New Delhi, June 28: With the Finance Minister Nirmala Sitharaman getting ready with her team to present the Union Budget on July 5, Indians are keeping a close watch whether any new reforms would be announced under the Income Tax rules.

As Income Tax till Rs 5 lakhs per annum (LPA) was exempted by the Union Minister Piyush Goyal during the Interim Budget in February, middle-class salaried people and businessmen, earning more than Rs 5 LPA, are expecting a cut in IT rates under the new change of office bearer. Union Budget 2019 Predictions: Finance Minister Nirmala Sitharaman to Open Pandora Box on July 5; Here's What to Expect

Now looking at the aspect of people searching for options to save their taxes and getting confused between various sections of IT like 80C, 80TTA, 80TTB, 80CCC, 80G, 80CCD, and others, here's the basic difference between all these and the amount, a taxpayer can save under each section.

Section 80C:

This is the most important section for the IT payers who are either salaried or have their business. They can claim a deduction of Rs 1.5 lakh of the total income in the financial year. Under this, the taxpayer can show their investment in PPF, NSC, and others. The section is available for individuals and Hindu Individual Families (HUFs).

Section 80TTA:

This Section allows the taxpayer to claim a deduction of maximum Rs 10,000 against interest income from savings account with a bank, co-operative society, or post office. Along with this, Section 80TTA allows a taxpayer to include the interest from the savings bank account in other income. Education Budget 2019 Predictions: Middle-Class Seek Rise in Children Education Allowance As Nirmala Sitharaman Gets Ready for D-Day

However, this facility is not available on the interest income from fixed deposits, recurring deposits, or interest income from corporate bonds.

Section 80TTB:

The Union government has inserted this new section vide Budget 2018, which allows deductions claims with respect to interest income from deposits held by senior citizens. The limit set up under the new scheme is Rs 50,000. However, after choosing this section, no deduction under 80TTA is allowed.

Along with Section 80TTB, Section 194A of the Act will also be amended to increase the threshold limit for TDS on interest income payable to senior citizens. It is to be known that the previous deduction limit was Rs 10,000. Union Budget 2019 Expectations: What Tobacco Farmers Seek From Nirmala Sitharaman!

Section 80CCC:

Under these sections, taxpayers are given the option to get a rebate for any amount paid or deposited in any annuity plan of LIC or any other insurer. However, the plan is only applicable for receiving a pension from a fund referred to in Section 10(23AAB).

Section 80CCD:

This section is further divided into three sub-sections. 80CCD (1), 80CCD (1B) and 80CCD (2).

80CCD (1): As per Section 80CCD (1), a taxpayer can make a claim if s/he had deposited a certain amount in a pension account. The minimum deduction that can be availed is 10% of salary (in case the taxpayer is an employee) or 20% of gross total income (in case the taxpayer being self-employed) or Rs 1.5 lakh – whichever is less. Income Tax Slabs 2018-19: A Look At How Your Annual Income is Taxed Currently Ahead of Union Budget 2019-20

80CCD (1B): Under the sub-section, the taxpayer has the option to claim a deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account. Even contributions to Atal Pension Yojana are also eligible.

80CCD (2): The third sub-section let the taxpayer claim additional deduction on contribution to employee’s pension account for up to 10% of salary. However, there is no monetary ceiling over this.

Section 80G:

Under this Section, the taxpayer has been given levity for deduction up to either 100% or 50% with or without restriction. Since FY 2017-18, any donations in cash - exceeding Rs 2,000 - will not be allowed as a deduction and they should be made in any mode other than cash to qualify for the 80G deduction.

This section allows 100% deduction without any qualifying limit for social causes under various government relief schemes like PMNRF. In some case, the deduction is calculated 50% of the amount paid, as in the case of PMDRF. Similar is the deductions allowed by the IT.

Section 80GG:

This section allows a taxpayer to claim deductions for house rent paid where HRA is not received. For this, a taxpayer must be living on rent and paying rent and should not have a self-occupied residential property in any other place.  Budget 2019-20 Unlikely to Up Rs 2.5 Lakh Income Tax Exemption Limit

The deduction is considered as rent paid minus 10% of adjusted total income or 25% of adjusted total income. From FY 2016-17, the available rent deduction has been raised to Rs 5,000/month from Rs 2,000/month.

Section 80E and 80EE:

Both the sections deal with a rebate in loans. Section 80E deals with an education loan, while 80EE deals with the home loan.

Under 80E, a deduction is allowed to an individual for interest on loans taken for pursuing higher education. This is applicable for a taxpayer who is a legal guardian of the taxpayer, spouse or children or for a student. Available for 8 years or till the entire interest is repaid, whichever is earlier, the 80E deduction is available. No restriction on the amount that can be claimed.

Similar are the rules for Section 80EE, under which home loan is considered. This section is available only to home-owners (individuals) having only one house property on the date of sanction of the loan. For this section to be applicable, the value of the property must be less than Rs 50 lakh and the home loan must be less than Rs 35 lakh.

Here's the video for Union Budget 2019 predictions:

Section 80D:

Last but not the least, is the section 80D, under which a taxpayer can claim a deduction of Rs 25,000 on medical insurance for self, spouse and dependent children. For parents, the deduction amount is up to Rs 25,000, if they are less than 60 years of age. If they exceed the 60 years, the deduction amount is Rs 50,000.

(The above story first appeared on LatestLY on Jun 28, 2019 09:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).