You can save income tax for the investments and donations made in the financial year 2023-24. The way is by claiming deduction under Sections 80C,80CCC, 80CCD, 80D, 80G and 80GGA.
Only few days are left to do such investment or donation. This blog explores more about this.
Section 80C:
This is applicable only for individuals and HUFs.
It allows to claim a maximum deduction of Rs. 1,50,000 for the investments made in :-
- Equity Linked Savings Scheme [ELSS],
- Public Provident Fund, Recognized Provident Fund [PPF]
- Senior citizens Savings Scheme
- Tax saving FD for 5 years
- Sukanya Samriddhi Yojana [SSY]
- Unit Linked insurance plan of LIC mutual fund,
- National Savings Certificate [NSC]
- Subscription to units of mutual funds,
- 5 year deposit in Post Office Recurring Deposits [PORD]
- Payments to LIC premium,
- Principal sum of home loan, etc..
Section 80CCC:-
It provides deduction upto Rs. 1,50,000 per annum for the contribution made by an individual towards specified pension funds offered by a Life Insurance Policy.
Section 80CCD:-
It is applicable for the :
- payment made towards Atal Pension Yojana[APY]or other pension schemes notified by government
- for contribution to NPS
- Investment in NPS by self-employed
The amount eligible for deduction in case of APY is:
- If the person is employed then 10% basic salary +Dearness allowance
- If the person is self-employed 20% of gross total income
The amount eligible for deduction for NPS by employee is :
- In employee contribution 1.5 lac Rs. is maximum deduction
- For employer's contribution 10% if basic salary is deductible [for government employees it is 14%],
For self-employed Rs. 50,000 is maximum limit for claiming deduction.
Section 80D:
This Section is applicable only for individuals and HUFs. Under this section, deduction upto Rs. 25,000 [paid for self,spouse, dependent children or parents]can be claimed on health insurance premiums paid in a financial year. For senior citizens above 60 years of age and above, the deduction limit is Rs. 50,000 per fiscal year.
Deduction upto Rs 5,000 can be claimed for self, spouse, dependent children or parents. Resident senior citizens of age 60 and above can claim a deduction upto Rs 50,000 on the medical expenses incurred.
Individuals can claim a deduction of Rs 25,000 for contribution made by them to Central Government Health Scheme [CGHS].
Section 80G:
The contribution made by individuals to eligible charitable institutions or trusts or other prescribed funds can be claimed as deduction under this Sections. Individuals are also eligible to claim deduction under this Section.
Payment can be made using cheque, demand draft or electronic mode for being eligible for 50% or 100% deduction as the case may be.
However if the donations are made in cash mode, only donations below Rs 2,000 would qualify for the deduction.
Section 80GGA:
It allows deductions for the donations made towards scientific research or rural development.
Cash donations above Rs 2,000 are not eligible for deductions. Contributions made in any other modes [cheques,DD, etc] would qualify for 100% deduction.
Note:
All these deductions are applicable only for old regime.
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