In a financial year, we can save income tax by investing in LIC, health insurance, medical preventive checkup etc. But, while filing income tax return, we have to claim these expenditure and investments to get the tax benefit. If you have not declared at the start of financial year about these investments and tax has been deducted already, then you will get the refund for that.
There are many sections of income tax, which deal with income tax deductions and rebates, and so is the confusion or say lack of clarity. So, we have collected all the sections in a table as well as the individual details of each section to get better understandings.
Comparison of deduction and Rebates between OLD and NEW tax regime (FY 22-23):
| Section of Income Tax | OLD tax regime | NEW tax regime |
| Rebate under Section 87A | Rs. 5,00,000 | Rs. 5,00,000 |
| Standard Deduction | Rs. 50,000 | Nil |
| Savings – 80 C | Rs. 1,50,000 | Nil |
| Savings – NPS, Atal Pension Yojana | Rs. 50,000 | Nil |
| Home loan interest on home | Rs. 2,00,000 | Nil |
Comparison of deduction and Rebates between OLD and NEW tax regime (FY 23-24):
| Section of Income Tax | OLD tax regime | NEW tax regime |
| Rebate under Section 87A | Rs. 5,00,000 | Rs. 7,00,000 |
| Standard Deduction | Rs. 50,000 | Rs. 50,000 |
| Savings – 80 C | Rs. 1,50,000 | Nil |
| Savings – NPS, Atal Pension Yojana | Rs. 50,000 | Nil |
| Home loan interest on home | Rs. 2,00,000 | Nil |
Income tax Sections of deductions and rebates for Residents and Non-Residents in a single screenshot:
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FY 22-23 (AY 23-24) Income tax deductions and rebates table:
Here, Income tax Sections of deductions and rebates for Residents and Non-Residents are shown in a tabular format for easy reference and comparison among several sections of income tax.
| Sections of Income Tax | Description of Income Tax section | Remarks |
| Income tax Section 16(ia) | Standard Deduction of ₹ 50,000 | |
| Income tax Section 23 (1) | Local authority taxes paid by owner of house | |
| Income tax Section 24 (a) | 30 % of Annual value (Annual value = Gross annual – Local Authority taxes paid) | |
| Income tax Section 24 (b) | Interest on Home loan up to ₹ 30,000 / ₹ 200,000 | |
| Income tax Section 36(1)(xv) | Deduction for Securities Transaction Tax paid | |
| Income tax Section 80 C | LIC or other insurance premium payment (Husband, wife or Children) | Individual |
| Income tax Section 80 C | LIC or other insurance premium payment (Any member of HUF) | HUF |
| Income tax Section 80 C | Employees’ Provident Fund contribution | Individual |
| Income tax Section 80 C | Public Provident Fund contribution (Account in the name of Husband, wife or Children) | Both |
| Income tax Section 80 C | Approved superannuation fund contribution | Individual |
| Income tax Section 80 C | Sukanya Samriddhi Account Scheme contribution for girl child – Click to know more | Individual |
| Income tax Section 80 C | National Savings Certificates (VIII Issue) contribution | Individual |
| Income tax Section 80 C | unit-linked Insurance Plan of UTI contribution | Both |
| Income tax Section 80 C | Tuition fees to any institute in India, of any 2 children | Individual |
| Income tax Section 80 C | Payment Annuity plan of LIC or other Insurer. | Individual |
| Income tax Section 80 C | Equity Linked Saving Scheme Mutual Fund | Both |
| Income tax Section 80 C | Subscription to eligible equity shares or debentures by public financial institutions | Individual |
| Income tax Section 80 C | Term deposits for a fixed period of not less than 5 years with a scheduled bank | Both |
| Income tax Section 80 C | Subscription to bonds issued by the NABARD | Both |
| Income tax Section 80 C | Senior Citizen Savings Scheme contribution | Individual |
| Income tax Section 80 C | Post Office 5-year Time Deposit – Click to know more about interest rate | Individual |
| Income tax Section 80 C | Principal amount payment of a home loan | Both |
| Income tax Section 80 C | 5-year Tax Saving Fixed Deposit | Both |
| Income tax Section 80 CCC | Pension funds of LIC or any other insurer | Both |
| Income tax Section 80 CCD | pension scheme contribution like NPS, Atal Pension scheme. | |
| Income tax Section 80 CCD (1) | 1. Contribution by a Government, private employee or a self-employed individual. 2. Contribution up to 10% of basic + DA or 10 % of gross income and 20 % with maximum Rs. 1,50,000/- incase of self-employed individual. | By Employee. Applies to all citizens aged between 18 to 60 years |
| Income tax Section 80CCD (1b) | Additional Rs.50,000/- can be claimed for tax benefit with Rs. 1,50,000/- of 80C. | By Employee. Applies to all Government, private employee or a self-employed individual. |
| Income tax Section 80CCD (2) | But, deduction could not exceed 14% of salary where contribution is made by central government and 10% of salary, where contribution is made by any other employee. | Contribution by employer for NPS |
| Income tax Section 80CCF | Deduction of amount paid to long-term infrastructure bonds | Up to ₹ 20,000 only |
| Income tax Section 80 D | Health insurance premium payment by LIC or other insurer | |
| Income tax Section 80 D | preventive health check-up | Maximum ₹ 5,000 |
| Income tax Section 80 DD | Persons with Disabilities – Expenditures on nursing, medical, etc. | Maximum ₹ 75,000 |
| Income tax Section 80 DD | Persons with Severe Disabilities – Expenditures on nursing, medical etc. | Maximum ₹ 125,000 |
| Income tax Section 80 DDB | Expenses paid for medical treatment of specified diseases | |
| Income tax Section 80 E | Amount paid out of income for payment of interest on higher education loan taken from financial institution. | maximum period : 8 years |
| Income tax Section 80 EE | Deduction for Interest payable on loan taken to buy a residential house property | Maximum deduction ₹ 50,000 |
| Income tax Section 80 EEA | For those who are not eligible to claim under Section 80EE for Interest payable on loan taken to buy a residential house property | Maximum deduction ₹ 150,000 |
| Income tax Section 80 EEB | Deduction for the purpose of purchase of an electric vehicle | Maximum deduction ₹ 150,000 |
| Income tax Section 80 G | Donations to certain approved funds, trusts, charitable institutions / donations for renovation or repairs of notified temples. | 50 % of Amount |
| Income tax Section 80 G | Donations to PM CARES FUND, Prime Minister’s National Relief Fund, National Defence Fund, Chief Minister’s Relief Fund in states, Lt. Governor’s Relief Fund in UTs, National Children’s Fund, Army Central Welfare Fund, Indian Naval Benevolent Fund and Air Force Central Welfare Fund, National Sports Fund, National Cultural Fund, Indian Olympic Association etc. | 100 % of Amount |
| Income tax Section 80 GG | Donations for scientific, social, statistical research or rural development program or for project or scheme or National Urban Poverty Eradication Fund can be claimed for deduction under section 80GGA. | Up to ₹ 2,000 is allowed by cash |
| Income tax Section 80 GGB | Donations given to any political party or electoral trust. | No cash is allowed. |
| Income tax Section 80 GGC | Donations given to any political party or electoral trust. | No cash is allowed. |
| Income tax Section 80 QQB | Royalty income of author of certain specified category of books can be claimed | up to Rs. ₹ 3,00,000 |
| Income tax Section 80 RRB | Royalty income on patents | up to Rs. ₹ 3,00,000 |
| Income tax Section 80 TTA | Interest on deposits in savings bank accounts can be claimed. | up to ₹ 10,000 per year |
| Income tax Section 80 TTB | Interest on Fixed deposits can be claimed. | up to ₹ 50,000 per year |
| Income tax Section 80 U | 1. Who is ‘differently abled’ or disabled. | No need to spend or do payment for the disability. |
| Income tax Section 80 U | 2. Persons with Disabilities – Expenditures on nursing, medical, etc. | Maximum ₹ 75,000 |
| Income tax Section 80 U | Persons with Severe Disabilities – Expenditures on nursing, medical etc. | Maximum ₹ 125,000 |
| Income tax Section 87 A | Whose income is up to ₹ 5,00,000, Tax rebate will be given 100 % or an amount of Rs. 12,500, whichever is less. | Zero tax |
FY 22-23 (AY 23-24) Income tax deductions and rebates in ITR for Residents:
We do many types of investments, pay insurance premiums, pay health insurance premiums for our family and for our senior citizen parents, pay home loan interest and principal etc. So, for all these and many more transactions of expenditure and investments, we may get the relief from tax paying.
So, in this article, we shall see the list of deductions for Residents, on which we may get tax relief and how much we shall get the Income tax deductions.
Section 16(ia) of Income tax, India:
Standard Deduction of ₹ 50,000 or the amount of salary, whichever is lower is provided under the Section 16(ia). This deduction is against the salary of an individual salaried employee and pensioner.
Section 23 (1), 24 (a), 24 (b) : Income tax deduction against ‘Income from house properties’:
| Section | Deduction |
| Section 23 (1) | Local authority taxes paid by owner of house |
| Section 24 (a) | 30 % of Annual value (Annual value = Gross annual – Local Authority taxes paid) |
| Section 24 (b) | Interest on Home loan up to ₹ 30,000 / ₹ 200,000 |
Section 36(1) (xv) of Income tax, India:
Deduction for Securities Transaction Tax paid can be claimed if corresponding income is included as income under the head Profits and gains of business.
Section 80 C, Income tax deductions under section 80C:
Sub-Sections under 80C: Maximum amount elegible for deduction under 80C is ₹150,000.
Note : 80 C + 80 CCC + 80 CCD = ₹ 150,000 (Maximum)
| Schemes or Instruments | Individual / HUF |
| LIC or other insurance premium payment (Husband, wife or Children) | Individual |
| LIC or other insurance premium payment (Any member of HUF) | HUF |
| Employees’ Provident Fund contribution | Individual |
| Public Provident Fund contribution (Account in the name of Husband, wife or Children) | Both |
| Approved superannuation fund contribution | Individual |
| Sukanya Samriddhi Account Scheme contribution for girl child – Click to know more | Individual |
| National Savings Certificates (VIII Issue) contribution | Individual |
| unit-linked Insurance Plan of UTI contribution | Both |
| Tuition fees (excluding development fees, donations, etc.) to any institute in India, of any 2 children | Individual |
| Payment Annuity plan of LIC or other Insurer. | Individual |
| Equity Linked Saving Scheme Mutual Fund | Both |
| Subscription to eligible equity shares or debentures by public financial institutions | Individual |
| Term deposits for a fixed period of not less than 5 years with a scheduled bank | Both |
| Subscription to bonds issued by the NABARD | Both |
| Senior Citizen Savings Scheme contribution | Individual |
| Post Office 5-year Time Deposit – Click to know more about interest rate | Individual |
| Principal amount payment of a home loan | Both |
| 5-year Tax Saving Fixed Deposit | Both |
Section 80 CCC of Income tax, India:
Pension funds of LIC or any other insurer can be claimed under 80CCC deduction.
Section 80 CCD, 80CCD(1), 80CCD(1b), 80CCD(2) of Income tax, India:
Deduction under section 80CCD, 80CCD(1), 80CCD(1b), 80CCD(2) can be claimed by Individual only.
| Section of Income tax | How to claim |
| 80CCD | pension scheme contribution like NPS, Atal Pension scheme. |
| 80CCD(1) | 1. Contribution made by a Government employee, private employee or a self-employed individual. 2. Applies to all citizens aged between 18 to 60 years. 3. In this section, contribution can be to 10% of basic + DA or 10 % of gross income and 20 % with maximum Rs. 1,50,000/- incase of self-employed individual. |
| 80CCD(1b) | 1. Additional Rs.50,000/- can be claimed for tax benefit with Rs. 1,50,000/- of 80C. 2. Applies to all Government employee, private employee or a self-employed individual. |
| 80CCD(2) | Contribution made by employer for NPS. However, amount of deduction could not exceed 14% of salary where contribution is made by central government and 10% of salary, where contribution is made by any other employee. |
Section 80 CCF of Income tax, India:
Deduction of amount up to ₹ 20,000 paid to long-term infrastructure bonds can be availed under section 80CCF.
Section 80 D of Income tax, India:
| Health insurance premium payment by LIC or other insurer | |
| preventive health check-up | Maximum ₹ 5,000 |
Section 80 DD of Income tax, India:
Deduction for expenditures of dependent family member like child, spouse, parent with disabilities can be claimed in income tax return.
- Persons with Disabilities means 40% or more of the eligible disability .
- Persons with Severe Disabilities means 80% or more of the eligible disability .
| Persons with Disabilities – Expenditures on nursing, medical, etc. | Maximum ₹ 75,000 | Resident Individual / HUF |
| Persons with Severe Disabilities – Expenditures on nursing, medical etc. | Maximum ₹ 125,000 | Resident Individual / HUF |
Section 80 DDB of Income tax, India:
Expenses paid for medical treatment of specified diseases and ailments for Resident Individual / HUF can be claimed under Section 80DDB.
Section 80 E of Income tax, India:
Deduction under Section 80 E can be claimed for amount paid out of income for payment of interest on higher education loan taken from financial institution (maximum period : 8 years)
Section 80 EE of Income tax, India:
Deduction under Section 80 EE can be claimed for Interest payable on loan taken to buy a residential house property by an individual from any financial institution (Maximum deduction ₹ 50,000).
Section 80 EEA of Income tax, India:
Deduction under Section 80EEE can be claimed for those who are not eligible to claim under Section 80EE for Interest payable on loan taken to buy a residential house property by an individual from any financial institution (Maximum deduction ₹ 150,000).
Section 80 EEB of Income tax, India:
Deduction under Section 80EEB can be claimed for the purpose of purchase of an electric vehicle by an individual from any financial institution (Maximum deduction ₹ 150,000).
Section 80 G of Income tax, India:
Under section 80G, donations to below mentioned funds can be claimed for deduction.
| 50 % of Amount – Donations to certain approved funds, trusts, charitable institutions/donations for renovation or repairs of notified temples. |
| 100 % of Amount – Donations to PM CARES FUND, Prime Minister’s National Relief Fund, National Defence Fund, Chief Minister’s Relief Fund in states, Lt. Governor’s Relief Fund in UTs, National Children’s Fund, Army Central Welfare Fund, Indian Naval Benevolent Fund and Air Force Central Welfare Fund, National Sports Fund, National Cultural Fund, Indian Olympic Association etc. |
Section 80 GG of Income tax, India::
Rent paid in excess of 10% of total income for furnished / unfurnished residential accommodation can be claimed under section 80GG, but up to Rs. 5,000 per month or 25% of total income, whichever is less.
Section 80 GGA of Income tax, India::
Donations for scientific, social, statistical research or rural development program or for project or scheme or National Urban Poverty Eradication Fund can be claimed for deduction under section 80GGA. But, up to ₹ 2,000 is allowed by cash mode.
Section 80 GGB, 80 GGC of Income tax, India::
Donations given to any political party or electoral trust can be claimed under Section 80GGB and 80GGC, but no cash payment is allowed.
Section 80 QQB of Income tax, India:
Under the section 80QQB, on the Royalty income of author of certain specified category of books (up to Rs. ₹ 3,00,000) can be claimed. It can be availed only by Resident Individual.
Section 80 RRB of Income tax, India:
Under the section 80RRB, on the Royalty income on patents (up to Rs. ₹ 3,00,000) can be claimed. It can be availed only by Resident Individual.
Section 80 TTA of Income tax, India:
Under the Section 80TTA, the interest on deposits in savings bank accounts (up to ₹ 10,000 per year) can be claimed.
Section 80 TTB of Income tax, India:
Under the Section 80TTB, the interest on Fixed deposits (up to ₹ 50,000 per year) can be claimed.
Section 80 U of Income tax, India:
This section 80U is for resident individual taxpayer, who is ‘differently abled’ or disabled. There is no need to spend or do payment for the disability. He just has to provide the certificate from medical authority and claim the deduction in income tax return.
- Persons with Disabilities means 40% or more of the eligible disability .
- Persons with Severe Disabilities means 80% or more of the eligible disability .
| Persons with Disabilities – Expenditures on nursing, medical, etc. | Maximum ₹ 75,000 | Resident Individual / HUF |
| Persons with Severe Disabilities – Expenditures on nursing, medical etc. | Maximum ₹ 125,000 | Resident Individual / HUF |
Difference between Section 80 DD and Section 80 U of Income tax, India:
- Both are related to deduction for disability and severe disability.
- But where Section 80 DD is relief for the expenditures incurred on relatives of disabled taxpayer,
- Section 80 U is relief directly given to the disabled taxpayer only, without even spending any expenditure on his health.
Income tax Rebate under Section 87 A:
For the person whose income is up to ₹ 5,00,000, Tax rebate will be given 100 % or an amount of Rs. 12,500, whichever is less. Means, S / he does not need to pay a single rupee to income tax department.
Income tax deduction calculator from Income tax department, India:
Here is the official link of Income tax department, where you have to select different types of deduction, and it will calculate the amount eligible for income tax deduction. Income tax deduction calculator
FY 22-23 (AY 23-24) Income tax deductions and rebates in ITR for Non – Resident Indian:
For a resident Indian, income earned from India or outside will be taxable in India. But, for Non- Resident Indian, income earned from outside India, would not be taxable in India. (Source:www.incometaxindia.gov.in)
| Income type | Earned Income taxable in India or Not? |
| Income earned or to be earned in India | Taxable |
| Income received or to be received in India | Taxable |
| Income earned outside India controlled from India | Not taxable |
| Income earned, which has no relation with India | Not taxable |
Non-resident meaning or who is non-resident in India?
Section 2(30) of Income tax rule says that “non-resident” means a person who is not a “resident”, and for the purposes of sections 92 (Computation of income from international transaction having regard to arm’s length price), 93 (Avoidance of income-tax by transactions resulting in transfer of income to non-residents) and 168, includes a person who is not ordinarily resident within the meaning of clause (6) of section 6.
Income tax Section 6, clause (6) for Non-resident:
A person is said to be “not ordinarily resident” in India in any previous year if such person is—
(a) an individual who has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less; or
(b) a Hindu undivided family whose manager has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less or
(c) a citizen of India, or a person of Indian origin, having total income, other than the income from foreign sources (Income earned outside India, excluding earned by business controlled from India), exceeding fifteen lakh rupees during the previous year, as referred to in clause (b) of Explanation 1 to clause (1), who has been in India for a period or periods amounting in all to one hundred and twenty days or more but less than one hundred and eighty-two days; or
(d) a citizen of India who is deemed to be resident in India under clause (1A).
Income tax Exemptions, Allowances available to Salaried Persons:
| 10(13A) | House Rent Allowance | Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras) c) Rent paid minus 10% of salary * Salary= Basic + DA (if part of retirement benefit) + Turnover based Commission |
| 10(14) | Children Education Allowance | Up to Rs. 100 per month per child up to a maximum of 2 children is exempt. |
| 10(14) | Hostel Expenditure Allowance | Up to Rs. 300 per month per child up to a maximum of 2 children is exempt. |
| 10(14) | Conveyance Allowance, Allowance granted to meet the cost of travel on tour or on transfer, Daily Allowance | Fully Exempt |
Retirement Benefits, Income Tax exemptions on received amount (Salaried):
| 10 (10AA) | Leave Encashment | Encashment of unutilized earned leave at the time of retirement (Government employees) | Fully Exempt |
| 10 (10AA) | Leave Encashment | Encashment of unutilized earned leave at the time of retirement (Non-Government employee) | Least of the following shall be exempt from tax: a) Amount actually received b) Unutilized earned leave* X Average monthly salary c) 10 months Average Salary** d) Rs. 3,00,000 |
| 10(10)(i) | Gratuity | Gratuity received by Government Employees | Fully Exempt |
| 10(10)(ii) | Gratuity | Death-cum-Retirement Gratuity received by Non-Government employees (covered under Gratuity Act, 1972) | Least of following amount is exempt from tax: 1. (*15/26) X Last drawn salary** X completed year of service or part thereof in excess of 6 months. 2. Rs. 20,00,000 3. Gratuity actually received. |
| 10(10)(iii) | Gratuity | Death-cum-Retirement Gratuity received by Non-Government employees (NOT covered under Gratuity Act, 1972) | Least of following amount is exempt from tax: 1. Half month’s Average Salary* X Completed years of service 2. Rs. 20,00,000 3. Gratuity actually received. |
| 10(10A)(i) | Pension | Commuted Pension received by an employee Central Government, State Government, Local Authority Employees and Statutory Corporation | Fully Exempt |
| 10(10A)(ii) | Pension | Commuted Pension received by other employees who also receive gratuity | 1/3 of full value of commuted pension will be exempt from tax |
| 10(10A)(iii) | Pension | Commuted Pension received by other employees who do not receive any gratuity | 1/2 of full value of commuted pension will be exempt from tax |
| 10(19) | Pension | Family Pension received by the family members of Armed Forces | Fully Exempt |
| 57(iia) | Pension | Family pension received by family members in any other case | 33.33% of Family Pension subject to maximum of Rs. 15,000 shall be exempt from tax |
| 10(10C) | Voluntary Retirement | Amount received on Voluntary Retirement | Least of the following is exempt from tax: 1) Actual amount received as per the guidelines i.e. least of the following a) 3 months salary for each completed year of services b) Salary at the time of retirement X No. of months of services left for retirement; or 2) Rs. 5,00,000 |
Disclaimer: Kindly check official website for any clarifications