Chapter VI A deductions – Individuals

Eligible Assessee: Individual/HUF

Max Deduction under this section: 1,50,000

Eligible investments:

S. No	Type of investment	Additional notes	Documents required to claim the deduction
1	Life insurance premium paid to any insurance company.	Policy taken on or after 01.04.2013  Premium can be paid for the benefit of self, spouse, or children in respect of the individual. Premium can be paid for the benefit of any member in respect of HUF.  In the case of a normal person  Premium paid (or) 10% of policy amount (whichever is lower). In case of a person suffering from disease or disability Premium paid (or) 15% of policy amount (whichever is lower).	1. Policy document 2. Premium receipt
2	Public provident fund	Investment in PPF can be for the benefit of self, spouse children in respect of individual  Investment in PPF can be for the benefit of any member in respect of HUF.	1. Payment receipt 2. PPF statement for the current year
3	Investment in national savings certificate & interest thereon		1. Savings certificate 2. Proof of payment for the current year
4	Repayment of housing loan.	Only the principal portion of EMI is allowed as a deduction under this section.	1. Loan document 2. EMI payment receipt 3. Loan statement for the current period
5	Fixed deposit in scheduled bank (or) post office	Amount to be deposited for 5 years or more	1. Advice/receipt
6	Tuition fees paid for the education of children	Deduction allowed in respect of 2 children only Deduction only in respect of the education of INDIA  Does not include payment of a donation for securing a seat	1.       Fee receipt
7	Deposit in senior citizen savings scheme		1.       Deposit advice/receipt.
8	Deposit in Sukanya Samirdhi scheme		1. Deposit advice 2. Sukanya samirdhi deposit statement for the year.
9	Stamp duty, registration fees for the purchase of house property	Actual payment made for expenses: Stamp duty Registration charges Other expenses directly related to the purchase of a property.	Proof of actual payment.
10	Investment in units of UTI/ Mutual fund	Investments in Equity-linked saving schemes (ELSS) qualify for a tax deduction under this head.	Investment documents.
11	Investment in pension fund of UTI/ Mutual fund		Investment documents.

Eligible Assessee: Individual.

Maximum limit: Rs.1,50,000.

Eligible Assessee: Individual.

• Section 80CCD (1): Employee/Assessee contribution to the NPS

Amount of Deduction:

• In respect of salaried individual – Employee contribution or 10% of salary (whichever is lower)
• Others – Assessee contribution or 20% of Gross Total Income (GTI) (whichever is lower).
• Section 80CCD (1B): Employee/Assessee contribution to the NPS

Amount of Deduction: Any contribution remaining unclaimed in 80CCD (1) can be claimed under this section up to Rs.50,000. 

• Section 80CCD (2): Employer contribution to the NPS

Amount of Deduction: Employer contribution or 10% of salary (whichever is lower)

Note: Salary for the purpose of calculating above deduction = Basic salary + Dearness allowance (if part of retirement benefit).

• Note: Individuals are eligible to claim Rs. 50,000 under Section 80 CCD (1B) over and above the Rs.1,50,000 restriction as per this section since the same is not covered here.

Eligible Assessee: Individual, HUF.

Premium can be paid for the benefit of

• Self, spouse, dependent children & parents (whether dependent or not) in respect of an individual assessee
• Any member in respect of HUF

S. No	Nature of Payment	Additional notes	Documents required to claim the deduction
1	Health / Medical insurance premium Contribution to Central Government Health Scheme Medical expenditure (if the assessees age is 60 years or more) (deduction allowed only if payment made in any mode other than cash)	Deduction amount: Rs.25,000 / Rs.50,000 or total payment (whichever is lower) Note: 50,000 is applicable only in the case of resident senior citizens (60 years or more)	Policy documents and Payment receipts.

Additional Points:

• The above-mentioned deduction can be claimed
  • Separately in respect of premium/contribution paid for the benefit of self, spouse and dependent children.
  • Separately in respect of premium/contribution paid for the benefit of parents.
• Expenses incurred for preventive health checkups up to Rs. 5,000 /- can be claimed as deduction over and above the limit mentioned in Section 80D (Rs.25000/50000 as the case maybe)
• Deduction under section 80D cannot be claimed if the premium/contribution is paid by cash (however, the deduction for preventive health checkups can be claimed even if made in cash)

Eligible Assessee: Individual (Resident), HUF

S. No	Nature of Payment	Additional notes	Documents required to claim the deduction
1	Expenditure incurred for Medical treatment of disabled dependent relative. Deposit of any amount for maintenance of such disabled dependent relative.	Amount of Deduction:   Normal Disability: Rs.75,000 Severe Disability: Rs.1,25,000.	Payment receipts, Deposit acknowledgment.

• Disabled dependent relative in case of an individual: Spouse, children, brother, sister & parents
• Disabled dependent relative in case of HUF: Member of HUF
• Types of disability

• Blindness
• Low vision
• Leprosy-cured
• Hearing impairment

• Locomotor disability
• Mental retardation
• Mental illness

• Severe disability refers to a condition where the disability is 80 percent or more. Severe disability also includes multiple disabilities, autism and cerebral palsy.

Eligible Assessee: Individual (Resident), HUF

S. No	Nature of Payment	Additional notes	Documents required to claim the deduction
1	Expenditure incurred for Medical treatment of Specified disease.	Amount of Deduction:  Rs.40,000 / Rs.1,00,000 or Actual expenses for treatment. (whichever is lower) Note: Rs. 1,00,000 is applicable in respect of senior citizen	Payment receipt.

• Disabled dependent relative in case of an individual: Spouse, children, brother, sister & parents
• Disabled dependent relative in case of HUF: Member of HUF
• Amount of actual deduction = above-mentioned deduction – Insurance claim received.
• List of specified diseases: https://www.incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007232.htm

Eligible Assessee: Individual

S. No	Nature of Deduction	Additional notes	Documents required to claim the deduction
1	Resident Individual who is disabled.	Amount of Deduction:  Normal Disability: Rs.75,000 Severe Disability: Rs.1,25,000	A person with a disability has to get a certificate from the medical authority as recognized by the law for the time being in force.

• Types of disability

• Blindness
• Low vision
• Leprosy-cured
• Hearing impairment

• Locomotor disability
• Mental retardation
• Mental illness

• Severe disability refers to a condition where the disability is 80 percent or more. Severe disability also includes multiple disabilities, autism and cerebral palsy.

Eligible Assessee: Individual.

Loan taken for the benefit of:

• Self, spouse, children or any student in respect of whom the assessee is a legal guardian.

Amount of Deduction:

• Actual Interest paid during the year
• Deduction under this section is allowed for a maximum of 8 years

Note: Deduction is allowed only on actual payment of interest (deduction is not allowed in respect of accrued interest).

Eligible Assessee: Individual.

Amount of Deduction: Amount of interest or Rs.50,000 (whichever is lower)

Conditions:

• The Loan should be taken for the acquisition of a residential house property.
• The assessee does not own any residential house property on the date of sanction of the loan.
• The Loan should have been sanctioned by the financial institution during the FY 2016-17.
• The loan amount should not exceed Rs.35 lakhs.
• The value of the residential house property should not exceed Rs.50 lakhs.

Note: Deduction is allowed in respect of accrued interest also.

Eligible Assessee: Individual.

Amount of Deduction: Amount of interest or Rs.1,50,000 (whichever is lower)

Conditions:

• The Loan should be taken for the acquisition of a residential house property.
• The assessee does not own any residential house property on the date of sanction of the loan.
• The Loan should have been sanctioned by the financial institution  during the period beginning on the 1st day of April 2019 and ending on the 31st day of March 2021
• The value of the residential house property should not exceed Rs.45 lakhs.
• The loan should be taken only from a banking company or housing finance company (a loan from NBFC is not eligible for deduction under this section).

Note: Deduction is allowed in respect of accrued interest also.

Eligible Assessee: Individual.

Amount of Deduction: Amount of interest or Rs.1,50,000 (whichever is lower)

Conditions:

• Loan is taken for purchase of electric vehicle.
• Loan sanctioned by Financial institution from 01.04.2019 to 31.03.2023.

Note: Deduction is allowed in respect of accrued interest also.