Income Tax Deductions List FY 2018-19 | List of important Income Tax Exemptions for AY 2019-20

Budget 2018-19 & the Finance Bill 2018 have been tabled in Parliament. The Income Tax Slab rates have been kept unchanged by the Finance Minister for the Financial Year 2018-19 (Assessment Year 2019-2020).

Tax planning is an important part of a financial plan. Whether you are a salaried individual, a professional or a businessman, you can save taxes to certain extent through proper tax planning.

The Indian Income Tax act allows for certain Tax Deductions / Tax Exemptions which can be claimed to save tax. You can subtract tax deductions from your Gross Income and your taxable income gets reduced to that extent.

Latest Update (01-Feb-2019) : Budget 2019 Key Highlights & Revised Income Tax Exemption FY 2019-20

In this post, let us go through the Income Tax Deductions List FY 2018-19, best ways to save taxes and best tax saving options for FY 218-19 / AY 2019-20. I hope you find this list useful and helps in planning your taxes well in advance.

Income Tax Deductions List FY 2018-19 / AY 2019-20 (Chapter VI-A deductions list)

Income Tax Deductions List FY 2018-19 Income tax exemptions tax benefits Fy 2018-19 AY 2019-20 Section 80c limit 80D 80E NPS Home loan interest loss standard deduction

Section 80c

The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;

  • PPF (Public Provident Fund)
  • EPF (Employees’ Provident Fund)
  • Five year Bank or Post office Tax saving Deposits
  • NSC (National Savings Certificates)
  • ELSS Mutual Funds (Equity Linked Saving Schemes)
  • Kid’s Tuition Fees
  • SCSS (Post office Senior Citizen Savings Scheme)
  • Principal repayment of Home Loan
  • NPS (National Pension System)
  • Life Insurance Premium (Read : ‘Best Term insurance plans‘)
  • Sukanya Samriddhi Account Deposit Scheme

(Read : ‘Tax Saving Investment Options u/s 80c | In whose name can they be Invested?’)

Section 80CCC

Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.

Section 80CCD

Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be upto 10% of the salary (salaried individuals) and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.

As per the previous Budget 2017-18, the self-employed (individual other than the salaried class) can contribute up to 20% of their gross income and the same can be deducted from the taxable income under Section 80CCD (1) of the Income Tax Act, 1961, as against current 10%.

To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals only and Gross income is applicable for non-salaried. The definition of Salary is only ‘Dearness Allowance.’ If your employer also contributes to Pension Scheme, the whole contribution amount (10% of salary) can be claimed as tax deduction under Section 80CCD (2).

Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2018-19. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.

(Read : ‘NPS Scheme – Pros & Cons‘)

Contributions to Atal Pension Yojana‘ are eligible for Tax Deduction under section 80CCD.

Section 80D

In the union budget 2018, the government of India has proposed the below changes with respect to deductions available on Health Insurance and/or towards Medical treatment ;

  • Health Insurance & Senior Citizens : In Budget 2018, it has been proposed to raise the maximum tax deduction limit for senior citizens under Section 80D of the Indian Income Tax Act 1961. The current limit of tax deduction allowed for FY 2017-18 for senior citizens is Rs. 30,000 which will be increased to Rs 50,000, from FY 2018-19 (AY 2019-20) onwards.
    • Under Section 80D an assessee, being an individual or a Hindu undivided family, can claim a deduction in respect of payments towards annual premium on health insurance policy, preventive health check-up or medical expenditure in respect of senior citizen (above 60 years of age).
    • As of FY 2017-18, only Very Senior Citizens (who are above 80 years of age), can claim a deduction of up to Rs 30,000 incurred towards medical expenditure, in case they don’t have health insurance. The Budget 2018 has increased this to Rs 50,000 and also allowed the same flexibility to senior citizens. Even individuals who pay premiums for their dependent senior citizens parents can claim the additional deduction on health insurance premium (or) medical expenditure.
  • Single premium Health Insurance policy / Multi-year Mediclaim policy :
    • In case of single premium health insurance policies having cover of more than one year, it is proposed that the deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided, subject to the specified monetary limit.

The below revised limits are applicable for Financial Year 2018-2019 (or) Assessment Year (2019-2020) u/s 80D.Health Insurance Tax Benefits Section 80D Health insurance premium Income Tax Deductions FY 2018-19 AY 2019-20

Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, parents and dependent children).

Section 80DD

You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of upto Rs 1.25 lakh in case of severe disability can be availed.

To claim this deduction, you have to submit Form no 10-IA.

Section 80D 80u Form no 10-IA pic

Section 80DDB

An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment of specified critical ailments. This can also be claimed on behalf of the dependents. The tax deduction limit under this section for Senior Citizens and very Senior Citizens (above 80 years) has been revised to Rs 1,00,000.

To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.

For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:

  • Neurological Diseases where the disability level has been certified to be of 40% and above;

(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinson’s Disease

  • Malignant Cancers
  • Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
  • Chronic Renal failure
  • Hematological disorders
    1. Hemophilia
    2. Thalassaemia

Section 80CCG

Tax Benefits of Rajiv Gandhi Equity Savings Scheme (RGESS) under section 80CCG has been withdrawn. However, if an investor has invested in the RGESS scheme in FY 2016-17 (AY 2017-18), they can claim deduction under this Section until AY 2019-20.

Section 24 (B) (Loss under the head Income from House Property)

  • From FY 2017-18, the Tax benefit on loan repayment of second house is restricted to Rs 2 lakh per annum only (even if you have multiple houses the limit is still going to be Rs 2 Lakh only and the ceiling limit is not per house property).
  • The unclaimed loss if any will be carried forward to be set off against house property income of subsequent 8 years. In most of the cases, this can be treated as ‘dead loss‘.
  • I believe that this is a major blow to the investors who have bought multiple houses on home loan(s) with an intention to save taxes alone.
  • Until FY 2016-17, interest paid on your housing loan is eligible for the following tax benefits ;
    • Municipal taxes paid, 30% of the net annual income (standard deduction) and interest paid on the loan taken for that house are allowed as deductions.
    • After these deductions, your rental income can be NIL or NEGATIVE and is called ‘loss from house property’ in the latter case.
    • Such loss is currently allowed to be set off against other heads of income like Income from Salary or Business etc. which helps you to lower you tax liability substantially.Budget 2017 2018 loss income from house property limited to 2 Lakh interest on home loan Section 24 rental income Section 24 limit pic

Section 80E

If you take any loan for higher studies (after completing Senior Secondary Exam), tax deduction can be claimed under Section 80E for interest that you pay towards your Education Loan. This loan should have been taken for higher education for you, your spouse or your children or for a student for whom you are a legal guardian. Principal Repayment on educational loan cannot be claimed as tax deduction.

There is no limit on the amount of interest you can claim as deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.

Section 80EE

This was a new proposal which had been made in Budget 2016-17. The same will be continued in FY 2018-19 / AY 2019-20 too. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.

  • The home loan should have been sanctioned during 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.
  • Such eligible home buyers can claim exemption of Rs. 50,000/- for interest on home loan under section 80EE from assessment year beginning from 1 st April 2017 and subsequent years.

Section 80G

Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.

The donations made to any Political party can be claimed under section 80GGC.

W.e.f FY 2017-18, the limit of deduction under section 80G / 80GGC for donations made in cash is reduced from current Rs 10,000 to Rs 2,000 only.

If you want to donate some fund to a political party of your choice, you can do so in cash of up to Rs 2,000. Beyond that you can not donate the amount in cash mode. It can be done through Electoral Bonds.

Section 80GG

The Tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).

The extent of tax deduction will be limited to the least amount of the following;

  • Rent paid minus 10 percent the adjusted total income.
  • Rs 5,000 per month.
  • 25 % of the total income.

(If you are claiming HRA (House Rent Allowance) of more than Rs 50,000 per month (or) paying rent which is more than Rs 50,000 then the tenant has to deduct TDS @ 5%. It has been proposed that the tax could be deducted at the time of credit of rent for the last month of the tax year or last month of tenancy, as applicable.)

Rebate under Section 87A

Tax rebate of Rs 2,500 for individuals with income of up to Rs 3.5 Lakh has been proposed in Budget 2017-18 and the same will be continued for FY 2018-19 / AY 2019-20 as well.

  • Only Individual Assesses earning net income up to Rs 3.5 lakhs are eligible to enjoy tax rebate u/s 87A.
  • For Example : Suppose your yearly pay comes to Rs 4,50,000 and you claim Rs 1,50,000 u/s 80C. The total net income in your case comes to Rs 3,00,000 which makes you eligible to claim tax rebate of Rs 2,500.
  • The amount of tax rebate u/s 87A is restricted to maximum of Rs 2,500. In case the computed tax payable is less than Rs 2,500, say Rs 2,000 the tax rebate shall be limited to that lower amount i.e. Rs 2,000 only.
  • The Tax Assesse is first required to add all incomes i.e. salary, house income, capital gains, business or profession income and income from other sources and then deduct the eligible tax deduction amounts u/s 80C to 80U and under section 24(b) (Home Loan Interest) to come up with the net taxable income.
  • If the above net taxable income happens to be less than Rs 3.5 lakhs then the tax rebate of Rs 2,500 comes in to the picture and should be deducted from the calculated total income tax payable.

Section 80 TTA & new Section 80TTB

For Senior Citizens, the Interest income earned on Fixed Deposits & Recurring Deposits (Banks / Post office schemes) will be exempt till Rs 50,000 (FY 2017-18 limit is up to Rs 10,000). This deduction can be claimed under new Section 80TTB. However, no deductions under existing 80TTA can be claimed if 80TTB tax benefit has been claimed (the limit for FY 2017-18 & FY 2018-19 u/s 80TTA is Rs 10,000).

Section 80TTA of Income Tax Act offers deductions on interest income earned from savings bank deposit of up to Rs 10,000. From FY 2018-19, this benefit will not be available for late Income Tax filers.

Interest income from deposits held with companies will not benefit under this section. This means, senior citizens will not get this benefit for interest income from corporate fixed deposits us/ 80TTB.

Section 80U

This is similar to Section 80DD. Tax deduction is allowed for the tax assessee who is physically and mentally challenged.

Standard Deduction of Rs 40,000 in-lieu of Medical Allowance – Budget 2018 

For FY 201718, the medical allowance of up to Rs 15,000 is exempted income from your Gross salary. To claim this, you need to submit medical bills to your employer and get the allowance benefit. The medical reimbursement allowance is exempted under Section 10 of the Income Tax Act.

If you have submitted medical bills (to your employer) towards medical allowance and also paid premium towards your mediclaim (health insurance) then both of them will be listed in your Form-16 under different sections as shown below (click on the images to open them in new browser window).Medical allowance form 16

Mediclaim section 80d form 16

From FY 2018-19, a standard deduction of Rs 40,000 in lieu of travel, medical expense reimbursement and other allowances has been proposed for salaried employees and pensioners. To claim this standard deduction, there is no need to submit medical bills to your employer.

As per this new proposal, irrespective of amount of taxable salary the assessee will be entitled to get a deduction of Rs.40,000 or taxable salary, whichever is less. Thus suppose if a person has worked for few days (or) months and his salary was just Rs 40,000 for a previous year, then he will be entitled to deduction equal to salary being the same amount. If his salary is less, say Rs 30,000 the deduction shall be restricted to Rs 30,000. If salary exceeds amount of Rs 40,000, the deduction shall be restricted to Rs 40,000.


It is prudent to avoid last minute tax planning. Do not invest in low-yielding life insurance polices or in any other financial products just to save taxes. It is better you plan your taxes based on your financial goals at the beginning of the Financial Year itself. Plan your taxes from April 2018 itself, instead of waiting until late December 2018 (or) January 2019.

It is OK to pay some taxes when you can not save or cannot invest in right financial products. But, do not invest just to save TAXES. The cost of buying wrong financial products may outweigh the cost of taxes. Tax Planning is not a goal but a tool. Remember “Tax Planning alone is not Financial Planning.”

Also, kindly understand the tax treatment of the selected investment products across the different investment stages (i.e., investment, accrual & withdrawal) and then invest. (Read : ‘Tax treatment of various Financial Investments‘)

I believe that the above list is useful for your Tax Planning purposes. Kindly note that these Income Tax Exemptions are applicable for financial year 2018-2019 (or Assessment Year 2019-2020).

Continue reading :

(Image courtesy of Stuart Miles at (Post first published on : 09-March-2018)

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  • S. Trivikrama Rao says:

    Suppose already submitted the ITR but in fact I am suppose to get refund then what is to be done to get refund as the Bank deducted amount on extra source of Income was shown more than actual.

    • Sreekanth Reddy says:

      Dear Trivikrama,
      I am assuming that you are referring to AY 2019-20 ITR, if so, you can get the ITR revised.

  • Sreekanth Reddy says:

    Dear Viswanathan,
    Kindly consult a CA who takes care of NRI taxation matters..

  • Viswanathan says:

    Respected Shri. Sreekanth Reddy Sir,

    I worked in Singapore between 2006 – 2009, and had an SB account in a Bank POSB in Singapore. I left the job in 2009 and came back to India.
    However i had not closed the account and this account has got about Singapore $ 17000. I forgot about this totally and in the ITR 2 in the declaration i missed mentioning this amount.
    This amount S $ 17000 is after income tax paid to Singapore Government.

    I had no intention of not disclosing this. As you know this amount in Savings bank earns interest of about 20 – 30 dollars per year.

    Now what should i do since i forgot to mention about this while filing IT returns last two years. What is the recource now as i have always been a honest tax payer to the government.
    Thanks and Regards,

  • Dhiraj says:

    One query,

    If a property is registered in my wife’s (non working housewife) name and she is co-applicant for loan application with me and i’m fully repaying the home loan from my account. Can I claim IT deductions.

  • Dhiraj says:

    Hi, I am about to complete the deal of purchase of my new first home before 31 March 2019. Then, can I claim stamp duty and registration charges for FY 2018-19 & AY 2019-20. Under which section please guide me.

    • Sreekanth Reddy says:

      Dear Dhiraj,
      You can claim it u/s 80c..

      For claiming stamp duty deduction u/s 80c, you must possess the house also i.e. Payment for under-construction is not allowed. In simple words both payment of expenses and possession of the house must be in the same fiscal year for claiming expenses.

  • SMRUTI says:

    Can you explain, who are eligible to get benefit Rs.4000 under 17(2) & what document required.

  • Ahmad says:

    My Father’s age is 68 and Pension is ₹3,90,000, 80C Deduction is 21600₹, Interests from Savings is 7500₹, Is IT is payable? Is there any other section in which i can claim something. Like Family Medicinal Exps, Father is having Retinetis Pigmentosa which is incurable disease though we haven’t obtained any governmental certificate for it but only private doctor’s prescribtion for this.

  • Das says:

    for deciding income tax slab what is the as on date to determine age ?

    • Sreekanth Reddy says:

      Dear Mr Das,
      While considering the higher exemption limit of tax liability for senior and very senior citizens, a person will be considered to have attained a particular age on March 31 if his or her birthdate is a day later on April 1, the CBDT today said.

      You may kindly go through this article link..

  • Kaustubh says:

    Stamp duty has been paid by parents and son has taken loan for home. Can we get exemptions for Stamp duty paid while purchasing home

  • Ravindra says:

    Hi Sreekanth,

    i have some health checkup expense about 25k for AY 2019-20, can i claim as a tax exemptions under Sec80D
    kindly advice to us



  • G A Patel says:

    Very good and useful article

  • Rajinder says:

    Sir my income is 10k per month & I file nil return from 7 years. Nov 2018 mein plot sale se 8 lakh rupees milenge Kya uspar income tax lagega . Because Meri bank mein koi saving nahin hai . Only 8 lakhs Jo plot sale se aayenge

  • Vishwanath says:

    Dear Sir,

    There is some confusion over claiming 80EE, You mentioned that “The home loan should have been sanctioned during / after FY 2016-17.” But many financial advisors are saying that it is applicable to the ones, whose home loan was sanctioned only during FY 2016-17. not after that.

    Could you please confirm on this again. I am planning to buy home loan this year(August-2018) of 35L for 50L home, can I claim 80EE?

    • Sreekanth Reddy says:

      Dear Vishwanath,
      Your are right and I stand corrected. Have updated the article now..
      ” The loan should have been sanctioned between April 1, 2016, and March 31, 2017.”

      But such eligible home buyers can claim exemption of Rs. 50,000/- for interest on home loan under section 80EE from assessment year beginning from 1 st April 2017 and subsequent years.

  • Chandresh says:

    Hi Sreekanth,

    I need your help to plan my income tax:

    CTC = 17L/Annum
    LIC+PF = 1.5 L/Annum
    Rent Paid : 30k/monthly
    HRA Received : 28K/Montly

    I was going thru online tax calculator and I found I need to pay ~3L for income tax 🙁 and its huge amount.

    can you pls help where I can invest more to save tax.

  • sunilkumar says:

    bhai aapka mobile number do bat karni hai kuch samaj me nhi aa raha hai ki calculation kese kre LIC premium ka aur FD ka…!!!!

  • SSS says:

    Hi Sreekanth,
    Could you advise whether this 1.5Lakhs exemptions is a part of the initial slab of 0 to 2.5 Lakhs. Since my company calculated the 5% tax on the amount after deducting only the 1.5Lakhs 80C savings disclosed.

    • SSS says:

      Shouldn’t they have deducted another 2.5L before calculating tax on the remaining income. And if not so then where is this initial slab considered while computing tax

      • Sreekanth Reddy says:

        Dear SSS,
        I am unable to understand your query, kindly re-phrase it!
        Have you submitted investment proofs for Rs 1.5 Lakh?

  • pritam parab says:

    How many years do i need to complete for availing gratuity ? Do you have any site to understand gratuity act .

    • Sreekanth Reddy says:

      Dear pritam,
      After completing five years of continuous service with the same company, you are eligible to receive the gratuity benefit. Gratuity shall be payable to ‘you’ (employee) on the termination of your employment after rendering continuous service for not less than five years.

      It is payable..

      On Superannuation (or) Retirement.
      On your Resignation (or) Termination.
      On death or Disablement due to accident or disease.
      On Retrenchment (or) Layoff.
      VRS (Voluntary Retirement Scheme).

      Kindly go through this article : FAQs on Gratuity Benefit..

  • Jaffer says:

    Hi Sreekanth

    I need clarification on Housing Loan and HRA exemption

    I have taken home loan for my new property and the it is located in my native. My dependent parents are living there and i am not getting any income from the property.

    Also now i am living in diffrent location for my job and i have paid rent for house.

    Shall i claim both Housing Loan and HRA exemption ?
    If so, what are the documents i need to provide for getting the exeption?

  • Kumar says:

    Dear Mr. Sreekanth ,
    this is very much informative under one roof . can we club two different mediclaim policies to claim exemption under senior citizen head if either of the parent is senior citizen


  • R S VOHRA says:

    is rs 50000/- intrest earned through fixed deposits will be consideted for tax benifit for financial yesr 2018-2029.Because amendment of section 80ttb will be from first april 2019.If from 1/4/2019 how come we are benifited for financial year 2018-2019
    My age is 67 yesrs.

  • Harinath says:

    HI Sreekanth,

    I am facing some kind of problem, the problem is medical reimburse and conveyance expenses abolishes from tax exemption ? in place of these 40000/- will deduct ?
    please clear this concept i am not getting clearly .

  • Shyam Srivastava says:

    Dear srikanth, i bought a house few days back in april 2018 and it is my first house and rented it @ Rs 25000 per month. House cost is Rs 75 lacs and i have taken home loan of Rs 45 lacs with 15 yesr tenure and at 8.60% interest with EMI of Rs 45000. I am paying 3500 per month as maintenance charges to society and Rs 10000 annually as municipality tax. Could you please let me know the income tax benefit calculation for FY 2018-19.?

  • Rohith says:

    Hi Sreekanth,

    Can i declare my Agricultural Losses under Income tax declarations..! so that i will get exempted for that amount..!


  • Bharat says:

    Hello Shreekanth , Suppose a father runs his business and earns around 15 Lakh annually. (He will pay Taxes on 15 lakh).
    Now suppose he employ his Child into the business and pay him wages around Rs 3 lakh from his business and will show these as expenses in his business. In this way he can reduce his business profits by 3 lakh and can save taxes on that !
    Question is can it be done ?

  • Subash says:


    Is 80TTB deduction for senior citizen only. I am 46 can I claim it.

    As for standard deduction do I have claim it through employer or I can calm it when filing taxes.

    • Dear Subash,
      Yes, 80TTB is applicable for Senior citizens only.
      Standard deduction is applicable for all Salaried individuals and pensioners.
      From AY 2019-20, the employers will automatically consider the standard deduction in Form-16s, accordingly you can file your taxes.

  • Kunal says:

    Excellent article. It simplifies the complicated tax exemption system.

  • Harinath says:

    Dear sir,

    i have two type of question :-
    i) the person who got house loan for renovation purpose , is this loan can be exempted along with interest ? if yes than what is the cap and under which section ? please clear me.

    ii) the person who have got loan for constructed/ full furnished flat , they have purchased, in that case employee can avail benefit in Income tax if yes than please let me the cap ( Principle amount and interest amount under which section)

    • Dear Harinath,
      1 – Home loan taken for renovation of an existing house, after the issue of completion certificate or after the house has been occupied or let out, is not eligible under Section 80C. However, its interest component is eligible for deduction under Section 24(b) under the head of “income of house property” of up to Rs 30,0000.

      2 – Yes, can claim principle amount u/s 80c to the extent of Rs 1.5 lakh and interest payment of Rs 2 Lakh u/s 24.

  • Manu Thrissur says:

    Dear Sreekanth,
    The deduction which available for “Medical Expenditure” for very senior citizens is now made available for senior citizens also. Isn’t it? Are there any conditions for this, except that there shall be no health insurance for the person? Can the monthly medicine purchases be claimed under this?

    Ref: Finance Bill 2018 : 24. In section 80D of the Income-tax Act, with effect from the 1st day of April, 2019,—
    (A) in sub-section (2),—
    (i) for the words “thirty thousand rupees” wherever they occur, the words “fifty thousand rupees” shall be substituted;
    (ii) in the first proviso occurring after clause (d), the word “very” shall be omitted;

    • Dear Manu,
      You are correct.
      I have made the necessary corrections to the article. Thank you for pointing this out!

      “As of FY 2017-18, very senior citizens (who are above 80 years of age), can claim a deduction of up to Rs 30,000 incurred towards medical expenditure, in case they don’t have health insurance. The Budget 2018 has increased this to Rs 50,000 and also allowed the same flexibility to senior citizens. Even individuals who pay premiums for their dependent senior citizens parents can claim the additional deduction on health insurance premium (or) medical expenditure.”

      The bill says ‘medical expenditure’, there is no clear cut definition on type of expenditures allowed. So, I believe that monthly medicine bills can be considered as medical expenditure.

  • Krishna das says:

    Is the 10000 deduction under 80TTA available along with 50000 under 80TTB for sr.citizens ?,
    Is the 10000 deduction under 80TTA available for normal citizens this year ?

    • Krishna das says:

      Is the 40000 standard deduction in lieu of 80 D medical insurance also ?,(80 D medical insurance deduction not available from coming year for the new std. deduction introduced ?)

    • Dear Krishna,
      If an individual claims tax deduction u/s 80TTB then 80TTA wont be available for them.

      Else, 80TTA is available for all individuals.

  • Ramadoss says:

    Hi Sreekanth,
    What are the interest income qualified to claim exception under Section 80TTB? Interest income from SCSS, PMVVY, Corporate deposits are eligible?

    • Dear Ramadoss ji,
      I believe that the Interest income earned on Fixed Deposits & Recurring Deposits (Banks / Post office schemes) only are qualified for the tax deduction u/s 80TTB.

      Interest income from deposits held with companies will not benefit under this section. This means, senior citizens will not get this benefit for interest income from corporate fixed deposits.

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