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List of Income Tax Exemptions for FY 2017-2018 and AY 2018-2019

Under section 80C deduction of Rs 1,50,000 can be claimed from your total income. While computing tax, you can reduce up to Rs 1,50,000 from your total taxable income through section 80C.

This maximum limit of Rs. 1,50,000 is the aggregate of the deduction that may be claimed under sections 80C, 80CCC and 80CCD (1).

Investment options under Section 80C
  • Investment in PPF
  • Employee's share of PF contribution
  • National Savings Certificates (NSC)
  • Life Insurance Premium payment
  • Children's Tuition Fee
  • Principal Repayment of home loan
  • Investment in Sukanya Samridhi Account
  • ULIPS
  • ELSS
  • Sum paid to purchase deferred annuity
  • Five year Bank or Post office Tax saving Deposits
  • Senior Citizens savings scheme
  • Subscription to Home Loan Account Scheme of the National Housing Bank
  • Subscription to notified NABARD rural bonds
  • Stamp duty charges for purchase of a new house



This section provides a deduction on contributions made towards Annuity plans available with any of the Life Insurance Companies for receiving pension.

Section 80CCE defines that the aggregate amount of deductions under section 80C, section 80CCC and section 80CCD (1) shall not, in any case, exceed Rs. 1,50,000.
Employees can contribute to National Pension Scheme (NPS). The maximum contributions can be up to 10% of the salary (Basic+DA) for salaried or gross income in case of self employed.

Section 80CCE defines that the aggregate amount of deductions under section 80C, section 80CCC and section 80CCD (1) shall not, in any case, exceed Rs. 1,50,000.
From 2016-17, a new section 80CCD (1B) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account.

This is over and above the limit of Rs 1,50,000.
Under section 80CCD(2), contribution made by employer to employee's pension account will be deducted from total taxable income.

There is no monetary ceiling on this deduction. However, amount of deduction could not exceed 10% of basic salary (including Dearness Allowance - DA, if any)of the employee.

This is done by re-structuring your income. Such an amount contributed by your employer is NOT INCLUDED in your income for tax computation, so NO INCOME TAX IS PAYABLE by you on that amount! Depending on whether you are in 10%, 20% or 30% income tax slab, you straight away save that income tax.

This benefit is IN ADDITION TO Sec 80C BENEFIT of up to Rs. 1,50,000 per year!
Under section 80D, contribution made by individual for premium paid to LIC or other insurer for Medical Insurance.

For self, spouse and dependent children : Rs. 25,000 (Rs. 30,000 if person insured is a senior citizen* or very senior citizen**).
For parents of the assessee : (Additional) Rs. 25,000 (Rs. 30,000 if person insured is a senior citizen or very senior citizen).
Medical expenditure if no amount is paid in respect of health insurance-Rs.30,000 (only in case of very senior citizen).
Within max limit, deduction for preventive health check-up upto Rs. 5,000 is also available.

Aggregate amount of deduction cannot exceed Rs.60,000 in any case.

* Senior citizen means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.
** Very senior citizen means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.
Under section 80DD, following deductions are available:

Deduction of Rs 75,000 - Where disability is 40% or more but less than 80%.
Deduction of Rs 1,25,000 - Where there is severe disability (disability is 80% or more).

Deductions available to a resident individual/HUF where:

(a) any expenditure has been incurred for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995] (w.e.f. assessment year 2005-06 including autism, cerebral palsy and multiple disability as referred to in National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities Act, 1999)
(b) any amount is paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability (subject to certain conditions)

Under section 80DD, expenses actually paid for medical treatment of specified diseases and ailments subject to certain conditions are covered. Maximum deduction is Rs. 40,000 (Rs. 60,000 where expenditure is incurred for a senior citizen* and Rs. 80,000 in case of very senior citizen**)

* Senior citizen means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.
** Very senior citizen means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.

With effect from assessment year 2016-17, the taxpayer shall be required to obtain a prescription from a specialist doctor (not necessarily from a doctor working in a Government hospital) for availing this deduction.

Specified diseases under section 80DDB
Under section 80E, deduction is allowed to an individual for interest on loan taken for pursuing higher education.

There is no restriction on the amount that can be claimed.
The deduction is available for a maximum of 8 years (starting from the year interest starts getting repaid).

This loan may be taken for self, spouse or children. Scope has been been enlarged to cover the student for whom the taxpayer is the legal guardian.

Scope of 'higher education' is to cover any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, Board or university recognised by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so.
Under section 24, deduction is allowed to an individual for interest paid on home loan.

The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs 2,00,000.

Conditions for claiming Interest on home loan deduction - mandatory 3 conditions
  • Loan take after 1st April 1999 for purchase or construction
  • The acquisition or construction is completed within 5 years(3 Years till Financial Year 2015-16) from the end of the financial year in which the loan was taken
  • Interest certificate is available from financial institution for the interest payable on the loan
If the property is not acquired/constructed completed within 5 years from the end of financial year in which the loan was taken, the interest benefit in this case would be reduced from Rs 2,00,000 to Rs 30,000 only.

Non Self Occupied property - In case of non-self occupied property, the interest paid is reduced from the Rent earned to arrive at the Income from House Property. In case, if the Interest paid is more than the Rent earned which will result in Loss from House Property. This Loss is allowed to be set-off with Income from any other head.

The Finance Act 2017 announced on 1st Feb 2017 has put a restriction to the maximum amount of Loss under head House Property that can be set-off from other heads of Income. From Financial Year 2017-18 onwards, Loss of a maximum of Rs 2,00,000 is allowed to be set-off with Income from other heads. The amount which is not set-off shall be carried forward to future years.
In FY 2016-17, section 80EE provides additional Deduction of Rs. 50,000 for Interest on Home Loan only for First Time Buyers. This incentive would be over and above the tax deduction of Rs. 2,00,000 under Section 24.

This Deduction of Section 80EE would be applicable only in the following cases
  • Value of the property purchased is less than Rs. 50 Lakhs and the value of loan taken is less than Rs. 35 Lakhs.
  • The loan should be sanctioned between 1st April 2016 and 31st March 2017.
  • The benefit of this deduction would be available till the time the repayment of the loan continues.
  • This Deduction would be available from Financial Year 2016-17 onwards.
This deduction is not available for the running FY 2017-18.

Under Section 80TTA, deduction of maximum Rs 10,000 can be claimed against interest income from a savings bank account with a bank or post office or co-operative society.

This deduction cannot be claimed on income generated from interest on fixed deposits, recurring deposits, or interest income from corporate bonds.

Section 80GG is applicable only for those individuals who do not receive HRA from employer and do not possess a residential property at the place of employment or any other place.

The maximum deduction will be limited to the least of the following criteria
  • Rent paid minus 10% of total income.
  • Rs 5000 per month.
  • 25% of total income.
Under Section 80G, deductions can be claimed on donations to certain approved funds, trusts or charitable institutions.

This deduction can be claimed only when the contribution is made through cheque or draft. In case of cash contribution, a maximum of Rs 10,000 is allowed as deduction.
Under Section 80GGC, deductions can be claimed for any amount contributed to any political party or an electoral trust. Deduction is allowed for contribution done by any way other than cash.

Political party refers to any political party registered under the section 29A of the Representation of the People Act, 1951.
Under Section 80RRB, deductions on income received through Patent royalty (registered on/after 01.04.2003), under the Patents Act 1970 can be claimed upto Rs. 3 lakhs or the income actually received, whichever is less.

Under section 80U, deduction of Rs. 75,000 to an individual who, at any time during the previous year, is certified by the medical authority to be a person with disability. In case of severe disability, deduction of Rs. 1,25,000 can be claimed.

This section is similar to Section 80DD but here the Tax deduction is permitted for the employee himself who is physically or mentally challenged. This is a fixed deduction and not based on bills or expenses.