List of published territories Afghanistan, Islamic Republic of$$$Albania$$$Algeria$$$Angola$$$Antigua and Barbuda$$$Argentina$$$Armenia$$$Aruba$$$Australia$$$Austria$$$Azerbaijan$$$Bahrain$$$Barbados$$$Belarus$$$Belgium$$$Bermuda$$$Bolivia$$$Bosnia and Herzegovina$$$Botswana$$$Brazil$$$Bulgaria$$$Cabo Verde$$$Cambodia$$$Cameroon, Republic of$$$Canada$$$Caribbean Netherlands$$$Cayman Islands$$$Chad$$$Chile$$$China, People's Republic of$$$Colombia$$$Congo, Democratic Republic of the$$$Congo, Republic of$$$Costa Rica$$$Croatia$$$Curaçao$$$Cyprus$$$Czech Republic$$$Denmark$$$Dominica , Commonwealth of$$$Dominican Republic$$$Ecuador$$$Egypt$$$El Salvador$$$Equatorial Guinea$$$Estonia$$$Fiji$$$Finland$$$France$$$Gabon$$$Georgia$$$Germany$$$Ghana$$$Gibraltar$$$Greece$$$Greenland$$$Guatemala$$$Guernsey, Channel Islands$$$Guyana$$$Honduras$$$Hong Kong$$$Hungary$$$Iceland$$$India$$$Indonesia$$$Iraq$$$Ireland$$$Isle of Man$$$Israel$$$Italy$$$Ivory Coast (Côte d'Ivoire)$$$Jamaica$$$Japan$$$Jersey, Channel Islands$$$Jordan$$$Kazakhstan$$$Kenya$$$Korea, Republic of$$$Kosovo$$$Kuwait$$$Kyrgyzstan$$$Lao PDR$$$Latvia$$$Lebanon$$$Libya$$$Liechtenstein$$$Lithuania$$$Luxembourg$$$Macau$$$Macedonia$$$Madagascar$$$Malawi$$$Malaysia$$$Malta$$$Mauritius$$$Mexico$$$Moldova$$$Mongolia$$$Montenegro$$$Morocco$$$Mozambique$$$Myanmar$$$Namibia, Republic of$$$Netherlands$$$New Zealand$$$Nicaragua$$$Nigeria$$$Norway$$$Oman$$$Pakistan$$$Panama$$$Papua New Guinea$$$Paraguay$$$Peru$$$Philippines$$$Poland$$$Portugal$$$Puerto Rico$$$Qatar$$$Romania$$$Russian Federation$$$Rwanda$$$Saint Kitts and Nevis$$$Saint Lucia$$$Saudi Arabia$$$Senegal$$$Serbia$$$Singapore$$$Sint Maarten$$$Slovak Republic$$$Slovenia$$$South Africa$$$Spain$$$Sri Lanka$$$Swaziland$$$Sweden$$$Switzerland$$$Taiwan$$$Tajikistan$$$Tanzania$$$Thailand$$$Timor-Leste$$$Trinidad and Tobago$$$Tunisia$$$Turkey$$$Turkmenistan$$$Uganda$$$Ukraine$$$United Arab Emirates$$$United Kingdom$$$United States$$$Uruguay$$$Uzbekistan, Republic of$$$Venezuela$$$Vietnam$$$Zambia$$$Zimbabwe JDCN-ANSNYN$$$JDCN-89JRLJ$$$JDCN-9L9ER3$$$JDCN-89HREB$$$JDCN-89HRFR$$$JDCN-89HRGN$$$JDCN-89HRHB$$$JDCN-89HRHY$$$JDCN-89HRJM$$$JDCN-89HRKA$$$JDCN-89HRKX$$$JDCN-89HRLL$$$JDCN-89HRM9$$$JDCN-89HRMW$$$JDCN-89HRNK$$$JDCN-89HRP8$$$JDCN-89HRPV$$$JDCN-89HRQJ$$$JDCN-89HRR7$$$JDCN-89HRRU$$$JDCN-89HRSH$$$JDCN-89HRV5$$$JDCN-89HRT6$$$JDCN-89HRTT$$$JDCN-89HRUG$$$JDCN-8FWH76$$$JDCN-89HRVS$$$JDCN-89HRWF$$$JDCN-89HRYE$$$JDCN-89HRZ3$$$JDCN-89HRZQ$$$JDCN-89HS2D$$$JDCN-89HS32$$$JDCN-89HS3P$$$JDCN-89PKJ7$$$JDCN-89HTBS$$$JDCN-89HS5N$$$JDCN-89HS6B$$$JDCN-89HS6Y$$$JDCN-8V8FHF$$$JDCN-89HS7M$$$JDCN-89HS8A$$$JDCN-89HS8X$$$JDCN-89HS9L$$$JDCN-89HSA9$$$JDCN-89HSAW$$$JDCN-89HSBK$$$JDCN-89HSC8$$$JDCN-89HSCV$$$JDCN-89HSDJ$$$JDCN-89HSE7$$$JDCN-89HSEU$$$JDCN-89HSFH$$$JDCN-89HSG6$$$JDCN-89HSGT$$$JDCN-9LFTHK$$$JDCN-89HSHG$$$JDCN-89HRX4$$$JDCN-8UENHH$$$JDCN-89HSJ5$$$JDCN-89HSJS$$$JDCN-89HSKF$$$JDCN-8HLNAZ$$$JDCN-89HSL4$$$JDCN-89HSLR$$$JDCN-89HSME$$$JDCN-89HSN3$$$JDCN-89HSNQ$$$JDCN-89HSPD$$$JDCN-89HSQ2$$$JDCN-89HSQP$$$JDCN-89HSRC$$$JDCN-89HSRZ$$$JDCN-89HRXR$$$JDCN-89HSSN$$$JDCN-89HSTB$$$JDCN-89HSTY$$$JDCN-89HSUM$$$JDCN-AN9ENE$$$JDCN-89HSVA$$$JDCN-89HSVX$$$JDCN-8EGQEM$$$JDCN-89HSWL$$$JDCN-89HSX9$$$JDCN-89HSXW$$$JDCN-89HSYK$$$JDCN-89HSZ8$$$JDCN-89HSZV$$$JDCN-89HT2J$$$JDCN-89HT38$$$JDCN-89HT3V$$$JDCN-89HT4J$$$UKWE-8CEb2F$$$JDCN-89HT5U$$$JDCN-89HT6H$$$JDCN-89HT77$$$JDCN-89HT7U$$$JDCN-89HT8H$$$JDCN-89HT96$$$JDCN-8HLRL5$$$JDCN-89HT9T$$$JDCN-97XLRC$$$JDCN-89HTAG$$$JDCN-89HTB5$$$JDCN-89HTCF$$$JDCN-89HTD4$$$JDCN-89HTDR$$$JDCN-89HTEE$$$JDCN-89HTF3$$$JDCN-89HTFR$$$JDCN-89HTGE$$$JDCN-89HTH3$$$JDCN-89HTHQ$$$JDCN-89HTJD$$$JDCN-89HTK2$$$JDCN-89HTKP$$$JDCN-89HTLC$$$JDCN-89HTLZ$$$JDCN-89HTMN$$$JDCN-89HTNB$$$JDCN-89HTNY$$$JDCN-8UPFL5$$$JDCN-89HTVJ$$$JDCN-89HTW7$$$JDCN-89HTPM$$$JDCN-89HTQA$$$JDCN-89HTQX$$$JDCN-89HTRL$$$JDCN-8FWGMB$$$JDCN-89HTS9$$$JDCN-89HTSW$$$JDCN-89HTTK$$$UKWE-8CDMS7$$$JDCN-89HTUV$$$JDCN-89HTWU$$$JDCN-89HTXH$$$JDCN-89HTY6$$$JDCN-89HTZG$$$JDCN-89HU25$$$JDCN-89HU2S$$$JDCN-89HU3F$$$JDCN-8VDJC3$$$JDCN-89HU44$$$JDCN-8V8FQH$$$JDCN-89HU4R$$$JDCN-89HU5E$$$JDCN-89HU63$$$JDCN-89HU6Q$$$JDCN-89HU7D$$$JDCN-89HU82$$$JDCN-89HU8P$$$JDCN-89HU9C$$$JDCN-89HU9Z$$$JDCN-89HUAN$$$JDCN-89HUBB$$$JDCN-9LFTHP$$$JDCN-89HUBY Afghanistan$$$Barbuda$$$Herzegovina$$$Cape Verde$$$Republic of Cameroon$$$People's Republic of China$$$Peoples Republic of China$$$Democratic Republic of the Congo$$$DRC$$$Republic of Congo$$$Curacao$$$Commonwealth of Dominica$$$Channel Islands$$$Channel Islands$$$South Korea$$$Republic of Korea$$$Laos$$$Republic of Lebanon$$$The Netherlands$$$PNG$$$Russia$$$Nevis$$$St. Kitts and Nevis$$$St Kitts and Nevis$$$St. Lucia$$$St Lucia$$$St. Maarten$$$St Maarten$$$Slovakia$$$SA$$$Tobago$$$Republic of Turkey$$$UAE$$$Great Britain$$$UK$$$Britain$$$Whales$$$Northern Ireland$$$England$$$US$$$U.S.$$$U.S.A.$$$USA$$$Republic of Uruguay$$$Republic of Uzbekistan$$$Republic of Zambia

India Individual - Deductions

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Employment expenses

No deduction is available for business-related expenses in computing salary income liable to tax.

Deduction from total income

Personal deductions

  • No deductions are available for interest or taxes paid to tax authorities. Deductions, up to certain limits, are allowed for contributions to approved charities and, to a very limited extent, allowances for children’s education/hostel expenses received from the employer.
  • A deduction from income is available of up to INR 150,000 for investments made in the tax year in certain eligible schemes in India, namely:
    • Life insurance premium on the life of self, spouse, or any child.
    • Contribution by an employee to a recognise provident fund.
    • Contribution to a public provident fund/National Pension System.
    • Contribution to a tax plan of an Indian mutual fund.
    • Tuition fees of any university, college, school, or other educational institution in India for the purpose of full-time education of the individual, spouse, or any child.
    • Repayment of housing loan (principal), etc.
  • An additional deduction of up to INR 50,000 over and above the aforesaid limit of INR 150,000 will also be available on the individual’s contribution to the notified pension scheme (NPS) of the government.
  • An additional deduction of up to 10% of salary is available in respect of an employer’s contribution to NPS.
  • Withdrawal from the NPS of up to 40% of the accumulated balance on retirement, when an individual opts out of the scheme, is exempt from tax. However, it is proposed that nothing would be taxable if the amount is received by the nominee due to death.
  • In case of partial withdrawal from the NPS by employees, 25% of their own contribution is exempt from tax in the year of withdrawal.

Charitable contributions

On donation of a certain amount to certain approved funds, charitable institutions, etc., an individual can claim a deduction of 50% to 100% of the amount donated, subject to restrictions provided by the law. Deduction for funds and charitable institutions in excess of INR 2,000 is allowed only if the donation is made other than in cash.

Education expenses

An individual can claim a deduction for interest paid on a loan taken for the purpose of one's higher education or of one's relative (spouse, children, or student for whom the individual is the legal guardian). It should be noted that the interest is paid by the individual out of one's taxable income.

Medical insurance premium

  • A deduction is available for health insurance premiums or contributions made to an approved insurance scheme by an individual for insuring the health of oneself, spouse, or dependent children. The deduction available is up to INR 25,000 (INR 30,000 where any of the insured persons is a senior citizen). Further, an additional deduction of INR 25,000 is available for insuring one’s parents (INR 30,000 where either of the parents is a senior citizen).
  • An amount of up to INR 5,000 spent on preventive health check-up of self, spouse, dependent children, parents is also eligible for deduction within the overall limit provided above.
  • The medical expenditure incurred for very senior citizens (80 years and above) will be deductible up to INR 30,000 if no payment has been made towards any existing health insurance policy for such individuals.

Deduction on housing loan interest

Income from house property shall be reduced by the amount of interest paid on borrowed capital where the loan has been taken for the purpose of purchase/construction/repair/renewal/reconstruction of the residential house property. However, no deduction shall be allowed unless the individual furnishes a certificate from the person to whom the interest is payable on the capital borrowed, specifying the amount of interest payable by the taxpayer for the purpose of such acquisition or construction, etc. of the property.

Unlike the deduction on property taxes or principal repayment of home loan, which are available on actual payment basis, the deduction on interest is available on an accrual basis (i.e. it is immaterial whether the interest has been actually paid or not during the year). Charges like service fees or other charges in respect of the loan amount related to the housing loan are eligible to be included in interest and qualify for tax deduction.

Deduction on housing loan can be claimed once the construction is completed and possession of the property has been obtained. The law provides a deferred deduction on the interest payable during the pre-construction period (i.e. period prior to the tax year in which the property has been acquired or constructed). The deduction on such interest is available equally over a period of five tax years starting from the year of acquisition/construction.

Maximum limit of deduction

In case the house property is not let out during the year, the maximum amount of interest that can be claimed as deduction is limited to INR 200,000, subject to conditions that the loan is taken on or after 1 April 1999 for the purpose of purchase or construction and such property is acquired or constructed within five years from the end of the year in which loan was taken. For all other cases, where the house property is not let out, the maximum amount that can be claimed as deduction is limited to INR 30,000.

Personal allowances

There are no personal allowances apart from the limited deduction for certain hardship-related cost of living allowances in connection with postings in specified hilly, border, remote, or tribal areas.

Business expenses

Expenses relating to business income are allowed as a deduction from that income. Expenses incurred in relation to exempt income are not allowed as a deduction.

See Deductions in the Corporate summary for more information on business expenses.

Losses

Type of loss to be carried forward to subsequent year(s) Income against which loss can be offset in the subsequent year(s)

Number of years for which loss can be carried forward

Loss under the heading ‘Income from house property’ ‘Income from house property’ only 8
Speculation business loss Speculation profits only 4
Unabsorbed depreciation Any income, except salary Perpetually
Business loss (other than speculation business losses) Any business profit 8
Short-term capital loss Any income under the head ‘capital gains’ 8
Long-term capital loss (non STT paid) Long-term capital gains only (non STT paid)

8


Last Reviewed - 01 December 2017

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