Income Tax Deduction for FY 2017-2018 / AY 2018-2019

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Section 80U

This section is similar to Section 80DD but here the Tax deduction is permitted for the employee himself who is physically or mentally challenged.

Section 80D

Deduction under section 80D are available for payment of Medical Insurance Premium or Health Insurance Premium.

Individual and dependents (spouse & children) are allowed for deduction up to Rs. 25,000 whereas for senior citizens the limit is up to Rs. 30,000.

Additionally, a deduction of up to Rs. 25,000 towards medical insurance premium of parents (father/mother/both) is available. If both the parents (Father & Mother) are senior citizens, then the deduction allowed is up to Rs. 30, 000.

Section 80E

Taxpayers/ Assessee are eligible for tax deductions on the interest repayment of a loan taken to pursue higher education. This loan can be availed either by the taxpayer himself or to sponsor the education of his child. Only individuals are eligible for this deduction, with loans taken from approved financial institutions permitted for tax benefits.

Section 24: Income Tax Benefit for Interest paid on Home Loan.

Income tax benefit on payment of Interest paid on home loan is allowed for deduction under Section 24. The maximum deduction allowed under this Section for a self-occupied house property is up to Rs. 2 Lakhs.

In case, the home Loan has been taken for the property which is not self-occupied, there is no maximum limit prescribed and the entire interest paid is fully exempted.

If the taxpayer has availed a home loan for repair works or reconstruction, a maximum deduction of up to Rs 30,000 per financial year is permitted.

Section 80EE

In Budget 2016-2017, a new proposal has been made in which, first time home buyers are eligible for an additional tax deduction of up to Rs 50,000 on home loan interest payments under section 80EE. For claiming tax deductions under this new section 80EE, the following criteria.

  • The home loan should have been sanctioned during / after FY 2016-17.
  • Loan amount should be less than Rs 35 Lakh.
  • The value of the house should not be more than Rs 50 Lakh &
  • The home buyer should not have any other existing residential house in his name.

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