Following are some of the exemption limits applicable for income tax payment, as mentioned under Section 80 of the Income Tax Act:
Section 80C - You can avail an exemption of up to ₹1.5 Lakh for your earnings from the following:
- 5-year tax-saver fixed deposits.
- National Savings Certificate.
- National Pension Scheme.
- Equity Linked Savings Scheme.
- Employees Provident Fund.
- Senior Citizens Savings Schemes.
- Sukanya Samriddhi Yojana, etc.
Section 80CCC – Exemption on the deposited amount in insurance annuity plans. The exemption limit under this section is set at ₹1,50,000.
Section 80TTA – An exemption of up to ₹10,000 on interest earned from the various bank savings account.
Section 80D – Exemption on the payment of health insurance policy premium for self, spouse, dependent children, parents, etc. The limit for this exemption is set at:
- ₹25,000 for self, spouse and dependent children
- ₹25,000 (for self, spouse and dependent children) + ₹25,000 for parents
- ₹25,000 (for self, spouse and dependent children) + up to ₹50,000 (for parents above 60 years of age)
- Up to ₹50,000 (self, spouse and dependent children with the eldest member above 60 years of age) + up to ₹50,000 (for parents above 60 years of age)
Know more about Health Insurance with Maternity Benefits
Section 80E – This section allows an exemption on the total interest paid for any education loan. There is no limit to this exemption.
Section 80GG – This exemption is applicable on rent payment if you don’t receive House Rent Allowance. The limit to this exemption is set at the lower amount between the following:
- Total rent paid – 10% of your total income.
- 25% of your total income.
- ₹5,000 per month.
Section 80DDB – This exemption is valid for the medical treatment of any dependent individual who is suffering from specific diseases. The limit for this exemption is set at up to ₹40,000 for individuals below 60 years of age. If the age of the dependent individuals is above 60 years, you can avail a tax exemption of up to ₹1,00,000.
Section 80GGC – This exemption is available on contribution to political parties. There is no limit to the exemption if the payment is made through methods other than cash.
Section 80G – You can avail exemptions for contributions to charitable institutions and a few relief funds. For some cases, you can avail an exemption of up to 50% of your donation while contribution to other funds allows 100% tax exemptions.
Section 80CCG – With this section, you can avail exemptions on your investments in the equity products under the Rajiv Gandhi Equity Scheme. In this case, exemptions are the lower amount between:
- 50% of your investment amount in equity schemes.
Section 80DD – This section allows exemptions on medical treatment for a handicapped or dependent family member. Following are the exemption limits under this section:
- If the handicapped individual has a bodily or mental disability of 40-80%, then you will be able to avail an exemption of up to ₹75,000.
- If the bodily or mental disability is above 80%, then the tax exemption limit is set at ₹1,25,000.
Section 80TTB – Under this section, you will be able to avail an exemption on the interest earned by senior citizens. The limit for this exemption is set at up to ₹50,000.