Tax deduction information can be found in the following website http://law.incometaxindia.gov.in. We have also written few articles on Income Tax Exemptions, How to Save Tax, e filing & Income Tax Rates
Here is the list of what is written in the government website, in every day simple language. Tax deduction can be filed for special provisions in respect of newly established units in special economic zones or special trade zone.
Deductions commonly used are 80C deduction which allows (HUF) Hindu Undivided Family to get deduction for specific investment and contribution or gift. It should not exceed Rs 1 lakh. The commonly used eligible provisions under section 80C are life insurance premium, public provident fund, investments in pension plans, ELSS (Equity Linked Saving Schemes), principal repayment of house loan, investments in NSC (National Saving Certificates), investment in bonds, payment of tuition fees for 2 of the individuals children, fixed deposit in a scheduled bank and senior citizen savings scheme.
Next section which is commonly used for tax deductions is section 80 D. This section permits deduction on the payment of medical insurance premium taken on the individual or his extended family of HUF (Hindu undivided family).The amount available is Rs. 15,00/-for each of the family member.
Section 80 E permits deduction for payment of interest of loan taken for higher education. Higher education means for any fulltime graduate or postgraduate studies in engineering, medicine, applied sciences and mathematics. Some of the higher studies may not be eligible.
Section 80G permits allows deduction for donation to recognized charities and institution such as Prime ministers national Relief fund, Prime minister’s Drought relief fund donations made to some religious institutions like temple, mosques, gurudwara or church.
Other less common Tax deductions used are Section80CCC- Contribution to pension fund, 80CCD- Contribution to central government pension fund, 80DD – Deduction related to treatment and maintenance of handicapped person in the family, section 80DDB – Medical treatment for the individual or his family,
Section 80GG – Rent paid by self employed, Section 80GGC – Donation given to a political party, Section80U – Income of a disabled person. Each of the above clauses has maximum limits below which deductions could be claimed.
There are also special provision for computing profits and gains of business of civil construction, business concerning mineral oil, premium paid by federal milk co-operative society or an insurance on the life of cattle owed by the member of the society, insurance on the health of the employees, bonus or commission paid and also rebate on the new plant owned by the assessee.