Saturday, February 22, 2014

List of all exemptions under Indian Income Tax Act

Deductions allowed under Section 80 C are listed here :
Section 80C of the Income Tax Act allows certain investments and expenditure to be exempted from Tax. The total limit under this section is Rs. 1,00,000 which can be any combination of the below:

  • Life Insurance premiums payment
  • Investment in PENSION Plans.
  • Tax Saving ULIP’s – Unit Linked Insurance Plans
  • (ELSS) Investment in Equity Linked Savings schemes– Mutual Funds
  • PF - (max. of 12% of basic salary)
  • PPF - (maximum of Rs.70,000 per fin. Year)
  • Investment in specified government infrastructure bonds
  • NSC - National Savings Certificates
  • KVP – Kisan Vikas Patra
  • Principal repayment of housing loans. Also any registration fee or stamp duty paid.
  • Payments towards tuition fees for children to any school or college or university or similar institution. (Only for 2 children) or towards coaching fee of various competitive exams.
(NOTE: From 01.04 2010, an additional limit of Rs.20,000 is included in 80C under infrastructure bonds.)
Income Tax Exemptions other than Sec. 80c

1. Deduction under section 80D

· Deduction allowable upto Rs.15,000/- if an amount is paid to keep in force an insurance on health of assesse or his family (i.e. Spouse &Children )
· Additional deduction upto Rs.15,000/- if an amount is paid to keep in force an insurance on health of parents. ( iff , senior citizens upto Rs.20,000/- )
provided that such insurance is in accordance with the scheme framed by
a) the General Insurance Corporation of India as approved by the Central Government in this behalf or;
b) Any other insurer and approved by the Insurance regulatory and Development authority.

2. Interest on Housing Loans

For self occupied properties, interest paid on a housing loan up to Rs 1,50,000 per year is exempted from tax.

3. Section 80DD –

Exemption under sec 80DD is available to any individual who:
a. Incurs any expenditure for the medical treatment,
training and rehabilitation of a disabled dependent (or)4. Section 80DDB –
An individual, resident in India spending any amount for the medical treatment of specified diseases affecting him or his spouse, children, parents, brothers and sisters and who are dependent on him, will be eligible for a deduction of the amount actually spent or Rs 40,000, whichever is less. (if, dependant senior citizen : Rs.60,000)
ü The individual should furnish a certificate in Form 10-I with the return of income issued by a specialist working in a government hospital.

5. Section 80E -

Under this section, deduction is available for payment of interest on a loan taken for higher education from any financial institution or an approved charitable institution. (only for full-time graduate or post-graduate course in engineering, medicine or management, or a post-graduate course in applied science or pure science.)

ü Maximum deduction : Rs 40,000 a year (Inclusive of both principal and Interest)

6. Section 80U -

It is deduction in the case of a person with a disability. An individual who is suffering from a permanent disability or mental retardation. allowed a deduction of Rs 50,000. In case of severe disability it is Rs. 75,000.
ü The Income tax assessee should furnish a certificate from a medical board constituted by either the Central or the State Government, along with the return of income for the year for which the deduction is claimed.