INCOME TAX

CHAPTER vi-A
Deductions from gross total income
 Note

 The important point to be noted here is that if there is no

gross total income,then no deductions wil be permissible.
This chapter contains deductions in repect of certain
payments, deductions in respect of certain incomes and
other deductions.
DEDUCTIONS IN RESPECT OF 80D

 Max deduction Rs.15000 (premium paid for self, spouse

and dependent children)

 Additional deduction upto Rs.15000 (medical insurance

premium paid for insuring the health of parent or parents)

NOTE
-additional deduction would be available
even if the parents are not dependent on the individual.
 Health of a senior citizen - rs.20000 instead of
rs.15000

 In case of an individual, the max deduction allowable under this

section would therefore be
 rs.30000 i.e 15000+15000 or
 rs.35000 i.e 15000+20000….

 In case of HUF
 max deduction available to a HUF would be rs.15000 and in case
any member is a senior citizen, rs.20000
 The other conditions to be fulfilled are that such premium
should be paid by any mode, other than cash, in the previous
year out of his income chargeable to tax.

 Further, the medical insurance shud be in accordance with a

sheme made in this behalf by-
 The general insurance corp of india and approved by the
central govt. in this behalf; or
 Any other insurer and approved by the insurance regulatory
and development authority.
DEDUCTION UNDER SECTION 80DD

 Sec 80DD provides deduction to an assessee, who is a

resident in india, being an individual or HUF. Any amt
paid for the medical treatment(including nursing),
training and rehabilitation of a dependent, being a
person with disability, or any amt paid or deposited
under a scheme framed in this behalf by the LIC or
any other insurer or the administrator or the specified
co. as referred to in unit trust of india act 2002, for
the maintainence of a dependent, being a prson wit
disability, qualifies for deduction.
 The benefit of deduction under this section is also available
to assesses incurring expenditure on maitainence including
medical treatment of persons autism, cerebral palsy and
multiple disabilities

 The quantum of deduction is rs.50000 and in case of severe

disability the deduction shall be rs.100000

 For claiming deduction, the assessee shall hav to furnish a

copy of the cert issued by medical authority
 DEDUCTIONS IN RESPECT OF
80DDB

 To claim deduction under this section the asseessee shud b

a resident in india, being an individual orHUF. Any amt
actually paid for the medical treatment of such disease or
ailment as may be specified in the rules made in this behalf
by the board for himself or a dependent, fully qualifies for
deduction
 The amt of deduction under this section shall be equal to the
amt actually paid or rs.40000, whichever is less, in respect of
that PY in which such amt was actually paid. In case of senior
citizen, the deduction would be the amt actually paid or
rs.60000, whichever is less

 No deduction shall be allowed unless the asssesee furnishes

with a return of income, a cert in such form as may be
prescribed, from such specialist working in a govt. hospital
 The deduction under this section shall be reduced by the amt
received , if any, under an insurance from an insurer, or
reimbursed by an employer, for the medical treatment of the
assessee or the dependent
 DEDUCTION IN RESPECT OF
INCOMES

DEDUCTIONS IN RESPECT OF PROFITS AND GAINS

FROM UNDERTAKINGS OF ENTERPRISES ENGAGED IN
INFRASTRUCTURE DEVELOPMENT[ SECTION 80IA]
 1.APPLICABILITY

 Section 80IA provides 10 years tax holiday to an assesee,

whose GTI includes any profits and gains derived by an
undertaking or enterprise from an eligible business, like-
a) Infrastructure facility
b) Telecom undertakings
c) Industrial parks/ special economic zones
d) Power undertakings
e) Undertakings owned by an Indian company and set up
for reconstruction or revival of a power generating plant
 2. RATE OF DEDUCTION

 The amt of deduction available will be 100% f the

profits and gains derived from such business for 10
consecutive assessment years commencing at any
time during the period specified in(3) below.
 However in case of telecom undertakings , the
deductions will be 100% for the first 5 assessment
years and thereafter 30% for the further 5 assessment
years.
 3. PERIOD OF TAX HOLIDAY/
CONCESSION

 the assesee has the option to claim deduction for any

10 consecutive assessment years out of 15 years
beginning from the year in which the undertaking or
the enterprise develops or begins to operate the
eligible business.
 the assessee may also claim deduction for 10 out of 15 years
beginning from the year in which n undertaking undertakes
substantial renovation and modernisation of the existing
transmission or distribution lines.
 in case of an infrastructure being a public facility, the
asseseee can claim deduction for any 10 consecutive years
out of 20 years beginning from the year of operation.
 4. OTHER PROVISIONS

 the deductions claimed and allowed under this

section shall not exceed the profits and gains of the
eligible business.
 the section empowers the central govt. to declare any
class of industrial undertaking or enterprise as not
being entitled to deduction under this section.
 the deduction u/s 80IA would not be available in respect of
anySEZ notified after 1.4.2005 in accordance with the
industrial park scheme 2002.
DEDUCTIONS IN RESPECT OF 80U

 The section is applicable to a resident individual, who,

at any time during the PY, is certified by the medical
authority to be a person with disability. A deduction
of rs. 50000 in respect of a person with disability and
rs.100000 in respect of a person with severe disability
is allowable under this section.
 The benefit of this section has also been extended to
persons suffering from autism cerebral palsy and multiple
disabilities.

 He assessee claiming deduction under this section shall

furnish a copy of the certificate issued by the medical
authority in the form and manner as may be prescribed,
along with the return of income.

 Where the condition requires reassessment, afresh copy has

to be furnished.
 DONE BY

 Chandini -08D0220
 Dineli -08D0221
 Abhishek -08D0256
 Jude -08D0228
 Riya -08D0268
 Bethlehem -08D0219