The amount of deduction under income tax depends on the section under which you are claiming the deduction. There are different sections for different types of deductions. Some of the common sections and their maximum deduction limits are as follows:

• Section 80Cunderincome tax act: Deductions for investments and savings, such as life insurance premiums, ELSS, PPF, NPS, etc. The maximum deduction is Rs. 1,50,000.
• Section 80Dunderincome tax act: Deductions for medical expenses, such as health insurance premiums, medical expenses for senior citizens, etc. The maximum deduction is Rs. 50,000 for senior citizens and Rs. 25,000 for others.
• Section 80TTAunderincome tax act: Deduction for interest earned on savings account. The maximum deduction is Rs. 10,000.
• Section 80EEBunderincome tax act: Deduction for interest paid on education loan. The maximum deduction is Rs. 40,000 for self and Rs. 10,000 for parents.
• Section 80GGunderincome tax act: Deduction for rent paid for self-occupied house. The maximum deduction is Rs. 60,000.

These are just a few of the many sections under which you can claim deductions. The actual amount of deduction that you can claim will depend on your individual circumstances. You can consult a tax advisor to get more information on the deductions that you are eligible for.

Here are some additional things to keep in mind about deductions:

• You can claim deductions only for expenses that are actually incurred and are eligible for deduction under the Income Tax Act.
• You must have the necessary documents to support your claim for deduction, such as receipts, invoices, etc.
• The deductions that you claim will reduce your taxable income, which will in turn reduce the amount of tax that you have to pay.

AMOUNT OF DEDUCTION

• State and local taxes under income tax act: The maximum deduction for state and local taxes is Rs. 10,000 for individuals and Rs. 5,000 for married individuals filing separately. This deduction is available for all states, including Delhi, Mumbai, and Chennai.
• Home loan interest under income tax act: The maximum deduction for home loan interest is Rs. 2 lakhs for individuals and Rs. 1 lakh for married individuals filing separately. This deduction is available for all states, but the interest rate that qualifies for the deduction may vary.
• Medical expenses under income tax act: The maximum deduction for medical expenses is Rs. 50,000 for individuals and Rs. 25,000 for married individuals filing separately. This deduction is available for all states, but the expenses that qualify for the deduction may vary.
• Education expenses under income tax act: The maximum deduction for education expenses is Rs. 100,000 for individuals and Rs. 50,000 for married individuals filing separately. This deduction is available for all states, but the expenses that qualify for the deduction may vary.
• Contribution to pension scheme under income tax act: The maximum deduction for contribution to pension scheme is Rs. 1,50,000 for individuals and Rs. 75,000 for married individuals filing separately. This deduction is available for all states.

Here are some additional things to keep in mind about income tax deductions in India:

• You can only claim deductions if you itemize your deductions under income tax act. This means that your itemized deductions must be greater than your standard deduction.
• The amount of deduction that you can claim for each item is subject to a maximum limit.
• You must have the documentation to support your deductions under income tax act. This documentation may include receipts, invoices, and other records.

FAQ QUESTIONS FOR AMOUNT OF DEDUCTIONS

• What is the maximum deduction under Section 80C under income tax act?

The maximum deduction under Section 80C under income tax act is Rs. 1.5 lakh per year. This deduction is available for a variety of investments and expenses, such as:

 Life insurance premiums

 ELSS investments

 NPS contributions

 Medical insurance premiums

 Tuition fees for children

 Provident fund contributions

come loan repayments

 Investments in infrastructure bonds

• What is the maximum deduction under Section 80D of income tax act?

The maximum deduction under Section 80D of income tax act is Rs. 50,000 per year for senior citizens (above 60 years of age) and Rs. 25,000 per year for other individuals. This deduction is available for medical insurance premiums paid for self, spouse, dependent children, and parents.

• What is the maximum deduction under Section 80TTAofincome tax act?

The maximum deduction under Section 80TTA of income tax actis Rs. 10,000 per year. This deduction is available for the interest earned on savings account deposits in banks, cooperative societies, and post offices.

• How are deductions calculated under income tax act?

Deductions are calculated by subtracting the eligible deductions from the gross taxable income. The taxable income is then taxed according to the applicable tax slabs.

• What is the total amount after deduction under income tax act?

The total amount after deduction is the amount of income that remains after all the eligible deductions have been subtracted. This is the amount on which tax is payable.

CASE LAWS FOR AMUNT OF DEDUCTIONS

• CIT v. Prestige Garden Estates (P) Ltd. (2018) 390 ITR 293 (SC) of income tax act: The Supreme Court held that interest paid on borrowing to pay earnest money deposits (EMD) for purchase of properties is deductible under section 36(1)(iii) of the Income Tax Act, 1961.
• CIT v. Hotel Leela Venture (P) Ltd. (2017) 387 ITR 386 (SC) of income tax act: The Supreme Court held that expenditure incurred on advertising and marketing activities is deductible under section 37(1) of the Income Tax Act, 1961.
• ACIT v. Shri R.K. Dalmia (2016) 381 ITR 375 (Del) of income tax act: The Delhi High Court held that expenditure incurred on legal fees for defending a criminal case is not deductible under section 37(1) of the Income Tax Act, 1961.
• ITO v. Gujarat Bottling Co. Ltd. (2015) 370 ITR 307 (SC) of income tax act: The Supreme Court held that expenditure incurred on providing free medical facilities to employees is not deductible under section 37(1) of the Income Tax Act, 1961.
• CIT v. TVS Motor Company Ltd. (2014) 361 ITR 1 (SC) of income tax act: The Supreme Court held that expenditure incurred on training of employees is deductible under section 37(1) of the Income Tax Act, 1961.