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University Institute Of

Legal Studies
Panjab University
TAXATION LAWS

DEDUCTIONS UNDER CHAPTER VI-A OF INCOME


TAX ACT,1961

Submitted to:

Submitted by:

Mrs. Shivani,

Riya Jain

(Taxation law)

160/12,

UILS, PU

9th semester,

Chandigarh.

B.com.llb.(Hons)

ACKNOWLEDGEMENT

have
taken
efforts
this
DR.
SABINA
SALIM
for
guidance
supervision
and
as
constant
necessary
information
regarding
also
for
her
the
project
in
&her
completing
the
project.
express
towards
my
my
gratitude
parents
and
kind
sibling
cofor
their
encouragement,
which
help
this
project.
me
in
completion
of
appreciations
go
to
my
colleague
the
project
in
and
developing
people
who
out
with
their
abilities.
project.
would
not
However,
have
been
itin
possible
without
the
kind
individuals.
extend
my
sincere
Isupport
would
thanks
like
to
to
all
of
them.
abilities
I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals. I would like to extend my sincere thanks to all of them.

I am highly indebted to MRS. SHIVANI for her guidance and constant supervision as well as for
providing necessary information regarding the project & also for her support in completing the
project.
I would like to express my gratitude towards my parents and sibling for their kind co-operation and
encouragement, which help me in completion of this project.
My thanks and appreciations go to my colleague in developing the project and people who have willingly
helped me out with their abilities.

THANK YOU!
RIYA JAIN

Page 2

TABLE OF CONTENTS
S.NO

TOPIC

Page No

1.

Introduction

4-6

2.

What is Tax Deduction?

3.

Tax Deduction v. Tax EXemption

4.

What is Tax Deducted at Source?

8-9

5.

Benefits of tax deduction

6.

Calculation of Total income

10-11

7.

Basic rules of Deduction

12-13

8.

Summary of Tax Deduction

13-15

9.

Section 80 C, 80CCC, 80 CCD

16-21

10.

Section U

22-23

11.

Bibliography

24

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INTRODUCTION

Taxes are an integral component in our country, with them accounting for a major portion of the
income earned by the government, income which is utilized to provide certain basic provisions to
citizens. Individuals who earn more than a certain amount are expected to pay taxes, as per the
existing tax slabs.The existing tax slab for the year 2016-17 are as follows:
For Men Below 60 Years Of Age1
Income Tax Slab

Income Tax Rate

Income upto Rs. 2,50,000

Nil

Income between Rs. 2,50,001 - Rs. 500,000

10% of Income exceeding Rs. 2,50,000

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

For Women Below 60 Years Of Age


Income Tax Slab

Income Tax Rate

Income upto Rs. 2,50,000

Nil

Income between Rs. 2,50,001 - Rs. 500,000

10% of Income exceeding Rs. 2,50,000

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 60 years or more but less than 80 years)

1 http://www.charteredclub.com/income-tax-deductions/, accessed on 21st October, 2016 at 10.37pm.

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Income Tax Slab

Income Tax Rate

Income upto Rs. 3,00,000

Nil

Income between Rs. 3,00,001 - Rs. 500,000

10% of Income exceeding Rs. 3,00,000

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 80 years or more)


Income Tax Slab

Income Tax Rate

Income upto Rs. 5,00,000

Nil

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

Indian tax laws contain certain provisions, which are intended to act as an incentive for achieving
certain desirable socio-economic objectives. These provisions are contained in Chapter VIA and
are in form of deductions from the gross income. By reducing the chargeable income, these
provisions reduce the tax liability, increase the post-tax income and thus induce the tax-payers to
act in the desired manner.2
While these taxes can be harsh on the bank balance of a taxpayer, the government also provides
certain provisions wherein one can save tax. Tax deductions can help one reduce the taxable
income, lowering their overall tax liability and thereby helping them save on taxes. The
deduction one is eligible for depends on a number of factors, with different limits set for different
purposes.
2 http://www.slideshare.net/SumitBedi57/tax-deductions-us-80c-to-80u, accessed on 16th October,2016 at
11.23pm.

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What is Tax Deduction?


Tax deduction helps in reducing your taxable income. It decreases your overall tax liabilities and
helps you save tax. However, depending on the type of tax deduction you claim, the amount of
deduction varies. You can claim tax deduction for amounts spent in tuition fees, medical
expenses and charitable contributions. Also, you can invest in various schemes such as life
insurance plans, retirement savings schemes, and national savings schemes etc. to get tax
deductions. The government of India offers tax exemptions for various expenses incurred in
different activities to encourage individuals and commercial institutions take part in activities
having social benefits3.
A number of day-to-day expenditures qualify for deductions, with information about them being
crucial to help us save money. Tax deduction can be claimed on money spent for education,
medical expenses, charitable contributions, investments in insurance, retirement schemes, etc.
These deductions have been put in place to encourage members of the society to participate in
certain useful activities, helping everyone involved in the process4.
The Central Board for Direct Taxes (CBDT) governs the Indian Income Tax department. The
department is also part of the Department of Revenue which is managed under the Indian
Revenue Service (IRS) under the Ministry of Finance, Govt. of India.
Income taxes are imposed by the government of India on taxable income of Hindu Undivided
Families (HUFs), companies, individuals, firms, co-operative societies and trusts (which are
identified as a body of Individuals and Association of Persons) and any other artificial person.
There are separate levy of taxes on each persons which are governed by the Indian Income Tax
Act, 19615.
3 http://www.taxexemption.in/deduction.html, accessed on 21st October,2016 at 11.27pm.
4 https://www.bankbazaar.com/tax/income-tax-deductions-under-section-80c-to-80u.html, accessed on
16th October, 2016 at 11.45pm.
5 https://cleartax.in/Guide/Section80Deductions, accessed on 21st October,2016 at 10.50pm.

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Tax Exemption vs Tax Deduction


Both the terms tax deduction and tax exemption refer to a lowering of taxable income; they
are forms of tax relief or tax breaks provided by the government. However, tax exemptions may
also include complete relief from taxes, reduced rates and tax on only a portion of income. Tax
exemption means you dont have to pay tax for a particular income. E.g. you may get a tax
exemption for donating to charitable institutions and various relief funds.6
In order to encourage investments, the government generally offers tax exempt entities to invest
in. Such entities are exempted from a single or multiple taxation laws. For example, investments
in the Sukanya Samriddhi Scheme are fully tax exempt. Money deposited under this scheme will
be exempted from tax at the time of investment, accumulation of interest and payout of returns
(EEE).
In case of tax deduction, your income tax liabilities decrease by a specified amount for spending
money in particular avenues. You invest in various schemes to reduce your taxable income. For
example, you can get tax deduction by paying life insurance premiums and home loan EMI . Tax
deductions are offered by government to tempt taxpayers to participate in programs carrying
societal benefits7.

What is Tax Deducted at Source?


To collect tax efficiently and quickly, the Income Tax department of the Government of India has
introduced a system called TDS (tax deducted at source). Using TDS, tax can be
deducted/collected at source of income. TDS is an indirect method of collecting tax by the

6 http://timesofindia.indiatimes.com/budget-2016/union-budget-2016/Budget-2016-6-ways-to-pay-less-taxlegally/articleshow/51204421.cms , accessed on 22nd October,2016 at 11.20pm.

7 http://www.incometaxindia.gov.in/Charts%20%20Tables/Deductions.htm, accessed on 21st


October,2016 at 11.38pm.

Page 7

government. It ensures a regular source of revenue for the government by ensuring the tax is
collected as income is earned and not when a taxpayer files returns at the end of the year.
Any authorized person/institution on whom the responsibility of collecting tax is entrusted
collects tax and pays it to the government on behalf of an individual payer. In return, the
individual taxpayer gets a TDS certificate stating that the tax has been paid on his/her behalf.
Thus, tax is deducted at source and is forwarded to the government on behalf of the payer. This
provision of deduction of tax at source is applicable to several payments such as salary,
commission, interest on fixed deposits, brokerage, professional fees, contract payments, and
royalty etc.8

Benefits of Tax Deductions:


There are a number of benefits associated with tax deduction which include:

Tax deductions help you reduce an amount from your taxable income and save tax. When
you claim an income tax deduction, it reduces the amount of your income that is subject to tax.

Reduced taxable income helps you save and invest money in other areas.

Tax deduction first reduces the income subject to the highest tax brackets. So, you can
claim deduction for the amounts spent in tuition fees, medical expenses, and charitable
contributions.
Income tax return is mandatory and you cannot completely avoid paying tax. But with proper
planning, you can reduce your taxable income9.

8 http://www.planmoneytax.com/income-tax-slab-rate-2016-2017/, accessed on 22nd October, 2016 at 10.38pm.


9 http://taxguru.in/income-tax/deductions-chapter-applicable-assessees-income-salaries.html, accessed on 20th
October,2016 at 8.29pm.

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HOW TO CALCULATE NET INCOME?


To commute the net income of the assesses, first of all we have to compute the income under the
five head. The aggregate of income under each head is known as gross total income. Certain
deductions which are not deductible under any particular head of income are allowed out of
gross total income to arrive at the total income liable to tax. These are:
a) Long-term capital gains.
b) Short-term capital gain on transfer of equity shares and units of equity oriented fund
through a recognized stock exchange i.e. short-term capital gain covered under section
111A.
c) Winnings of lotteries, races, etc.
d) Incomes referred to in sections 115A, 115AB, 115AC, 115AD, 115BBA and 115D
These deductions are of two types:
a) Deduction on account of certain payments and investment covered under section 80C to
80GGC.
b) Deductions on account of certain incomes which are already included under Gross total
income covered under section 80IA to 80U
The income arrived at, after claiming the above deduction from Gross Total Income, is known as
Total Income. It also be called Taxable Income. The Total Income, thus calculated, should be
rounded off to the nearest Rs.10.
Total income is accordingly computed as under:
1)
2)
3)
4)
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Income from Salaries


Income from House property
Profits and Gains of Business Profession
Income from Capital Gains

______________
______________
______________
______________

5) Income from other sources

______________

GROSS TOTAL INCOME

_________________

Less deduction under Chapter VIA(80C to 80U) (-) ____________


TOTAL INCOME

Page 10

______________________

BASIC RULES OF DEDUCTIONS (SECTIONS 80A/ 80AB/80AC)


i.

Deduction cannot exceed Gross Total Income:

The aggregate amount of deductions under section 80C to 80U in any case cannot exceed the
Gross Total Income of the assessee. Therefore, the total income after deductions will either be
positive or nil. It cannot be negative due to deductions. If the Gross Total Income is negative or
nil, no deduction can be permitted.
ii.

Deduction not allowed to members if allowed to AOP/BOI:

If a deduction is allowed under the above sections to the AOP or BOI then deductions for the
same payment/income will not be allowed to the members of the AOP/BOI.
iii.

Double deduction not allowed and deduction cannot exceed the profit of the
particular undertaking or unit or enterprise, etc.

Where any amount of profits and gains of an undertaking or unit or enterprise or eligible
business is claimed and allowed as a deduction under any of those provisions for any assessment
year, deduction in respect of, and to the extent of, such profits and gains shall not be allowed
under any other provisions of this Act for such assessment year and shall in no case exceed the
profits and gains of such undertaking or unit or enterprise or eligible business, as the case may
be.
iv.

Deduction allowed only when it is claimed by the assessee:

Where the assessee fails to make a claim in his return of income for any deduction then no
deduction shall be allowed to him thereunder.
v.
vi.

Profit or gain to be recomputed if inter unit or inter business transfer is not at


market value.
Assessees duty to place relevant material:

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If an asssessee approaches a statutory authority for obtaining a concession under the taxing
statute, he should in fairness place all the material before the said authority and be also in a
position to satisfy the said authority that he was entitle to obtain such concession.10
vii.

Benefits of certain deductions not to be allowed in cases where return is not filled
within the specified time limit:

Where in computing total income of an assessee, no such deduction shall be allowed to him
unless he furnishes a return of his income for such assessment year on or before the due date
specified under section 139(1).11

Summary of Tax Deductions Available under Section 80C to 80U12:


Section

80 C

80 CCC

80 CCD

80 CCF

Permissible limit (maximum)

Rs 1.5 lakh (aggregate of 80C, 80CCC and


80CCD)

Rs 1.5 lakh (aggregate of 80C, 80CCC and


80CCD)

Rs 1.5 lakh (aggregate of 80C, 80CCC and


80CCD)

Rs 20,000

Eligible Claimants

Individuals/Hindu Undivided Families

Individuals

Individuals

Individuals/Hindu Undivided Families

10 TAX LAW &PRACTICE, Girish Ahuja & Ravi Gupta, pg.426, Bharat Law House, New Delhi 2015.

11 Supra 10, pg 427.


12 https://www.bankbazaar.com/tax/income-tax-deductions-under-section-80c-to-80u.html, accessed on 21st
October, 2016 at 11.05pm.

Page 12

80 CCG

Rs 25,000

Resident individuals

80 D

RS 20,000

Individuals/Hindu Undivided Families

80 DD

80 DDB

Rs 75,000 for general disability

Rs 1.25 lakh for severe disability

Rs 60,000 for senior citizens

Rs 40,000 for others

Resident Individuals/Hindu Undivided Families

Resident Individuals/Hindu Undivided Families

80 E

No limit mentioned

Individuals

80 EE

Rs 3 lakh

Individuals

80 G

Different limits based on donation

All assesses

80 GG

Rs 2,000 per month

Individuals who do not get HRA

80 GGA

Depends on quantum of donation

All assessees who do not have income from profit or gai

80 GGB

Depends on quantum of donation

Indian companies

80 GGC

Depends on quantum of donation

80 IA

No maximum limit defined

All assesses

80 IAB

No maximum limit defined

All assessees who are SEZ developers

80 IB

No maximum limit defined

All assesses

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All assesses apart from local/Artificial judicial autho


government

80 IC

No maximum limit defined

All assesses

80 ID

No maximum limit defined

All assesses

80 IE

No maximum limit defined

All assesses

80 JJA

All profits earned for first 5 years

All assesses

80 JJAA

30% of increased wages

Indian companies which have income from profit/gains

80 LA

Portion of their income

Scheduled banks, IFSCs, banks established outside India

80 P

Portion of their income

Cooperative societies

80 QQB

Rs 3 lakh

Authors resident individuals

80 RRB

Rs 3 lakh

Resident individuals

80 TTA

Rs 10,000 per year

Individuals/Hindu Undivided Families

80 U

Rs 75,000 for people with disabilities

Rs 1.25 lakh for people with severe

Resident individuals

disabilities

NOTE: WE JUST HAVE 80C, 80CCC, 80CCD AND 80 U IN OUR SYLLABUS. DETAIL
DISCUSSION ON THESE SECTIONS

SECTION 80C
Saving plays a vital role in fast economic development of any country. To encourage savings, an
incentive in the form of a deduction out of ones taxable income has been allow. To chanelise
those savings, various schemes has been framed and if the assesse deposits those savings in these
approved scheme, a deduction shall be allowed.

Page 14

Section 80 C is the most popular provision and it aims to encourage savings in the economy by
extending several incentives under it. The section allows income tax deductions for certain types
of payments, subscriptions and investments/savings made by the tax payer.
ELIGIBLE ASSESSEES:

An Individual

A Hindu Undivided Family (HUF)

As per budget 2016, a maximum of Rs 150000 can be deducted by a normal person under this
section. Following are the tax deduction items under the section.
Life insurance premiums: Deduction is available under Section 80C with respect to
premium paid towards life insurance policy for self, spouse and any child. The children
may be married/unmarried, dependent/not dependent, step and adopted on the individual.
It may be noted that no deduction is available for any late-fee charges paid. The amount
received on maturity of the policy is exempt from tax, subject to prescribed conditions. 13
In the case of Hindu Undivided Family the premium should be paid on the life of any
member of the family.
The Life Insurance Policy cannot be surrendered unless premium has been paid for
2years on such policy.
Public Provident Fund (PPF): Contribution to a PPF account in the name of self,
spouse and a child is eligible for deduction under Section 80C. Earlier the annual
investment in PPF was limited to Rs 70,000, thereby limiting the tax deduction also.
However, with effect from 1 December 2011, this limit has been raised to Rs 1 lakh per
year.

The

annual

accretion

on

the

account

is

also

not

taxable.

National Saving Certificate (NSC): The amount invested in NSC is eligible for
deduction under Section 80C. Further, the interest accrued annually on NSC, though
taxable, is deemed to be re-invested and qualifies for deduction (except in the year of
maturity).
13 http://finotax.com/income-tax/info/deductions#i1, accessed on 21 st October, 2016 at 10.25 pm.

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Five-year bank fixed deposits (FDs): FDs with a scheduled bank, under a notified
scheme, with a tenure of five years is eligible for deduction under the above section.
However, the interest accrued on the FDs is subject to tax laws.
Post office five-year time deposit (POTD) scheme:POTDs are similar to bank FDs. A
five-year POTD qualifies for deduction under Section 80C. However, interest accrued on
the same is entirely taxable.
Senior Citizen Savings Scheme (SCSS): SCSS is another scheme eligible for deduction
under Section 80C. However, it is intended only for senior citizens. The interest accrued
on the same is entirely taxable.
Unit-linked insurance plans (Ulip): Investments in Ulips in the name of self, spouse
and a child, which covers life with benefits of equity investments, is eligible for
deduction under Section 80C.
Mutual fund (MF) and Equity-linked savings scheme (ELSS): Subscription to MFs
and ELSSs qualifies for deduction under Section 80C. Currently, dividend and long-term
capital gains on equity-oriented funds where securities transaction tax is paid are exempt
from tax.
Home loan principal repayment: Equated monthly installments that are paid to repay
home loans consists of two components-principal and interest. The principal component
qualifies for deduction under Section 80C, provided the loan is taken from a prescribed
lender (banks, PSU, etc.). The interest component can save your income tax as a
deduction from rental income, subject to prescribed conditions.
Stamp duty and registration charges for a home: Stamp duty and registration charges
paid for transfer of property qualify for deduction under Section 80C.

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Tuition fees: Tuition fees paid for full-time education in an Indian university, college,
school, educational institution, for any two children are eligible for deduction under
Section 80C. It is pertinent to note that tuition fees do not include payment towards any
development fees or donation or payment of similar nature.
NABARD rural bonds: Investment in rural bonds issued by NABARD qualify for
deduction under section 80C.
Contribution to pension funds: Contributions to certain pension funds of LIC or any other
insurer are eligible for deduction. Contribution to the National Pension Scheme is also
eligible for deduction.14

Section 80CCC: Deduction for Premium Paid for Annuity Plan of LIC
or Other Insurer
This section provides deduction to an Individual for any amount paid or deposited in any annuity
plan of LIC or any other insurer. The plan must be for receiving pension from a fund referred to
in Section 10(23AAB).
If the annuity is surrendered before the date of its maturity, the surrender value is taxable in the
year of receipt.
Quantum of deduction: the whole of the amount paid or deposited or Rs. 1,00,000 whichever is
less.
Important points:

If the assessee or his nominee receives any amount, standing to the credit of the assessee
in respect of which deduction under section 80CCC has been allowed to him:

14 http://www.businesstoday.in/moneytoday/tax/income-tax-deductions/story/21137.html, accessed on 21st October,


2016 at 10.30pm.

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On account of surrender of the annuity plan, whether in whole or in part in any


previous year; or
As pension from the annuity plan;
Such amount shall be included in the total income of the assessee or his nominee in the year of
receipt15.

Where deduction has been allowed u/s 80CCC, deduction u/s 80C will not be available in

respect of the payment made towards the annuity plan.


The deduction is allowed to Non- resident individual also.16

Section 80 CCD promotion of NPS


Government offers tax deductions by persons for participating in the National Pension Scheme.
Section 80 CCD is for investment in pension schemes of the Central Government ie., for
contribution to the National Pension Scheme. Deduction under this section is available only to
individuals and to HUFs. For the NPS contributions, tax deduction are there under two sections
80CCD (1) and 80CCD (2).
Section 80 CCD (1) is for employees contribution towards notified pension scheme (NPS).
Section 80 CCD (2): deduction to NPS scheme for contribution by the employer (NPS).

Section 80 CCD (1)


Contribution of an employee to his NPS scheme is deducted under section 80CCD (1). The
maximum deduction available under this section would be Rs.1 lakh. This should come within
the total limit set for 80C of Rs 150000.
Section 80 CCD (2)

15 Supra 10, pg 375


16 Supra 10, pg.375.

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The Section 80CCD (2) is for employers contribution to a notified pension scheme. As per
Section 80CCD (2), where any contribution in the said pension scheme is made by the Central
Government or any other employer then the employee shall be allowed a deduction from his total
income of the whole amount contributed by the Central Government or any other employer
subject to limit of 10% of his salary of the previous year.
It is emphasized that aggregate amount of deduction under sections 80C, 80CCC and Section
80CCD (1) shall not exceed Rs.1,50,000/. However, the deduction under Section 80CCD (1)
shall not exceed Rs.1,00000. But contributions made by the employer under Section 80 CCD (2)
doesnt come under this limit as it is the contribution of the government.17
Important points:

No deduction shall be allowed under section 80C in respect of amounts on which

deduction has been claimed under section 80CCD.


Salary includes dearness allowance, if the terms of employment sp provide, but

excludes all other allowances and perquisites.


If the amount is withdrawn from notified pension scheme in the previous year is used for
purchasing an annuity plan in the same year, it will not be taxable.18

ILLUSTRATION:

Gross total income of R who is self employed is Rs.5,90,000. He has

deposited Rs 1,20,000 in public provident fund and Rs.1,10,000 in pension scheme of the Central
Government. Compute his taxable income.
SOLUTION:
Gross total income

5,90,000

Less: Deduction
17 http://www.indianeconomy.net/splclassroom/244/what-is-the-significance-of-section-80c-of-theincome-tax-act/, accessed on 22nd October,2016 at 11.20pm.
18 http://www.gconnect.in/personal-income-tax/income-tax-2015-16-deductions-and-exemptions.html, accessed on
22nd October,2016 at 11.11pm.

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Under section 80C


Under section 80CCD

1,20,000
59,000

(10% of gross total income of 5,90,0000)


Total income

179,000
________
4,11,000

** The aggregate amount of deduction under section 80C, section 80CCC and section 80CCD
shall not exceed Rs.1,50,000.19

SECTION 80 U
In computing the total income of an individual being a person with disability, a deduction under
section 80U shall be allowed if certain conditions are satisfied.
Meaning of person with disability:
person with disability means a person suffering from not less than 40% of any disability as
certified by a medical authority. The medical authority for certifying Autism, Cerebral Palsy,
19 http://www.nitinbhatia.in/personal-finance/income-tax-important-points/, accessed on 22nd October, 2016 at
10.40pm.

Page 20

Multiple Disabilities and Severe Disability referred to in section 2(a), (c), (h), (j) and (o) of
the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental retardation and
Multiple Disabilities Act, 1999 shall consist of the following:

A neurologist- having degree of Doctor of Medicine (MD) in neurology, or


A civil Surgeon or Chief Medical Officer in a Government Hospital.20

Disability meansi.
ii.
iii.
iv.
v.
vi.
vii.

Blindness
Low vision
Leprosy-cured
Hearing impairment
Locomotor disability
Mental retardation
Mental illness.

Meaning of person with severe disability: Person with severe disability means a person
with 80% or more of one or more disabilities.21
Essential conditions for claiming deduction under this section:
1) The assessee is an individual being a resident and is a person with disability.
2) He is certified by the medical authority to be a person with disability, at any time during
the previous year.
3) He furnishes a certificate issued by the medical authority in the form and manner, as may
be prescribed, along with the return of the income under section 139, in respect of the
assessment year for which the deduction is claimed.22
Quantum of deduction:

Rs.75,000 in case of a person with disability

20 Income Tax Law and Practice, V.P. Gaur, D.B. Narang and others, pg 2/527, Kalyani Publishers,
42nd edition, 2014.
21 Supra 10, pg 375.
22 http://www.relakhs.com/income-tax-deductions-fy-2016-17-ay-2017-18-tax-exemptions-benefits-rebates/,
accessed on 21st October, 2016 at 10.10pm.

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Rs.1,25,000 in case of a person with severe disability.

Tax deductions are one of the few topics that generate some excitement. While nobody likes to pay taxes,
everybody use deduction to lower their taxes. To put it plainly, tax deduction lower your taxable income,
which therefore lowers your tax liability.

Page 22

BIBLIOGRAPHY

BOOK SOURCES:
Dr.Jyoti Rattan, Taxation Laws, Bharat Publisher, 6th Edition (2015-16).
V.P. Gaur, D.B. Narang and others, Income Tax Law and Practice, Kalyani Publishers,
42nd Edition, 2014.
KailashRai, Taxation Laws, Allahabad Law Agency, 9th Edition ,2007
Kanga and Palkhiwals, The Law and Practice of Income Tax, The Law and
Practice of Income Tax- 7th Edition,
N.M.Tripathi, 1976 GrishAhuja, Direct taxes law and practice,
Bharat Publisher,18thEdition, (2008-09).
Vinod K. Singhania, Direct Taxation: Law and Practice of Income Tax, Taxman,
36thEdition, (2007).
Income Tax Act, 1961: Bare Act Income Tax Rules 1962 : Bare Act

WEB SOURCES:
http://www.universityofcalicut.info/SDE/VI_sem_BCom_income_tax_law_and_pra
ctise.pdf
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http://www.indianeconomy.net/splclassroom/244/what-is-the-significance-ofsection-80c-of-the-income-tax-act/
http://www.charteredclub.com/income-tax-deductions/
http://www.taxexemption.in/deduction.html
http://www.planmoneytax.com/income-tax-slab-rate-2016-2017/
http://business.mapsofindia.com/india-tax/deduction.html
http://www.slideshare.net/SumitBedi57/tax-deductions-us-80c-to-80u
http://finotax.com/income-tax/info/deductions
https://www.bankbazaar.com/tax/income-tax-deductions-under-section80c-to-80u.html

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