Tax Exemptions Under Chapter VI A

Posted In India - By NitiN Kumar Jain On Monday, January 10th, 2011 With 10 Comments






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You can save a lot of money in your income which is going to the government as income tax.

Govt. of India in its Income Tax Act, 1961 has provided a provision of saving income tax by investing in multiple particulars and at the same time by declaring your expenditures in investments like medical premiums, interests on home loan, medical treatment etc.

They all are covered under Chapter VI A of the act.

Here they are for your quick reference and bookmark:

Section Particulars Maximum limit for investment

(Rs. per annum)

80D Premium paid on Mediclaim policy covering employee, spouse, dependent parent, and dependant children. 15,000

Or

20,000 (if senior citizen is covered)

80DD Expenditure incurred on maintenance/ treatment of handicapped dependant amount deposited with LIC/UTI scheme of insurance company/UTI must be approved by CBDT.

If the dependant suffering from a severe disability:

50,000

Or

1,00,000 for severe disability (Disability over 80%)

80DDB Expenditure incurred on treatment of employee or his relative (spouse, children, parents, brother &sister) for treatment of any of the following specified diseases

Cancer, AIDS, Chronic Renal Failure
Hemophilia Thalassaemia
Neurological diseases i.e. dementia, Chorea, Parkinson Disease

40,000 or 60,000 ( For Senior Citizen)
80E Repayment of interest on Loan taken for full time higher studies for self, spouse & child. The deduction is available for a maximum of 8 years. Actual interest
80U Income of blind or physically handicapped persons (Employee who suffers 40% or more disability) is entitled.

In case he suffers from a permanent physical disability (including blindness) or is subject to mental retardation.

50,000

(100,000 for severe disability of 80% and above)

80CCF Deduction in respect of subscription to long-term infrastructure bonds 20,000 which is in addition to Rs.100,000 limit under Sec 80C

Other than these you can also save taxes by investing in section 80C of the same act.