INCOME TAX

Many people don't know about certain sections of Income tax. Here we will discuss about some of the important sections of Chapter VI A of income tax with help of which an individual/HUF can reduce his tax burden. Let's start with the most common and popular section of Income Tax which is Section 80 C.

Section 80C:-  This section allowed deduction for making investment in certain specified instruments. Some examples of those are given below:-

1. Contribution to GPF i.e General Provident Fund
2. Life Insurance Premium
3. Postal Life Insurance(PLI)
4. Public Provident Fund(Commonly known as PPF account)
5. Group Insurance Scheme(GIS)
6. Sukanya Samridhi Scheme
7. Tax Saving Mutual Fund
8. Tax saving fixed deposit(normally these fixed deposits for 5 years or more
9. National Savings Certificates(Commonly known as NSC)
10. Repayment of Principal on Home Loan
11. Contribution to EPF i.e Employee Provident Fund
12. Tution fee paid(only if paid to an educational institute witin India)

Section 80CCC:-  Deductions under this are the income tax deductions that are allowed for payment of any of amount to start or to continue any annuity plan of LIC or any insurance company for receiving pension.
Section 80CCD(1):- This section allowed deduction to an individual who makes deposits to his/her pension account. Maximum deduction allowed is 10% of salary (in case the taxpayer is an employee) or 20% of gross total income (in case the taxpayer being self-employed) or Rs 1, 50,000, whichever is less. 
Section 80CCD(1B):- A new section 80CCD (1B) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible.
Section 80CCD(2):-  Additional deduction is allowed for employer’s contribution to employee’s pension account of up to 10% of the salary of the employee.

Section 80TTA:-A deduction of maximum Rs. 10,000 can be claimed against interest income from a savings bank account. Interest from savings bank account should be first included in other income and deduction can be claimed of the total interest earned or Rs 10,000, whichever is less. This deduction is allowed to an individual or an HUF. It can be claimed for interest on deposits in savings account with a bank, co-operative society, or post office. Section 80TTA deduction is not available on interest income from fixed deposits, recurring deposits, or interest income from corporate bonds.
Section 80E:-   Interest on Education loan taken for higher studies is eligible for deduction under this section. There is no maximum or minimum limit means whatever the amount an individual paid for his spouse, children or for a student whom he is a legal guardian can be claimed for deduction.
Section 80GG:- This section allows a deduction of House Rent paid by an employee.
Section 80D:- Deduction is allowed for premium paid for medical insurance. A deduction of Rs. 25,000 can be claimed for insurance of self, spouse and dependent children. An additional deduction for insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age or Rs 50,000 (has been increased in Budget 2018 from Rs 30,000) if parents are more than 60 years old. In case, a taxpayers age and parents age is 60 years or above, the maximum deduction available under this section is to the extent of Rs. 100,000. Example: Rohan’s age is 65 and his father’s age is 90. In this case, the maximum deduction Rohan can claim under section 80D is Rs. 100,000. From FY 2015-16 a cumulative additional deduction of Rs. 5,000 is allowed for the preventive health check up to individuals.  
Section 80DD:-  Medical Treatment of handicapped dependent or payment to specified scheme for maintenance of handicapped dependent.
if disability is 40% or more but less than 80% then rebate is 75,000/-
if disability is more than 80% then rebate is 1,25,000/- 

Section 80U:- Only Self suffering from physical disability. 

if self suffering from physical disability(including blindness) or mental retardation then rebate is 75,000/-

if self suffering from severe disability then rebate is 1,25,000/-

Section 80G:- Donations

The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in section 80G.The donations above Rs 2000 should be made in any mode other than cash to qualify as deduction u/s 80G.

Section 80GGB:- Contributions made by companies to political parties allowed deduction under this section. But not allowable if paid in cash.

Section 80GGC:- Contributions made by an Individual to political parties allowed deduction under this section. But not allowable if paid in cash.