Case Studies for Residential Status (as per Income Tax Act) for Individuals :

1) Mr. D, who is business head for Asia Pacific regions for a private firm. Mr. D was born and brought up in
India. He has to travel to various locations of the continent for business purposes. He has spent 200
days travelling in the FY 2021-22. Also, he has been travelling abroad from the past 4 years and has
stayed out of India for about 400 days in this period. (a) Let us evaluate whether Mr. D was resident in
India for the current financial year. (b) if Mr. D has satisfied as resident of India. Let us further classify
whether Mr. D is ROR or RNOR.(c) If Mr D had been in India for 400 days in the last 9 years and he has
been a resident Indian till FY 2013-14.

2) Ms. A, who is working as a crew of ship for a private firm. She was born and brought up in India. She
has to travel to various locations on crew . She has spent 280 days travelling in the FY 2021-22. Also,
he has been travelling abroad every year and has stayed out of India for about 100 days in last 4 years.
(a) Let us evaluate whether she was resident in India for the current financial year.
(b) If Ms. A has satisfied as resident of India. Let us further classify whether Ms. A is ROR or RNOR.

3) Bret Lee, Australian cricketer visits India for 100 days in every financial year, since the last 11 years.
Find his residential status for AY 2022-23. If Bret Lee has satisfied as resident of India. Let us further
classify whether he is ROR or RNOR.

4) Mr B is a Ukranian citizen, he comes to India for 1st time in PY 2015-16 During PY 2015-16 , 2016-17,
2017-18, 2018-19, 2019-20, 2020-21 stay in India is 100, 55, 60, 90 150, and 72 days. Determine his
residential status.

5) Ms. X is Indian citizen residing in Russia since last 25 years. She earns rental Income from a property
at Delhi INR 1 Crore every year since FY 2016-17. Determine her residential status if her stay in India
was as under :

Particulars /Financial Year 2021-22 2020-21 2019-20 2018-19 2017-18 Period

of stay
in last 3
yrs
No. of days in India (Case I) 182 100 150 0 0 100
No. of days in India (Case II) 61 150 100 0 50 200
No. of days in India (Case III) 61 150 100 100 50 500
No. of days in India (Case IV).She 50 50 40 30 20 350
in not resident in any other country.
Deductions from Income under various heads of Income (Tax Planning hints):

1) Income From Salaries

Section Nature of Deduction Who can claim

16(ia) Standard Deduction [Rs. 50,000 or the amount of Individual - Salaried
salary, whichever is lower] Employee & Pensioners
16(ii) Entertainment allowance [actual or at the rate of 1/5th
of salary, whichever is less]
[limited to Rs. 5,000]
Government employees
16(iii) Employment tax Salaried assessees
10(13A) HRA Salaried employee paying Rent
LTC Salaried employee

1. What is HRA or House Rent Allowance?

The full form of HRA in salary is house rent allowance. It is an amount that an employer pays an
employee to compensate for rent paid to live in the place of employment. While deduction for house
rent allowance under Section 10(13A) of the Income Tax Act is allowed, HRA may be fully or partially
taxable. The HRA deduction calculation depends on your salary, the HRA received, the actual rent that
you pay, and the place of your employment and residence. Even self-employed individuals can claim
HRA tax benefits.
2. Eligibility Criteria To Claim Tax Deduction On HRA
House rent allowance is eligible for HRA deduction under Section 10(13A) of the Income Tax Act if an
individual meets the following criteria:
• The person claiming HRA deduction is a salaried or a self-employed individual.

• The person must be living in a rented house. HRA tax calculations cannot be made for living in
your own house.

• You should be able to produce a proof for rent paid such as a valid house rent receipt.
This means that if you do not pay rent, you cannot claim an HRA deduction even if your
employer pays you HRA as part of your salary.
•
3. HRA Calculation Formula With Example
HRA calculations are based on a number of factors, including your salary, the HRA you receive from
your employer, the actual rent you pay, and whether you live in a metro or a non-metro city. However,
when computing the HRA tax calculation, the amount of exemption will be the lowest of:
• The HRA your employer pays you

• Actual rent paid for accommodation minus 10% of basic pay

• 50% of basic salary plus dearness allowance if you live in a metro city (Mumbai, Delhi, Kolkata,
or Chennai) or 40% of basic salary plus dearness allowance if you live in a non-metro city
 The house rent allowance calculation or HRA formula is to calculate the three aspects above
and claim the lowest as HRA deduction under Section 10(13A) of the ITA.
Consider the following example for a better understanding of the HRA formula:
Mr. Gopal Ramanath lives and works in Pune. He has a rented accommodation, paying Rs. 7,000 per
month. His monthly salary is Rs. 45,000, with the following break up:

Component Amount (INR/ Rs.)

Basic Pay 25,000

HRA 8,500

Allowances 8,500

PF 3,000

Total Salary 45,000

Using the HRA calculation formula, Mr. Ramanath gets:

• An annual HRA of Rs. 1,02,000 from the employer (₹8,500 X 12 = ₹1,02,000)

• An annual rent of ₹84,000 that he actually pays. However, we need to apply the HRA
percentage formula, which is actual rent minus 10% of basic pay. This comes to ₹54,000
(₹7,000 x 12 - ₹30,000 = ₹54,000)

• Pune is a non-metro city. Therefore, 40% of basic salary would amount to ₹1,20,000 (40% x
₹3,00,000 = ₹1,20,000).

The maximum deduction that Mr. Ramanath can claim under section 80C of the ITA as HRA deduction
would be the lowest of the three amounts, ₹54,000.
The remaining ₹48,000 of the HRA allowance will be taxable as per Mr. Ramanath's income tax slab. If
you are still not convinced that you can calculate your HRA using pen and paper, don't worry you can
use the free online HRA Calculator instead.
4. How is HRA Taxed in India?
HRA exemption rules state that HRA deduction is only allowed for salaried and self-employed
individuals who live in rented accommodation. This means that even if your salary structure has an
HRA section or component if you are not paying rent, the entire amount will become taxable.
Taking Mr. Ramanath's example, if he did not pay rent, then the HRA of Rs. 84,000 paid to him by his
employer would be taxed under his applicable income tax bracket.
For self-employed individuals who do not receive an HRA component, HRA rules allow the benefit of
claiming HRA exemption under Section 80GG of the ITA. This is the route that even salaried individuals
paying rent can take in case their employer does not pay HRA.
Therefore, while calculating HRA exemption, it is important to understand whether you can claim the
deduction under Section 10(13A) or Section 80GG of the ITA.
5. Tax Benefits of HRA
HRA deduction under Section 10(13A) of the ITA has the following benefits:
• The biggest advantage of the HRA rebate is that it reduces your taxable income.

• You can claim deduction on HRA in income tax filing even if you live with your parents, as long
as you produce proof of paying rent.

• You can claim HRA tax benefit even while paying EMI on a home loan as long as the house is
not located in the city of employment/ residence. In case you own a house in the same city as
employment and living, you will need to produce a valid explanation as to why you cannot live
there in order to claim the HRA exemption.

6. Important Points To Remember For Claiming HRA Deduction

• You do not automatically become eligible to claim HRA exemption if your employer pays you
HRA as part of your salary. You will have to be living in a rented accommodation to claim HRA
tax exemption.

• The entire HRA paid to you cannot be claimed as an exemption. The lowest of annual rent
actually paid minus 10% of basic salary, HRA paid by the employer and 40%/50% of salary
depending on where you stay can only be claimed.

• For HRA calculation purposes, only Mumbai, Delhi, Chennai, and Kolkata are considered metro
cities. All others are non-metro cities.

• You can claim an HRA deduction even if you are staying with your parents, as long as you
produce proof of rent payment, such as rental receipts or bank transfers. However, your
parents will need to show this as income while filing their returns.

• Rent paid to a spouse is not eligible for HRA deduction.

• If the annual rent paid exceeds ₹1,00,000, then the landlord's PAN will be required to claim
HRA exemption. If they do not have a PAN, a signed declaration will be required.

7. How to Claim Deduction if You Do Not Receive HRA

Self-employed and salaried individuals who do not receive an HRA cannot claim house rent allowance
deduction under Section 10(13A) of the ITA. However, they can still avail the benefit of rent exemption
under Section 80GG of the Income Tax Act.
Under Section 80GG, an individual can claim the least of the following in lieu of the house rent they
pay:
 • ₹5,000 per month, i.e. ₹60,000 per annum

• 25% of gross total income

• Actual rent paid minus 10% of the gross total income

For instance, let us assume that Ms. Gayathri Nair, living in Chennai, is self-employed and makes an
annual gross total income of Rs. 6,00,000. She pays rent of Rs. 20,000 a month. The tax exemption
she can claim under Section 80GG while filing her taxes is the lowest of:
• ₹60,000

• 25% x ₹6,00,000 = ₹1,50,000

• Actual annual rent minus 10% of income, which is ₹2,40,000 - ₹60,000 = ₹1,80,0000

Finally, the deduction Ms. Nair can claim under Section 80GG of ITA is ₹60,000.
When understanding the difference between what is HRA and the deduction claimed under Section
80GG, here are some points to keep in mind:
• Deduction under Section 80GG is available only for those who do not receive HRA. This
includes members of Hindu Undivided Families, self-employed people, and salaried individuals
who do not receive HRA from their employer.

• The maximum deduction allowed under Section 80GG is ₹60,000.

• You cannot claim deduction under both Section 10(13A) and Section 80GG

• Just like under Section 10(13A), the individual, their spouse, or minor child cannot own property
in the city of residence to claim the benefit.

• Individuals seeking to claim this deduction will have to submit a form 10-BA which is a self-
declaration stating that they meet all conditions mentioned above.

8. Documents Required to Claim HRA Tax Exemption

In order to claim HRA tax exemption, an individual will need to submit certain documentation proofs.
This includes rental receipts that show the rent used for HRA deduction calculation or the rental
agreement with the equivalent rent amount mentioned.
Additionally, if the rent exceeds ₹1,00,000 per annum, then a copy of the landlord's PAN card or a
signed declaration form from them is required. For rent paid to family members or parents, the same
proofs will be needed for HRA tax calculation.
LTA

Tax Exemption of Leave Travel Allowance

Income Tax exemption for Leave Travel Allowance is available u/s 10(5) from an amount received
by an employee from his employer for himself or his family. This exemption is only allowed if the
amount received is in relation to:-

1. Leave to any place within India

2. Any place in India after retirement from service or after the termination of his service

Given below is a list of expenses that is exempted under Leave Travel Allowance
• Travel by air- Economic air fare by the shortest route or amount spent will be exempted
depending on whichever is lesser.
• Travel by rail- A.C. first class fare by the shortest route or the amount spent on travel will be
exempted depending on whichever is lesser.
• Place of origin and destination place of journey connected by rail but journey performed by
other mode of transport
• Place of origin & destination not connected by rail(partly/fully) but connected by other
recognised Public transport system
• Place of origin & destination not connected by rail(partly/fully) and not connected by other
recognised Public transport system also

How many times can LTA exemption be claimed?

The taxpayer can claim exemption in respect of any 2 journeys in a block of 4 years. The Income
Tax Department has created block of 4 years each and in each block, the exemption can be claimed
twice.

The block of years during which exemption can be claimed twice are:-

Block No. LTA Block Years

1st Block 1986-89
2nd Block 1990-93
3rd Block 1994-97
4th Block 1998-01
5th Block 2002-05
6th Block 2006-09
 7th Block 2010-13
8th Block 2014-17
9th Block 2018-21
10th Block 2022-25
In case a taxpayer has not been able to claim both the exemption or has claimed only 1 exemption
in a particular block, he can carry forward the exemption of 1 journey to the next year.

Please note that he can carry forward the exemption of 1 journey only to the next year and not to the
next block. For eg: If a taxpayer has only claimed a single exemption in the 7 th Block i.e. 2010-13,
he can carry forward this exemption to the next year i.e. 2014 and can claim this exemption only in
the year 2014. The original 2 exemptions for 2014-17 would also continue to be there.

Other Relevant Points regarding LTA

1. In case the LTA is encashed without performing the journey, no LTA Exemption would be allowed

and the entire amount received by the employer would be taxable.

2. Family for this purpose means the spouse and 2 children of the employee. It also includes

parents, brothers & sisters of the employee who are wholly or mainly dependent upon him

3. The exemption can be availed for the journey undertaken while on leave during the tenure of

service or even after retirement/termination from service.

4. It is not necessary that the family members should perform the journey along with the employee

concerned.

5. LTA Exemption is only available only in respect of fare. Any other amount received from the

employer for the purpose of boarding and lodging or for any other purpose will not qualify for

deduction.

The Leave Travel Allowance (LTA)/Leave Travel Concession (LTC) amount computed above is
allowed as an exemption for income tax purposes. Your employer may pay you a different amount
depending on your position in the organisation.
2) Income from house properties

Section Nature of Deduction Who can

claim
23(1) first Taxes levied by local authority and borne by owner if paid in All Assesses
proviso relevant previous year
24(a) Standard deduction [30% of the annual value (gross annual value All Assesses
less municipal taxes)]
24(b) Interest on borrowed capital (Rs. 30,000/Rs. 2,00,000, subject to All Assesses
specified conditions)
25A(2) Standard deduction of 30 per cent of arrears of rent or unrealised All Assesses
rent received

3) Profits and gains of business or profession

A. Deductible items * Subj to Conditions

Section Nature of Deduction Who can claim

30 Rent, rates, taxes, repairs (excluding capital expenditure) All Assesses
and insurance for premises
31 Repairs (excluding capital expenditure) and insurance of All Assesses
machinery, plant and furniture
32 Depreciation shall be allowed at prescribed percentage All assessees engaged
on actual cost of an asset. 50% Dep if asset is put to in business or
use<180 days in the year of acquisition. profession

32AC Investment allowance shall be allowed at 15% of actual Company engaged in

cost of new asset acquired and installed by a company business of
engaged in business or manufacturing or production of manufacturing or
any article or thing * production of any article
or thing.
32AD Investment allowance shall be allowed at 15% of actual Taxpayers who acquire
cost of investment made in new plant and machinery new plant and
(other than ships, aircraft, vehicle, office appliances, machinery for purpose
second hand plant or machinery, etc.) if manufacturing of setting-up
unit is set-up in notified backward area * manufacturing unit in
notified backward areas
in the State of Andhra
Pradesh, Bihar,
Telangana or West
Bengal
33A Development Allowance * Assessee engaged in
business of growing and
manufacturing tea in
India
33AB Tea, Coffee, Rubber Development Assessees engaged in
business of growing and
manufacturing
tea/Coffee/Rubber in
India
33ABA Amount deposited in Special Account with SBI/Site Assessee carrying on
Restoration Account or 20 per cent of profits, whichever business of prospecting
is less* for, or extraction or
production of, petroleum
 or natural gas or both in
India
35(1) Revenue expenditure on scientific research pertaining to All Assessee
business of assessee is allowed as deduction
35(2AA) 100% of payment made to a National Laboratory or All Assessee
University or an Indian Institute of Technology or a
specified person is allowed as deduction
35(2AB) 100% of any expenditure incurred by a company on Company engaged in
scientific research (including capital expenditure other business of bio-
than on land and building) on in-house scientific research technology or in any
and development facilities as approved by the prescribed business of
authorities shall be allowed as deduction manufacturing or
production of eligible
articles or things

35AB Lump sum payment made in any previous year relevant All Assessee
to assessment year commencing on or before 1-4-1998,
for acquisition of technical know-how [consideration for
acquisition to be deducted in six equal annual
instalments (3 equal annual instalments where know-
how is developed in certain laboratories, universities and
institutions)]

35ABA Capital expenditure incurred and actually paid for All Assessee engaged
acquiring any right to use spectrum for in telecommunication
telecommunication services shall be allowed as services
deduction over the useful life of the spectrum in equal
instalments
35ABB Expenditure incurred for obtaining licence to operate All Asseesse
telecommunication services either before
commencement of such business or thereafter at any
time during any previous year
35AD Capital expenditure incurred, wholly and exclusively, for All assessees
the purpose of any specified business [setting up and Note: Such deduction is
operating a cold chain facility; setting up and operating a available to Indian
warehousing facility for storage of agricultural produce; company in case of
laying and operating a cross-country natural gas or crude following business,
or petroleum oil pipeline network for distribution, namely;- i) Business of
including storage facilities being an integral part of such laying and operating a
network; building and operating, anywhere in India, a cross-country natural
hotel of two-star or above category as classified by the gas or crude or
Central Government; building and operating, anywhere petroleum oil pipeline
in India, a hospital with at least one hundred beds for network. ii) Developing
patients; developing and building a notified housing or maintaining and
project under a scheme for slum redevelopment or operating or developing,
rehabilitation framed by the Government, maintaining and
operating a new
infrastructure facility.

35CCA Payment to associations/institutions for carrying out rural All Asseessee

development programmes
35CCC 100% of expenditure on notified agricultural extension All Asseessee
project
35CCD 100% of expenditure on notified skill development project A company
 35D Amortisation of certain preliminary expenses [deductible Indian companies and
in 5 equal annual instalments] resident non-corporate
assessees
35DD Amortisation of expenditure incurred after 31-3-1999 in All Asseessee
case of amalgamation or demerger in the hands of an
Indian company (one-fifth of such expenditure for 5
successive previous years)
35DDA Amortisation of expenditure incurred under voluntary All Asseessee
retirement scheme in 5 equal annual instalments starting
with the year when the expenditure is incurred
35E Expenditure on prospecting, etc., for certain minerals Indian companies and
[deductible in ten equal annual instalments] resident non-corporate
assessees engaged in
prospecting, etc., for
minerals
36 Insurance, Interest, Salary,Contribution to PF, baddebts, All Asseessee
Exp incurred wholly & exclusively for doing business.
37 Any other expenditure [not being personal or capital All Asseessee
expenditure and expenditure mentioned in sections
30 to 36] laid out wholly and exclusively for purposes of
business or profession.

B. Non-deductible items

37(2B) Advertisement in souvenir, brochure, tract, pamphlet, etc., of All Asseessee

political party
40(a)(i) Interest, royalty, fees for technical services or other chargeable sum All Asseessee
payable outside India, or in India to a non-resident or foreign
company, on which tax has not been deducted or after deduction,
has not been paid on or before the due date of filing of return
under section 139(1).
However, where in respect of any such sum, tax has been
deducted in any subsequent year, or has been deducted during the
previous year but paid after the due date specified in sub-section
(1) of section 139, such sum shall be allowed as a deduction in
computing the income of the previous year in which such tax has
been paid.
40(a)(ii) Rate or tax levied on the profits or gains of any business or All Asseessee
profession
40(a)(iii) Salaries payable outside India, or in India to a non-resident, on All assessees
which tax has not been paid/deducted at source as employers
40b Interest, salary, bonus, commission or remuneration paid to Partnership
partners (subject to certain conditions and limits) Firms
40A(2) Expenditure involving payment to All Asseessee
relative/director/partner/substantially interested person, etc., which,
in the opinion of the Assessing Officer, is excessive or
unreasonable
40A(3) 100% of payments exceeding Rs. 10,000 (Rs. 35,000 in case of All Asseessee
payment made for plying, hiring or leasing goods carriages) made
to a person in a day otherwise than by account payee cheque/bank
draft or use of electronic clearing system through a bank account or
through such other electric mode as may be prescribed.
40A(7) Any provision for payment of gratuity to employees, other than a All Asseessee
provision made for purposes of contribution to approved gratuity as employers
 fund or for payment of gratuity that has become payable during the
year
40A(9) Any sum paid for setting up or formation of, or as contribution to, All Asseessee
any fund, trust, company, AOP, BOI, Society or other institution, as employers
other than recognised provident fund/approved superannuation
fund/pension scheme referred to in section 80CCD/approved
gratuity fund
40A(13) No deduction shall be allowed in respect of marked to market loss All Assessee
or other unexpected loss except as allowable under section
36(1)(xviii)

C. Other-deductible items

42(1) In case of mineral oil concerns allowances specified in Assessees engaged in

agreement entered into by Central Government with prospecting for or extraction
any person or production of mineral oils
43(B) Certain expenses allowed on actual payment.. All Assessee
unless actual payment is made in that year or before the due date of
furnishing of return of income for that year.

Any sum which is actually paid, relating to (i) tax/duty/cess/fee levied

under any law, (ii) contribution to provident fund/superannuation
fund/gratuity fund/any fund for employees’ welfare, (iii)
bonus/commission to employees, (iv) interest on loan/borrowing from
any public financial institution.(vi) sum payable by employers by way of
leave encashment to employees. (viii) sum payable to the Indian
Railways for the use of railway assets.

4) Capital Gains

48(i) Expenditure incurred wholly and exclusively in connection with transfer All
of capital asset Asseessee
48(ii) Cost of acquisition of capital asset and of any improvement thereto All
(indexed cost of acquisition and indexed cost of improvement, in case Asseessee
of long-term capital assets)
54 Long-term capital gains on sale of residential house and land Individual/
appurtenant thereto invested in purchase/construction of another HUF
residential house
54B Capital gains on transfer of land used for agricultural purposes, by an Individual/
individual or his parents or a HUF, invested in other land for HUF
agricultural purposes
54D Capital gains on compulsory acquisition of land or building forming part Any
of an industrial undertaking invested in purchase/construction of other assessee
land/building for shifting/re-establishing said undertaking or setting up
new industrial undertaking
54EE Long-term capital gain invested in long-term specified assets being Any
units of such fund as may be notified by Central Government to assessee
finance start-ups
54F Net consideration on transfer of long-term capital asset other than Individual/
residential house invested in residential house * HUF
With effect from Assessment Year 2020-21, a taxpayer has an option
to make investment in two residential house properties in India. This
option can be exercised by the taxpayer only once in his lifetime
provided the amount of long-term capital gain does not exceed Rs. 2
crores.
 54G Capital gain on transfer of machinery, plant, land or building used for Any
the purposes of the business of an industrial undertaking situate in an assessee
urban area (transfer being effected for shifting the undertaking to a
non-urban area) invested in new machinery, plant, building or land, in
the said non-urban area, expenses on shifting, etc.
54GA Exemption of capital gains on transfer of assets in cases of shifting of All
industrial undertaking from urban area to any Special Economic Zone Asseessee

54GB Exemption in respect of capital gain arising from the transfer of a long- Individual/
term capital asset, being a residential property (a house or a plot of HUF
land), owned by the eligible assessee, and such assessee before the
due date of furnishing of return of income under sub-section (1)
of section 139 utilises the net consideration for subscription in the
equity shares of an eligible company and such company has, within
one year from the date of subscription in equity shares by the
assessee, utilised this amount for purchase of specified new asset

4) Income from other sources : A Deductible items

57(i) Any reasonable sum paid by way of commission or remuneration for All
purpose of realising dividend. Asseessee
Any reasonable sum paid by way of commission or remuneration for
the purpose of realising interest on securities
57(ia) Contributions to any provident fund or superannuation fund or any fund All
set up under Employees’ State Insurance Act, 1948 or any other fund Asseessee
for welfare of employees, if the same are credited to employees’
accounts in relevant funds before due date
57(ii) Repairs, insurance, and depreciation of Assessees engaged in business of
building, plant and machinery and furniture letting out of machinery, plant and
furniture and buildings on hire
57(iia) In case of family pension, 331/3 per cent of Assessees in receipt of family
such pension or Rs. 15,000, whichever is pension on death of employee being
less member of assessee’s family
57(iii) Any other expenditure (not being capital expenditure) expended wholly All
and exclusively for earning such income Asseessee
57(iv) In case of interest received on compensation or on enhanced All
compensation referred to in section 145A(2), a deduction of 50 per Assessee
cent of such income

B. Non-deductible items

58(1)(a)(i) Personal Expenses All Asseessee

58(1)(a)(ii) Interest chargeable to tax which is payable outside India on All Assessee
which tax has not been paid or deducted at source
58(1)(a)(iii) Salaries’ payable outside India on which no tax is paid or All Assessee
deducted at source
58(1A) Disallowance due to TDS default (Covered by section All Assessee
40(a)(ia) and 40(a)(iia))
58(2) Expenditure of the nature specified in section 40A All Assessee
58(4) Expenditure in connection with winnings from lotteries, All Assessee
crossword puzzles, races, games, gambling or betting
Chapter VI A Deductions for certain payments
Section 80C- Applicable to Individual/ HUF
■ Life insurance premium for policy : – in case of individual, on life of assessee, assessee’s
spouse and any child of assessee – in case of HUF, on life of any member of the HUF
■ Sum paid under a contract for a deferred annuity : – in case of individual, on life of the
individual, individual’s spouse and any child of the individual (however, contract should not
contain an option to receive cash payment in lieu of annuity) – in case of HUF, on life of any
member of the HUF
■ Sum deducted from salary payable to Government servant for securing deferred annuity or
making provision for his wife/children [qualifying amount limited to 20% of salary]
■ Contributions by an individual made under Employees’ Provident Fund Scheme
■ Contribution to Public Provident Fund Account in the name of: – in case of individual, such
individual or his spouse or any child of such individual – in case of HUF, any member of HUF

■ Contribution by an employee to a recognised provident fund

■ Contribution by an employee to an approved superannuation fund
■ Subscription to any notified security or notified deposit scheme of the Central Government. For
this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No.
9/2015, dated 21.01.2015. Any sum deposited during the year in Sukanya Samriddhi Account by
an individual would be eligible for deduction.
■ Amount can be deposited by an individual or in the name of girl child of an individual or in the
name of the girl child for whom such an individual is the legal guardian.
■ Subscription to notified savings certificates [National Savings Certificates (VIII Issue)]
■ Contribution for participation in unit-linked Insurance Plan of UTI : – in case of an individual, in
the name of the individual, his spouse or any child of such individual – in case of a HUF, in the
name of any member thereof
■ Contribution to notified unit-linked insurance plan of LIC Mutual Fund [Dhanaraksha 1989] – in
the case of an individual, in the name of the individual, his spouse or any child of such individual
– in the case of a HUF, in the name of any member thereof
■ Subscription to notified deposit scheme or notified pension fund set up by National Housing
Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit
Scheme, 2008]

■ Tuition fees (excluding development fees, donations, etc.) paid by an individual to any
university, college, school or other educational institution situated in India, for full time education
of any 2 of his/her children
■ Certain payments for purchase/construction of residential house property
■ Subscription to notified schemes of (a) public sector companies engaged in providing long-
term finance for purchase/construction of houses in India for residential purposes/(b) authority
constituted under any law for satisfying need for housing accommodation or for planning,
development or improvement of cities, towns and villages, or for both
■ Sum paid towards notified annuity plan of LIC (New Jeevan Dhara/New Jeevan Dhara-I/New
Jeevan Akshay/New Jeevan Akshay-I/New Jeevan Akshay-II/Jeewan Akshay-III plan of LIC) or
other insurer
■ Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked
Saving Scheme, 2005)
■ Contribution by an individual to any pension fund set up by any mutual fund which is referred
to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)

■ Subscription to equity shares or debentures forming part of any approved eligible issue of
capital made by a public company or public financial institutions
■ Subscription to any units of any approved mutual fund referred to in section 10(23D), provided
amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to
above.
■ Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is
in accordance with a scheme11 framed and notified.

■ Subscription to notified bonds issued by the NABARD.

■ Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to
certain conditions)
■ 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to
certain conditions)

■ Contribution to specified account of the pension scheme referred to in 80CCD, in case of

central Government employee.

Notes:

1. Deduction is limited to whole of the amount paid or deposited subject to a maximum of Rs.
1,50,000. This maximum limit of Rs. 1,50,000 is the aggregate of the deduction that may be
claimed under sections 80C, 80CCC and 80CCD.
2. The sums paid or deposited need not be out of income chargeable to tax of the previous year.
Amount may be paid or deposited any time during the previous year, but the deduction shall be
available on so much of the aggregate of sums as do not exceed the total income chargeable to
tax during the previous year.
3. Life Insurance premium is part of gross qualifying amount for the purpose of deduction under
section 80C. Payment of premium which is in excess of 10 per cent (if policy is issued on or after
1-4-2012, 15% in case of insurance on life of person with disability referred to in section 80U or
suffering from disease or ailment specified in section 80DDB/rule 11DD) of actual capital sum
assured shall not be included in gross qualifying amount. The value of any premiums agreed to
be returned or of any benefit by way of bonus or otherwise, over and above the sum actually
assured, which is to be or may be received under the policy by any person, shall not be taken
into account for the purpose of calculating the actual capital sum assured. The limit of 10 per
cent will be applicable only in the case of policies issued on or after 1-4-2012. In respect of
policies issued prior to 1-4-2012, the old limit of 20 per cent of actual sum assured will be
applicable.

With effect from 1-4-2013, ‘actual capital sum assured’ in relation to a life insurance policy shall
mean the minimum amount assured under the policy on happening of the insured event at any
time during the term of the policy, not taking into account— (i) the value of any premium agreed
to be returned; or (ii) any benefit by way of bonus or otherwise over and above the sum actually
assured, which is to be or may be received under the policy by any person. 4. Where, in any
previous year, an assessee— (i) terminates his contract of insurance, by notice to that effect or
where the contract ceases to be in force by reason of failure to pay any premium, by not reviving
contract of insurance,— (a) in case of any single premium policy, within two years after the date
of commencement of insurance; or (b) in any other case, before premiums have been paid for
two years; or (ii) terminates his participation in any unit-linked insurance plan (ULIP), by notice to
that effect or where he ceases to participate by reason of failure to pay any contribution, by not
reviving his participation, before contributions in respect of such participation have been paid for
five years; or (iii) transfers the house property before the expiry of five years from the end of the
financial year in which possession of such property is obtained by him, or receives back, whether
by way of refund or otherwise, any sum specified in that clause, then,— (a) no deduction shall be
allowed to the assessee with reference to any of such sums, paid in such previous year; and (b)
the aggregate amount of the deductions of income so allowed in respect of the previous year or
years preceding such previous year, shall be deemed to be the income of the assessee of such
previous year and shall be liable to tax in the assessment year relevant to such previous year. If
any equity shares or debentures, with reference to the cost of which a deduction is allowed, are
sold or otherwise transferred by the assessee to any person at any time within a period of three
years from the date of their acquisition, the aggregate amount of the deductions of income so
allowed in respect of such equity shares or debentures in the previous year or years preceding
the previous year in which such sale or transfer has taken place shall be deemed to be the
income of the assessee of such previous year and shall be liable to tax in the assessment year
relevant to such previous year. A person shall be treated as having acquired any shares or
debentures on the date on which his name is entered in relation to those shares or debentures in
the register of members or of debenture-holders, as the case may be, of the public company.

Sectio Nature of Deduction Who can

n claim
80CCC Contributions to certain pension funds of LIC or any other insurer (up Individual
to Rs. 1,50,000) *
80CCD Contribution to pension scheme notified by Central Government up to All Assesses
10% of salary
Contribution made by employer shall also be allowed as deduction
under 80CCD(2) while computing total income of the employee.
However, amount of deduction could not exceed 14% of salary
where contribution is made by central government and 10% of salary,
where contribution is made by any other employee.
80D Amount paid (in any mode other than cash) by an individual or HUF Individual/
to LIC or other insurer to effect or keep in force an insurance on the HUF
health of specified person. An individual can also make payment to
the Central Government health scheme and/or on account of
preventive health check-up.
Deduction for preventive health check-up shall not exceed in
aggregate Rs. 5000.
80DD Deduction of Rs. 75,000 (Rs. 1,25,000 in case of severe disability) to Resident
a resident individual/HUF where (a) any expenditure has been Individual/
incurred for the medical treatment (including nursing), training and HUF
rehabilitation of a dependant, being a person with disability [as
defined under Persons with Disabilities
80DDB Expenses actually paid for medical treatment of specified diseases Res.Individual
and ailments / HUF
80E Amount paid out of income chargeable to tax by way of payment of Individual
interest on loan taken from financial institution/approved charitable
institution for pursuing higher education
80EE Interest payable on loan taken by an individual from any financial Individual
institution for the purpose of acquisition of a residential house
property subject to certain condition. (Maximum deduction 50,000)
 80EEA Interest payable on loan taken by an individual, who is not eligible to Individual
claim deduction under 80EE, from any financial institution for the
purpose of acquisition of a residential house property subject to
certain condition. (Maximum deduction 1,50,000)
80EEB Interest payable on loan taken by an individual from any financial Individual
institution for the purpose of purchase of an electric vehicle subject to
certain condition. (Maximum deduction 1,50,000)
80G Donation made to certain trusts, Charitable Instituitions All Assessee
80GG Rent paid in excess of 10% of total income for Individuals not
furnished/unfurnished resi-dential accommodation (maximum receiving any house
Rs. 5,000 p.m. or 25% of total income, whichever is less) rent allowance
80GGA Certain donations for scientific, social or statistical research All assessees not
or rural development programme or for carrying out an having any income
eligible project or scheme or National Urban Poverty chargeable under the
Eradication Fund * head ‘PGBP’
80GGB Sum contributed to any political party/electoral trust Indian Company

80GGC Sum contributed to any political party/electoral trust All Assessee

Chapter VI A Deductions for certain Incomes

80 IA Profits and gains from industrial undertakings engaged in All Assessee

infrastructure facility, telecommunication services, industrial park,
development of Special Economic Zone, power undertakings, etc.
NA for entities started after 01/04/2017
80 IAB Profits and gains derived by undertaking/enterprise from business Assessee being
of developing a Special Economic Zone notified on or after 1-4- Developer of
2005 (subject to certain conditions and limits) SEZ
80 IAC Profit and gains derived by an eligible start-up from specified Company and
business on or after 1-4-2017 LLP
80 IB Profits and gains from industrial undertakings, cold All assessees. NA for
storage plant, hotel, scientific research & development, entities started after
mineral oil concern, housing projects, cold chain facility, 01/04/2017
multiplex theatres, convention centres, ships, etc.
80 IBA Profits and gains derived by assessee from the business of All Asseessee
developing and building affordable housing projects.
80 IC Profits and gains derived by an undertaking or an enterprise in All Asseessee
special category States (Himachal Pradesh, Uttaranchal, Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and
Tripura)
80 ID Profits and gains from business of hotels and convention centres in All Asseessee
specified areas
80 IE Deduction in respect of certain undertakings in North Eastern All Asseessee
States.
80 JJA Entire income from business of collecting and processing or treating All Asseessee
of bio-degradable waste for generating power, or producing bio-
fertilizers, bio-pesticides or other biological agents or for producing
bio-gas, making pellets or briquettes for fuel or organic manure (for
5 consecutive AY)
80JJAA Deduction of 30% of additional employee cost Assessee to whom section
in respect of employment of new employees * 44AB applies
80 LA Certain incomes of Scheduled banks/banks Scheduled Banks/banks
incorporated outside India having Offshore incorporated outside India/Units of
Banking Units in a Special Economic
 Zone/Units of International Financial Services International Financial Services
Centre Centre
80 M Inter-corporate dividend shall be allowed to be Domestic Company
reduced from total income of company
receiving the dividend if same is further
distributed to shareholders one month prior to
the due date of filing of return.
80 P Specified incomes Co operative Societies
80QQ Royalty income of author of certain specified Resident Individual Author
B category of books (up to Rs. 3,00,000) *
80 Royalty on patents up to Rs. 300000 in case Resident Individual
RRB of a resident individual who is a patentee and
is in receipt of income by way of royalty in
respect of patent registered on or after 1-4-03
80TTA Interest on deposits in savings bank accounts Individuals/HUFs (except Senior
(up to Rs. 10,000 per year) Citizen)
80 TTB Interest on deposit in saving account or fixed Senior Citizen
deposit (upto Rs. 50,000 per year)
80 U Deduction of Rs. 75,000 to a resident Resident Individual
individual who, at any time during the previous
year, is certified by the medical authority to be
a person with disability [as defined under
Persons with Disabilities

Rebates

87A Tax rebate in case of individual resident in Resident Individual

India, whose total income does not exceed
Rs. 5,00,000 quantum of rebate shall be an
amount equal to 100% of such income-tax or
an amount of Rs. 12,500, whichever is less.
FORM 16

Form 16 is a certificate (issued under section 203 of the Income Tax deducted at source (TDS) by the
employer and submitted by them to the Income Tax Department (IT Department). It details how much
tax the employer deducted and when it was submitted to the IT department.
How many parts does Form 16 have?
It has two parts – Part A and Part B. Part A has information of the employer & employee, like name &
address, PAN and TAN details, the period of employment, details of TDS deducted & deposited with
the government. Part B includes details of salary paid, other incomes, deductions allowed, tax payable
etc.

What is the salary limit for Form 16?

The employer or the entity that deducts your tax Deducted at Source (TDS) is legally bound to issue
Form 16 by May 31. Employees with an income less than Rs. 2.5 lakh for the financial year are
exempted from paying the income tax. Hence, if no tax has been deducted, Form 16 will not be issued
to them

Can I get Form 16 without TDS?

a. If there is no TDS, is the employer required to issue a Form 16? TDS certificate in Form 16 is
required to be issued to the employee only when TDS has been deducted. In case no TDS has been
deducted by the employer he may not issue you a Form 16.

How do I manually prepare for Form 16?

How to generate Form 16
1. Login into TRACES website (www.tdscpc.gov.in) by entering a User ID, Password, TAN of the
deductor and the verification code.
2. Check the status of your TDS return 24Q4 for which you want to generate Form 16-A. ...
3. Click on the Form 16 option in Download's Tab.

The Form 16 is only for salary income the Form 16A is applicable for TDS on income sources apart
from salary.
Form 16A will be issued by when TDS is deducted for fixed deposits, for TDS deducted on insurance
commissions, on rent receipts, or any other income you may receive on which TDS is deductable.

How to Get the Form 16A?

This document is generally issued by your deductor, this is issued for the present financial year and
reflects the total earnings and total income taxes deducted for that financial year from other sources
income apart from your salary. To get the Form 16A, you could download the Form from the online
website of the Income Tax Department. The form is available on their website in a PDF format and a
fillable form as well.
When is Form 16A Required?
When you file your Income Tax returns for a year with the Income Tax department, and you have
Income from other sources apart from your salary that have the tax deducted at source (TDS), the Form
16A is required. Most banks and financial institutions use this document as a part of their verification
process when you apply for a loan or any kind, be it a housing loan, consumer loan, vehicle loan,
personal loan etc.

Form 16A Format

The components and particulars that make up the Form 16A are:
1. Name and PAN and TAN of the deductor - this can be the bank from where your TDS is
deducted at source or insurance companies from where TDS is applicable, or any other
person/place you receive income from and on which TDS is applicable.
2. Name and PAN of the deductee - These details will be of the individual who is receiving
the TDS benefits.
3. Date of payment, amount of the payment, and the nature of payment.
4. The receipt number of the TDS payments
All these details need to be mentioned in the Form 16A are required to be mentioned when filing
Income Tax returns. The Form 16A is a TDS Certificate carrying all amounts of TDS nature being
actually deposited with the Income Tax Department. When payments from non-Salary incomes are
made, the deductor like - TDS Professional fees, Rent, Bank Interest payments to the IT Department
they issue a "TDS Certificate"
How to Fill in the Form 16A?
While filling up the details in the Form 16A these points need to be followed:
1. Enter the Deductor name and address, while filling in the address ensure to fill in their PIN
number (Postal Index Number) as well.
2. Fill in the TAN of the Deductor (this is an alphanumeric number with the first 4 digits in
alphabets and 5 in digits and 1 in alphabets).
3. You will also need to fill in the PAN of the Deductor this also is an alphanumeric number with
the first 4 digits in alphabets and 5 in digits and 1 in alphabets).
4. Enter the information of 4 acknowledgement numbers.
5. The nature of payment is next, whether the payment is of contractual type, professional, etc.
6. For all payments mentioned there are corresponding codes, enter those.
7. Name of the deductee who’s TDS has been deducted.
8. In the column PAN no. of the deductee, mention the PAN number of the deductee who’s
TDS has been deducted.
9. Enter the period in the Form, this will be for the financial year. As an example for this
financial year the period will be: 1st April 2021 - 31st March 2022.
10. After filling in all these details, you’ll now need to enter the TDS deduction details.
11. The TDS amount mentioned in words.
The TDS Deductions Details will reflect the below:
• Slot No or S. No.
• Amount credited/ paid
• Date of credit or payment
• Tax deducted at source
• Surcharges
 • Education Cess
• Total tax deposited to the Income Tax Department.
• Cheque number or Demand draft number if any
• BSR code of the bank branch
• Date on which the tax was deposited in DD/MM/YY format
• Challan identification number/ transfer voucher
Five Difference Between Form 16 and Form 16A
Criteria Form 16 Form 16A
Explanation It is a certificate under Section 203
It is a certificate under Section 203
Income Tax for tax deducted at source
Income Tax for tax deduction at
from income chargeable under the head
source for income other than salary.
of ‘salaries’.
ELIGIBILITY Anyone who is either self-employed
Anyone who earns a steady and regular
or a professional with document
income in the form of salary.
qualification degree.
Issued against rent, commission,
APPLICABLE professional charges, building, plant,
Income from Salaries.
TOWARDS machine hired, commission agents,
etc.
Proof of income, details of tax paid by
Name, TAN, PAN of Deductor; Name
employer on behalf of employee, PAN
COMPRISES and PAN of all Deductee. Amount
and TAN of employer, PAN of employee,
OF paid and nature of payment, receipt
acknowledgement of amount of tax paid,
number of TDS payment.
education cess and surcharges.
ONLINE
Can be verified online Can be verified online
VERIFICATION

1)What can be claimed under 80D?

As per section 80D, a taxpayer can deduct tax on premium paid towards medical
insurance for self, spouse, parents and dependent children. Individuals and
HUF can claim this deduction. The limit of the deduction varies with age. A deduction
of Rs 25,000 is available for self, spouse, and dependent children.

2) What is the maximum limit for 80D 2021 22?

The maximum limit u/s 80D is Rs. 25000 (in case senior citizen Rs. 50,000)and in
case both assessee and parents are senior citizens, then the amount can be claimed
upto INR 1,00,000.

3) Can we claim 80D and 80DD together?

This deduction is fixed irrespective of the actual expenses. However,
remember both these deductions cannot be claimed simultaneously. Section
80DD: The deduction can be claimed for the expenditure incurred on the medical
treatment (including nursing), training and rehabilitation of a person with disability.

4) Who is eligible for 80DD?

Eligibility for Claiming Section 80DD Deductions

Individuals who have a disabled dependent including parents, spouse, siblings

or children, or an HUF with a disabled family member can claim deductions
under Section 80DD. The deductions cannot be claimed by non-resident Indians
(NRI).

5) What is covered under 80DD?

The disabilities which qualify for tax benefits under Section 80DD of the Income Tax
Act include blindness, loco motor disability, low vision, mental illness, mental
retardation, leprosy-cured, hearing impairment, cerebral palsy and autism.

Section 80GG – House Rent Paid

Deduction for House Rent Paid Where HRA is not
Received
a. Section 80GG deduction is available for rent paid when HRA is not received. The
taxpayer, spouse or minor child should not own residential accommodation at the
place of employment
b. The taxpayer should not have self-occupied residential property in any other place
c. The taxpayer must be living on rent and paying rent
d. The deduction is available to all individuals

Deduction available is the least of the following:

a. Rent paid minus 10% of adjusted total income
b. Rs 5,000/- per month
c. 25% of adjusted total income*
*Adjusted Gross Total Income is arrived at after adjusting the Gross Total Income for
certain deductions, exempt income, long-term capital gains and income related to
non-residents and foreign companies.
An online e-filing software like that of ClearTax can be extremely easy as the limits
are auto-calculated. So, you do not have to worry about making complex
calculations.
From FY 2016-17 available deduction has been raised to Rs 5,000 a month from Rs
2,000 per month.
Section 80E – Interest on Education Loan
Deduction for Interest on Education Loan for Higher
Studies
A deduction is allowed to an individual for interest on loans taken for pursuing higher
education. This loan may have been taken for the taxpayer, spouse or children or for
a student for whom the taxpayer is a legal guardian.
80E deduction is available for a maximum of 8 years (beginning the year in which the
interest starts getting repaid) or till the entire interest is repaid, whichever is earlier.
There is no restriction on the amount that can be claimed.

Section 80 TTA – Interest on Savings

Account
Deduction from Gross Total Income for Interest on
Savings Bank Account
If you are an individual or an HUF, you may claim a deduction of maximum Rs
10,000 against interest income from your savings account with a bank, co-operative
society, or post office. Do include the interest from savings bank account in other
income.
Section 80TTA deduction is not available on interest income from fixed deposits,
recurring deposits, or interest income from corporate bonds.
Depreciation.
32. (1) In respect of depreciation of—
(i) buildings, machinery, plant or furniture, being tangible assets;
(ii) know-how, patents, copyrights, trade marks, licences, franchises or any other business
or commercial rights of similar nature, being intangible assets acquired on or after the
1st day of April, 1998,
owned, wholly or partly, by the assessee and used for the purposes of the business or
profession, the following deductions shall be allowed—
(i) in the case of assets of an undertaking engaged in generation or generation and
distribution of power, such percentage on the actual cost thereof to the assessee as may
be prescribed10;
(ii) in the case of any block of assets, such percentage on the written down value thereof
as may be prescribed11:
Provided that no deduction shall be allowed under this clause in respect of—
(a) any motor car manufactured outside India, where such motor car is acquired by
the assessee after the 28th day of February, 1975 but before the 1st day of April,
2001, unless it is used—
(i) in a business of running it on hire for tourists ; or
(ii) outside India in his business or profession in another country ; and
(b) any machinery or plant if the actual cost thereof is allowed as a deduction in one
or more years under an agreement entered into by the Central Government
under section 42 :
Provided further that where an asset referred to in clause (i) or clause (ii) or clause
(iia) 12[or the first proviso to clause (iia)], as the case may be, is acquired by the
assessee during the previous year and is put to use for the purposes of business or
profession for a period of less than one hundred and eighty days in that previous year,
the deduction under this sub-section in respect of such asset shall be restricted to fifty
per cent of the amount calculated at the percentage prescribed for an asset under clause
(i) or clause (ii) or clause (iia), as the case may be :
Following third proviso shall be inserted after the second proviso to clause (ii) of
sub-section (1) of section 32 by the Finance Act, 2015, w.e.f. 1-4-2016 :
Provided also that where an asset referred to in clause (iia) or the first proviso to
clause (iia), as the case may be, is acquired by the assessee during the previous year
and is put to use for the purposes of business for a period of less than one hundred and
eighty days in that previous year, and the deduction under this sub-section in respect
of such asset is restricted to fifty per cent of the amount calculated at the percentage
prescribed for an asset under clause (iia) for that previous year, then, the deduction
for the balance fifty per cent of the amount calculated at the percentage prescribed for
such asset under clause (iia) shall be allowed under this sub-section in the immediately
succeeding previous year in respect of such asset:
Provided also that where an asset being commercial vehicle is acquired by the
assessee on or after the 1st day of October, 1998 but before the 1st day of April, 1999
and is put to use before the 1st day of April, 1999 for the purposes of business or
profession, the deduction in respect of such asset shall be allowed on such percentage
on the written down value thereof as may be prescribed.
Explanation.—For the purposes of this proviso,—
(a) the expression "commercial vehicle" means "heavy goods vehicle", "heavy
passenger motor vehicle", "light motor vehicle", "medium goods vehicle" and
"medium passenger motor vehicle" but does not include "maxi-cab", "motor-cab",
"tractor" and "road-roller";
(b) the expressions "heavy goods vehicle", "heavy passenger motor vehicle", "light
motor vehicle", "medium goods vehicle", "medium passenger motor vehicle",
"maxi-cab", "motor-cab", "tractor" and "road roller" shall have the meanings
respectively as assigned to them in section 2 of the Motor Vehicles Act, 1988 (59
of 1988):
Provided also that, in respect of the previous year relevant to the assessment year
commencing on the 1st day of April, 1991, the deduction in relation to any block of
assets under this clause shall, in the case of a company, be restricted to seventy-five
per cent of the amount calculated at the percentage, on the written down value of such
assets, prescribed under this Act immediately before the commencement of the
Taxation Laws (Amendment) Act, 1991:
Provided also that the aggregate deduction, in respect of depreciation of buildings,
machinery, plant or furniture, being tangible assets or know-how, patents, copyrights,
trademarks, licences, franchises or any other business or commercial rights of similar
nature, being intangible assets allowable to the predecessor and the successor in the
case of succession referred to in clause (xiii), clause (xiiib) and clause (xiv) of section
47 or section 170 or to the amalgamating company and the amalgamated company in
the case of amalgamation, or to the demerged company and the resulting company in
the case of demerger, as the case may be, shall not exceed in any previous year the
deduction calculated at the prescribed rates as if the succession or the amalgamation
or the demerger, as the case may be, had not taken place, and such deduction shall be
apportioned between the predecessor and the successor, or the amalgamating company
and the amalgamated company, or the demerged company and the resulting company,
as the case may be, in the ratio of the number of days for which the assets were used
by them.
Explanation 1.—Where the business or profession of the assessee is carried on in a
building not owned by him but in respect of which the assessee holds a lease or other
right of occupancy and any capital expenditure is incurred by the assessee for the
purposes of the business or profession on the construction of any structure or doing of
any work in or in relation to, and by way of renovation or extension of, or improvement
to, the building, then, the provisions of this clause shall apply as if the said structure
or work is a building owned by the assessee.
Explanation 2.—For the purposes of this sub-section "written down value of the block
of assets" shall have the same meaning as in clause* (c) of sub-section† (6) of section
43.
Explanation 3.—For the purposes of this sub-section, the expression "assets" shall
mean—
(a) tangible assets, being buildings, machinery, plant or furniture;
(b) intangible assets, being know-how, patents, copyrights, trade marks, licences,
franchises or any other business or commercial rights of similar nature.
 Explanation 4.—For the purposes of this sub-section, the expression "know-how"
means any industrial information or technique likely to assist in the manufacture or
processing of goods or in the working of a mine, oil-well or other sources of mineral
deposits (including searching for discovery or testing of deposits for the winning of
access thereto).
Explanation 5.—For the removal of doubts, it is hereby declared that the provisions of
this sub-section shall apply whether or not the assessee has claimed the deduction in
respect of depreciation in computing his total income;
(iia) in the case of any new machinery or plant (other than ships and aircraft), which
has been acquired and installed after the 31st day of March, 2005, by an assessee
engaged in the business of manufacture or production of any article or thing or in
the business of generation or generation and distribution of power, a further sum
equal to twenty per cent of the actual cost of such machinery or plant shall be
allowed as deduction under clause (ii) :
Following proviso shall be inserted before the existing proviso to clause (iia) of
sub-section (1) of section 32 by the Finance Act, 2015, w.e.f. 1-4-2016 :
Provided that where an assessee, sets up an undertaking or enterprise for
manufacture or production of any article or thing, on or after the 1st day of April, 2015
in any backward area notified by the Central Government in this behalf, in the State
of Andhra Pradesh or in the State of Bihar or in the State of Telangana or in the State
of West Bengal, and acquires and installs any new machinery or plant (other than
ships and aircraft) for the purposes of the said undertaking or enterprise during the
period beginning on the 1st day of April, 2015 and ending before the 1st day of April,
2020 in the said backward area, then, the provisions of clause (iia) shall have effect,
as if for the words "twenty per cent", the words "thirty-five per cent" had been
substituted :
Provided 13[further] that no deduction shall be allowed in respect of—
(A) any machinery or plant which, before its installation by the assessee, was used
either within or outside India by any other person; or
(B) any machinery or plant installed in any office premises or any residential
accommodation, including accommodation in the nature of a guest-house; or
(C) any office appliances or road transport vehicles; or
(D) any machinery or plant, the whole of the actual cost of which is allowed as a
deduction (whether by way of depreciation or otherwise) in computing the income
chargeable under the head "Profits and gains of business or profession" of any one
previous year;
(iii) in the case of any building, machinery, plant or furniture in respect of which
depreciation is claimed and allowed under clause (i) and which is sold, discarded,
demolished or destroyed in the previous year (other than the previous year in which it
is first brought into use), the amount by which the moneys payable in respect of such
building, machinery, plant or furniture, together with the amount of scrap value, if any,
fall short of the written down value thereof :
Provided that such deficiency is actually written off in the books of the assessee.
Explanation.—For the purposes of this clause,—
(1) "moneys payable" in respect of any building, machinery, plant or furniture
includes—
 (a) any insurance, salvage or compensation moneys payable in respect thereof;
(b) where the building, machinery, plant or furniture is sold, the price for which
it is sold,
so, however, that where the actual cost of a motor car is, in accordance with the
proviso to clause (1) of section 43, taken to be twenty-five thousand rupees, the
moneys payable in respect of such motor car shall be taken to be a sum which
bears to the amount for which the motor car is sold or, as the case may be, the
amount of any insurance, salvage or compensation moneys payable in respect
thereof (including the amount of scrap value, if any) the same proportion as the
amount of twenty-five thousand rupees bears to the actual cost of the motor car to
the assessee as it would have been computed before applying the said proviso;
(2) "sold" includes a transfer by way of exchange or a compulsory acquisition under
any law for the time being in force but does not include a transfer, in a scheme of
amalgamation, of any asset by the amalgamating company to the amalgamated
company where the amalgamated company is an Indian company or in a scheme
of amalgamation of a banking company, as referred to in clause (c) of section 5
of the Banking Regulation Act, 1949 (10 of 1949) with a banking institution as
referred to in sub-section (15) of section 45 of the said Act, sanctioned and
brought into force by the Central Government under sub-section (7) of section 45
of that Act, of any asset by the banking company to the banking institution.
(iv) [***]
(v) [***]
(vi) [***]
(1A) [***]
(2) Where, in the assessment of the assessee, full effect cannot be given to any allowance under
sub-section (1) in any previous year, owing to there being no profits or gains chargeable for
that previous year, or owing to the profits or gains chargeable being less than the allowance,
then, subject to the provisions of sub-section (2) of section 72 and sub-section (3) of section
73, the allowance or the part of the allowance to which effect has not been given, as the case
may be, shall be added to the amount of the allowance for depreciation for the following
previous year and deemed to be part of that allowance, or if there is no such allowance for that
previous year, be deemed to be the allowance for that previous year, and so on for the
succeeding previous years.

****************************************************************
 80G. (1) In computing the total income of an assessee, there shall be deducted, in
accordance with and subject to the provisions of this section,—

(i) in a case where the aggregate of the sums specified in sub-section (2) includes
any sum or sums of the nature specified in sub-clause (i) or in sub-clause (iiia) or
in sub-clause (iiiaa) or in sub-clause 45[(iiiab) or in sub-clause (iiib)] or in sub-
clause (iiie) or in sub-clause (iiif) or in sub-clause (iiig) or in sub-clause (iiiga) or
sub-clause (iiih) or sub-clause (iiiha) or sub-clause (iiihb) or sub-clause (iiihc) or
sub-clause (iiihd) or sub-clause (iiihe) or sub-clause (iiihf) or sub-clause (iiihg) or
sub-clause (iiihh) or sub-clause (iiihi) or sub-clause (iiihj) or 46[sub-clause (iiihk)
or sub-clause (iiihl) or] 47[sub-clause (iiihm) or] in sub-clause (vii) of clause (a) or
in clause (c) or in clause (d) thereof, an amount equal to the whole of the sum or,
as the case may be, sums of such nature plus fifty per cent of the balance of such
aggregate; and

(ii) in any other case, an amount equal to fifty per cent of the aggregate of the
sums specified in sub-section (2).

(2) The sums referred to in sub-section (1) shall be the following, namely :—

(a) any sums paid by the assessee in the previous year as donations to—

(i) the National Defence Fund set up by the Central Government; or

(ii) the Jawaharlal Nehru Memorial Fund referred to in the Deed of Declaration of
Trust adopted by the National Committee at its meeting held on the 17th day of
August, 1964; or

(iii) the Prime Minister's Drought Relief Fund; or

(iiia) the Prime Minister's National Relief Fund; or

(iiiaa) the Prime Minister's Armenia Earthquake Relief Fund; or

(iiiab) the Africa (Public Contributions - India) Fund; or

(iiib) the National Children's Fund; or

(iiic) the Indira Gandhi Memorial Trust, the deed of declaration in respect whereof was
registered at New Delhi on the 21st day of February, 1985; or

(iiid) the Rajiv Gandhi Foundation, the deed of declaration in respect whereof was
registered at New Delhi on the 21st day of June, 1991; or

(iiie) the National Foundation for Communal Harmony; or

 (iiif) a University or any educational institution of national eminence as may be
approved by the prescribed authority48 in this behalf; or

(iiig) the Maharashtra Chief Minister's Relief Fund during the period beginning on the
1st day of October, 1993 and ending on the 6th day of October, 1993 or to the
Chief Minister's Earthquake Relief Fund, Maharashtra; or

(iiiga) any fund set up by the State Government of Gujarat exclusively for providing
relief to the victims of earthquake in Gujarat; or

(iiih) any Zila Saksharta Samiti constituted in any district under the chairmanship of the
Collector of that district for the purposes of improvement of primary education in
villages and towns in such district and for literacy and post-literacy activities.

Explanation.—For the purposes of this sub-clause, "town" means a town which has
a population not exceeding one lakh according to the last preceding census of
which the relevant figures have been published before the first day of the previous
year ; or

(iiiha) the National Blood Transfusion Council or to any State Blood Transfusion
Council which has its sole object the control, supervision, regulation or
encouragement in India of the services related to operation and requirements of
blood banks.

Explanation.—For the purposes of this sub-clause,—

(a) "National Blood Transfusion Council" means a society registered under the
Societies Registration Act, 1860 (21 of 1860) and has an officer not below the rank
of an Additional Secretary to the Government of India dealing with the AIDS
Control Project as its Chairman, by whatever name called;

(b) "State Blood Transfusion Council" means a society registered, in consultation

with the National Blood Transfusion Council, under the Societies Registration Act,
1860 (21 of 1860) or under any law corresponding to that Act in force in any part
of India and has Secretary to the Government of that State dealing with the
Department of Health, as its Chairman, by whatever name called; or

(iiihb) any fund set up by a State Government to provide medical relief to the poor; or

(iiihc) the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air
Force Central Welfare Fund established by the armed forces of the Union for the
welfare of the past and present members of such forces or their dependants; or

(iiihd) the Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996; or

(iiihe) the National Illness Assistance Fund; or

 (iiihf) the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in
respect of any State or Union territory, as the case may be :

Provided that such Fund is—

(a) the only Fund of its kind established in the State or the Union territory, as the
case may be;

(b) under the overall control of the Chief Secretary or the Department of Finance
of the State or the Union territory, as the case may be;

(c) administered in such manner as may be specified by the State Government or

the Lieutenant Governor, as the case may be; or

(iiihg) the National Sports Fund to be set up by the Central Government; or

(iiihh) the National Cultural Fund set up by the Central Government; or

(iiihi) the Fund for Technology Development and Application set up by the Central
Government; or

(iiihj) the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities constituted under sub-section (1) of section 3
of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or
49
[(iiihk) the Swachh Bharat Kosh, set up by the Central Government, other than the sum
spent by the assessee in pursuance of Corporate Social Responsibility under sub-
section (5) of section 135 of the Companies Act, 2013 (18 of 2013); or

(iiihl) the Clean Ganga Fund, set up by the Central Government, where such assessee is
a resident and such sum is other than the sum spent by the assessee in pursuance
of Corporate Social Responsibility under sub-section (5) of section 135 of the
Companies Act, 2013 (18 of 2013); or]

Following sub-clause (iiihm) shall be inserted after sub-clause (iiihl) of clause

(a) of sub-section (2) of section 80G by the Finance Act, 2015, w.e.f. 1-4-2016 :

(iiihm) the National Fund for Control of Drug Abuse constituted under section 7A of the
Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); or

(iv) any other fund or any institution to which this section applies; or

(v) the Government or any local authority, to be utilised for any charitable purpose
other than the purpose of promoting family planning; or
(vi) an authority constituted in India by or under any law enacted either for the purpose
of dealing with and satisfying the need for housing accommodation or for the
purpose of planning, development or improvement of cities, towns and villages, or
for both;

(via) any corporation referred to in clause (26BB) of section 10; or

(vii) the Government or to any such local authority, institution or association as may be
approved in this behalf by the Central Government, to be utilised for the purpose of
promoting family planning;

(b) any sums paid by the assessee in the previous year as donations for the
renovation or repair of any such temple, mosque, gurdwara, church or other place
as is notified by the Central Government in the Official Gazette to be of historic,
archaeological or artistic importance or to be a place of public worship of renown
throughout any State or States;

(c) any sums paid by the assessee, being a company, in the previous year as
donations to the Indian Olympic Association or to any other association or
institution established in India, as the Central Government may, having regard to
the prescribed guidelines50, by notification in the Official Gazette, specify in this
behalf for—

(i) the development of infrastructure for sports and games; or

(ii) the sponsorship of sports and games,

in India;

(d) any sums paid by the assessee, during the period beginning on the 26th day of
January, 2001 and ending on the 30th day of September, 2001, to any trust,
institution or fund to which this section applies for providing relief to the victims
of earthquake in Gujarat.

(3) [Omitted by the Finance Act, 1994, w.e.f. 1-4-1994.]

(4) Where the aggregate of the sums referred to in sub-clauses (iv), (v), (vi), (via)
and (vii) of clause (a) and in clauses (b) and (c) of sub-section (2) exceeds ten per
cent of the gross total income (as reduced by any portion thereof on which income-
tax is not payable under any provision of this Act and by any amount in respect of
which the assessee is entitled to a deduction under any other provision of this
Chapter), then the amount in excess of ten per cent of the gross total income shall
be ignored for the purpose of computing the aggregate of the sums in respect of
which deduction is to be allowed under sub-section (1).
(5) This section applies to donations to any institution or fund referred to in sub-
clause (iv) of clause (a) of sub-section (2), only if it is established in India for a
charitable purpose and if it fulfils the following conditions, namely :—

(i) where the institution or fund derives any income, such income would not be
liable to inclusion in its total income under the provisions of sections 11 and 12 or
clause (23AA) or clause (23C) of section 10 :

Provided that where an institution or fund derives any income, being profits and
gains of business, the condition that such income would not be liable to inclusion
in its total income under the provisions of section 11 shall not apply in relation to
such income, if—

(a) the institution or fund maintains separate books of account in respect of such
business;

(b) the donations made to the institution or fund are not used by it, directly or
indirectly, for the purposes of such business; and

(c) the institution or fund issues to a person making the donation a certificate to
the effect that it maintains separate books of account in respect of such business
and that the donations received by it will not be used, directly or indirectly, for the
purposes of such business;

(ii) the instrument under which the institution or fund is constituted does not, or
the rules governing the institution or fund do not, contain any provision for the
transfer or application at any time of the whole or any part of the income or assets
of the institution or fund for any purpose other than a charitable purpose;

(iii) the institution or fund is not expressed to be for the benefit of any particular
religious community or caste;

(iv) the institution or fund maintains regular accounts of its receipts and
expenditure;

(v) the institution or fund is either constituted as a public charitable trust or is

registered under the Societies Registration Act, 1860 (21 of 1860), or under any
law corresponding to that Act in force in any part of India or under section 25 of
the Companies Act, 1956 (1 of 1956), or is a University established by law, or is
any other educational institution recognised by the Government or by a University
established by law, or affiliated to any University established by law, or is an
institution financed wholly or in part by the Government or a local authority;
 (vi) in relation to donations made after the 31st day of March, 1992, the institution
or fund is for the time being approved by the Commissioner in accordance with the
rules51made in this behalf; and

(vii) where any institution or fund had been approved under clause (vi) for the previous
year beginning on the 1st day of April, 2007 and ending on the 31st day of March,
2008, such institution or fund shall, for the purposes of this section and
notwithstanding anything contained in the proviso to clause (15) of section 2, be
deemed to have been,—

(a) established for charitable purposes for the previous year beginning on the 1st
day of April, 2008 and ending on the 31st day of March, 2009; and

(b) approved under the said clause (vi) for the previous year beginning on the 1st
day of April, 2008 and ending on the 31st day of March, 2009.

(5A) Where a deduction under this section is claimed and allowed for any
assessment year in respect of any sum specified in sub-section (2), the sum in
respect of which deduction is so allowed shall not qualify for deduction under any
other provision of this Act for the same or any other assessment year.

(5B) Notwithstanding anything contained in clause (ii) of sub-section (5)

and Explanation 3, an institution or fund which incurs expenditure, during any
previous year, which is of a religious nature for an amount not exceeding five per
cent of its total income in that previous year shall be deemed to be an institution or
fund to which the provisions of this section apply.

(5C) This section applies in relation to amounts referred to in clause (d) of sub-
section (2) only if the trust or institution or fund is established in India for a
charitable purpose and it fulfils the following conditions, namely :—

(i) it is approved in terms of clause (vi) of sub-section (5);

(ii) it maintains separate accounts of income and expenditure for providing relief
to the victims of earthquake in Gujarat;

(iii) the donations made to the trust or institution or fund are applied only for
providing relief to the earthquake victims of Gujarat on or before the 31st day of
March, 2004;

(iv) the amount of donation remaining unutilised on the 31st day of March, 2004 is
transferred to the Prime Minister's National Relief Fund on or before the 31st day
of March, 2004;

(v) it renders accounts of income and expenditure to such authority 52 and in such
manner as may be prescribed53, on or before the 30th day of June, 2004.
(5D) No deduction shall be allowed under this section in respect of donation of any
sum exceeding two thousand rupees unless such sum is paid by any mode other
than cash.

Explanation 1.—An institution or fund established for the benefit of Scheduled

Castes, backward classes, Scheduled Tribes or of women and children shall not be
deemed to be an institution or fund expressed to be for the benefit of a religious
community or caste within the meaning of clause (iii) of sub-section (5).

Explanation 2.—For the removal of doubts, it is hereby declared that a deduction

to which the assessee is entitled in respect of any donation made to an institution or
fund to which sub-section (5) applies shall not be denied merely on either or both
of the following grounds, namely :—

(i) that, subsequent to the donation, any part of the income of the institution or
fund has become chargeable to tax due to non-compliance with any of the
provisions of section 11, section 12 or section 12A;

(ii) that, under clause (c) of sub-section (1) of section 13, the exemption
under section 11 or section 12 is denied to the institution or fund in relation to any
income arising to it from any investment referred to in clause (h) of sub-section (2)
of section 13 where the aggregate of the funds invested by it in a concern referred
to in the said clause (h) does not exceed five per cent of the capital of that concern.

Explanation 3.—In this section, "charitable purpose" does not include any purpose
the whole or substantially the whole of which is of a religious nature.

Explanation 4.—For the purposes of this section, an association or institution

having as its object the control, supervision, regulation or encouragement in India
of such games or sports as the Central Government may, by notification in the
Official Gazette, specify in this behalf, shall be deemed to be an institution
established in India for a charitable purpose.

Explanation 5.—For the removal of doubts, it is hereby declared that no deduction

shall be allowed under this section in respect of any donation unless such donation
is of a sum of money.

(6) [* * *]
Section 80G – Donations
Deduction for donations towards Social Causes
The various donations specified in u/s 80G are eligible for deduction up to either 100% or
50% with or without restriction.

From FY 2017-18 any donations made in cash exceeding Rs 2,000 will not be
allowed as deduction. The donations above Rs 2000 should be made in any mode
other than cash to qualify for 80G deduction. Donations in kind are not allowed as a
deduction.

a. Donations with 100% deduction without any

qualifying limit
1. National Defence Fund set up by the Central Government
2. National Children’s Fund
3. National Cultural Fund
4. National Sports Fund
5. National Foundation for Communal Harmony
6. National Illness Assistance Fund
7. National Blood Transfusion Council or to any State Blood Transfusion Council
8. National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities
9. National Fund for Control of Drug Abuse (applicable from financial year 2015-16)
10. Prime Minister’s National Relief Fund or
11. Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund(PM
cares Fund)
12. Prime Minister’s Armenia Earthquake Relief Fund
13. Chief Minister’s Earthquake Relief Fund, Maharashtra
14. Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any
State or Union Territory
15. The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October
6,1993
16. Any fund set up by the State Government of Gujarat exclusively for providing relief to
the victims of earthquake in Gujarat
17. Fund set up by a State Government for the medical relief to the poor
18. Swachh Bharat Kosh (applicable from financial year 2014-15)
19. Clean Ganga Fund (applicable from financial year 2014-15)
20. An approved university/educational institution of National eminence
21. Zila Saksharta Samiti constituted in any district under the chairmanship of the
Collector of that district
22. Fund for Technology Development and Application
23. The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air
Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund,
1996
24. Any trust, institution or fund to which Section 80G(5C) applies for providing relief to
the victims of earthquake in Gujarat (contribution made during January 26, 2001 and
September 30, 2001) or
25. Africa (Public Contributions — India) Fund
b. Donations with 50% deduction without any
qualifying limit
1. Prime Minister’s Drought Relief Fund
2. Jawaharlal Nehru Memorial Fund
3. Indira Gandhi Memorial Trust
4. The Rajiv Gandhi Foundation

c. Donations to the following are eligible for 100%

deduction subject to 10% of adjusted gross total
income
• Government or any approved local authority, institution or association to be utilized
for the purpose of promoting family planning
• Donation by a Company to the Indian Olympic Association or to any other notified
association or institution established in India for the development of infrastructure for
sports and games in India or the sponsorship of sports and games in India

d. Donations to the following are eligible for 50%

deduction subject to 10% of adjusted gross total
income
1. Any other fund or any institution which satisfies conditions mentioned in Section
80G(5)
2. Government or any local authority to be utilized for any charitable purpose other than
the purpose of promoting family planning
3. Any authority constituted in India for the purpose of dealing with and satisfying the
need for housing accommodation or for the purpose of planning, development or
improvement of cities, towns, villages or both
4. Any corporation referred in Section 10(26BB) for promoting the interest of minority
community
5. For repairs or renovation of any notified temple, mosque, gurudwara, church or other
places.
 Allowed Limit
(maximum) FY
Section Deduction on 2021-22

80C Investment in PPF Rs. 1,50,000

– Employee’s share of PF contribution
– NSCs
– Life Insurance Premium payment
– Children’s Tuition Fee
– Principal Repayment of home loan
– Investment in Sukanya Samridhi Account
– ULIPS
– ELSS
– Sum paid to purchase deferred annuity
– Five year deposit scheme
– Senior Citizens savings scheme
– Subscription to notified securities/notified deposits scheme
– Contribution to notified Pension Fund set up by Mutual Fund or UTI.
– Subscription to Home Loan Account scheme of the National Housing Bank
– Subscription to deposit scheme of a public sector or company engaged in
providing housing finance
– Contribution to notified annuity Plan of LIC
– Subscription to equity shares/ debentures of an approved eligible issue
– Subscription to notified bonds of NABARD

80CCC For amount deposited in annuity plan of LIC or any other insurer for a pension –
from a fund referred to in Section 10(23AAB)

80CCD(1) Employee’s contribution to NPS account (maximum up to Rs 1,50,000) –

80CCD(2) Employer’s contribution to NPS account Maximum up to 10%

of salary

80CCD(1B) Additional contribution to NPS Rs. 50,000

80TTA(1) Interest Income from Savings account Maximum up to

10,000

80TTB Exemption of interest from banks, post office, etc. Applicable only to senior Maximum up to
citizens 50,000

80GG For rent paid when HRA is not received from employer Least of :
– Rent paid minus
10% of total income
– Rs. 5000/- per
month
 Allowed Limit
(maximum) FY
Section Deduction on 2021-22

– 25% of total
income

80E Interest on education loan Interest paid for a

period of 8 years

80EE Interest on home loan for first time home owners Rs 50,000

80D Medical Insurance – Self, spouse, children – Rs. 25,000

Medical Insurance – Parents more than 60 years old or (from FY 2015-16) – Rs. 50,000
uninsured parents more than 80 years old

80DD Medical treatment for handicapped dependent or payment to specified scheme – Rs. 75,000
for maintenance of handicapped dependent – Rs. 1,25,000
– Disability is 40% or more but less than 80%
– Disability is 80% or more

80DDB Medical Expenditure on Self or Dependent Relative for diseases specified in Rule – Lower of Rs 40,000
11DD or the amount
– For less than 60 years old actually paid
– For more than 60 years old – Lower of Rs
1,00,000 or the
amount actually
paid

80U Self-suffering from disability : – Rs. 75,000

– An individual suffering from a physical disability (including blindness) or mental – Rs. 1,25,000
retardation.
– An individual suffering from severe disability

80GGB Contribution by companies to political parties Amount contributed

(not allowed if paid
in cash)

80GGC Contribution by individuals to political parties Amount contributed

(not allowed if paid
in cash)
 Allowed Limit
(maximum) FY
Section Deduction on 2021-22

80RRB Deductions on Income by way of Royalty of a Patent Lower of Rs 3,00,000

or income received