FY 2020-21 Income tax Sections of deductions and rebates for Resident and Non-Resident Indian

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.

Income tax Sections of deductions and rebates for Residents and Non-Residents in a single screenshot:

Income tax Sections of deductions and rebates for Residents and Non-Residents
Income tax Sections of deductions and rebates for Residents and Non-Residents

Also Read: Year 2021 Govt., Bank, State Govts., PSUs, Supreme court, NSE-BSE-MCX Public, Restricted, commercial holidays list

FY 2020-21 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 TaxDescription of Income Tax sectionRemarks
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 CLIC or other insurance premium payment (Husband, wife or Children)Individual
Income tax Section 80 CLIC or other insurance premium payment (Any member of HUF)HUF
Income tax Section 80 CEmployees’ Provident Fund contributionIndividual
Income tax Section 80 CPublic Provident Fund contribution (Account in the name of Husband, wife or Children)Both
Income tax Section 80 CApproved superannuation fund contributionIndividual
Income tax Section 80 CSukanya Samriddhi Account Scheme contribution for girl child – Click to know moreIndividual
Income tax Section 80 CNational Savings Certificates (VIII Issue) contributionIndividual
Income tax Section 80 Cunit-linked Insurance Plan of UTI contributionBoth
Income tax Section 80 CTuition fees to any institute in India, of any 2 childrenIndividual
Income tax Section 80 CPayment Annuity plan of LIC or other Insurer.Individual
Income tax Section 80 CEquity Linked Saving Scheme Mutual FundBoth
Income tax Section 80 CSubscription to eligible equity shares or debentures by public financial institutionsIndividual
Income tax Section 80 CTerm deposits for a fixed period of not less than 5 years with a scheduled bankBoth
Income tax Section 80 CSubscription to bonds issued by the NABARDBoth
Income tax Section 80 CSenior Citizen Savings Scheme contributionIndividual
Income tax Section 80 CPost Office 5-year Time Deposit – Click to know more about interest rateIndividual
Income tax Section 80 CPrincipal amount payment of a home loanBoth
Income tax Section 80 C5-year Tax Saving Fixed DepositBoth
Income tax Section 80 CCCPension funds of LIC or any other insurerBoth 
Income tax Section 80 CCDpension 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 80CCFDeduction of amount paid to long-term infrastructure bondsUp to ₹ 20,000 only
Income tax Section 80 DHealth insurance premium payment by LIC or other insurer 
Income tax Section 80 Dpreventive health check-upMaximum ₹ 5,000
Income tax Section 80 DDPersons with Disabilities – Expenditures on nursing, medical, etc.Maximum ₹ 75,000
Income tax Section 80 DDPersons with Severe Disabilities – Expenditures on nursing, medical etc.Maximum ₹ 125,000
Income tax Section 80 DDBExpenses paid for medical treatment of specified diseases 
Income tax Section 80 EAmount paid out of income for payment of interest on higher education loan taken from financial institution.maximum period : 8 years 
Income tax Section 80 EEDeduction for Interest payable on loan taken to buy a residential house propertyMaximum deduction ₹ 50,000
Income tax Section 80 EEAFor those who are not eligible to claim under Section 80EE for Interest payable on loan taken to buy a residential house propertyMaximum deduction ₹ 150,000
Income tax Section 80 EEBDeduction for the purpose of purchase of an electric vehicleMaximum deduction ₹ 150,000
Income tax Section 80 GDonations to certain approved funds, trusts, charitable institutions / donations for renovation or repairs of notified temples.50 % of Amount
Income tax Section 80 GDonations 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 GGDonations 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 GGBDonations given to any political party or electoral trust.No cash is allowed.  
Income tax Section 80 GGCDonations given to any political party or electoral trust.No cash is allowed. 
Income tax Section 80 QQBRoyalty income of author of certain specified category of books can be claimedup to Rs. ₹ 3,00,000 
Income tax Section 80 RRBRoyalty income on patentsup to Rs. ₹ 3,00,000 
Income tax Section 80 TTAInterest on deposits in savings bank accounts can be claimed.up to ₹ 10,000 per year 
Income tax Section 80 TTBInterest on Fixed deposits can be claimed.up to ₹ 50,000 per year  
Income tax Section 80 U1. Who is ‘differently abled’ or disabled. No need to spend or do payment for the disability.
Income tax Section 80 U2. Persons with Disabilities – Expenditures on nursing, medical, etc.Maximum ₹ 75,000
Income tax Section 80 UPersons with Severe Disabilities – Expenditures on nursing, medical etc.Maximum ₹ 125,000
Income tax Section 87 AWhose 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 
Summary of FY 2020-21 Income tax deductions and rebates table

FY 2020-21 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’:

SectionDeduction
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
Income tax deduction against ‘Income from house properties’

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 InstrumentsIndividual / 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 contributionIndividual
Sukanya Samriddhi Account Scheme contribution for girl child – Click to know moreIndividual
National Savings Certificates (VIII Issue) contributionIndividual
unit-linked Insurance Plan of UTI contributionBoth
Tuition fees (excluding development fees, donations, etc.) to any institute in India, of any 2 childrenIndividual
Payment Annuity plan of LIC or other Insurer.Individual
Equity Linked Saving Scheme Mutual FundBoth
Subscription to eligible equity shares or debentures by public financial institutionsIndividual
Term deposits for a fixed period of not less than 5 years with a scheduled bankBoth
Subscription to bonds issued by the NABARDBoth
Senior Citizen Savings Scheme contributionIndividual
Post Office 5-year Time Deposit – Click to know more about interest rateIndividual
Principal amount payment of a home loanBoth
5-year Tax Saving Fixed DepositBoth
Income tax deductions under section 80C

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 taxHow to claim
80CCDpension 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 CCD of Income tax, India:

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-upMaximum ₹ 5,000
Section 80 D of Income tax, India:

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.

  1. Persons with Disabilities means 40% or more of the eligible disability .
  2. Persons with Severe Disabilities means 80% or more of the eligible disability .
Persons with Disabilities – Expenditures on nursing, medical, etc.Maximum ₹ 75,000Resident Individual / HUF
Persons with Severe Disabilities – Expenditures on nursing, medical etc.Maximum ₹ 125,000Resident Individual / HUF
Section 80 DD of Income tax, India

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 G of Income tax, India

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.

  1. Persons with Disabilities means 40% or more of the eligible disability .
  2. Persons with Severe Disabilities means 80% or more of the eligible disability .
Persons with Disabilities – Expenditures on nursing, medical, etc.Maximum ₹ 75,000Resident Individual / HUF
Persons with Severe Disabilities – Expenditures on nursing, medical etc.Maximum ₹ 125,000Resident Individual / HUF
Section 80 U of Income tax, India

Difference between Section 80 DD and Section 80 U of Income tax, India:

  1. Both are related to deduction for disability and severe disability.
  2. But where Section 80 DD is relief for the expenditures incurred on relatives of disabled taxpayer,
  3. 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 2020-21 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 typeEarned Income taxable in India or Not?
Income earned or to be earned in IndiaTaxable
Income received or to be received in IndiaTaxable
Income earned outside India controlled from IndiaNot taxable
Income earned, which has no relation with IndiaNot taxable
Tax in case of Non-residents for different types of Incomes

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).

Computation of period of stay for crew persons of ship:

Income tax Section 126. (1):

For the purposes of clause (1) of section 6, in case of an individual, being a citizen of India and a member of the crew of a ship, the period or periods of stay in India shall, in respect of an eligible voyage, not include the period computed in accordance with sub-rule (2).

(2) The period referred to in sub-rule (1) shall be the period beginning on the date entered into the Continuous Discharge Certificate in respect of joining the ship by the said individual for the eligible voyage and ending on the date entered into the Continuous Discharge Certificate in respect of signing off by that individual from the ship in respect of such voyage.

Explanation : For the purposes of this rule —

a. “Continuous Discharge Certificate” shall have the meaning assigned to it in the Merchant Shipping (Continuous Discharge Certificate-cum-Seafarer’s Identity Document) Rules, 2001 made under the Merchant Shipping Act, 1958 (44 of 1958);

b. “eligible voyage” shall mean a voyage undertaken by a ship engaged in the carriage of passengers or freight in international traffic where—

  1. for the voyage having originated from any port in India, has as its destination any port outside India; and,
  2. for the voyage having originated from any port outside India, has as its destination any port in India.

Income exempt from tax for a Non-resident Indian (NRI):

Following incomes are exempt from tax of a Non-resident Indian (NRI) –

1) Interest on notified savings certificates issued before 01-06-2002 by the Central Government if it is subscribed in convertible foreign exchange remitted from a country outside India [section 10(4B)]

10(4B) Income tax Sections for Non-Resident Indian
10(4B) Income tax Sections for Non-Resident Indian

2) Interest on notified bonds (notified prior to 01-06-2002) purchased in foreign exchange (subject to certain conditions) [section 10(15)(iiad)​]​

Disclaimer: Kindly check official website for any clarifications

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