Professional Documents
Culture Documents
Gross Total
Income
Introduction
1. To encourage savings
Individual
Amount of Deduction
Amount paid or Rs. 10,000/- whichever is
lower.
Deduction u/s 80CCD
Deduction in Respect of Contribution to
Pension Scheme of Central Government.
Amount of Deduction
Aggregate of amount deposited by the
employee and the Central government, or 10%
of the salary, whichever is lower.
The aggregate amount of deductions under
80C, 80CCC and 80CCD put together
cannot exceed
Rs.1,00,000
Deduction u/s 80D
Deduction in respect of Medical Insurance
Premia.
Individuals/HUF.
Amount of Deduction
100% of premium paid subject to a maximum
of:
Rs. 15,000 in case of senior citizens (above
65 years)
Rs. 10,000 in case of others.
Deduction u/s 80DD
Deduction in respect of dependent relative.
Amount of Deduction
Rs. 50,000 in case of normal disabilities and
Rs. 75000 in case of severe disabilities,
This is irrespective of the amount expended.
Deduction u/s 80DDB
Individual
Amount of Deduction
Actual interest paid or Rs. 40,000 whichever
is lower.
Deduction u/s 80GG
Amount of Deduction
A fixed deduction of
Rs. 50,000 in case of a person with disability
Rs. 75,000 in case of a person with severe
disability.( having any disability over 80%)
Conclusion
Under the income tax act first of all income under
each head is computed.
The aggregate of income under each head is known
as ‘Gross Total Income’.
Out of this gross total income certain deductions
are allowed.
The income after such deductions is called ‘Total
Income’
The total deductions from section 80 C - 80 U
cannot exceed the total income.
Anthony Cruz – 05A012