Thread by @CAYogesh4u

Are you tired of paying too much tax? If so, you're not alone.

Check out this comprehensive list of available deductions to taxpayers! 🧵
#TaxPlanning #Taxsavings

All in one Page!

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It is crucial that individuals plan their finances ahead keeping these options open so that they do not end up paying more taxes than necessary every year.

The majority of these deductions are allowed if you choose Old Tax Regime!

Let's start👇

▶️ 80C:

Most popular tax deduction. Taxpayers can claim deductions of up to Rs. 1.5 lakh (Including all) :

- Employee Provident Fund (EPF)
- PPF, NSC
- Equity Linked Saving Scheme (ELSS)
- Life Insurance Premiums
- Home Loan Premium
- Tuition Fees
- Sukanya Samriddhi

▶️ 80CCC:

The maximum deduction allowed under this section is Rs. 1.5 lakh in FY.

For contributions made towards pension plans offered by insurance companies.

▶️ 80CCD (1):

Maximum deduction allowed under this Rs. 1.5 Lakhs in FY.

Employee contributions made towards the National Pension System (NPS)

In short, 80C + 80CCC+ 80CCD(1)= maximum upto Rs. 1.5 Lakhs in FY.

▶️ 80CCD(1B):

Deduction for the additional contribution made towards NPS, over and above the limit of 80CCD(1).

The maximum deduction allowed under this section is ₹50,000.

▶️ 80CCD (2):
If your employer contributes to your NPS account, you can claim a deduction for the amount contributed by the employer, up to 10% (other) or 14 % (Govt)of your (Basic +DA) salary.

Allowed New Tax Regime as well.

▶️ 80D:

A medical insurance premium is paid for self, spouse, and dependent children.

The maximum deduction is ₹25,000, and for senior citizens, it's ₹50,000.

Additional deduction up to Rs. 50,000 is available for premiums paid for parents who are senior citizens.

▶️ 80DD:

Taxpayers who have "dependents" with disabilities can claim deductions under Section 80DD for expenses incurred on their medical treatment and maintenance.

Depending on the severity of a disability, taxpayers can claim up to Rs. 75,000 or Rs. 1.25 lakh per FY.

▶️ 80DDB:

Taxpayers can claim deductions for expenses incurred on the treatment of specified illnesses like cancer and chronic kidney disease among others for themselves or their dependents.

The deduction limit ranges from Rs.40,000 to Rs.1 lakh based on age and illness type.

▶️ 80E:

Individuals availing education loans for higher education purposes are eligible to claim a deduction under this section

The deduction is available for a maximum of 8 years for the entire interest amount.

Loan for self, spouse, child or student of whom you are LG.

▶️ 80EE:

Allows individuals to claim the deduction for interest paid up to 50K on the home loan taken for the first residential house. Deduction over and above 2 Lakhs under HP.

Loan sanctioned between 1st Apr 16 to 31st Mar 17.
Loan Amt<=35 Lakhs
House Value <=50 Lakhs

▶️80EEA:

Additional deduction for interest paid on a home loan taken under affordable housing. The maximum deduction allowed is ₹1.5 lahks over and above 2 lakhs under HP

Loan sanction between 1st Apr 19 to 31st Mar 22.
Stamp duty Value <=45 Lakhs
Not claimed under 80EE.

▶️ 80EEB:

Deduction for interest paid on loans taken to purchase an electric vehicle. The deduction is available up to ₹1.5 lahks.

The sanction date of the loan should be between 1st April 2019 to 31st March 2023.

Read more here 👇

https://twitter.com/CAYogesh4u/status/1638510333420777472?s=20

▶️ 80G:

Deduction to the tax-payers on donations made to charitable institutions and specified trusts / certain funds, etc

Some donations are allowed a 100% deduction while some have a limit of 50%. (With Qualifying Limit or Without Qualifying)

In cash is allowed Rs. 2K.

▶️ 80GG:

Deduction for rent paid for accommodation. The deduction is allowed to taxpayers who do not receive any HRA from their employer.

Maximum deduction of 60K for a year. Need to file form 10BA with ITR.

▶️ 80GGA:

Deduction for donations to Scientific Research or Rural Development without any limit.

Section 80GGC:
Deduction for donations to any political party or an electoral trust without any limit.

Not allowed in Cash.

▶️ 80QQB:

Deduction from royalty income of authors allowed lower of 3 Lakhs or a royalty income received.

▶️ Section 80RRB:

Deduction from royalty income of patent (registered on or after 1.4.2003) allowed lower of 3 Lakhs or a royalty income received.

▶️ 80TTA:

Deduction on interest income on deposits in "Savings Bank Accounts" of Banks, Co-Operatives Banks, or Post Offices.

Maximum up to 10K in a year.

Individuals (other than senior citizens) can claim this deduction.

▶️ 80TTB:

Deduction of interest income from deposits held by resident senior citizens (age 60 years or more) with a banking company, a post office, a cooperative, a society engaged in the banking business, etc.

Maximum up to Rs.50k in a year.

▶️ 80U:

A resident individual is a person with a disability (certified by govt doctor) who can claim up to Rs.75k or 1.25 lakhs (depending on severity) as a deduction.

It's fixed deduction & not dependent on actual expenses. Disabilities like Blindness, Low vision, mental ill

🚨Disclaimer-
This list is for education and reference only. There are several conditions attached to each section, do consult your advisor before taking any decision.

It's a humble attempt to educate people. Please do not hesitate to correct me if there are any mistakes.

⭐️Conclusion:

Taking advantage of various tax-saving options is crucial when it comes down to reducing tax liability without breaking any laws/regulations set forth by @IncomeTaxIndia while filing returns.

Please share your questions in the comments will try to answer them!

Please follow me @CAYogesh4u for more such content!

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