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Tax Rebate

What is Income Tax Rebate?

An income tax rebate is a refund on taxes payable when the amount paid as income tax is less than the tax payable. If you have paid more tax than you owe, you will be entitled to an income tax rebate and the additional tax amount will be refunded at the end of the fiscal year. In order to receive the same, you must file your ITR within the mentioned period.

How to avail Income Tax Rebate?

You can avail a tax rebate simply by visiting the HR/Accounts/Finance team of your organization and they will help you with the respective exemption. You then need to subtract the rebate from the tax amount payable.

Deductions available under Income Tax Act, 1961

The following Sections of the Income Tax Act provide the respective tax rebate.

SectionType of DeductionDeduction Amount
80C1. Public Provident Fund
2. Employee Provident Fund
3. National Savings Certificate
4. Life Insurance Premium
5. ELSS
6. ULIPs
7. Sukanya Samridhi Account
8. Children’s Tuition Fee
9. Principal Repayment of Home Loan
10. Deferred Annuity
11. Senior Citizens Savings Scheme
12. Five Year Fixed Deposit Scheme
13. Annuity plan of LIC
14. Notified Bonds of NABARD
15. Equity/shares/debentures of an approved eligible issue
16. Notified Pension Fund
17. Notified Securities/Deposit Schemes
18. Home Loan Account Scheme of the National Housing Bank
19. Deposit Scheme of a PSU engaged in providing housing finance 		₹1,50,000
80CCCAnnuity plan of LIC/other insurer for a pension fund as mentioned in Sec 10(23AAB)₹1,50,000/-
80CCD(1)National Pension System Account₹1,50,000/-
80CCD(2)National Pension System AccountMax. upto 10% of salary
80CCD1(B)National Pension System Account₹50,000/-
80TTA(1)Interest Income from Savings accountMaximum upto ₹10,000
80TTBExemption of interest from banks, post office for senior citizensMaximum upto ₹50,000
80GGHouse Rental AllowanceLeast of :
– Rent paid minus 10% of total income
– ₹5000/- per month
– 25% of total income
80EInterest on education loanInterest paid for a period of 8 years
80EEInterest on home loan for first time home buyers₹50,000/-
80CCGRajiv Gandhi Equity Savings SchemeLower of
– 50% of the amount invested in equity shares; or
– ₹25,000
80D1. Health Insurance – Self, spouse, children
2. Health Insurance – Parents more than 60 years old or uninsured parents more than 80 years old 		₹25,000
₹50,000
80DDMedical treatment for handicapped dependent:
1. Disability is 40% or more but less than 80%
2. Disability is 80% or more 		₹75,000
₹1,25,000
80DDBMedical Expenditure on Self or Dependent (Rule 11D)
1. Less than 60 years
2. More than 60 years 		1. Lower of ₹40,000 or the amount actually paid.
2. Lower of ₹1,00,000 or the amount actually paid
80USelf-suffering from disability :
1. Individual suffering from a physical disability (including blindness) or mental retardation.
2. Individual suffering from severe disability 		1. ₹75,000/-
2. ₹1,25,000/-
80GGBCorporate contributions to political partiesFull Amount (payment must not be in cash)
80GGCIndividual contributions to political partiesFull Amount (payment must not be in cash)
80RRBRoyalty of a PatentLower of ₹3,00,000 or income received
80GDonations made to: (100% deduction without any qualifying limit)
1. National Defence Fund
2. Prime Minister’s Relief Fund
3. National Foundation for Communal Harmony
4. Zila Saksharta Samiti
5. University/educational institution of National eminence
6. Fund for the medical relief of the poor
7. National Illness Assistance Fund
8. National/State Blood Transfusion Council
9. National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
10. National sports Fund
11. National Cultural Fund
12. Technology/Application Development Fund
13. National Children’s Fund
14. Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund
15. Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
16. Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6,1993
17. Chief Minister’s Earthquake Relief Fund, Maharashtra
18. Relief Fund to the victims of earthquake in Gujarat
19. fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001)
20. Prime Minister’s Armenia Earthquake Relief Fund
21. Africa (Public Contributions — India) Fund
22. Swachh Bharat Kosh (applicable from financial year 2014-15)
23. Clean Ganga Fund (applicable from financial year 2014-15)
24. National Fund for Control of Drug Abuse (applicable from financial year 2015-16 		100%
80GDonations made to: (50% deduction without any qualifying limit)
1. Jawaharlal Nehru Memorial Fund
2. Prime Minister’s Drought Relief Fund
3. Indira Gandhi Memorial
4. Rajiv Gandhi Foundation		50%
87AIndividual having taxable income upto ₹5 lakhs are entitled to a tax rebate₹12,500
54Long Term Capital Gains ExemptionLower of:
1. Capital gains arising on transfer of residential house OR Investment made in purchase or construction of a new residential house property. Hence, the balance capital gains (If any) will be taxable.

Frequently Asked Questions

Do you have to show proof for Income Tax Deduction?

Yes, without the proofs of investment the declaration will be deemed null/void.

Can I get a deduction for an education loan if taken from my company/employer?

No, as per Section 80E, deduction of interest paid on education loan cannot be availed if taken from your employer.

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