DEDUCTIONS

FROM GROSS
TOTAL INCOME
R AMRUTHAMMA
Assistant Professor
Department of Commerce
GFGC Malur
Kolar District.

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Deductions from Gross Total Income
■ The Following deductions can be claimed from the GTI of an individual:
■ 1. Section 80C:-
■ Amount of Deduction:- Gross Qualifying amount or Maximum limit 1,50,000} whichever is less
■ Gross qualifying amount is the aggregate of the following:-
1. Life Insurance Premium paid on own life/spouse’s life/children’s life
2. Contribution to SPF, RPF, PPF, SAF.
3. Housing loan (Principal amount only)
4. Tuition fees for full time education of any 2 children of an Individual
5. Contribution for participating in the unit-linked Insurance Plan
6. Contribution to notifies pension fund set up by Mutual Fund or UTI
7. Amount deposited under senior citizens savings Scheme
8. Payment in respect of non-commutable deferred annuity
9. Amount deposited in 5 years time deposit scheme in post office and etc.,

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2. Section 80CCC
➢ Premium paid towards pension fund of LIC
➢ Amount of Deduction:- Amount deposited or Maximum limit of 1,50,000, whichever is less

3. Section 80CCD
➢ Central Govt. or other employees can claim deduction under this section in respect of
contribution made towards new pension scheme(NPS)
➢ The employees are appointed after 1-1-2004, can claim deduction
➢ Amount of Deduction: Amount contributed by the employee or 10% of salary , W.E.L (+)
Employer’s contribution or 10% of employee’s salary (basic + DA) W.E.L or maximum limit
1,50,000
➢ In case of other employees deduction is limited to 10% of GTI
Note:- 1. The aggregate amount of deduction U/s 80C, 80CCC, and 80CCD
cann’t exceed 150,000
2. Additional deduction upto 50,000 can be claimed
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4. Section 80CCG
➢ Investment made under any equity saving scheme
➢ Conditions:- His/her GTI should not exceeds 12 lakhs
His/her has acquired listed shares
He/She is a new retail investor. The investment lock in
period is 3 years.
➢ Amount of deduction:50% of Investment or Max. limit of 50,000 w.e.l

5. Section 80D
➢ Deduction in respect of medical insurance premium
➢ Amount of Deduction:
1. For assesse, spouse, dependent children–Max. limit 25,000
2. An additional deduction for the insurance of parents is available to the extent of 25,000 (50,000 for
Senior citizens)
2. Preventive health check –up of self, spouse, dependent children, father and mother cannot exceed
5,000

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6. Section 80DD
➢ Weighted deduction for expenditure incurred on medical treatment of
handicapped dependent relative/deposit made for the maintenance of dependent
handicapped relative
➢ Amount of deduction:-
Extent of disability Amount of deduction
<40% Nil
40% - 80% 75,000
> 80% 1,25,000
7. Section 80DDB
➢ Deduction in respect of medical treatment against specified disease for assessee
himself or dependent family members
➢ Amount of Deduction:-Actual expenditure or Max. Limit 40,000, w.e.l
Actual expenditure or Max limit 1,00,000, w.e.l(senior citizen)
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8. Section 80E
➢ Deduction in respect of payment of interest on loan taken for higher education
➢ Amount of deduction: The total interest paid during the p.y. qualifies for deduction

9. Section 80EE
➢ Interest on loan taken for residential house property
➢ Deduction is available only if loan is sanctioned during the financial year 2016-
17, the assessee does not own a residential property on the date of sanction of
loan and deduction is not claimed under any other provision of the act.
➢ Amount of deduction;- Max. limit 50,000

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10. Section 80G
➢ Donations to certain funds, charitable institutions etc.,
Rate of deduction applicable for the Approved Donations are heighted below:-
Particulars Max limit Rate of deduction
Group-I
1. Jawaharlal Nehru Memorial Fund Not Applicable 50%
2. Indira Gandhi Memorial Trust “ “
3. Rajeev Gandhi Foundation “ “
4. Prime Minister Drought Relief Fund “ “
Group-II
1. National children Fund “ 100%
2. National Defence Fund “ “
3. Prime minister national relief fund “ “
4. Prime minister Armenia earthquake relief fund “ “
5. Africa Fund “ “
6. National foundation for Communal harmony “ “
7. Donation to an approved university/educational Institution of national Eminence “ “
8. Chief Ministers relief fund or lieutenant Governor’s relief fund “ “

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9. Zilla Saskharatha Samithi not applicable 100%
10. Nationa/State council for blood transfusion “ “
11. Fund set up by state government for the medical relief to the poor “ “
12. Central welfare fund for army/air force “ “
13. National Sports fund/cultural fund/ Technology development fund “ “
14. Any authority engaged in providing relief to the victims of earthquake
in Gujrath “ “
15. National trust for welfare of persons with Autism, cerebral palsy,
Mental retardation and multiple disabilities “ “
16. Swach Bharath Kosh “ “
17. Clean Ganga Fund “ “
18. National Fund for Control for drug abuse “ “

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Group-III
1. Any charitable institution (approved) applicable 50%
2. Any authority engaged in town planning/proving
housing accommodation “ “
3. Any authority engaged in promoting the interest of
minority community “ “
4. Any notified temple, mosque, gurudwara, church “ “
5. Any approved educational institution not of national
eminence “ “
6.Any authority engaged in promoting gamily planning “ “

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11. Section 80GG
➢ Deduction can be claimed for Rent paid by the assessee for his residence
➢ Amount of Deduction: Least of the following:-
1. 5,000 per month
2. Excess of rent paid over 10% of adjusted GTI
3. 25% of Adjusted GTI
[Note: Adjusted GTI= GTI – Deduction u/s 80C to 80U except 80G + Casual Incomes]

12. Section 80GGA

➢ Donations for Scientific Research and rural development
➢ Amount of Deduction:- 100% of such contribution qualifies for deduction
➢ Mode of Payment:- in cash or by cheque or draft. (Cash contribution does not exceed
10,000

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13. Section 80GGC
➢ Deduction in respect of contribution given to Political Party
➢ Amount of Deduction:- 100% of such contribution qualifies for deduction ( Only cheque or draft)

14. Section 80JJA

➢ Deduction for profits and gains from business of collecting and processing Bio-degradable waste.
➢ Amount of Deduction: 100% of such profits and gains qualifies for deduction for the 1st 5 years

15. Section 80PA

➢ Deduction is a allowed to farm producer companies who have total turnover of upto 100 crores
during the financial year
➢ Amount of deduction:-100% of deductions of profits for a period of 5 years to farm producer
companies

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16.Section 80QQB
➢ Resident individual can claim deduction for the Royalty income from Books of literary, artistic
and scientific nature.
➢ Amount of deduction:- Max limit 3,00,000

17. Section 80RRB

➢ Resident individual can claim deduction for royalty from patents registered after 31-3-2003
➢ Amount of deduction:- Least of the following:-
1. Income from Royalty
2. Royalty under terms of license settled by the controller
3. Max limit 3,00,000

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18. Section 80TTA
➢ Deduction in respect of interest on deposits in a savings account
➢ Amount of deduction:-
1. In case of interest on POSB a/c exemption is upto 3,500 for single account & 7,000 for
joint a/c.
2. In case of Interest on saving a/c with bank, co-operative bank a/c deduction is upto 10,000
19. Section 80TTB
➢ Deduction in respect of interest income from deposits with banks/post office/co-operative
banks (Senior citizens)
➢ Amount of deduction:- Max limit 50,000(Both Savings /Fixed a/c)

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20. Section 80U
➢ Deduction in respect of Resident individual suffering from disability
➢ The disability must be certified by the Govt. doctor
➢ Amount of deduction:-
Extent of disability Amount of deduction
<40% nil
40% - 80% 75,000
> 80% 1,25,000

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 Tax Rebate
Meaning of Rebate:- Rebate u/s 87A of the Income tax act was introduced in the year of 2013
with the objective of reducing the tax liability of the assesses whose income as not more than
certain amount. The rebate is provided as deduction from the total tax liability incurred by the
assessee.
Rebate U/c 87A
A resident individual ( whose net income does not exceed 3,50,000) can avail rebate under
section 87A. It is deductible from income-tax before calculating education cess. The amount of
rebate is 100% of income-tax or 2,500, w.e.l.

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