Deductions From Salary for A.Y. 2022-23 (Updated)

Deductions From Salary for A.Y. 2022-23: The salary people always request that we tell them about all the deductions that we are eligible to claim in A.Y. 2022-23 and 2023-24. Therefore, we provide a list of all deductions from the salary that you can claim while calculating taxable salary income or net total income after including all other sources’ income. A list of deductions is presented along with the sections of income tax.  If you have any questions, you can go to that section to get the complete detail about that particular deduction from salary for A.Y. 2022-23.

#1 Standard Deduction

The employee can now claim a flat standard deduction from salary of Rs. 50,000 for A.Y. 2022-23.

#2 Entertainment  Allowance

The second deduction which you claim from your salary is Entertainment Allowance. Entertainment allowance received is first included in the employee’s income and then a deduction is allowed in the case of government employees, for a sum equal to 1/5th of salary (excluding all allowances, benefits and other perquisites) or Rs. 5,000, whichever is less.

# 3 Professional Tax

Tax on employment by whatever name called, levied by a State under Article 276 of the Constitution shall be allowed as a deduction. [Sec. 16(iii)]

# 4  Deductions Permissible under Chapter VI-A from Salary

• Certain deductions are available from the gross taxable income, under sections 80C to 80U. Important deductions are:
• Deposit/Contribution to Life Insurance Premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, bank deposits under the notified scheme, 5 years POTD, Senior Citizen Saving Scheme, etc. [Sec. 80C]
• Contribution to LIC Pension Plan (Jeevan Suraksha) or Pension Fund of other insurance companies. [Sec. 80CCC]
• Contribution to notified Pension Scheme by employees of Central Government or any other employer or by any other individual. [Sec. 80CCD]
• Tax deductions for pension funds are a global trend now, see this example from Australia.
• Investment in listed equity shares (w.e.f 1-4-2014) A.Y.2014-15 [or listed units of equity-oriented mutual funds] under Rajiv Gandhi Equity Savings Scheme. [Sec. 80CCG]

#4.1 Mediclaim Deduction 80D

Another important deduction from salary is Medical insurance premium i.e 80D.

Mediclaim for Self/Spouse/Depended Children

Insurance or Medical Expenditure	Persons	Aged Below 60 Years	Aged 60 Years or Above
For Medical Insurance Premium or Preventive Health check-up	Self, Spouse and Dependent Children	Rs.25,000/-	Rs.50,000/-
For Medical Treatment Expenditure (Not Having Medical Insurance Cover)	Self, Spouse and Dependent Children (Being Senior Citizen)	Rs. 50,000/-
The aggregate deduction shall not exceed Rs.50,000/-

Mediclaim for Parents

Insurance or Medical Expenditure	Persons	Aged Below 60 Years	Aged 60 Years or Above
For Medical Insurance Premium or Preventive Health check-up for any parent(s)	Any Parent(s)	Rs.25,000/-	Rs.50,000/-
For Medical Treatment Expenditure (Not Having Medical Insurance Cover)	Any Parent(s) (Senior Citizen)	Rs. 50,000/-
The aggregate deduction shall not exceed Rs.50,000/-

The maximum deduction for payment on account of preventive health check-up of self, spouse, parent(s) or dependent children, in aggregate shall be Rs. 5000/-.

More detail about deduction 80D Visit the following links

• Deduction 80D: Complete Detail
• Deduction 80D Calculator

#4.2 Expenditure on medical Treatment etc. and deposit for maintenance of handicapped dependents. [Sec. 80DD]

Section 80DD of the income tax act also provides the deduction from salary. A deduction is allowed to compensate for any expenditure incurred by an assessee, during a year, for the medical treatment (including nursing), training and rehabilitation of one or more handicapped relatives wholly dependent on him, and for the amount deposited in an approved scheme of LIC or UTI, for the benefit of a handicapped dependent. As per the provision of section 80DD the amount is allowed up to Rs.75,000 in aggregate. The deduction can be claimed up to Rs.1,25,000 if the person with severe disability. You can also claim 80DD deduction from salary income.

More about 80DD Deduction Visit Here

#4.3 Deduction 80DDB – Deduction of Medical Treatment of Specified Disease

Another deduction which is allowed from salary is under section 80DDB of the income tax act. Deduction for the amount of expenditure incurred or Rs. 40,000, (Rs. 1,00,000 [w.e.f. 1-4-2019]) whichever is less, is allowable for any year during which expenditure is actually incurred for the medical treatment of specified diseases or ailments for the assesses himself or a dependent.

Status	Deduction under Section 80DDB (INR)
Ordinary	40, 000  (A.Y.2022-23)
Senior Citizen	1,00,000 (A.Y.2022-23)

More About Deduction 80DDB

#4.4 Interest on Loan taken for Higher Education. [Sec. 80E]

Any amount paid by way of interest on a loan taken from any financial institution or any approved charitable institution for the purpose of pursing his higher education, is a deduction without any limit. Don’t forget to get a deduction from salary income if you have a loan for higher education.

More About Deduction 80E

#4.5 Interest on Loan taken for first residential house. [Sec. 80EE]

The amount of interest payable on such a loan but subject to a maximum of Rs.50,000 subject to certain conditions. You can also claim the deduction under section 80EE from salary.

More About Deduction 80EE

#4.6 Donation for Charitable Purposes [Sec. 80G]

There are a number of donations in respect of which deduction is permissible under Sec. 80G. Deduction @ 50% is available for donation to Jawaharlal Nehru Memorial Fund, Prime Minister Drought Relief Fund, [National Children’s Fund] Indira Gandhi Memorial Trust or Rajiv Gandhi Foundation etc. 100% deduction is allowed for donations to National Defense Fund, Prime Minister’s National Relief Fund, [National Children’s Fund,]National Foundation for Communal Harmony, Chief Minister’s/Lt. Governor’s Relief Fund etc. Deduction is granted subject to the prescribed maximum ceiling and on furnishing of appropriate certificate from the done organization. The deduction 80G is also available from salary.

Check More About Deduction 80G

#4.7 Expenditure on Rent. [Sec. 80GG]

The IT Department offers deduction under Section 80GG by selecting the LEAST amount from below. The calculation of 80GG is very easy as to enter the deduction from the least of the following.

• Rs. 5, 000 per month/ Rs.60,000 per month
• Total Rent Paid LESS 10% of total income ¹
• 25% of total income.

Check More About Deduction 80GG

#4.8 Donations to specified institutions/associations for Research or for Rural Development [Sec. 80GGA]

Donation of a sum exceeding Rs. 10,000 shall be eligible for the deduction, only if it is paid by a mode other than cash.

#4.9 Physical Disability [Sec. 80U]

A resident individual suffering from any disability can claim the deduction under section 80U. You can also claim an 80U deduction from your salary.

Amount of Deduction: Rs. 75,000 for disability and Rs. 1, 25,000 for severe disability.