Check out the list of all possible tax deductions you can claim.
Following the announcement of the Union Budget 2023, it is now that time of the year when people start making efforts for their tax savings. One should understand that simply saving taxes is not enough which, in the long term, means that you don’t have to invest for tax savings, rather it should be a part of your investment plan.
Making long-term decisions when it comes to saving taxes and yet merging it with our investment plans demands a knowledge of all types of tax deductions that could be claimed. Here’s the list of all such possible deductions:
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Section 80C
The maximum tax exemption limit under Section 80C is Rs 1.5 lakh. The various investment expenses that can be claimed as tax deductions are as follows:
PPF (Public Provident Fund)
EPF (Employees’ Provident Fund)
Five years of Bank or Post office Tax savings Deposits
NSC (National Savings Certificate)
ELSS mutual funds (Equity Linked Saving Schemes)
Children’s Tuition Fees
SCSS (Post office Senior Citizen Savings Scheme)
Principal repayment of Home Loan
NPS (National Pension System)
Life Insurance Premium
Section 80CCC
Contribution to the annuity plan of LIC (Life Insurance Corporation of India) or any other life insurance company for receiving a pension from the fund is considered for a tax deduction. The maximum deduction under this section is also Rs 1.5 lakh.
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Section 80CCD
An employee can contribute to government-notified pension schemes (like National Pension Scheme).
Section 80D
Deduction u/s 80D on health insurance premiums is Rs 25,000. For senior citizens, it is Rs 30,000. For very senior citizens above the age of 80 years, who are not eligible to take health insurance, a deduction is allowed of Rs 30,000 toward medical expenditures.
Section 80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents who have 40% disability. The tax deduction limit of up to Rs 1.25 lakh in case of severe disability can be availed.
Section 80DDB
An individual (less than 60 years of age) can claim up to Rs 40,000 for the treatment of specified critical ailments. This can also be claimed on behalf of the dependents. The tax deduction limit under this section for senior citizens is Rs 60,000 and for very senior citizens, it is Rs 80,000.
Section 80E
If you take any loan for higher studies, a tax deduction can be claimed under Section 80E for the interest that you pay towards your education loan. Principal repayment on an educational loan cannot be claimed as tax deductions.
Section 80EE
This was a new proposal made in Budget 2016-17. First-time home buyers can claim an additional tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE.
Section 80G
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G.
Section 80GG
The tax deduction amount under 80GG is Rs 60,000 per annum. Section 80GG applies to all those salaried individuals who do not own a residential house and do not receive a house rent allowance.
Section 80TTA
Deduction from the gross total income of an individual or HUF, up to a maximum of Rs. 10,000, in respect of interest on deposits in a savings account with a bank, co-operative society or post office can be claimed under this section.
