Deductions under Chapter VI A of the Income Tax Act

Chapter VI A of the Income Tax Act, 1961 (ITA) provides for a number of deductions that can be claimed against taxable income. These deductions are designed to encourage taxpayers to save and invest, as well as to support certain social causes.

Some of the most common deductions under Chapter VI A include:

• Section 80C: This section allows a deduction of up to ₹1.5 lacs for investments made in a variety of schemes, such as the Public Provident Fund (PPF), National Savings Certificate (NSC), and life insurance premiums.
• Section 80CCC: This section allows a deduction of up to ₹1.5 lacs for contributions made to pension schemes, such as the National Pension System (NPS).
• Section 80D: This section allows a deduction of up to ₹50,000 for medical insurance premiums paid for self, spouse, and dependent children.
• Section 80DD: This section allows a deduction of up to ₹75,000 for expenses incurred on the medical treatment of a dependent who is a person with a disability.
• Section 80DDB: This section allows a deduction of up to ₹1 lakh for expenses incurred on the treatment of certain specified diseases, such as cancer, HIV/AIDS, and kidney failure.
• Section 80E: This section allows a deduction of up to ₹80,000 for interest paid on education loans taken for self, spouse, or dependent children.
• Section 80G: This section allows a deduction for donations made to certain charitable organizations.

It is important to note that the deductions under Chapter VI A are subject to certain conditions and limits. For example, the deduction under Section 80C is only available for investments made up to a certain amount in a financial year.

If you are considering claiming deductions under Chapter VI A, you should consult with a tax advisor to ensure that you are eligible and that you are claiming the correct amount of deduction.