Deduction under section 80C,80CCC,80CCD,80TTA,80GG,80E

1. Section 80C Deductions on Investments

An assessee can claim a deduction of Rs 1.5 lakhs under section 80C. In simple terms, an assessee can reduce up to Rs. 1.5 lakh from total taxable income and this deduction is available only for individuals and Hindu Undivided Family(HUF).

2. Section 80CCC – Deduction for Premium Paid for Annuity Plan of Life Insurance Corporation(LIC) or Other Insurer

Under Section 80CCC an individual can claim a deduction for the amount paid or deposited in any annuity plan of Life Insurance Corporation(LIC) or any other insurer. The plan must be for receiving a pension from a fund referred to in Section 10(23AAB) of the Income Tax Act,1961. Amount of pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus, is taxable in the year of receipt.  

3. Section 80CCD Deduction for Contribution to Pension Account

a. Employee’s contribution under Section 80CCD (1)

An assessee can claim a deduction if he has deposited in a pension account. The maximum amount of deduction an assessee can avail is:

1. 10% of salary (in case the taxpayer is an employee) or 
2. 20% of gross total income (in case the taxpayer being self-employed) or Rs 1.5 lakh – whichever is less.

b. Deduction for self-contribution to NPS section 80CCD (1B) 

Section 80CCD (1B) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by an assessee to the NPS account.

c. Employer’s contribution to NPS – Section 80CCD (2) 

An assessee can claim additional deduction on contribution to employee’s pension account for up to 10% of your salary.

4. Section 80 TTA Deduction from Gross Total Income for Interest on Savings Bank Account

An individual or HUF can claim a deduction of 10,000 against interest income from a savings account with a bank, co-operative society, or post office.

5. Section 80GG Deduction for House Rent Paid Where HRA is not Received

1. Section 80GG deduction is available for the amount paid as rent when House Rent Allowance(HRA) is not received by the employee. An assessee, his spouse, or minor child should not own residential accommodation at the place of employment.
2. The assessee should not have a self-occupied residential property in any other place
3. The assessee must be living on rent and paying rent.
4. A deduction is available to all individuals.

Deduction available is lower of the following:

1. Rent paid less 10% of adjusted total income
2. Rs. 5,000/- per month
3. 25% of the adjusted total income

6. Section 80E Deduction for Interest on Education Loan for Higher Studies

A deduction is allowed to an individual for interest paid on loans taken to pursue higher education. This loan may be taken by assessee for himself, spouse, or children or for a student for whom the assessee is a legal guardian.

Deduction under section 80E is available for a maximum of 8 years (beginning the year in which the interest starts getting repaid) or till the entire interest is repaid, whichever is earlier.