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ERPHumanCapitalManagement / / GettingStartedinPYIN

ChapterVISection80
CreatedbySKarthik,lastmodifiedonMay19,2015

Introduction:

ChapterVIaregettingcalculatedwithinthepayrollfunctionINS80andINS88,locatedinschemaIN00

Legality:
ChapterVIisgettingcalculatedbasedontheLegalruleforSection80whichisreleasedbyIndianIncometax.Legalityasbelow

DeductionsonSection80C,80CCC&80CCD

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Section80C
Thedeductionundersection80CisallowedfromyourGrossTotalIncome.TheseareavailabletoanIndividualoraHUF.Thedeductionisallowedforvariousinvestments,expensesandpayments.
TotalDeductionundersection80C,80CCCand80CCD(1)togethercannotexceedRs1,50,000forthefinancialyear201415(assessmentyear201516).Thelimitforfinancialyear201516isalsoRs
1,50,000.

Section80CCC:DeductioninrespectofPremiumPaidforAnnuityPlanofLICorOtherInsurer
ThissectionprovidesdeductiontoanIndividualforanyamountpaidordepositedinanyannuityplanofLICoranyotherinsurerforreceivingpensionfromafundreferredtoinSection10(23AAB).
Incasetheannuityissurrenderedbeforethedateofitsmaturity,thesurrendervalueistaxableintheyearofreceipt.

Section80CCD:DeductioninrespectofContributiontoPensionAccount

ForFY201415(assessmentyear201516)
TotalDeductionunderSection80C,80CCCand80CCD(1)cannotexceedRs1,50,000.
ForFY201516(assessmentyear201617)
Anewsection80CCD(1B)hasbeenintroducedtoprovideforadditionaldeductionforamountcontributedtoNPSofuptoRs50,000.
Thereforeforfinancialyear201516,TotalDeductionunderSection80C,80CCC,80CCD(1)and80CCD(1B)cannotexceedRs2,00,000.
Fromassessmentyear201213,employer'scontributionundersection80CCD(2)towardsNPSisoutsidethemonetaryceilingmentionedabove.

DeductionsonSavingsBankAccount
Section80TTA:DeductionfromgrosstotalincomewithrespecttoanyIncomebywayofInterestonSavingsaccount
DeductionfromgrosstotalincomeofanindividualorHUF,uptoamaximumofRs.10,000/,inrespectofinterestondepositsinsavingsaccountwithabank,cooperativesocietyorpostoffice.Section
80TTAdeductionisnotavailableoninterestincomefromfixeddeposits.

DeductionsonHouseRent
Section80GG:DeductionwithrespecttoHouseRentPaid
ThisdeductionisavailableforrentpaidwhenHRAisnotreceived.Assesseeorhisspouseorminorchildshouldnotownresidentialaccommodationattheplaceofemployment.
Assesseeshouldnotbeinreceiptofhouserentallowance.
Heshouldnothaveselfoccupiedresidentialpremisesinanyotherplace.
Deductionavailableistheleastof
1.Rentpaidminus10%oftotalincome
2.Rs.2000/permonth
3.25%oftotalincome

DeductionsonLoanforHigherStudies
Section80E:DeductionwithrespecttoInterestonLoanforHigherStudies
Deductioninrespectofinterestonloantakenforpursuinghighereducation.Thisloanistakenforhighereducationfortheassessee,spouseorchildrenorforastudentforwhomtheassesseeisalegal
guardian.

DeductionforFirstTimeHomeOwners
Section80EE:DeductionsonHomeLoanInterestforFirstTimeHomeOwners
ThissectionprovideddeductionontheHomeLoanInterestpaidandisvalidforfinancialyears201314&201415(Assessmentyear201415and201516)only.Thedeductionunderthissectionis
availableonlytoIndividualsforfirsthousepurchasedwherethevalueofthehouseisRs40lakhsorlessandloantakenforthehouseisRs25lakhsorless.AndtheLoanhasbeensanctionedbetween
01.04.2013to31.03.2014.ThetotaldeductionallowedunderthissectionisRs1,00,000.

DeductionsonRajivGandhiEquitySavingScheme(RGESS)
Section80CCG:RajivGandhiEquitySavingScheme(RGESS)
TheRajivGandhiEquitySavingScheme(RGESS)waslaunchedafterthe2012Budget.InvestorswhosegrosstotalincomeislessthanRs.12lakhscaninvestinthisscheme.Uponfulfillmentof

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conditionslaiddowninthesection,thedeductionislowerof50%ofamountinvestedinequitysharesorRs25,000.

DeductionsonMedicalInsurance
Section80D:DeductioninrespectofMedicalInsurance
Forfinancialyear201415DeductionisavailableuptoRs.15,000/toanassesseeforinsuranceofself,spouseanddependentchildren.Ifindividualorspouseismorethan60yearsoldthededuction
availableisRs20,000.Anadditionaldeductionforinsuranceofparents(fatherormotherorboth)isavailabletotheextentofRs.15,000/iflessthan60yearsoldandRs20,000ifparentsaremorethan60
yearsold.Therefore,themaximumdeductionavailableunderthissectionistotheextentofRs.40,000/.(FromAY201314,withintheexistinglimitadeductionofuptoRs.5,000forpreventivehealth
checkupisavailable).
Forfinancialyear201516DeductionisraisedfromRs15,000toRs25,000.ThedeductionforseniorcitizensisraisedfromRs20,000toRs30,000.Foruninsuredsuperseniorcitizens(morethan80
yearsold)medicalexpenditureincurreduptoRs30,000shallbeallowedasadeductionundersection80D.However,totaldeductionforhealthinsurancepremiumandmedicalexpensesforparentsshall
belimitedtoRs30,000.

DeductionsonMedicalExpenditureforaHandicappedRelative
Section80DD:DeductioninrespectofRehabilitationofHandicappedDependentRelative
Deductionisavailableon:
1.expenditureincurredonmedicaltreatment,(includingnursing),trainingandrehabilitationofhandicappeddependentrelative
2.Paymentordeposittospecifiedschemeformaintenanceofdependenthandicappedrelative.
Wheredisabilityis40%ormorebutlessthan80%fixeddeductionofRs50,000.Wherethereisseveredisability(disabilityis80%ormore)fixeddeductionofRs1,00,000.Acertificateofdisabilityis
requiredfromprescribedmedicalauthority.
Note:Apersonwith'severedisability'meansapersonwith80%ormoreofoneormoredisabilitiesasoutlinedinsection56(4)ofthe'Personswithdisabilities(Equalopportunities,protectionofrightsand
fullparticipation)'Act.
Forfinancialyear201516ThedeductionlimitofRs50,000hasbeenraisedtoRs75,000andRs1,00,000hasbeenraisedtoRs1,25,000.

DeductionsonMedicalExpenditureonSelforDependentRelative
Section80DDB:DeductioninrespectofMedicalExpenditureonSelforDependentRelative
AdeductiontotheextentofRs.40,000/ortheamountactuallypaid,whicheverislessisavailableforexpenditureactuallyincurredbyresidentassesseeonhimselfordependentrelativeformedical
treatmentofspecifieddiseaseorailment.ThediseaseshavebeenspecifiedinRule11DD.Acertificateinform10IistobefurnishedbytheassesseefromanyRegisteredDoctor.
IncaseofseniorcitizenthedeductioncanbeclaimeduptoRs60,000oramountactuallypaid,whicheverisless.
Forfinancialyear201516forveryseniorcitizensRs80,000isthemaximumdeductionthatcanbeclaimed.

DeductionsonPersonsufferingfromPhysicalDisability
Section80U:DeductionwithrespecttoPersonsufferingfromPhysicalDisability
DeductionofRs.50,000/toanindividualwhosuffersfromaphysicaldisability(includingblindness)ormentalretardation.Further,iftheindividualisapersonwithseveredisability,deductionofRs.
100,000/shallbeavailableu/s80U.CertificateshouldbeobtainedfromaGovt.Doctor.TherelevantruleisRule11D.
Forfinancialyear201516ThedeductionlimitofRs50,000hasbeenraisedtoRs75,000andRs1,00,000hasbeenraisedtoRs1,25,000.

DeductionfordonationstowardsSocialCauses
Section80G:DeductionfordonationstowardsSocialCauses
ThevariousdonationsspecifiedinSec.80Gareeligiblefordeductionuptoeither100%or50%withorwithoutrestrictionasprovidedinSec.80G.80Gdeductionnotapplicableincasedonationisdonein
formofcashforamountoverRs10,000.
Donationswith100%deductionwithoutanyqualifyinglimit:
NationalDefenceFundsetupbytheCentralGovernment
PrimeMinister'sNationalReliefFund
NationalFoundationforCommunalHarmony
Anapproveduniversity/educationalinstitutionofNationaleminence
ZilaSakshartaSamiticonstitutedinanydistrictunderthechairmanshipoftheCollectorofthatdistrict
FundsetupbyaStateGovernmentforthemedicalrelieftothepoor
NationalIllnessAssistanceFund
NationalBloodTransfusionCouncilortoanyStateBloodTransfusionCouncil
NationalTrustforWelfareofPersonswithAutism,CerebralPalsy,MentalRetardationandMultipleDisabilities
NationalSportsFund
NationalCulturalFund
FundforTechnologyDevelopmentandApplication

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NationalChildren'sFund
ChiefMinister'sReliefFundorLieutenantGovernor'sReliefFundwithrespecttoanyStateorUnionTerritory
theArmyCentralWelfareFundortheIndianNavalBenevolentFundortheAirForceCentralWelfareFund,AndhraPradeshChiefMinister'sCycloneReliefFund,1996
TheMaharashtraChiefMinister'sReliefFundduringOctober1,1993andOctober6,1993
ChiefMinister'sEarthquakeReliefFund,Maharashtra
AnyfundsetupbytheStateGovernmentofGujaratexclusivelyforprovidingrelieftothevictimsofearthquakeinGujarat
Anytrust,institutionorfundtowhichSection80G(5C)appliesforprovidingrelieftothevictimsofearthquakeinGujarat(contributionmadeduringJanuary26,2001andSeptember30,2001)or
PrimeMinister'sArmeniaEarthquakeReliefFund
Africa(PublicContributionsIndia)Fund
SwachhBharatKosh(applicablefromfinancialyear201415)
CleanGangaFund(applicablefromfinancialyear201415)
NationalFundforControlofDrugAbuse(applicablefromfinancialyear201516)
Donationswith50%deductionwithoutanyqualifyinglimit.
JawaharlalNehruMemorialFund
PrimeMinister'sDroughtReliefFund
IndiraGandhiMemorialTrust
TheRajivGandhiFoundation
Donationstothefollowingareeligiblefor100%deductionsubjectto10%ofadjustedgrosstotalincome
Governmentoranyapprovedlocalauthority,institutionorassociationtobeutilisedforthepurposeofpromotingfamilyplanning
DonationbyaCompanytotheIndianOlympicAssociationortoanyothernotifiedassociationorinstitutionestablishedinIndiaforthedevelopmentofinfrastructureforsportsandgamesinIndiaorthe
sponsorshipofsportsandgamesinIndia.

Donationstothefollowingareeligiblefor50%deductionsubjectto10%ofadjustedgrosstotalincome
AnyotherfundoranyinstitutionwhichsatisfiesconditionsmentionedinSection80G(5)
Governmentoranylocalauthoritytobeutilisedforanycharitablepurposeotherthanthepurposeofpromotingfamilyplanning
AnyauthorityconstitutedinIndiaforthepurposeofdealingwithandsatisfyingtheneedforhousingaccommodationorforthepurposeofplanning,developmentorimprovementofcities,towns,villages
orboth
AnycorporationreferredinSection10(26BB)forpromotinginterestofminoritycommunity
Forrepairsorrenovationofanynotifiedtemple,mosque,gurudwara,churchorotherplace.

DeductionsonContributionbyCompaniestoPoliticalParties
Section80GGB:DeductioninrespectofcontributionsgivenbycompaniestoPoliticalParties
DeductionisallowedtoanIndiancompanyforamountcontributedbyittoanypoliticalpartyoranelectoraltrust.Deductionisallowedforcontributiondonebyanywayotherthancash.
Politicalpartymeansanypoliticalpartyregisteredundersection29AoftheRepresentationofthePeopleAct.Contributionisdefinedaspersection293AoftheCompaniesAct,1956.

DeductionsonContributionbyIndividualstoPoliticalParties
Section80GGC:DeductioninrespectofcontributionsgivenbyanypersontoPoliticalParties
Deductionisallowedtoanassesseeforanyamountcontributedtoanypoliticalpartyoranelectoraltrust.Deductionisallowedforcontributiondonebyanywayotherthancash.
Politicalpartymeansanypoliticalpartyregisteredundersection29AoftheRepresentationofthePeopleAct.

DeductionsonIncomebywayofRoyaltyofaPatent
Section80RRB:DeductionwithrespecttoanyIncomebywayofRoyaltyofaPatent
Deductioninrespectofanyincomebywayofroyaltyisrespectofapatentregisteredonorafter01.04.2003underthePatentsAct1970shallbeavailableuptoRs.3lacsortheincomereceived,
whicheverisless.TheassesseemustbeanindividualresidentofIndiawhoisapatentee.Theassesseemustfurnishacertificateintheprescribedformdulysignedbytheprescribedauthority.

Configuration:
Theabovelegalityismaintainedunderthefollowingtables
V_T7INI5containsthelistofSection80,forthisSec80theOveralllimitsforeachsectionismaintainedinV_T7INI7withvaliditydatesin11relationship,whereSubSecnumberisthelinkbetweenthe
tables

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ForSec80CthevariousInvestmentsDetailsaremaintainedinV_T7INI2andindividuallimitsforInvestmentdetailsunderSec80cismaintainedinV_T7INI4withvaliditydatesin11relationship,whereInvt
Codenumberisthelinkbetweenthetables

ForSec80(Restof80C)variousSubDivisionismaintainedinV_T7INI8andindividuallimitsforSubDivndetailsunderSec80ismaintainedinV_T7INI9withvaliditydatesin11relationship,whereSub
SecnumberandDivisionnumberisthelinkbetweenthetables

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RelevantInfotype:
ValueswillgetpickedupfromInfotype585,Infotype586andInfotype587.

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DuringpayrollCalculationthevaluefromIT587EmployeeNPScontributionwillbepopulatedintotechnicalWageType/3I5,whichiscontributionmadeunderSection80CCD(1),thevaluefromIT587
EmployerNPScontributionwillbepopulatedintotechnicalWagetype/3I6,whichiscontributionmadeunderSection80CCD.

FromInfotype586,thevaluesmaintainedwillbepopulatedintotechnicalWagetype/3I2whichis80Cinvestmentmadebyemployee,whichincludeemployeePFcontributionfromWagetype/3F6.

TechnicalWagetype/3I1istheChapterVIcontributionwhichincludevaluefrom/3I2uptothepermittedlimitforthesectionasperthelegalityplus(+)section80contributionmaintainedinIT585uptothe
permittedlimitforthesectionasperthelegality.Later/3I1willbepopulatedintotechnicalWagetype/432duringIncometaxcalculation.

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TheWT/3I2valueincludePFamountfromWT/3F6,sectionlimitisappliedbasedonlegalityandaddedupinWT/3I1alongwithotherSection80valueforChapterVIdeduction.

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