Investments

House Rent Allowance (HRA)

Leave Travel Allowance (LTA)

Housing Loans EMIs

Life Insurance Premium

Public Provident Fund (PPF)

Children Tuition Fees

Medical Insurance
Description

For most employees, HRA is a part of their salary structure and

provides benefits for the rental expenses made during the year.
The benefit amount available to employees is the least of the
following:
Actual HRA received
Actual rent paid (-) 10% of basic salary
50% of basic salary for metro cities/ 40% for non-metros

Applicable to employees whose salary structure includes LTA

component
The exemption amount will be limited to LTA provided by the
employer or actual travel costs, whichever is less
Employees can claim interest paid on housing loan for a self-occupied
property of up to Rs 2 lakh in a financial year.
Also, the principal amount can be claimed under section 80C of the
Income Tax Act up to a maximum of Rs 1.5 lakh in a year

LIC premium paid during the year can be claimed as deduction under s
Employees can invest in a PPF account and claim up to Rs 1.5 lakh in

Any amount paid towards children’s education can be claimed under se

Medical insurance premium for self and family
Documents to collect Points to remember

The rent receipts can be monthly/ annually

If the rent paid is higher than Rs 1 lakh in a year, owner’s PAN is
Rent receipts mandatory

Tickets for domestic travel and boarding pass in case of air Applicable to only domestic travel expenses
Loan certificate provided by the bank
A document declaring employees’ ownership in the
property
Property possession certificate Declaration should indicate borrowers and share of ownership

Premium paid for self, spouse and children is eligible

Receipts of premium paid Payment should be made by the employee only
PPF account statement or passbook Either statement or passbook should have the account details and transfer record

Tuition fees should be mentioned in the receipt

Deduction only allowed for tuition fees
School fees receipts Available for full-time education courses including nursery
 Premium payment should be made by the employee only
Any amount paid, other than for preventive health check-up, should
be in electronic form
Medical bills for senior citizen parents can be claimed if there is no
Receipts of premium paid active insurance plan for them
details and transfer record showing the amount along with the date of investment
Sections What They Deal In
80CCD Contributions to National Pension Schemes (NPS)

80D Health insurance premiums

80DD Expenses on a handicapped dependent

80DDB Treatment of specified illnesses
80E Education loan interest payment
80EE Home loan interest payment for first time home-owners
80G Donations to approved charitable institutes
80GG Rent paid by employees not having HRA
80GGA Donations for Scientific Research and Rural Development
80GGB Donations Made to Political Parties or an electoral trust. (Indian com
80GGC Contributions made to a political party

80TTA and 80TTB Saving account interest

80U Handicapped tax-payers can claim this deduction

80RRB Royalty or patent income
Exemption Limit
₹50,000

Up to ₹25,000 for oneself + family ( including spouse and child).

Up to ₹50,000 for oneself and family + parents
Up to ₹75,000 for Oneself and family (below 60 years) + Parents above 60 years of age
Up to ₹1,00,000 for Oneself and family (with members above 60 years) + Senior Citizen Parents

₹75,000 for people with 40% to 80% disability

₹1,25,000 for people with higher than 80% disability
₹40,000 (₹1,00,000 for senior citizens)
No limit
Up to ₹50,000
No Limit
Lower of the following –
₹5000/month
The total annual income of 25%
10% of the basic annual income.
No Limit
No Limit
No Limit

80TTA – Up to ₹10, (individuals below 60 years)

80TTB – Up to ₹10,000 for senior citizen

₹75,000 for 40% to 80% disability

₹1,25,000 for higher than 80% disability
Up to ₹3 lakhs
Investments
Fixed Income Products
Provident Fund (EPF/VPF)
Public Provident Fund (PPF)
National Saving Certificate (NSC)
Tax Saving 5 years FD from Banks
5 years Post Office Time Deposit (POTD)
Senior Citizen Saving Scheme (SCSS)
NHB deposit scheme
Market-Linked Products
Life Insurance Premium (Participating Endowment Plans)
New Pension Scheme (NPS) (under Section 80CCD) Atal Pension Yojana
Equity Linked Savings Scheme (ELSS)
Pension Plans from Insurance Companies (under Section 80CCC)
Unit Linked Insurance Plan (ULIP)
Spending Activities
Tuition fee for 2 children
Stamp duty and registration cost of the House
Home Loan Principal Payment
Nature Of Investment
Investment
Retirement
Retirement/Long-Term Fixed Income
Long-Term Fixed Income
Long-Term Debt
Long-Term Debt
Long-Term Debt
Long-Term Debt
NPS
Life Insurance + Investment
Retirement Plan
Equity Mutual Fund
Retirement Annuity
Life Insurance + Investment

Full-time Education cost

Only at the time of purchase of a house
Purchase of house on loan
Minimum Holding Period
Unit Linked Insurance Plan
Term Life Insurance Plan
Repayment of Home Loan Principal/Cost of purchase or construction of residential house
Deposit in Senior Citizen Saving Scheme
Time Deposit in Post Office/Bank
Equity Linked Savings Scheme (ELSS)
PPF
Till Retirement
5 years
2 years
5 years
5 years
5 years
3 years
6 years