Remember even if you have made investments or incurred expenditures which can be claimed as deductions from income as specified in the Income Tax Act, you are required to claim them by entering their details in the form. If you miss out on entering the details of any of the deductions you are eligible to claim, then you will not get that deduction, without filing a revised return. Claiming a deduction helps to reduce your tax liability.
Also read: How to file ITR? Here's the complete guide
Due to coronavirus pandemic, the govt has extended the date of tax-saving investments to July 31, 2020. Further, ITR-1 notified for FY 2019-20 has additional tab 'Schedule DI' and '80D'. Tax-saving investment made during the extended period i.e. between April 1, 2020 and July 31, 2020 will be reported in Schedule DI. Remember, tax -saving investments made between April 1, 2019 and March 31, 2020 will be reported in the Part C - Deductions and Taxable total income.
Further, if you are claiming the Section 80D deduction, then additional details would be reported in given tab.
ITR-1 on the online filing platform of the tax department auto-populates the deductions from the TDS return filed by your employer. However, do ensure that the correct information is mentioned in the ITR-1
Read on to know how to fill in the details of deductions in ITR-1.
- Sections 80C, 80CCC, 80CCD(1), 80CCD(1B) and 80CCD(2)
a) Premiums paid for life insurance policy
b) Investments in PPF, EPF and VPF
c) Repayment of principal amount of housing loan
d) Investment in equity-linked savings scheme (ELSS) of mutual funds
e) Investments in certain post-office schemes like Sukanya Samriddhi Yojana (SSY), National Savings Certificates (NSC), Senior Citizens' Savings Schemes(SCSS)
Click here to know all the investments and expenditures that can be claimed under section 80C.
As per the current income tax laws, the total investment amount under sections 80C, 80CCC and 80CCD (1) cannot exceed Rs 1.5 lakh for FY 2019-20.
If your employer has made a contribution to National Pension System (NPS) on your behalf, then, you can claim deduction under section 80CCD(2). Even though there is no maximum ceiling in rupee terms, this deduction cannot exceed 10 percent of your salary. However, where contribution is made by the Central Government, ceiling limit is 14% instead of 10%.
Apart from this, an additional deduction of maximum of Rs 50,000 can be claimed if you invest in Tier I account of NPS. The deduction will be claimed in the row corresponding to section 80CCD(1B). This will take the maximum that can be claimed as deduction to Rs 2 lakh.
How to fill boxes to claim deductions under sections 80C, 80CCC, 80CCD (1) and 80CCD(1B)
| Section 80C || Payment for life insurance premium, investment in Provident Funds (EPF/PPF/VPF), ELSS, home loan principal repayment, SSY, NSC, SCSS and others |
| Section 80CCC || Payment made to receive pension in future such as towards pension plans of insurance companies and mutual funds |
| Section 80CCD(1) || Payment made to receive pension from National Pension System, Atal Pension Yojana |
| Total amount || The total amount entered in the above three cells cannot exceed Rs 1.5 lakh |
| Section 80CCD(1B) || Additional investment of up to Rs 50,000 in NPS will be claimed in this row |
| Section 80CCD(2) || Deduction for employer's contribution to NPS will come here. This cannot exceed more than 10% or 14%, as the case maybe, of basic salary and dearness allowance, if any |
- Sections 80D, 80DD and 80DDB
The new schedule first asks you to provide the information regarding the amount of health insurance premium and preventive health check-up paid for self and family (except for parents).
Then you are required to provide the information of health insurance premium or medical expenditure and preventive health check-up in respect of parents.
The maximum amount that can be claimed under preventive health check is Rs 5,000. However, it comes within the overall limit allowable under Section 80D as mentioned in table below. Further, the total amount paid on preventive health check-up for self and parents cannot exceed Rs 5,000.
If you and/or your parents are senior citizen (i.e. above 60 years of age) and are not covered under any other medical insurance but have incurred any medical expenditure during FY2019-20, then deduction can be claimed. The maximum deduction available is Rs 1,00,000 (Rs 50,000 in respect of assessee and his family and Rs 50,000 in respect of parents).
|Nature of the amount spent||Age of family Member||Age of family Member||Age of the parents||Age of the parents|
|Below 60 years||Above 60 years||Below 60 years||Above 60 years|
|Medical Insurance||Rs 25,000||Rs 50,000||Rs 25,000||Rs 50,000|
|Contribution to CGHS||Rs 25,000||Rs 25,000||-||-|
|Health Check-up*||Rs 5,000||Rs 5,000||Rs 5,000||Rs 5,000|
|Medical Expenditure||-||Rs 50,000||-||Rs 50,000|
|Maximum deduction||Rs 25,000||Rs 50,000||Rs 25,000||Rs 50,000|
Also Read: How medical bills of your senior citizen parents can help you save tax
Also Read: How visit to medical lab can help you save tax
Section 80DD allows you to claim the deduction for expenses made for a disabled dependent or if you have paid for any scheme framed by LIC or any other insurer for taking care of a disabled dependent. Dependent individual for which deduction under this section can be claimed includes spouse, any child (son/daughter), parents (except for in-laws) and siblings (brother/sister).
Chartered Accountant, Naveen Wadhwa, DGM, Taxmann.com says, "Section 80DD deduction can be claimed by a taxpayer only if he incurs some expenditure to support his dependent family member who is suffering from disability or severe disability. To claim this deduction, you are required to furnish a medical certificate from the medical authorities as per the format given in the Form 10-IA (for three specified diseases - Autism, Cerebral Palsy or Multiple disability) or in form prescribed under the Rights of Persons with Disabilities Act, 2016."
The maximum deduction amount available depends on the nature of disability. If the dependent individual has disability, then you can claim up to Rs 75,000 as deduction. On the other hand, if the dependent has severe disability of at least 80 percent, then the maximum deduction available is Rs 1.25 lakh.
Section 80DDB covers expenditure for the treatment of specified diseases either on self or a dependent. The maximum deduction allowed under this section depends on the age of the person on whom money is being spent for the treatment.
Age and maximum amount of deduction under section 80DDB
|Age of the person i.e. the patient||Maximum deduction allowed|
|Age below 60 years||Rs 40,000|
|Age 60 and above (Senior Citizen)||Rs 1 lakh|
This deduction can be claimed only if you have a prescription for such medical treatment from a specialist doctor. The prescription must contain name and age of the person and name of the disease he/she is suffering from along with the name, address, registration number, and qualification of the specialist doctor. If treatment is being received in a government hospital, then it must have name and address of that hospital as well.
"While claiming deductions under section 80DDB, the maximum amount of deduction available will be reduced by the amount of reimbursement of treatment cost, if any, received from the employer or insurance company", adds Wadhwa.
- Section 80E: Interest on loan taken for higher education
- Section 80EE: Payment of interest on home loan
a) The loan taken by you was sanctioned between April 1, 2016 and March 31, 2017;
b) The home loan taken does not exceed Rs 35 lakh;
c) The value of house purchased by you does not exceed Rs 50 lakh;
d) The house for which loan is taken is your first house.
You can claim this deduction only if you have exhausted the limit available to you under the head 'Income from house property' under section 24 for Rs 2 lakh.
- Section 80EEA: Deduction in respect of interest on loan taken for certain house property
a) If the loan has been sanctioned between April 1, 2019 and March 31, 2021;
b) The stamp value duty of house does not exceed Rs 45 lakh;
c) Individual does not own any residential property on the date of sanction of loan.
This deduction is available over and above existing deduction of Rs 2 lakh on the interest paid on home loan.
- Section 80EEB: Deduction in respect of purchase of electric vehicle
- Section 80G: Donation to eligible funds, charitable funds etc.
While claiming this deduction, you are also required to fill in the details of the institutions to which donation has been made in the additional tab '80G'. The additional tab is divided into 4 sections and deduction can be claimed as either 100 percent or 50 percent of the amount donated with subject to 'With' or 'Without' the upper limit.
'With' upper limit: Deduction of either 50 percent or 100 percent of the amount donated can be claimed with a ceiling of 10 percent of your gross adjusted income.
'Without' upper limit: Deduction of either 50 percent or 100 percent with no maximum ceiling.
Gross adjusted income is your gross total income minus (a) all exempted income, (b) long-term capital gains and (iii) all deductions under section 80C to 80U except for 80G.
Also Read: All you need to know about claiming 80G deduction
ITR-1 asks you to provide the break-up of the amount donated in cash and via cheque. If you have made donation in cash, then the maximum amount you can claim as deduction is Rs 2,000.
If you have made a contribution to PM CARES Fund anytime between April and July, want to claim deduction for FY 2019-20, then such contribution must be reported in the Schedule 'DI' of ITR-1.
- Section 80GG: Rent Paid
a) Rent paid in excess of 10 percent of total income
b) 25% of the total income
c) Rs 5,000 per month
Here total income is calculated as gross total income minus long-term capital gains, short-term capital gains where securities transaction tax has been paid and deductions available under sections 80C to 80U except for 80GG. It is important to note that if you have income taxable under the head Capital Gains, then you cannot file return in ITR-1.
There are certain conditions attached while claiming this deduction. To claim deduction, you should not own a house either in your name, spouse, minor child or as member of Hindu Undivided Family (HUF), at the place of employment and at the place of residence. If you own a house in any other place, you can claim 80GG deduction, provided that the house you own is on rent, adds Wadhwa.
- Section 80GGA and 80GGC
Section 80GGA. To claim the deductions under this section, you are required to enter the details in the last tab of the ITR-1 form.
If the donation has been made in cash, then the maximum amount that can be claimed as deduction under this section is Rs 2,000. If donation is made using any mode except for cash, then there is no limit on the amount of deduction. The tab asks you to furnish the following information:
a) Relevant clause under which deduction is claimed
b) Name and address of donee
c) PAN of donee
d) Amount of donation made in cash and by other mode.
Section 80GGC allows you deduction for donation made to political parties. There is no maximum limit on the deduction amount but can only be claimed if the donation is made using any mode other than cash.
- Section 80TTA: Income from interest on saving bank account
- Section 80TTB: Interest on deposits in case of senior citizens
A maximum deduction of Rs 50,000 can be claimed by senior citizens in a financial year.
Also Read: Everything to know about Rs 50,000 deduction for seniors
- Section 80U: Person with disability
The maximum limit available under section 80U is same as section 80DD.
| Percentage of disability || Deduction allowed |
| Disability of specified diseases || Rs 75,000 |
| Severe Disability of at least 80% of any kind || Rs 1.25 lakh |
Once you have filled the corresponding cells with the amount of deductions under sections 80C to 80U that you are eligible to claim, the online form will automatically calculate your total income (minus deductions entered by you) on which you are required to pay tax. All your tax details will be automatically calculated.
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4 Comments on this Story
Vanajakshi59 days ago
Is the pension from LIC Jeevan Akshya and SBI Life annuity Plus tax free.
kaushik kumar maiti555 days ago
There is no provision of deduction of expenses under 80QQB in ITR 1. What should one do to show one''s expenses against royalty income?
Ramaswami Narayan936 days ago
I think the maximum deduction under 80 D is 50000 and in case of those above 85 years the health insurance is 30000 straight away.