Kotak Life

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22

 Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22
  • 16th Jun 2022 |
  • 328,216

Income tax filing is one of the most important task for every Indian citizen, be it a salaried individual or a businessman. In the light of this, every year, the Finance Ministry of India roles out a budget that explains the dos and don’ts of IT deductions. At the same time, every citizen is confused about making an investment that will help them to save some taxes.

Although, this might seem that everyone has to pay some amount of tax every year, there are a few ways by which you can save the taxes or get a rebate. There are tax saving investment options like PPF, EPF, and others which are commonly used and they give you tax exemption under section 80C. Similarly, there are other such sections that can help you save taxes, but you might have not have heard of.

In this article, we will help you understand the tax exemptions that you can claim under Section 80C, 80D and 80DDB.

Income tax is a percentage of income that is paid to the government by the taxpayers for the betterment of the public in general.

Income Tax Exemptions for Salaried Employees 2021 – 22

As per the new tax regime, the tax rates for all the categories are the same. This includes individuals and HUF below 60 years of age, senior citizens or those above 60 years of age and super senior citizens or those above 80 years of age. Therefore, there has been no increase in the basic exemption limit benefit for senior and super senior citizens.


Taxpayers now have two options – they can either take up the new tax regime and choose to pay income tax at lower rates without a few income tax exemptions and deductions. Or, they can choose to continue with the old tax regime, pay higher rates but avail certain deductions and exemptions.

However, there are a few deductions that are allowed under the new tax regime. They are as follows:

  • Specially-abled individuals can avail transport allowance, which is considered as a deduction.
  • The expenses incurred while travelling to work will be considered as conveyance allowance.
  • Under Section 80CCD (2), investment in the NPS or Notified Pension Scheme will be a deduction.
  • Under Section 80JJAA, there are deductions available for newly appointed employees.
  • Depreciation of assets (machinery) under Section 32, excluding additional depreciation
  • Expenses incurred by employees being transferred or travelling for employment purposes.

There are a total of 70 exemptions and deductions that are not a part of the new tax regime. The most common exemptions under this list include –

  • Professional tax
  • House Rent Allowance (HRA)
  • Children education allowance
  • Leave Travel Allowance (LTA)
  • Daily expenses incurred during employment
  • Relocation allowance
  • Conveyance allowance
  • Interest on housing loan under Section 24
  • Other special allowances [Section 10(14)]
  • Helper allowance
  • Standard deduction on salary



Upto INR 2.5 Lakhs


INR 2.5 Lakhs - INR 5 Lakhs

5% of the total income

INR 5 Lakhs - INR 7.5 Lakhs

INR 12,500 + 10% of the total income

INR 7.5 Lakhs - INR 10 Lakhs

INR 37,500 + 15% of the total income

INR 10 Lakhs - INR 12.5 Lakhs

INR 75,000 + 20% of the total income

INR 12.5 Lakhs - INR 15 Lakhs

INR 1,25,000 + 25% of the total income

> INR 15 Lakhs

INR 1,87,5000 + 30% of the total income

Income Tax deduction chart for individuals below 60 years of age (Income Tax Exemption of 2.5 Lakh)

Taxable income

Tax Rate

₹0 to ₹2,50,000


₹2,50,000 to ₹5,00,000


₹5,00,000 to ₹10,00,000

₹12,500 + 20% of total income exceeding ₹5,00,000

Above ₹10,00,000

₹1,12,500 + 30% of total income exceeding ₹10,00,000

Income Tax rates for individuals above 60 years but less than 80 years of age (Income Tax Exemption of 3 Lakh)

Taxable income

Tax Rate

₹0 to ₹3,00,000


₹3,00,000 to ₹5,00,000


₹5,00,000 to ₹10,00,000

₹10,000 + 20% of total income exceeding ₹5,00,000

Above ₹10,00,000

₹1,10,000 + 30% of total income exceeding ₹10,00,000

Income Tax deduction chart for individuals above 80 years of age (Income Tax Exemption of 5 Lakh)

Taxable income

Tax Rate

₹0 to ₹5,00,000


₹5,00,000 to ₹10,00,000


Above ₹10,00,000

₹1,00,000 + 30% of total income exceeding ₹10,00,000

Additionally, there is a surcharge of 10% if the total income exceeds ₹50 Lakh and a surcharge of 15% in case the total income is more than ₹1 crore. There is also an education cess of 3% applicable over and above the surcharge.

The income tax exemption limit for all individuals below 60 years is ₹2.5 Lakh, for individuals between 60 years and less 80 years than ₹3 Lakh and for individuals above 80 years is ₹5 Lakh.

Every individual is eligible for a deduction on the income invested in specific securities. We have listed down all the deductions for FY 2019-20, which will help you easily prepare your income tax returns and make the most of the available tax deductions.

Here is a list of income tax deductions for FY 2019-20 and AY 2020-21 as per various sections of the Income Tax Act, 1961:

1. Income Tax Deduction under Section 80C

This is the most important section for deductions for every taxpayer. The maximum exemption limit in the section is ₹1.5 Lakh. There are various avenues like PPF, EPF, term insurance, NPS, etc., that could be claimed under section 80C. Below is the complete list:

  • Public Provident Fund
  • National Savings Certificate
  • National Pension Scheme
  • Employees’ Provident Fund
  • Tuition fees
  • Post Office tax-saving deposits of five year
  • Bank deposit
  • Life Insurance Premium
  • Equity Linked Saving Schemes
  • Principal repayment of home loan
  • Sukanya Samriddhi Account Deposit Scheme
  • Post Office Senior Citizens Savings Scheme

2. Income Tax Deduction under section 80CCC

This section allows a maximum deduction of ₹1.5 Lakh, and it includes the contribution made to the annuity plan of a life insurance provider for the purpose of obtaining a pension from the fund.

3. Income Tax Deduction under section 80CCD

This section includes the contribution to the Atal Pension Yojana and allows a deduction of a contribution up to 10% of the total salary of salaried employees and 20% of the gross income of non-salaried to the government-notified pension schemes. The contribution can be deducted from the taxable income under Section 80 CCD (1). In case the employer contributes to the scheme as well, the entire contribution amount can be claimed as a tax deduction under Section 80CCD (2).

It is important to remember that the complete deduction under Section 80C, Section 80CCC and Section 80CCD (1) cannot exceed ₹1.5 Lakh in aggregate. The additional tax deduction amounting to ₹50,000 under Section 80CCD (1B) is above this limit.

4. Income Tax Deduction under Section 80D

Income Tax Deduction under section 80D is for the premium paid for Medical Insurance. This section allows deductions on the health insurance premium paid by an individual or HUF. You can claim a deduction of ₹25,000 for self, spouse and dependent children and an additional deduction for insurance of parents of less than 60 years of age, is up to ₹25,000. If parents are above the age of 60 can seek a deduction of ₹50,000, which was increased in Budget 2018 from ₹30,000.

And if both the taxpayer and parent(s) are above 60 years of age, then the maximum deduction under section 80D is up to ₹1 Lakh.

5. Income Tax Deduction under Section 80DD

An amount of ₹75,000 may be claimed as a deduction for spending on medical treatments of dependents with a 40% disability. This limit is ₹1.25 Lakh in case of severe disability.

6. Income Tax Deduction under Section 80DDB

Deduction for Medical Expenditure on Self or Dependent Relative:

Deduction for Medical Expenditure for individuals and HUFs below age 60

  • Income Tax Deduction under Section 80DDB, a deduction of up to ₹40,000 is available to an individual or a HUF below 60 years of age. It is for any expenses towards the treatment of specified critical ailments for self and dependents.

Deduction for Medical Expenditure for senior citizens and super senior citizens

  • Previously, for FY 2017-18, the limit was ₹60,000 for senior citizens and ₹80,000 for super senior citizens. It has been changed to ₹1 Lakh for all the senior citizens, including super senior citizens.

7. Income Tax Deduction under Section 80CCG

This section which offered the tax benefits of the Rajiv Gandhi Equity Savings Scheme has been withdrawn, but if an individual has claimed a deduction in FY 2016-17, you are eligible to continue with the same for the next two financial years.

8. Income Tax Deduction under Section 24B

This section allows individuals to claim a deduction for the loss under the head ‘Income from House Property. It allows a tax benefit on the repayment of the loan of a second house up to ₹2 Lakh. The unclaimed amount of loss may be carried forward for eight years and set off against house property income. Additionally, any interest paid on the housing loan is eligible for a tax benefit. Municipal taxes, interest paid on loans taken for the house, and 30% of the net annual income are allowed as a deduction.

9. Income Tax Deduction under Section 80E

Interest on loan paid for education is eligible for Section 80E. Please note that principal repayment on a loan cannot be claimed as a deduction. The loan should have been taken for yourself, your children, and your spouse or for an individual for whom you are a legal guardian. There is no limit on the amount of interest that can be claimed as a deduction.

10. Income Tax Deduction under Section 80EE

Individuals buying a home for the first time may claim an additional deduction of ₹50,000 on the home loan interest paid. This includes a clause that the loan should be sanctioned in or after FY 2016-17, and the loan amount should be less than ₹35 Lakh. Furthermore, the value of the house should not exceed ₹50 Lakh, and the individual should not own any other residential house under his name.

11. Income Tax Deduction under Section 80EEA

Section 80EEA allows a deduction for interest payments up to ₹1.5L. This deduction is over and above the deduction of ₹2 Lakhs available under section 24. An individual should not own any house on the date of the sanction of a loan to claim this deduction.

12. Income Tax Deduction under Section 80G

Section 80G includes all the contributions made to charitable institutions and relief funds. The contribution should be made through cheque, cash or via draft. The amount of deduction eligible is ₹2,000. Moreover, for donations made to political parties, the same deduction could be claimed under 80GGC.

13. Income Tax Deduction under Section 80GG

The deduction amount for this section is ₹60,000 per annum, and the section is applicable to only those who neither have the ownership of a residential house nor receive a House Rent Allowance . The amount of deduction will be the least of the following:

  • 25% of the total income
  • ₹5,000 per month
  • An amount of 10% of the adjusted total income deducted from the rent paid

14. Income Tax Deduction under Section 80TTA

This section allows a deduction of ₹10,000 from the total gross income of individuals or Hindu Undivided families. The deduction is allowed for the interest earned on the deposits made in a savings account in a bank, cooperative society or a post office. However, the deduction will not be applicable for the interest earned from fixed deposits in the bank.

15. Income Tax Deduction under Section 80U

This section allows a deduction to individuals who are physically and mentally challenged.

Income Tax Exemptions for Salaried Employees 2021-22

Here is the income tax exemption list 2021-22:

1. House Rent Allowance

2. Leave Travel Allowance (LTA)

3. Food coupons

Salary component



House rent allowance (HRA)

Rent amount for residential housing

Rent receipts, PAN of the employer (mandatory for rent > ₹1 Lakh annually)

Leave travel allowance (LTA)

Travelling costs within India such as air and rail fare

Air and train tickets, bus or cab receipts/bills

Telephone reimbursement

Landline, inclusive of broadband, mobile phone

Telephone bills

Books and periodicals

Cost of books and periodicals

Bills or invoices for the books and periodicals

It is advisable to plan the investment in advance in order to avoid the last-minute hassles. In case you are unable to invest in the right products, you would have to pay the entire tax depending on your income. The above list of income tax deductions will help you in tax planning and achieving your financial goals.

Kotak e-Term Plan


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Understanding Term Insurance Riders

Steps on How to Buy Term Insurance Online

Is ₹1 Crore Term Insurance Good Enough Cover?

Can I Buy Term Insurance for a COVID-19 Patient?

Calculating Term Insurance Premium

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Individual Life Insurance vs. Group Term Life Insurance

5 Reasons to Buy Term Insurance When You are in Your 30s

What Is a Renewable Term Insurance Policy?

What Should Be The Duration Of Your Term Plan in India?

9 Ways to Help Family Members in Financial Trouble

Can I Extend the Tenure of My Term Insurance Plan?

Why Should You Add a Rider to a Term Insurance Plan?

5 Things To Consider While Buying Term Insurance Plan

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

How Much Term Insurance Do I Need

Insuring yourself against Ill Health with a Critical Illness Rider

Should Youngsters, Working Couples Buy Term Insurance Plans?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Is Life Insurance Investment Worthy Enough

What are the Documents Required for Term Insurance Plan?

5 Benefits of Early Retirement Planning

Insuring Against Accidents with an Accidental Death Insurance Rider

Gift Your Father A Term Insurance Plan This Father's Day

Term Insurance: What Happens When You Don’t Pay Your Premiums?

What Types of Deaths Are Covered in a Term Insurance Plan?

Tips to Choose the Right Term Period for Term Insurance Plan

6 Reasons That Make Term Insurance a Must Buy

4 Methods to Calculate How Much Term Insurance You Need

Know How to Invest at Every Age for Larger Returns

Why 1 Cr Term Plan Is Necessary For Family?

Increasing Term Insurance and Riders

Is term Insurance Needed for People With No Dependents?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Top 3 Reasons Why You Should Buy A Term Plan Now

Protection for your family

How To Choose the Right Sum Assured Under a Term Plan?

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Different Types of Premium in Term Insurance

Term Insurance Calculator - Everythng You Need To Know

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

How Much Cover Should I Take In A Term Plan?

Term Plans are Definitely Cheaper than You Think!

Difference between Term Insurance and Life Insurance

What is a short term insurance policy?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Term Insurance Plans and Policies for Smokers

All About Term Insurance Inbuilt Coverage

Why Should New Parents Buy Term Life Insurance?

Comparing Term Plans – What Should You Look Out For

Can Senior Citizens Avail Term Insurance?

Insurance Policy for Housewife In India

Why Should You Buy Term Insurance in 2022?

Insuring Against Disability With Disability Insurance Rider

Why Buy Term Insurance Even at Rising Rates?

8 Benefits of Term Insurance You Should Know

Can I Get Term Insurance on Behalf of My Spouse?

How to Surrender Term Life Insurance When you have No Liabilities

How To Choose the Right Term Insurance Plan?

What Happens if you Hide Facts in your Term Insurance?

What Are Insurance Riders and How to Choose Them in a Term Plan?

Importance of Term Insurance at Every Stage of Your Life

Cost of Term Insurance Likely to Increase Soon

9 Most Frequently Asked Questions on Term Insurance

What is Term Insurance - A Complete Guide

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Can I Make Changes to My Term Insurance Policy Post Purchase?

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Do I Need to Give a Medical Test for Term Insurance in India?

4 Reasons Why You Need Critical Illness Cover

Should You Have Multiple Term Life Insurance Policies?

10-Year Term Life Insurance Policy - Explained in Detail

What Are the Best Term Insurance Plans for Planning Retirement?

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Advantages of Buying Term Insurance in Your 50s

Term Insurance: Smokers vs Non-Smokers

Make Your Online Term Plan Your Familys Monthly Payout

Term Insurance With Riders In India

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Tax Benefits of Term Insurance in India

Buying A Term Insurance Plan? Take These Factors into Account

Best Investment Plans for Children - Secure Your Child's Future

What Should You opt for - Limited or Premium Pay?

How Does A Term Life Insurance Work in India?

Term Insurance – Why You Must Include In Your Financial Planning?

How to Compare Term Insurance Online

Planning For Children's Future

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Can Term Insurance Plans Be Purchased As A Gift?

How Not To Get Your Term Insurance Claim Rejected

Is Group Term Life Insurance Provided By Employer Sufficient?

Why Term Plan Should Be The First Step To Securing Your Future?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Term Insurance Age Limit – Term Plan for All Age Groups

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Why does every working woman need life insurance?

Why Buy Term Insurance Plan With a High Cover?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

What is Insurance Premium - A Detailed Guide

All you need to Know about Term Insurance Plans for Housewives

Eligibility Criteria for Buying Term Insurance in India

Busting Myths and Facts About Term Insurance Policies

Reasons You Need Term Insurance Plan as a Self-Employed Person

Why is it important to buy term insurance plan?

Everything About Claim Settlement Ratio for Term Insurance

Is a Term Insurance Policy Portable?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Is There Any Tax Benefit on Term Insurance?

Term Life Insurance Plan for Smokers vs Non-Smokers

How to Identify Term Insurance According to Your Needs?

While Buying Term Insurance Compare Features, Not Just Premiums

Should You Buy a Term Plan After 40?

Which Death Type Does Your Term Plan Not Cover?

6 Types of Death not covered in Term Insurance Plan

8 Things To Do After Buying Term Insurance

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Advantages & Disadvantages of Term Insurance in India

Choosing Riders for Insurance Plans

Ensure Protection Against Death, Disease & Disability With Life Insurance

Insuring Protection Against Death With Death Insurance Rider

Do Beneficiaries Pay Taxes on Term Insurance?

Term Insurance Basics You Should Know

Why Married People Should Buy Term Insurance Under MWP Act?

Why should single women purchase term life insurance?

How Much Term Life Insurance Cover Do I Need in India?

Is Term Life Insurance Plan an Investment or Expense?

What are incremental term insurance plans?

How To Change The Nominee in Term Insurance?

4 Things To Expect From Your Term Insurance Plan in India

How Does Term Life Insurance Work? Learn the Benefits

Can You Increase Your Term Insurance Cover?

Planning For Son or Daughter's Wedding

Why Term Insurance Is Important in times of COVID-19?

8 Factors to consider before choosing a Critical Illness Insurance

Different Types of Protection Plans

5 Term Insurance Benefits for Single Women

What All Documents Required For Term Insurance In India?

Endowment Plans vs Term Plans: Understanding the difference

Does Term Insurance Cover Accidental Death?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Do You Need Term Insurance Cover After Retirement?

Is It Good To Buy A Term Insurance Plan In 2022?

Why Term Insurance Is Better Than ULIP?

Why Premium Amount for Term Insurance is So Low?

What Is the Correct Age to Buy Term Insurance?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Term Plan with Spouse Cover

What is Critical Illness Policy

Why Should You Not Take A Term Plan Without Medical Test in India?

How To Calculate The Amount Of Term Life Insurance You Need?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Term Insurance with Critical Illness

Does Your Term Insurance Plan Cover Death Due to COVID-19?