Whatever you earn in any previous year are grossly added under the five different heads of income as specified under section 14 of the Income-tax Act, 1961 which results the Gross Total Income (GTI) for the purposes of charge of income-tax.
However, GTI as defined u/s 80B (5) is not the income on which tax is to be paid by taxpayer in the assessment year and therefore for computation of actual taxable income of an assessee certain general deductions are allowed which are covered by Chapter VIA of the Income Tax Act.
I am providing you the list of all deductions available to different categories of taxpayers for different categories of incomes as per Income-tax Act, 1961 amended by the Finance Act, 2016.
As per section 80A, in computing the total income of an assessee, the deductions specified in sections 80C to 80U under Chapter VIA shall be allowed from his gross total income. You may download the complete list of all sections of Income-tax Act, 1961 as amended by the latest finance act i.e. Finance Act, 2016.
The deductions specified in sections 80C to 80U shall be allowed computing the total income of an assessee. Note that in any case the aggregate amount of above deductions i.e. sections 80C to 80U shall not exceed the GTI of the assessee.
The aggregate amount of deductions under section 80C, section 80CCC and sub-section (1) of section 80CCD shall not exceed ₹1,50,000.
Chapter VIA (Sections 80C to 80U) Deductions for AY 2017-18
List of Deductions available in computing Taxable Income for certain payments by Taxpayers:
Following are the list of various deductions available for certain payments made by taxpayers who can claim such deductions while calculating his/her taxable income under the Income Tax Act, 1961.
Section 80C (Individual/HUF):
Deduction upto ₹1,50,000 in respect of Life Insurance Premium (LIC) for policy, Deferred Annuity, contributions to Provident Fund (PF), unit-linked insurance plan of the LIC Mutual Fund, subscription to certain Equity Shares or Debentures, Term Deposits etc.
Must Read: Section 80C Deductions for Tax Panning
Section 80CCC (Individual):
Deduction upto ₹1,00,000 for contributions to certain pension funds of LIC or any other insurer.
Deduction up to 10% of salary/GTI subject to ₹50,000 in respect of contribution to pension scheme notified by Central Government. The amount received by the nominee on the death of the assessee in certain circumstances shall not be deemed to be the income of the nominee. [Amended by the Finance Act, 2016.]
Section CCF (Individual/HUF):
Deduction upto ₹20,000 for subscription to long-term infrastructure bonds notified by the Central Government.
Section 80CCG (Resident Individual):
Deduction up to ₹25,000 to resident individual for investment made under an equity savings scheme notified by the Central Government.
Section 80D (Individual/HUF):
Deduction upto ₹30,000 for any contribution made to the Central Government Health Scheme or LIC or other insurer to effect or keep in force an insurance on the health of specified person.
Section 80DD (Resident Individual/HUF):
Deduction up to ₹75,000 (₹1,25,000 in case of severe disability) for the medical treatment of a dependant who is a person with disability or amount deposited under a scheme framed in this behalf.
Section 80DDB (Resident Individual/HUF):
Deduction up to ₹40,000 (₹60,000 for senior citizen and ₹80,000 for very senior citizen) for payment for medical treatment of specified diseases and ailments
Section 80E (Individual):
100% deduction of amount paid by way of payment of interest on loan taken from financial institution/approved charitable institution for pursuing higher education.
Section 80EE (Individual):
Deduction up to ₹1,00,000 (₹50,000 from AY 2017-18) of interest payable on loan taken from any financial institution for the purpose of acquisition of a residential house property. Maximum loan amount ₹25,00,000 (₹35,00,000 from AY 2017-18) and the value of residential house property does not exceed ₹40,00,000 (₹50,00,000 from AY 2017-18). [Amended by the Finance Act, 2016.]
Section 80G (All Assessee):
Deduction up to 50% or 100% of donations to certain approved funds, trusts, charitable institutions/donations for renovation or repairs of notified temples, etc.
Section 80GG (Individual):
Deduction up to ₹24,000 (₹60,000 from AY 2017-18) for rent paid in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence. [Amended by the Finance Act, 2016.]
Section 80GGA (All Assessee):
100% of any sum paid by the assessee for scientific, social or statistical research or rural development programme or for carrying out an eligible project or scheme or any programme of conservation of natural resources or National Urban Poverty Eradication Fund.
Section 80GGB (Indian company):
100% deduction of amount contributed by Indian company to any political party or an electoral trust.
Section 80GGC (Individual/HUF/Firm/Company/AOP/BOI):
100% of amount of contribution made to a political party or an electoral trust by any person except Local Authority and Artificial Juridical Person.