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Income tax deduction on chapter VIA for the F.Y.2022-23 | The income tax department, in order to

encourage savings and investment among taxpayers, has provided several deductions from taxable

income under Chapter VI A deductions. With the 80C being the most famous, there are other

deductions that are beneficial for taxpayers to reduce their tax liability. Let's try to understand this

deduction in detail:

Section 80C - Investment Reduction

Section 80C is one of the most popular and preferred sections by taxpayers because it allows you to reduce your taxable income by making tax savings investments or incurring eligible expenses. Allows a maximum deduction of Rs 1.5 lakh annually from the total income of the taxpayer.

These benefits can be used by both individuals and HUF. Companies, partnerships, and LLPs cannot take advantage of this reduction.

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Section 80C along with subsections, 80CCC, 80CCD (1), 80CCD (1b) and 80CCD (2).

It is important to note that the overall limit, including the subsection for requesting a deduction, is Rs 1.5 lakh except for an additional deduction of Rs 50,000 which is permitted u/s 80CCD (1b)

Section 80CCC - Insurance Premium / Section 80CCD - Pension Contribution

Investments that qualify for tax deductions

80C enlisted deductions for investments made in PPF, EPF, LIC premiums, capital savings schemes, payment of the principal amount for home loans, stamp duty and registration fees for property purchases, Sukanya smriddhi yojana (SSY), National Savings Certificate (NSC)), Senior Savings Plan (SCSS), ULIP, FD Tax Savings for 5 years, Infrastructure Bonds etc

80CCC Discount on Life Insurance Annuity Plans. The 80CCC allows reduced payments for annuity pension plans. The pension received from the annuity or the amount received on the return of the annuity, including any interest or bonus earned on the annuity, is taxed in the year it was received.

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Income tax deduction on chapter VIA for the F.Y.2022-23

80CCD (1) Deduction for NPS employee contributions under section 80CCD (1) Maximum allowable deduction from at least the following

• 10% of salary (if the taxpayer is an employee)

• 20 & of total gross income (for self-employed)

• Rs 1.5 Lakh (allowable limit u/s 80C)

80CCD (1b) Deduction for NPS Additional deduction of Rs 50,000 is allowed for the amount deposited in the NPS account

80CCD (2) Withholding of employer contributions NPS is allowed for deductions of up to 10% of base salary plus the number of benefits in this section. The benefits in this section are only allowed for employees and not for the self-employed.

Here are some investment options that are allowed as a deduction of u/s 80C. Not only do they help you save on taxes, they also help you grow your money.

Section 80C Piece List

Investment options Medium interest Freezing period for risk factors

ELSS Fund

NPS Scheme

ULIP 8%

FD tax savings

PPF 7.10% 5 years Low

Sukanya Samriddhi Yojana 8.4% Until the girl reaches the age of 21 years

(partial withdrawals are allowed after reaching the age of 18) Low

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Section 80 TTA - Savings Interest

Subtraction from the total gross income for interest on a checking savings account

If you are an individual or a HUF, you can request a deduction of up to Rs 10,000 from the interest income from your savings account at a bank, cooperative or post office. Include savings account interest in other income.

The 80TTA -discount is not available for interest income from fixed deposits, recurring deposits, or interest income from corporate bonds.

Section 80GG - House rent paid

Deductions for paid house rent where HRA is not accepted

a. An 80GG share deduction is available for rent paid when the HRA is not accepted. Taxpayers, spouses or minors may not have residential accommodation at work

b. Taxpayers may not own residential property for their own use elsewhere

c. Taxpayers have to live on rent and pay rent

d. Deductions available to all individuals

The available deductions are the following minimums:

a. Rent paid minus 10% of total adjusted income

b. Rs 5,000/- per month

c. 25% of total adjusted revenue

Total adjusted gross income is obtained after adjusting the total gross income for certain deductions, exempt income, long-term capital gains, and income relating to non-residents and foreign companies.

From fiscal 2016-17, the available reduction was increased to Rs 5,000 per month from Rs 2,000 per month.

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F.Y.2022-23 |There are certain sections in Indian income tax law that provides tax benefits to

individuals if they or any member of their family suffers from a certain disability.

Section 80U provides tax credits if an individual has a disability, and Section 80DD provides tax credits if the taxpayer's dependent family member(s) has a disability. This article focuses on the discussion of the tax credits available under section 80U.

Who can claim an 80U deduction

A resident individual who is declared disabled by a medical authority may qualify for a tax credit under section 80U. For the purposes of this section, a person with a disability of at least 40% confirmed by medical authorities is considered to be disabled.

Which type of disability is entitled to one of the following:

Blindness

Poor eyesight

Cured of leprosy

Hearing loss

Musculoskeletal disorder

Mental retardation

Mental disorder

Quantum deduction below 80U

Exempt Rs. 75,000 is entitled to the disabilities and Rs. 1,25,000 sever disability exemption.

Section 80U Deduction Claim Requirements

There are no documentation requirements other than a certificate of disability issued by a recognized medical institution on Form 10-IA. There is no need to submit invoices for treatment costs or other expenses.

To apply under this section, you must provide a medical certificate stating the disability along with your Section 139 income tax returns for the applicable A.Y. If the disability assessment certificate has expired, it will still be possible to claim these deductions in the year the certificate expires. However, a new certificate will be required from next year to qualify for u/s 80U benefits.

Certifications can be obtained from medical institutions, which may be a neurologist with a Doctor of Medicine (MD) degree in neurology (in the case of children, a pediatric neurologist with an equivalent degree), a civil surgeon, or the chief medical officer of a public hospital.

Note. If the disability is temporary and requires reassessment after a certain period, the validity of the certificate starts from the assessment year corresponding to the year in which it was issued and ends in the assessment year corresponding to the year in which the certificate was issued. expires.

Difference between 80U partition and 80DD partition

Section 80DD provides tax deductions for family members and relatives of a disabled taxpayer, and section 80U provides deductions for an individual taxpayer with a disability.

Section 80DD applies if a taxpayer pays a certain amount as an insurance premium to care for a dependent person with a disability. Under section 80DD, the deduction limits are the same as under section 80U. Here dependent refers to the siblings of the person being assessed, parents, spouse, children, or a member of the same Hindu family.

General issues

When can claim an exemption u/s 80U?

A person who has a defined disability with a disability of 40% or 80% may qualify for a deduction under section 80U of the Income Tax Act.

How can an individual claim a deduction under section 80U?

An individual or person with a disability may claim a Section 80U deduction when declaring income on an income tax return.

What certification must I provide to claim a deduction under section 80U?

An individual must provide a copy of Section 80U medical certificate along with an income tax return. The medical certificate must be based on the disability and issued by the medical institution.

What is the amount of the deduction under article 80U?

The deduction for a disabled person is Rs 75,000. In case of a deficit of 80%, the deduction is 1, 25,000 rupees.