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.
The following Sections of the Income Tax Act provide the respective tax rebate.
| Section | Type of Deduction | Deduction Amount |
|---|---|---|
| 80C | 1. 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 |
| 80CCC | Annuity 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 Account | Max. upto 10% of salary |
| 80CCD1(B) | National Pension System Account | ₹50,000/- |
| 80TTA(1) | Interest Income from Savings account | Maximum upto ₹10,000 |
| 80TTB | Exemption of interest from banks, post office for senior citizens | Maximum upto ₹50,000 |
| 80GG | House Rental Allowance | Least of : – Rent paid minus 10% of total income – ₹5000/- per month – 25% of total income |
| 80E | Interest on education loan | Interest paid for a period of 8 years |
| 80EE | Interest on home loan for first time home buyers | ₹50,000/- |
| 80CCG | Rajiv Gandhi Equity Savings Scheme | Lower of – 50% of the amount invested in equity shares; or – ₹25,000 |
| 80D | 1. 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 |
| 80DD | Medical 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 |
| 80DDB | Medical 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 |
| 80U | Self-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/- |
| 80GGB | Corporate contributions to political parties | Full Amount (payment must not be in cash) |
| 80GGC | Individual contributions to political parties | Full Amount (payment must not be in cash) |
| 80RRB | Royalty of a Patent | Lower of ₹3,00,000 or income received |
| 80G | Donations 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% |
| 80G | Donations 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% |
| 87A | Individual having taxable income upto ₹5 lakhs are entitled to a tax rebate | ₹12,500 |
| 54 | Long Term Capital Gains Exemption | Lower 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. |
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.
