{"id":3828,"date":"2020-11-19T17:29:43","date_gmt":"2020-11-19T11:59:43","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=3828"},"modified":"2022-10-03T17:57:22","modified_gmt":"2022-10-03T12:27:22","slug":"section-80-80c-deductions-income-tax","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/section-80-80c-deductions-income-tax\/","title":{"rendered":"Section 80 Deductions List: 80C, 80CCD, 80D, and 80DD"},"content":{"rendered":"<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Deductions under Section 80 of the Income Tax Act allow taxpayers to reduce their taxable income. These deductions can be claimed only if tax-saving investments are made, or eligible expenses are incurred.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69de629d9bf49\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69de629d9bf49\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/section-80-80c-deductions-income-tax\/#Section-80C-%E2%80%93-The-most-popular-deduction-among-individuals\" >Section 80C &#8211; The most popular deduction among individuals\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/section-80-80c-deductions-income-tax\/#Section-80CCD-%E2%80%93-Deduction-for-pension-contributions\" >Section 80CCD &#8211; Deduction for pension contributions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/section-80-80c-deductions-income-tax\/#Section-80D-%E2%80%93-Deduction-for-medical-insurance-premium-paid\" >Section 80D &#8211; Deduction for medical insurance premium paid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/section-80-80c-deductions-income-tax\/#Section-80DD-%E2%80%93-Deduction-for-rehabilitation-of-handicapped-dependent-relative\" >Section 80DD &#8211; Deduction for rehabilitation of handicapped dependent relative<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Section-80C-%E2%80%93-The-most-popular-deduction-among-individuals\"><\/span><span style=\"font-weight: 400;\">Section 80C &#8211; The most popular deduction among individuals\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The most popular deduction used by salaried individuals is Section 80C (a part of Section 80). It provides a deduction benefit of up to Rs 1.5 lakh from taxable income under this section.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Section 80C is only applicable to individuals and HUFs. No corporates, partnership firms, LLPs can avail tax benefit under this section.\u00a0<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Investments eligible for Section 80C deduction<\/span><\/h3>\n<p data-speechify-sentence=\"\">[bctt tweet=&#8221;Investments made towards Provident Fund Scheme (EPF &amp; PPF), National Saving Certificates (NSCs), Sukanya Samriddhi Yojana (SSY), National Pension Scheme (NPS), etc. are eligible for Section 80C deduction.\u00a0&#8221; via=&#8221;no&#8221;]<\/p>\n<p data-speechify-sentence=\"\"><em><strong>Here\u2019s a quick table to compare different schemes and make the right investment choice.\u00a0<\/strong><\/em><\/p>\n<table data-speechify-sentence=\"\">\n<tbody>\n<tr>\n<td><b>Investment options<\/b><\/td>\n<td><b>Interest<\/b><\/td>\n<td><b>Minimum lock-in period<\/b><\/td>\n<td><b>Guaranteed return<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Equity Linked Saving Scheme (ELSS)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12% to 15% (depending on market)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3 years<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">National Pension Scheme (NPS)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8% to 10%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Until the investor reaches 60 years of age (retirement)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Senior Citizen Savings Scheme (SCSS)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8.60%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5 years<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Public Provident Fund (PPF)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7.90%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15 years<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">National Saving Certificates (NSCs)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7.9%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5 years<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">ULIP<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8% to 10% (depending on market)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5 years<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">5 year Fixed deposit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to 8.40%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5 years<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sukanya Samriddhi Yojana (SSY)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8.50%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8 years<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p data-speechify-sentence=\"\"><em><strong>There are certain expenses that are eligible for deduction under section 80C.\u00a0<\/strong><\/em><\/p>\n<ol data-read-aloud-multi-block=\"true\">\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><b>Life insurance premium<\/b><span style=\"font-weight: 400;\"> &#8211; Premium paid towards life insurance policies is eligible for deduction under Section 80C. The benefit is applicable to insurance policies of self, spouse and dependent children.<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><b>Tuition fees<\/b><span style=\"font-weight: 400;\">\u00a0 &#8211; Tuition fees paid for the education of two children can be used for tax benefit under Section 80C. The fees should be for a full-time course, paid to any school, college, university or educational institute situated in India.<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><b>Principal repayment towards home loan<\/b><span style=\"font-weight: 400;\"> &#8211; Principal repayments made for housing loans can be claimed for deduction under section 80C. <\/span><span style=\"font-weight: 400;\">This deduction can be claimed for the house property only if the construction is completed. Also, the property should not be transferred or sold within 5 years of possession. Otherwise, the entire deduction will be taxable in the year of transfer or sale.<br \/>\n<\/span><\/li>\n<li data-speechify-sentence=\"\"><b>Stamp duty and registration charges<\/b><span style=\"font-weight: 400;\"> &#8211; The Income Tax Act allows individuals to get a deduction for stamp duty and registration charges paid towards house possession. These amounts can only be claimed after the actual payment is made. Otherwise, it will not be eligible for Section 80C deduction.\u00a0<\/span><\/li>\n<\/ol>\n<blockquote data-read-aloud-multi-block=\"true\">\n<p data-speechify-sentence=\"\">The maximum deduction under Section 80C should not exceed Rs 1.5 lakh in a financial year.<span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<\/blockquote>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Section-80CCD-%E2%80%93-Deduction-for-pension-contributions\"><\/span><span style=\"font-weight: 400;\">Section 80CCD &#8211; Deduction for pension contributions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Another part of Section 80 is Section 80CCD that is divided into 3 sub-sections.<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Section 80CCD(1) &#8211; Employee\u2019s contribution<\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">A salaried individual can claim a deduction of 10% of their salary for the self contribution made to their pension accounts. However, the maximum benefit shall not exceed Rs 1.5 lakh.\u00a0<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Section 80CCD(1B) &#8211; Self-contribution to NPS<\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Suppose an individual has contributed to their NPS (National Pension Scheme) account. In that case, they can claim an additional deduction for up to Rs 50,000 in a financial year under section 80CCD(1B).\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Section 80CCD(1B) deduction can be claimed on and above the limit of Rs 1.5 lakh under Section 80C &amp; Section 80CCD(1).\u00a0 An individual can claim a maximum deduction of Rs 2 lakh by making contributions to pension schemes.\u00a0<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Section 80CCD(2) &#8211; Employer\u2019s contribution to NPS<\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">When an employer contributes to the employee\u2019s NPS, the contribution amount is subject to tax deduction under section 80CCD(2). There is no threshold on the contribution amount. This deduction can be claimed in excess of Section 80CCD(1).\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Section 80CCD(2) allows employees to claim deductions up to 10% of their salary (includes the basic pay and dearness allowance) or equal to the contributions made by the employer towards the NPS.<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">To claim these deductions, employees should provide proof of payment to their employer. If the investment declarations are not made to the employer, employees can claim these benefits while filing income tax returns.\u00a0<\/span><\/p>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Section-80D-%E2%80%93-Deduction-for-medical-insurance-premium-paid\"><\/span><span style=\"font-weight: 400;\">Section 80D &#8211; Deduction for medical insurance premium paid<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">This section provides a tax deduction for health insurance premium paid by individuals.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">An individual can claim a deduction of Rs 25,000 for the insurance premium paid for themselves, spouse, and dependent children.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">They can claim an additional deduction for their parents\u2019 health insurance up to Rs 25,000 if the parents are less than 60 years of age. For parents aged more than 60 years, the deduction benefit increases to Rs 50,000.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">In case both individual and parents are 60 years or above, the maximum deduction available under this section is up to Rs 1 lakh.<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Also, any payments made for preventive health checkups are eligible for deduction up to a maximum of Rs 5,000. This amount is included within the overall limit of Rs 25,000\/Rs 50,000 depending on the case.\u00a0<\/span><\/p>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Section-80DD-%E2%80%93-Deduction-for-rehabilitation-of-handicapped-dependent-relative\"><\/span><span style=\"font-weight: 400;\">Section 80DD &#8211; Deduction for rehabilitation of handicapped dependent relative<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">This section allows a deduction to a resident individual or a Hindu Undivided Family (HUF) for the expenditure incurred on medical treatments (including nursing), training and rehabilitation of a handicapped dependent relative.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The deduction amount under section 80DD is<\/span><\/p>\n<ul data-read-aloud-multi-block=\"true\">\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Rs 75,000 where disability is 40% or more but less than 80%\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Rs 1,25,000 where there is a severe disability (disability is 80% or more)\u00a0<\/span><\/li>\n<\/ul>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Employees claiming this deduction should provide a certificate of disability from prescribed medical authority to their employers.\u00a0<\/span><\/p>\n<h3><strong>Make tax declaration easy with RazorpayX Payroll for employees<\/strong><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Upon making investments or incurring expenses under Section 80, employees should submit the respective proofs to their employers. This allows employers to deduct income tax (TDS) accordingly from employees\u2019 salary.<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">With India&#8217;s <a href=\"https:\/\/razorpay.com\/payroll\/\">best payroll software RazorpayX Payroll<\/a>, the whole process of <a href=\"https:\/\/razorpay.com\/learn\/how-to-make-tax-declaration-form12bb\/\" target=\"_blank\" rel=\"noopener noreferrer\">tax declaration<\/a> becomes seamless. Employees can enter details and upload supporting documents on the portal within a few clicks.<br \/>\n<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Once they submit the proofs, RazorpayX Payroll calculates their tax liability under the dual tax regime and helps them choose the better-off tax regime.\u00a0<\/span><\/p>\n<div style=\"text-align: center;\" data-speechify-sentence=\"\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/payroll\/?r=80-80c\" target=\"_blank\" rel=\"noopener noreferrer\">Try RazorpayX Payroll Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Deductions under Section 80 of the Income Tax Act can be claimed only if tax-saving investments are made, or eligible expenses are incurred.\u00a0<\/p>\n","protected":false},"author":151156469,"featured_media":3829,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3476,3404],"tags":[3486],"class_list":{"0":"post-3828","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll-glossary","8":"category-payroll","9":"tag-deductions"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156469"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=3828"}],"version-history":[{"count":11,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3828\/revisions"}],"predecessor-version":[{"id":6831,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3828\/revisions\/6831"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/3829"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=3828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=3828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=3828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}