Financial Income Tax deduction for the year 11-12

1. Section 80D – Mediclaim policy – Max. `15,000/= for self , spouse & Dependent children. You can buy a health cover for your parents & get additional deduction of `15,000/=. The deduction is higher (`20,000) if parents are Senior Citizens.
2. Section 80DD – Treatment of handicapped dependents – Max. `50,000 (Disability) or `75,000 (Severe Disability) . This claim requires Certificate under section 139 of the Income Tax Act.
3. Section 80U – an amount of `50,000/= in case of self is physically disabled & `1,00,000/= in case the self is severely physically disabled.
4. Section 80E – Education loan – Interest on loan is allowed as a deduction without limit for a period of 8 yrs.
5. Section 80 G – Donations –
i) to Govt. Schemes – Full exemption
ii) to other trusts – 50% of donated amount.
6. Section 80GG – House Rent paid by Businessman/ Professional subject to ceiling.
7. Section 80DDB – Medical treatment for self/ spouse / children- `40,000/=

Other Deduction: The interest paid on Housing Loan is allowed as a deduction under section 24(b) up to `1.5 lacs per anum for self occupied house.