About Section 80C, 80D

Every country in the world has a government. This government can be of various types like monarchy, democratic, communist, etc.

However, the one thing in common that every government has, is the need to rule and control the country. This requires a lot of money. This money is collected from the people or citizens of the country, as a charge for enjoying the facilities provided by the government.

These facilities include various laws and protection policies by the government, public services like defense and police, infrastructural services like roads and flyovers, etc.

The money that is collected from the people of India is called taxes and it is put into the above-mentioned uses. But as an income earner, you put in a lot of effort and work to earn that money. So paying tax might feel like an additional burden on that money. But governments have that covered as well.

The Indian government wishes the best for its citizens and has an entire series of tax-saving options in the sections of its Income Tax Rules. The most common type of tax-saving redemptions and deductions come from section 80C AND 80D of the Income Tax Act, 1965. In today’s articles, we will uncover the features of each of these acts.

Section 80C

Maximum deductions that can be claimed

  Rs. 1.5 lakhs

Consideration for 

Hindu Undivided Family

Payment consideration of

Your name
Your Spouse’s name
Your Children’s name

Deduction allowance for payments against

Life Insurance Policy Premium
Contribution to Employee’s Provident Fund
Contribution to Public Provident Fund
Contribution to ULIPs
Subscription to National Savings certificates
Subscription to shares and debentures
Subscription to Sukanya Samriddhi Account Scheme
Term Deposit with a lock-in period of over 5 years
Investment in Bonds issued by NABARD
Deposit in Senior Citizen Savings Scheme Rules (subject to certain T&C)

80CCC deduction for annuity plan in Life Insurance

You receive deduction over the annuity received in Annuity based pension plans, or for the annuity plan surrendered, including the bonus and interest accrued on surrender.

80CCD (1) deduction for NPS

Employee's contribution under section 80CCD (1). The maximum deduction allowed is the least of the following options:

10% of Salary (for EMPLOYEES)
20% of Gross Total income (for SELF EMPLOYED)
Rs 1.5 Lakhs (max cap under the section 80C)

80CCD (1b) Deduction for NPS

Additional deduction of 50,000 us allowed for the amount deposited to NPS account and contributions to the Atal Pension Yojana

80CCD (2)

Employers contribution is allowed for deduction up to 10% of basic salary in addition to the dearness allowance under this section. The Benefit of this section can be enjoyed only by salaried individuals and not self-employed.

Section 80D

Maximum deductions that can be claimed

Rs. 25,000 (If the taxpayer is under 60 years of age and has no policy for his/her parents)
Rs. 1 lakh (If the taxpayer and their parents are aged above 60)

Consideration for 


Payment consideration of

Your spouse
Your children
Your Parents (and additional deduction for insurance for parents is allowed up to Rs. 25,000 if they are aged less than 60. If they are over 60 years of age, the additional deduction amount allowed is Rs. 50,000)

 80DD Deduction for a disabled dependent

Available if the following conditions are met:

The expanses of training, rehabilitation, and medical expenses are on a dependent family member
Disability of 40%-80% gets a deduction of Rs. 75,000
Disability of 80% or more gets a deduction of Rs. 1,25,000

80DDB(a) deduction for ages less than 60

A deduction up to Rs.40,000 is available to an individual or a HUF with respect to any expense incurred towards the treatment of specified medical diseases or ailments for herself/himself or any of her/his dependents.

80DDB(b) deduction for senior or super senior citizens

In case the individual on behalf of whom such expenses are incurred is a senior citizen, the individual or HUF taxpayer can claim a deduction up to Rs 1 lakh.

80DDB(c) Reimbursement claims

Any reimbursement of medical expenses by an insurer or employer shall be reduced from the quantum of deduction the taxpayer can claim under this section.


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