Deductions

DEDUCTIONS FROM GROSS TOTAL INCOME

Computation of Total Income

Income from Salary ✓
Income from House Property ✓
Income from Capital Gain ✓
Income from Business / Profession ✓
Income from Other Sources ✓
Gross Total Income ✓
Less : Deductions under Chap VI - A Sec. 80
80 D ✓
80 DD ✓
80 U ✓
80 E ✓
80 C ✓
80 CCC ✓
80 TTA
Total Taxable Income ✓

Section 80/D (Mediclaim Premium Paid)

1. This deduction is in respect of amount of medical insurance premium paid by cheque (not cash) on
medical insurance policy on health of self, spouse, parents, dependent children (not life insurance
policy) e.g. mediclaim policy.

2. Amount of Deduction
For Self. Spouse. Dependent Children For Parents
Actual Actual
OR ► Whichever is less Plus OR Whichever is less
` 25,000 ` 25,000

3. If any member is Senior Citizen (65 years or more) then

For Self, Spouse, Dependent Children For Parents

Actual Actual
OR ► Whichever is less Plus OR ► Whichever is less
`50,000 ` 50,000
4. If children are not dependent then deduction not allowed for them.

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 Deductions

Section 80 / DD (Amount spent for treatment of dependent disabled relative)

1. When an assessee spends some amount on a dependent relative who is permanently physically or
mentally disabled, he will get deduction 80/DD.
2. Amount of Deduction ` 75,000 lumpsum ( If disability is more than 40%)
(If 80% or more disability i.e., severe then lumpsum ` 1,25,000)
3. If assessee has deposited some amount under a scheme of LIC or UTI for maintenance of dependent
relative this deduction can be claimed.
4. If the dependent relative has claimed deduction under 80 / U, then this deduction will not be given.

Section 80 / U (Assessee himself disabled)

1. If assessee himself is permanently physically or mentally disabled he will get this deduction.
2. Amount of Deduction:
Disability Amount of Deduction
1% to 40 % Nil
More than 40% to 80 % `75,000
Above 80% or More (Severed Disability) `1,25,000

3. If assessee is non resident he will not get this deduction

4. If percentage not given then ` 75,000 (Severe word used then ` 1,25,000)

Section 80/E (Interest on Loan for Higher Education)

1. This deduction is available to assessee if he has taken loan from financial institution for higher
studies for himself or his spouse or children.
2. Amount of Deduction
Actual interest paid on loan taken.
3. Deduction is given for maximum 8 years

Section 80/ C
If assessee has deposited or paid amount in following :
1. Life Insurance Premium for self, spouse and children (not exceeding 20% of policy amount).
2. Contribution to various funds.
3. Contribution to NSG, ULIP, Dhanraksha, Jeevan Dhara, Jeevan Akshay.
4. Pension fund of UTI, Mutual Fund.
5. Home Loan, New House, Housing Deposits, Repayment of Home Loan.
6. Tuition Fees (Maximum 2 children) for studies in India only.
7. Fixed deposits with banks
8. Infrastructure Debentures / Shares / Units.
9. NABARD Bonds, Senior Citizen Scheme, Post Office Deposits.

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 Deductions
Amount of Deduction
Actual
OR Whichever is Less
` 1,50,000

Section 80 / CCC
Amount contributed to any pension fund or annuity plan of LIC or any bank will give this deduction.
Amount of Deduction
Actual
OR Whichever is less
` 1,50,000
However 80 / C and 80 / CCC
Total deduction cannot be more than `1,50,000.

Section 80/TTA (Interest on Saving A/c)

If assessee Gross Total Income includes any income by way of Interest on Deposit in a Saving A/c he will
get this deduction.
Amount of Deduction
Actual
OR Whichever is less
` 10,000

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