individual or HUF.
- Quantum of Deduction: - Deduction may claim of Rs 10,000 against interest income from savings an account with a bank, co-operative society, post office. Not available from FD, RD or Interest Income form cooperate bonds.
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