Income tax deductions F.Y. 2016-17 / A.Y. 2017-18

Deductions are important for tax planning. It reduces tax burden of an assessee. Let's take a look on important deductions in Income tax F.Y. 2016-17 / A.Y. 2017-18.

INCOME TAX DEDUCTIONS F.Y. 2016-17 / A.Y. 2017-18

FOR INDIVIDUAL & HUF

Section	Deduction Limit	Investments / Expenses
80C	Up to Rs. 1.5 lakh In (80C, 80CCC & 80CCD(1) together)	Life Insurance Premium           P.P.F. (Public Provident Fund)           E.P.F. (Employee’s Provident Fund)           N.S.C. (National Savings Certificate)           ELSS Mutual Funds (Equity Linked Saving Schemes)            Five years Bank or Post Office Tax Saving Deposits            S.C.S.S (Post Office Senior Citizen Savings Scheme)           Principle repayment of Home Loan           Kid’s Tuition Fees         Sukanya Samriddhi Account Deposit scheme
80CCC		Contribution to annuity plan of L.I.C.  or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit.
80CCD(1)		Allowed to an Individual who makes deposits to his/her Pension account (like NPS). Maximum deduction allowed is 10% of salary (in case of taxpayer being an employee) or 10% of gross total income (in case of tax payer being self-employed).
80CCD(1b)	Additional deduction Up to Rs. 50,000/-	Amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible.
80D	Up to Rs. 25,000/- & Rs. 30,000/- for Senior citizens	Mediclaim
80EE	Up to     Rs. 50,000/-	Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments. The below criteria has to be met for claiming tax deduction under section 80EE. The home loan should have been sanctioned in FY 2016-17. Loan amount should be less than Rs 35 Lakh. The value of the house should not be more than Rs 50 Lakh & The home buyer should not have any other existing residential house in his name.
80G	100% (generally in case of government funds) or 50% (generally in case of non-governmental funds)	Contributions made to certain relief funds and charitable institutions. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. But deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.
80TTA	Up to     Rs. 10,000/-	Interest on deposits in SAVINGS BANK ACCOUNT , co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits.
24(b)	Up to Rs. 200,000/- in case of self occupied property or no maximum limit if the property is let out	Interest on housing loan is allowable as deduction on accrual basis not on paid basis (even if account books are kept on cash basis) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property. Deduction can be claimed for two or more housing loans.
87A	Up to     Rs. 5,000/-	This rebate is available on tax on total income to a resident individual if his total income does not exceed Rs. 500,000/-

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