Deductions to be made from gross total income while computing total income

In India, individuals are eligible for various deductions while computing their total income. These deductions help reduce the taxable income, resulting in a lower tax liability. The deductions are provided under different sections of the Income Tax Act, 1961. As of my last knowledge update in January 2022, here are some common deductions available to individuals:

1. Section 80C:
2. Deductions under Section 80C include investments in specified instruments such as:

• Life Insurance Premiums
• Employee Provident Fund (EPF)
• Public Provident Fund (PPF)
• National Savings Certificates (NSC)
• Equity Linked Saving Schemes (ELSS)
• Principal Repayment on Housing Loan
• Tuition Fees for Children’s Education, etc.

1. The maximum deduction allowed under Section 80C is Rs. 1,50,000.
2. Section 80D:
3. Deductions for premiums paid on health insurance policies for self, family, and parents. The limit varies based on the insured individuals and their age.
4. Section 24(b):
5. Deduction for interest paid on a home loan is available under this section. The maximum deduction for self-occupied property is Rs. 2,00,000.
6. Section 80E:
7. Deduction for interest paid on loans taken for higher education. This deduction is available for a maximum of 8 years.
8. Section 80G:
9. Deductions for donations made to specified charitable institutions. The amount eligible for deduction depends on the nature of the institution and the specified limit.
10. Section 10(14):
11. House Rent Allowance (HRA) is a deduction available to salaried individuals living in rented accommodation.
12. Section 80TTA:
13. Deduction of up to Rs. 10,000 on interest income earned from savings accounts held with banks, post offices, and cooperative societies.
14. Section 80CCD:
15. Deductions for contributions made to the National Pension System (NPS). It includes both employer and employee contributions.
16. Section 80GGA:
17. Deductions for donations made for scientific research or rural development.
18. Section 80RRB:
19. Deductions for income earned as royalty on a patent registered on or after April 1, 2003.

These are just a few examples, and there are several other sections providing deductions for various purposes. The eligibility criteria, conditions, and limits for these deductions may change, so it’s crucial to refer to the latest provisions of the Income Tax Act or consult with a tax professional for up-to-date information.