Want to claim tax benefit, remember these Sections under IT Act

Taxpayers are busy collecting their bills or income data from different sources to claim tax benefit as financial year 2018 is just two months away from its end.
 
Taxpayers would have to pay taxes not only from their salary, but also from various other sources of income depending on the various tax rates.
 
Under Income Tax Act, there is a list of sections that can help you save big on your income from other sources. A taxpayer can claim tax benefit during filing for the Income Tax return.
 
If you want to avoid last minute hustle, remember these sections as they would help you save money on taxes.
 
Section 80C
 
This section is quite famous among taxpayers, as it allows deduction of Rs 1,50,000 on total income.
Simply put, a taxpayer can reduce up to Rs 1,50,000 from their total taxable income through Section 80C.
 
Any individual or a Hindu Undivided Family (HUF) can claim this deduction.
 
In case you have paid excess taxes, have invested in LIC, PPF, Mediclaim, incurred towards tuition fees etc., you can file your ITR and can get refund.
 
Section 80CCC
 
Under this section, an individual can claim deduction for any amount paid or deposited in any annuity plan of LIC or any other insurer. It must be for receiving a pension from a fund referred to in Section 10(23AAB).
 
As per IT Act, any pension received from the annuity or amount received upon surrender of the annuity, involving interest or bonus accrued on the annuity, are taxable in the year of receipt.
 
Section 80CCD
 
An individual who makes deposits to his or her pension account can claim benefit under this Section.
 
A maximum deduction allowed is 10% of salary (in case the taxpayer is an employee) or 10% of gross total income (in case the taxpayer being self-employed) or Rs 1, 50,000, whichever is less.
 
For self-employed, maximum deduction allowed is 20% of gross salary instead of 10% (earlier subject to a maximum of Rs1, 50,000).
 
Section 80 TTA
 
Under IT Act, Section 80TTA is titled as ‘Deduction in respect of interest on deposits in savings account’.
 
You can claim exemption on up to Rs 10,000 received as interest on your savings account deposits.
 
The savings account can be held in any of the financial institution like Bank, Cooperative society and Post office.
 
You can claim exemption on any number of savings accounts as long as the total amount you are seeking exemption on is less than Rs 10,000.
 
It may be noted that Section 80TTA can be applied only in case of savings accounts and not on term deposits, fixed deposits or recurring deposits.
 
Section 80GG
 
Such section is applicable for rent paid during the time when House Rent Allowance is not received. Also, the taxpayer, spouse or minor child should not own residential accommodation at the place of employment.
 
Going ahead, a taxpayer should not have self-occupied residential property in any other place.
 
The taxpayer must be living on rent and paying rent.
 
Deduction available is the minimum of: 

• Rent paid minus 10% of total income
• Rs 5000/- per month
• 25% of total income 

Section 80E
 
An eligible person can get tax benefits under Section 80 (E) of the I-T Act if you have taken a loan for higher studies for self, spouse, children or your legal ward.
 
However, tax deduction benefit is only applicable for the interest paid on the Education Loan and eliminating the principle amount.
 
Deduction for the interest on loan starts from the year in which an individual has started repaying the loan. The deduction is available only for 8 years.
 
It may be noted that Education Loan must be taken from a scheduled commercial bank or an eligible financial institution.
 
Section 80CCG
 
Although deduction under this Section has been withdrawn, due to discontinuation of the Rajiv Gandhi Equity Saving Scheme (RGESS), some investors can still claim benefit under it.
 
RGESS was eliminated from April 1, 2017, thus, no deduction under Section 80CCG will be allowed from AY 2018-19. However, if an investor have invested in the RGESS scheme in FY 2016-17 (AY 2017-18), then they can claim deduction under  this Section until AY 2019-20.
 
Deduction is lower of, 50% of the amount invested in equity shares or Rs 25,000 for three consecutive Assessment Years.
 
Section 80D
 
A deduction of Rs 25,000 is available under this Section to a taxpayer for insurance of self, spouse and dependent children. This deduction is higher to Rs 30,000 for individual or spouse more than 60 years old
 
Also, for uninsured super senior citizens more than 80 years old, then medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under this Section. Hence, a maximum deduction of Rs 60,000 is available under this Section.
 
Section 80DD
 
Deduction under this one is available for rehabilitation of handicapped dependent relative.
 
If the  disability is 40% or more but less than 80%, fixed deduction of Rs 75,000 is available. However, if the disability is more than 80%, a fixed deduction of Rs 1,25,000 on can avail. A certificate of disability is required from prescribed medical authority.
 
Section 80DDB
 
According to ClearTax, deduction Rs 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by resident taxpayer on himself or dependent relative for medical treatment of specified disease or ailment.
 
The diseases have been specified in Rule 11DD. A certificate in form 10 I, which was earlier required to be furnished by the taxpayer from any Registered Doctor, is no longer required.
 
For senior citizen, the deduction can be claimed up to Rs 60,000 or amount actually paid, whichever is less. Rs 80,000 is the maximum deduction that can be claimed.
 
Section 80G
 
Under IT Act, Section 80G is available for contributions made to certain relief funds and charitable institutions.
 
One can enjoy 100% tax deduction and are not subject to any qualification limit being met.
 
Schemes that qualify for 100% deduction are -  National Defence Fund, Prime Minister’s National Relief Fund, The National Foundation for Communal Harmony, and National/State Blood Transfusion Council.
 
50% tax deduction can be claimed if donations are made under trusts like Prime Minister’s Drought Relief Fund, National Children’s Fund and Indira Gandhi Memorial Fund.
 
From assessment year FY18, any donations made in cash exceeding Rs 2000 will not be allowed as deduction. The donations above Rs 2000 should be made in any mode other than cash to qualify as deduction u/s 80G.
 
Section 80GGB
 
This one is allowed to Indian firms for amount invested to any political party or an electoral trust.
 
Moreover, deduction is available only if the donation made to a political party registered under Section 29A of the Representation of the People Act. Contribution is defined as per Section 293A of the Companies Act, 1956.
 
Section 80GGC
 
This Section is available to a taxpayer except a company, local authority and an artificial juridical person wholly or partly funded by the government, for any amount contributed to any political party or an electoral trust.
 
Section 80RRB
 
If there is any income via royalty for a patent registered on after 01.04.2003 under the Patents Act 1970, deduction of up to Rs 3 lakhs or the income received, whichever is less is available.
 
Taxpayer must be an individual resident of India who is a patentee. While claiming the benefit, taxpayer must furnish a certificate in the prescribed form duly signed by the prescribed authority.
 
Section 2(28A)
 
There are variety of deductions available on principal amount and interest on home loan taken from banks and other financial institution.
 
However, this Section comes into the picture, if your lender has charged you a  loan processing fee.

Any service fee charged while borrowing money or any debt incurred as per Section 2(28A) is liable for tax deductions.