The deductions under various sections can reduce your income tax substantially. Find out what are the tax deductions available and how you can avail them.
| SECTIONS | WHO CAN CLAIM | YOU HAVE TO... | MAX DEDUCTION* |
| 80C | All taxpayers | Invest in PF, PPF, NSCs, bank FDs (over 5 years), insurance policies, Ulips, pension plans and ELSS funds. Also covers kids’ school fees and repayment of home loan | Rs 1 lakh |
| 80D | All taxpayers, HUFs | Buy a medical insurance policy | Rs 15,000; Rs 5,000 more for senior citizens |
| 80DD | Resident taxpayers, HUFs | Pay for maintenance of a dependent suffering from a specified disability | Rs 50,000; Rs 25,000 more if disability severe |
| 80DDB | Resident taxpayers, HUFs | Pay for medical treatment of a dependent suffering from a specified disease | Rs 40,000; Rs 20,000 more for senior citizen |
| 80U | Resident taxpayers | Suffer from a specified disability | Rs 50,000 (Rs 75,000 in case of severe disability) |
| 80E | All individual taxpayers | Take a loan for higher education | Interest fully deductible |
| 80G | All taxpayers | Donate to specified charitable institutions | 50-100% of donation depending on income and the charity’s credentials |
| 10 (13A) | Salaried taxpayers | Live in a rented house | Least of: HRA; rent less 10% salary; 50% salary (40% in non-metros) |
| 24 (B) | All taxpayers | Take a home loan to buy, construct a house | Rs 1.5 lakh |
| NRIs and expatriates not included in resident taxpayers category | *Annual deductions | |||
CALCULATE YOUR TAXABLE INCOME
[Your gross income (including income from salary, business or profession, interest, short-term capital gains from assets other than stocks and equity funds, and rent)] MINUS [Any of the deductions from the table given above] IS EQUAL TO [Your taxable income for the year]
MALES
| ANNUAL INCOME | TAX (INCLUDING CESS, SURCHARGE) | AFTER 80C, 80D DEDUCTIONS | SAVINGS |
| Rs 2 lakh | 14,120 | Nil | 14,120 |
| Rs 3 lakh | 40,170 | 11,330 | 28,840 |
| Rs 5 lakh | 1,01,970 | 66,435 | 35,535 |
| Rs 11 lakh | 3,16,107 | 2,77,018 | 39,089 |
INCOME AND TAX RATE
First Rs 1.1 lakh: Nil | Next Rs 40,000: 10% | Next Rs 1 lakh: 20% | Above Rs 2.5 lakh: 30%
FEMALES
| ANNUAL INCOME | TAX (INCLUDING CESS, SURCHARGE) | AFTER 80C, 80D DEDUCTIONS | SAVINGS |
| Rs 2.5 lakh | 21,115 | Nil | 21,115 |
| Rs 4 lakh | 67,465 | 31,930 | 35,535 |
| Rs 10 lakh | 2,52,865 | 2,17,330 | 35,535 |
| Rs 11 lakh | 3,12,141 | 2,73,052 | 39,089 |
INCOME AND TAX RATE
First Rs 1.45 lakh: Nil | Next Rs 5,000: 10% | Next Rs 1 lakh: 20% | Above Rs 2.5 lakh: 30%
SENIOR CITIZENS (ABOVE 65)
| ANNUAL INCOME | TAX (INCLUDING CESS, SURCHARGE) | AFTER 80C, 80D DEDUCTIONS | SAVINGS |
| Rs 2 lakh | 1,030 | Nil | 1,030 |
| Rs 4 lakh | 57,680 | 20,600 | 37,080 |
| Rs 5 lakh | 88,580 | 51,500 | 37,080 |
| Rs 11 lakh | 3,12,141 | 2,61,723 | 39,655 |
INCOME AND TAX RATE
First Rs 1.95 lakh: Nil | Next Rs 55,000: 20% | Above Rs 2.5 lakh: 30%
DATES TO REMEMBER
31 March: Last date for making all tax saving investments and deductible expenses for the financial year
31 July: Last date for filing of tax return by salaried individuals and professionals
15 September: First instalment of advance income tax (30% of advance tax payable)
31 October: Last date for filing income tax returns by assessees who are liable to get their accounts audited. This applies to individuals and HUFs engaged in partnership firms or sole proprietorships and professionals under certain specified conditions
15 December: Second instalment of advance income tax (30% of the advance tax payable)
15 March: Third instalment of advance income tax (balance of advance tax payable)
