Deductions available under various Sections of Income Tax Act

My comment on an article "How to pay less income tax post-Budget 2017 and beyond" published in the economictimes.com Dated 02/02/2017.


"Very useful information provided by the author of this article regarding tax exemptions that are now available. He discussed all the sections that can be used to invest in the various schemes and get the maximum benefit."

Deductions available:

Under Section 80C (includes 80CCC and 80CCD)
HRA, PF contribution, Medical expenses (Rs 15,000 per annum), Leave Travel Allowance (Rail fare or economy class airfare), Conveyance Allowance (upto Rs 1,600 pm), Child education expenses (100 as fees and 300 as hostel expenses er month),meals vouchers (50 per day), Insurance premium, etc. (Total amount allowed is Rs 1,50,000 per annum).

Section 80CCD (18)
A deduction is allowed for Investments made in National Pension Scheme up to a maximum of Rs 50,000 per annum which is not included in above limit of Rs 1,50,000.

Section 80D
Medical Insurance premium payments for self and parents, including a sum of up to Rs 5,000 towards health checkup. The maximum deductible amount is Rs 60,000.

Section 80E
Interest paid on the educational loan for self, spouse or children is fully allowed as deductible amount.

Section 24
Interest paid on home loans for self-occupied home is deductible under this section up to a maximum limit of Rs 2,00,000.
Interest paid on second homes and rented out by you are fully allowed as deductible amounts without any limit. The rent income is to be shown here as a part of your income.

A Comment on the relationship between car ownership and income-tax liability

My Comment on an article "24 lakh people have income above Rs.10 lakh but 25 lakh cars bought every year" published in the economictimes.com Dated 31/12/2016.


"Figures can't be linked like these. Car purchases and eligibility for the tax are two different things. One should have the full details to check the actual position. 

The author is taking the tax -payers' statistics of A.Y. 2014-15 and trying to explain the figures. We should take recent figures for the actual position.

Moreover, if one owns a car, he need not be treated as falling in the income tax eligibility range. Many models are available cheaply and anyone can purchase a car nowadays earning minimum income. Even if you have a salary of Rs.25,000 pm, you don't fall in the taxable range. You can easily purchase a car paying very low EMIs affordable within your income."

A Comment on levying of I.Tax on LPG subsidy

My comment on an article in Economic Times Dated 12/12/2013 regarding Income Tax levy on LPG subsidy credited to bank accounts

You:  Very absurd if it is treated as income and taxed. Even though it may not affect the common man whose income does not come in the bracket of taxable income, the 30% tax paying people will be at loss. Nobody can like to lose Rs.1700 willingly. Such items should not be taxed as they are only reimbursements.