Deduction

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Notes:
Chapter 11 1. Computation of deduction under section 80G:
Deductions
Particulars `
Gross total income (excluding long term capital gains) 5,73,240
Less : Deduction under section 80C, 80D & 80TTB 2,20,000
3,53,240
10% of the above 35,324
Contribution made 50,000
Lower of the two eligible for deduction under section 80G 35,324
Deduction under section 80G – 50% of ` 35,324 17,662
1 Study Mat 2. Deduction under section 80G is allowed only if amount is paid by any mode other than cash, in
case of amount exceeding ` 2,000. Therefore, the contribution made to public charitable trust is
For the Assessment year 2022-23, the Gross Total Income of Mr. Chaturvedi, a resident in India, was eligible for deduction since it is made by way of an account payee cheque.
` 8,18,240 which includes long-term capital gain of ` 2,45,000 taxable under section 112 and Short- 3. Deduction of upto ` 50,000 under section 80TTB is allowed to a senior citizen if gross total income
term capital gain of ` 58,000. The Gross Total Income also includes interest income of ` 12,000 from includes interest income on bank deposits, both fixed deposits and savings account.
savings bank deposits with banks and ` 40,000 interest on fixed deposits with banks. Mr. Chaturvedi
has invested in PPF ` 1,20,000 and also paid a medical insurance premium ` 51,000. Mr. Chaturvedi
also contributed ` 50,000 to Public Charitable Trust eligible for deduction under section 80G by way 2 Study Mat
of an account payee cheque. Compute the total income and tax thereon of Mr. Chaturvedi, who is 70
years old as on 31.3.2022. Mr. Rajmohan whose gross total income was ` 6,40,000 for the financial year 2021-22, furnishes you
the following information:
(i) Stamp duty paid on acquisition of residential house (self-occupied) - ` 50,000.
Answer
(ii) Five year post office time deposit - ` 20,000.
Computation of total income and tax payable by Mr. Chaturvedi for the AY 2022-23
(iii) Donation to a recognized charitable trust ` 25,000 which is eligible for deduction under section
Particulars ` ` 80G at the applicable rate.
Gross total income including long term capital gain 8,18,240 (iv) Interest on loan taken for higher education of spouse paid during the year - ` 10,000.
Less: Long term capital gain 2,45,000 Compute the total income of Mr. Rajmohan for the Assessment year 2022-23.
5,73,240
Less: Deductions under Chapter VI-A: Answer
Under section 80C in respect of PPF deposit 1,20,000
Computation of total income of Mr. Rajmohan for the AY 2022-23
Under section 80D (it is assumed that premium of ` 51,000 is paid by 50,000
otherwise than by cash. The deduction would be restricted to ` 50,000, Particulars ` `
since Mr. Chaturvedi is a senior citizen) Gross Total Income 6,40,000
Under section 80G (See Notes 1 & 2 below) 17,662 Less: Deduction under Chapter VI-A
Under section 80TTB (See Note 3 below) 50,000 2,37,662 Under section 80C
Total income (excluding long term capital gains) 3,35,578 Stamp duty paid on acquisition of residential house 50,000
Total income (including long term capital gains) 5,80,578 Five year time deposit with Post Office 20,000
Total income (rounded off) 5,80,580 70,000
Under section 80E
Tax on total income (including long-term capital gains of ` 2,45,000)
Interest on loan taken for higher education of spouse, being 10,000
LTCG (` 2,45,000 x 20%) 49,000
a relative.
Balance total income ` 3,35,580 1,779 Under section 80G (See Note below)
50,779 Donation to recognized charitable trust (50% of ` 25,000)
Add: Health and Education cess @4% 2,031 12,500 92,500
Total tax liability 52,810 Total Income 5,47,500
Income Tax Income Tax
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Note: In case of deduction under section 80G in respect of donation to a charitable trust, the net Medical insurance premium paid ` 52,000 for parents, being senior 50,000 75,000
qualifying amount has to be restricted to 10% of adjusted total income, i.e., gross total income less citizens, restricted to
deductions under Chapter VI-A except 80G. The adjusted total income is, therefore, ` 5,60,000 (i.e.
Eligible deduction under Chapter VI-A 2,25,000
6,40,000 – ` 80,000), 10% of which is ` 56,000, which is higher than the actual donation of ` 25,000.
Therefore, the deduction under section 80G would be ` 12,500, being 50% of the actual donation of
` 25,000.
4 Study Mat
3 Study Mat The gross total income of Mr. X for the AY 2022-23 is ` 8,00,000. He has made the following investments/
payments during the FY 2021-22 –
Compute the eligible deduction under Chapter VI-A for the AY 2022-23 of Ms. Roma, who has a gross
total income of ` 15,00,000 for the AY 2022-23 and provides the following information about her Particulars `
investments/ payments during the PY 2021-22:
(1) Contribution to PPF 1,10,000
Sl. No. Particulars Amount (` ) (2) Payment of tuition fees to Apeejay School, New Delhi, for education of his son 45,000
1. Life Insurance premium paid (Policy taken on 01-01-2014 and sum assured is 35,000 studying in Class XI
` 3,40,000) (3) Repayment of housing loan taken from Standard Chartered Bank 25,000
2. Public Provident Fund contribution 1,50,000 (4) Contribution to approved pension fund of LIC 1,05,000
3. Repayment of housing loan to Bhartiya Mahila Bank, Bangalore 20,000 Compute the eligible deduction under Chapter VI-A for the AY 2022-23.
4. Payment to L.I.C. Pension Fund 1,40,000
5. Mediclaim Policy taken for self, wife and dependent children, premium paid 30,000
Answer
by cheque
6. Medical Insurance premium paid by cheque for parents (Senior Citizens) 52,000 Computation of deduction under Chapter VI-A for the AY 2022-23
Particulars `
Answer Deduction under section 80C
Computation of eligible deduction under Chapter VI-A of Ms. Roma for AY 2022-23 - Contribution to PPF 1,10,000
- Payment of tuition fees to Apeejay School, New Delhi, for education of his son 45,000
Particulars ` ` studying in Class XI
Deduction under section 80C - Repayment of housing loan 25,000
Life insurance premium paid ` 35,000 35,000 1,80,000
(allowed in full since the same is within the limit of 20% of the sum Restricted to ` 1,50,000, being the maximum permissible deduction u/s 80C 1,50,000
assured, the policy being taken before 1.4.2014)
Deduction under section 80CCC
Public Provident Fund 1,50,000
- Contribution to approved pension fund of LIC ` 1,05,000 1,05,000
Repayment of housing loan to Bhartiya Mahila Bank, Bangalore 20,000
2,55,000
2,05,000
As per section 80CCE, the aggregate deduction under section 80C, 80CCC and
Restricted to a maximum of ` 1,50,000 1,50,000 80CCD(1) has to be restricted to ` 1,50,000
Deduction under section 80CCC for payment towards LIC pension 1,40,000 Deduction allowable under Chapter VIA for the AY 2022-23 1,50,000
fund
2,90,000
As per section 80CCE, aggregate deduction under, inter alia, section
80C and 80CCC, is restricted to
1,50,000
5 Study Mat
Deduction under section 80D Mr. A, aged 40 years, paid medical insurance premium of ` 20,000 during the PY 2021-22 to insure his
Payment of medical insurance premium of ` 30,000 towards medical 25,000 health as well as the health of his spouse. He also paid medical insurance premium of ` 47,000 during
policy taken for self, wife and dependent children restricted to the year to insure the health of his father, aged 63 years, who is not dependent on him. He contributed
` 3,600 to Central Government Health Scheme during the year. He has incurred ` 3,000 in cash on

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preventive health check-up of himself and his spouse and ` 4,000 by cheque on preventive health Answer
check-up of his father. Compute the deduction allowable under section 80D for the AY 2022-23.
Particulars `
Answer Interest deduction for AY 2022-23

(i) Deduction allowable while computing income under the head “Income
Deduction allowable under section 80D for the AY 2022-23 from house property”
Actual Maximum Deduction under section 24(b) ` 3,85,000 [`35,00,000 × 11%]
Particulars Payment deduction Restricted to 2,00,000
` allowable ` (ii) Deduction under Chapter VI-A from Gross Total Income
A. Premium paid and medical expenditure incurred for Deduction under section 80EE ` 1,85,000 (` 3,85,000 – ` 2,00,000)
self and spouse Restricted to 50,000
(i) Medical insurance premium paid for self and spouse 20,000 20,000
(ii) Contribution to CGHS 3,600 3,600
(iii) Exp. on preventive health check-up of self & spouse 3,000 1,400 7 Study Mat
26,600 25,000
Mr. Shiva aged 58 years, has gross total income of ` 7,75,000 comprising of income from salary and
B. Premium paid or medical expenditure incurred for house property. He has made the following payments and investments:
father, who is a senior citizen
(i) Premium paid to insure the life of her major daughter (policy taken on 1.4.2017) (Assured value `
(i) Mediclaim premium paid for father, who is over 60 years 47,000 47,000
1,80,000) – ` 20,000.
of age
(ii) Expenditure on preventive health check-up of father 4,000 3,000 (ii) Medical Insurance premium for self – ` 12,000; Spouse – ` 14,000.
51,000 50,000 (iii) Donation to a public charitable institution registered under 80G ` 50,000 by way of cheque.
Total deduction under section 80D (` 25,000 + ` 75,000 (iv) LIC Pension Fund – ` 60,000.
50,000)
(v) Donation to National Children’s Fund - ` 25,000 by way of cheque
Notes : (vi) Donation to Jawaharlal Nehru Memorial Fund - ` 25,000 by way of cheque
(1) The total deduction under A.(i), (ii) and (iii) above should not exceed ` 25,000. Therefore, the (vii) Donation to approved institution for promotion of family planning - ` 40,000 by way of cheque
expenditure on preventive health check-up for self and spouse would be restricted to ` 1,400,
being (` 25,000 – ` 20,000 – ` 3,600). (viii) Deposit in PPF – ` 1,00,000
(2) The total deduction under B. (i) and (ii) above should not exceed ` 50,000. Therefore, the Compute the total income of Mr. Shiva for AY 2022-23.
expenditure on preventive health check-up for father would be restricted to ` 3,000, being
(` 50,000 – ` 47,000).
Answer
(3) In this case, the total deduction allowed on account of expenditure on preventive health check-
up of self, spouse and father is ` 4,400 (i.e., ` 1,400 + ` 3,000), which is within the maximum Computation of Total Income of Mr. Shiva for AY 2022-23
permissible limit of ` 5,000.
Particulars ` `
Gross Total Income 7,75,000
6 Study Mat Less : Deduction under section 80C
Deposit in PPF 1,00,000
Mr. A purchased a residential house property for self-occupation at a cost of ` 45 lakh on 1.4.2019, in Life insurance premium paid for insurance of major daughter 18,000
respect of which he took a housing loan of ` 35 lakh from Bank of India@11% p.a. on the same date. (Maximum 10% of the assured value ` 1,80,000, as the policy is taken
The loan was sanctioned on 28th March, 2019. Compute the eligible deduction in respect of interest after 31.3.2012)
on housing loan for AY 2022-23 under the provisions of the Income-tax Act, 1961, assuming that the
1,18,000
entire loan was outstanding as on 31.3.2022 and he does not own any other house property.
Deduction under section 80CCC in respect of LIC pension fund 60,000

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1,78,000 The regular employees participate in recognized provident fund while the casual employees do not.
Compute the deduction, if any, available to Mr. A for AY2022-23, if the profits and gains derived from
As per section 80CCE, deduction under section 80C & 80CCC is 1,50,000 manufacture of computers that year is ` 75 lakhs and his total turnover is 2.16 crores.
restricted to
Deduction under section 80D What would be your answer if Mr. A has commenced the business of manufacture of footwear on
Medical Insurance premium in respect of self and spouse 26,000 1.4.2021?
Restricted to 25,000
Deduction under section 80G (See Working Note below) 87,500 Answer
Total income 5,12,500 Mr. A is eligible for deduction under section 80JJAA since he is subject to tax audit under section 44AB
for AY 2022-23, as his total turnover from business exceeds ` 1 crore and he has employed “additional
Working Note : Computation of deduction under section 80G
employees” during the PY 2021-22.
Amount I. If Mr. A is engaged in the business of manufacture of computers
Deduction
Particulars of donation donated % of deduction
u/s 80G (`)
(`) Additional employee cost = ` 24,000 × 12 × 75 [See Working Note below] = ` 2,16,00,000
(i) National Children’s Fund 25,000 100% 25,000 Deduction under section 80JJAA = 30% of ` 2,16,00,000 = ` 64,80,000.
(ii) Jawaharlal Nehru Memorial Fund 25,000 50% 12,500 Working Note :
(iii) Approved institution for 40,000 100%, subject to qualifying limit 40,000 Number of additional employees
promotion of family planning
(iv) Public Charitable Trust 50,000 50% subject to qualifying limit 10,000 Particulars No. of workmen
(See Note below) Total number of employees employed during the year 350
87,500 Less: Casual employees employed on 1.8.2021 who do not participate in 50
Note : Adjusted total income = Gross Total Income – Amount of deductions under section 80C to 80U recognized provident fund
except section 80G i.e., ` 6,00,000, in this case ` 60,000, being 10% of adjusted total income is the Regular employees employed on 1.5.2021, since their total monthly 125
qualifying limit, in this case. emoluments exceed ` 25,000
Regular employees employed on 1.9.2021 since they have been 100 275
Firstly, donation of ` 40,000 to approved institution for family planning qualifying for 100% deduction
employed for less than 240 days in the PY 2021-22.
subject to qualifying limit, has to be adjusted against this amount. Thereafter, donation to public
charitable trust qualifying for 50% deduction, subject to qualifying limit is adjusted. Hence, the Number of “additional employees” 75
contribution of ` 50,000 to public charitable trust is restricted to 20,000 (being, ` 60,000 - ` 40,000), Notes :
50% of which would be the deduction under section 80G. Therefore, the deduction under section 80G
in respect of donation to public charitable trust would be ` 10,000, which is 50% of ` 20,000. (i) Since casual employees do not participate in recognized provident fund, they do not qualify as
additional employees. Further, 125 regular employees employed on 1.5.2021 also do not qualify
as additional employees since their monthly emoluments exceed ` 25,000. Also, 100 regular
Study Mat
employees employed on 1.9.2021 do not qualify as additional employees for the PY 2021-22,
8 since they are employed for less than 240 days in that year.
Mr. A has commenced the business of manufacture of computers on 1.4.2021. He employed 350 new Therefore, only 75 employees employed on 1.4.2021 qualify as additional employees, and the
employees during the PY 2021-22, the details of whom are as follows - total emoluments paid or payable to them during the PY 2021-22 is deemed to be the additional
employee cost.
Total monthly (ii) As regards 100 regular employees employed on 1.9.2021, they would be treated as additional
No. of employees Date of employment Regular/ Casual emoluments per employees for previous year 2022-23, if they continue to be employees in that year for a minimum
employee (`) period of 240 days. Accordingly, 30% of additional employee cost in respect of such employees
(i) 75 1.4.2021 Regular 24,000 would be allowable as deduction under section 80JJAA in the hands of Mr. A for the AY 2022-23.
(ii) 125 1.5.2021 Regular 26,000
(iii) 50 1.8.2021 Casual 25,500
(iv) 100 1.9.2021 Regular 24,000

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II. If Mr. A is engaged in the business of manufacture of footwear Under section 80D (See Note 2)
If Mr. A is engaged in the business of manufacture of footwear, then, he would be entitled to deduction Premium paid for ` 26,000 health insurance of 25,000
under section 80JJAA in respect of employee cost of regular employees employed on 1.9.2021, since self and wife by cheque, restricted to
they have been employed for more than 150 days in the previous year 2021-22. Payment made for health check-up for parents 4,500 29,500
Additional employee cost = ` 2,16,00,000 + ` 24,000 × 7 × 100 = ` 3,84,00,000 Under section 80E
Deduction under section 80JJAA = 30% of ` 3,84,00,000 = ` 1,15,20,000 For payment of interest on loan taken from bank 6,500
for MBA course of his daughter
Under section 80TTA (See Note 4)
9 Study Mat Interest on savings bank account ` 14,500 10,000 91,500
restricted to
Mr. Gurnam, aged 42 years, has salary income (computed) of ` 5,50,000 for the previous year ended Total Income 4,73,000
31.03.2022. He has earned interest of ` 14,500 on the saving bank account with State Bank of India
during the year. Compute the total income of Mr. Gurnam for the Assessment year 2022-23 from the Notes:
following particulars: (1) As per section 80C, no deduction is allowed in respect of premium paid for life insurance of
(i) Life insurance premium paid to Birla Sunlife Insurance in cash amounting to ` 25,000 for insurance parents, whether they are dependent or not. Therefore, no deduction is allowable in respect of `
of life of his dependent parents. The insurance policy was taken on 15.07.2019 and the sum 25,000 paid as premium for life insurance of dependent parents of Mr. Gurnam.
assured on life of his dependent parents is ` 2,00,000. In respect of insurance policy issued on or after 01.04.2012, deduction shall be allowed for life
(ii) Life insurance premium of ` 25,500 paid for the insurance of life of his major son who is not insurance premium paid only to the extent of 10% of sum assured. In case the insurance policy
dependent on him. The sum assured on life of his son is ` 2,50,000 and the life insurance policy is issued before 01.04.2012, deduction of premium paid on life insurance policy shall be allowed
was taken on 30.3.2014. up to 20% of sum assured.
(iii) Life insurance premium paid by cheque of ` 22,500 for insurance of his life. The insurance policy Therefore, in the present case, deduction of ` 25,500 is allowable in full in respect of life insurance
was taken on 08.09.2018 and the sum assured is ` 2,00,000. of Mr. Gurnam’s son since the insurance policy was issued before 01.04.2012 and the premium
amount is less than 20% of ` 2,50,000. However, in respect of premium paid for life insurance
(iv) Premium of ` 26,000 paid by cheque for health insurance of self and his wife. policy of Mr. Gurnam himself, deduction is allowable only up to 10% of ` 2,00,000 since, the
(v) ` 1,500 paid in cash for his health check-up and ` 4,500 paid in cheque for preventive health policy was issued on or after 01.04.2012 and the premium amount exceeds 10% of sum assured.
check-up for his parents, who are senior citizens. (2) As per section 80D, in case the premium is paid in respect of health of a person specified therein
(vi) Paid interest of ` 6,500 on loan taken from bank for MBA course pursued by his daughter. and for health check-up of such person, deduction shall be allowed up to ` 25,000. Further,
deduction up to ` 5,000 in aggregate shall be allowed in respect of health check-up of self,
(vii) A sum of ` 15,000 donated in cash to an institution approved for purpose of section 80G for spouse, children and parents. In order to claim deduction under section 80D, the payment for
promoting family planning. health-checkup can be made in any mode including cash. However, the payment for health
insurance premium has to be paid in any mode other than cash.
Answer Therefore, in the present case, in respect of premium of ` 26,000 paid for health insurance of
Computation of total income of Mr. Gurnam for the Assessment year 2022-23 self and wife, deduction would be restricted to ` 25,000. Since the limit of ` 25,000 has been
exhausted against medical insurance premium, no deduction is allowable for preventive health
Particulars ` ` ` check-up for self and wife. However, deduction of ` 4,500 is allowable in respect of health check-
up of his parents, since it falls within the limit of ` 5,000.
Income from salary 5,50,000
Interest on saving bank deposit 14,500 (3) No deduction shall be allowed under section 80G in case the donation is made in cash of a
sum exceeding ` 2,000. Therefore, deduction under section 80G is not allowable in respect of
cash donation of ` 15,000 made to an institution approved for the purpose of section 80G for
Less: Deduction under Chapter VIA promotion of family planning.
Under section 80C (See Note 1) (4) As per section 80TTA, deduction shall be allowed from the gross total income of an individual
Life insurance premium paid for life insurance of: or Hindu Undivided Family in respect of income by way of interest on deposit in the savings
- major son 25,500 account included in the assessee’s gross total income, subject to a maximum of ` 10,000.
- self ` 22,500 restricted to 10% of ` 2,00,000 20,000 45,500 Therefore, deduction of ` 10,000 is allowable from the gross total income of Mr. Gurnam, though
the interest from savings bank account is ` 14,500.
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Contributed ` 25,000 to The Clean Ganga Fund, set up by the Central Government. Compute the Total
10 Nov 17 Income and deduction under Chapter VI -A for the AY 2022-23.
Ms. Jyoti purchased a house property costing ` 49 lakhs on 1st May, 2016. The property is used
exclusively for her residential purpose. For this purpose, she obtained loan from DHFL of ` 35 lakhs Answer
bearing interest @ 14% p.a. on 1st April, 2016. She does not own any other house.
Computation of Total Income of Mr. Rohan for AY 2022 -23
State with brief reasons the deductions that can be claimed by Ms. Jyoti in respect of interest on loan
for AY 2018 -19. Particulars ` `
Less: Deduction under Chapter VI-A
Answer
Under section 80C 60,000
Ms. Jyoti can claim the following deductions for the AY 2017-18 in respect of the - Life insurance premium of ` 70,000
interest of ` 4,90,000 (` 35,00,000 x 14%) payable on loan taken for acquisition of
residential house property for self-occupation: (restricted to ` 60,000 i.e., 15% of ` 4,00,000, being the sum assured,
since the policy has been taken on or after 01.04.2014, in respect of
Deduction under section 24 while computing income under the head “Income 2,00,000
his handicapped son suffering from disability u/s 80U)
from house property”:
- Tax saver deposit of ` 90,000 in the name of his major son does not Nil
- Interest on housing loan taken for acquisition of residential house property for self-
qualify for deduction under section 80C, since such deposit has to
occupation, would be eligible for deduction under section 24 while computing income
be made in the name of the assessee himself to qualify for deduction
from house property, subject to a maximum of ` 2,00,000
u/s 80C
Deduction under section 80EE (while computing deduction under Chapter VI-A 50,000
60,000
from gross total income):
Under section 80G
Interest payable on housing loan taken by Ms. Jyoti qualifies for deduction under
section 80EE, subject to a maximum of ` 50,000, since – - Contribution by a resident towards the Clean Ganga Fund, set up 25,000 85,000
by the Central Government would be eligible for 100% deduction
(i) The loan is sanctioned during the PY 2016 -17
without any qualifying limit.
(ii) The value of the house (` 49 lakhs) does not exceed ` 50 lakhs
Total Income 6,65,000
(iii) The amount of loan sanctioned (` 35 lakhs) does not exceed ` 35 lakhs
(iv) She does not own any residential house on the date of sanction of loan
RTP May 18/ MTP Oct 18

Therefore, out of the interest of ` 4,90,000, ` 2 lakhs is allowable as deduction under
section 24; and out of the balance of ` 2,90,000, ` 50,000 is allowable as deduction 12
under section 80EE from gross total income.
For the AY 2022-23, the Gross Total Income of Mr. Raja, a resident in India, was ` 8,00,000 which
Note : In the above solution, it has been assumed that the loan is sanctioned on 1.4.2016, being includes long-term capital gain of ` 2,50,000 and Short-term capital gain of ` 50,000. The Gross Total
the date of disbursement. Hence, deduction under section 80EE has been provided. Income also includes interest income of ` 15,000 from savings bank deposits with banks. Mr. Raja has
invested in PPF ` 1,40,000 and also paid a medical insurance premium ` 35,000 for self. Mr. Raja also
Since generally banks make the disbursement only when the property is purchased, it is possible to
contributed ` 50,000 to Public Charitable Trust eligible for deduction under section 80G by way of an
consider 1.5.2016, being the date of purchase , as the date of disbursement and 1.4.2016 as the date
account payee cheque. Compute the total income and tax thereon of Mr. Raja, who is 65 years old as
of sanction of loan, and accordingly work out the solution. Interest, in such a case, would work out to
on 31.3.2022.
` 4,49,167. Deduction under section 24 and 80EE would, however, remain the same.
Answer
11 Nov 17 Computation of total income and tax payable by Mr. Raja for the AY 2022-23
Mr. Rohan, a resident individual has Gross Total Income of ` 7,50,000 comprising of Income from Salary Particulars ` `
and income from house property for the AY 2022-23. He provides the following information: Gross total income including long term capital gain 8,00,000
Paid ` 70,000 towards premium on life insurance policy of his handicapped son (section 80U disability). Less: Long term capital gain 2,50,000
Sum assured ` 4,00,000; and date of issue of policy 1-8-2017. 5,50,000
Deposited ` 90,000 in tax saver deposit in the name of his major son in State Bank of India. Less: Deductions under Chapter VI-A :

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Under section 80C in respect of PPF deposit 1,40,000 Answer

Under section 80D (it is assumed that premium of ` 35,000 is paid by 35,000
Allowable deduction to Mr. Bhardwaj from Gross Total Income
otherwise than by cash. The deduction would be fully allowed, since Mr.
Raja is a resident senior citizen) i. Contribution towards Clean Ganga Fund set up by the Central Government : Whole of
Under section 80G (See Notes 1 & 2 below) 18,000 the contribution i.e., ` 2 lakh towards Clean Ganga Fund, set up by the Central Government, is
Under section 80TTB (See Note 3 below) 15,000 2,08,000 allowable as deduction under section 80G to Mr. Bharadwaj, since he is a resident of India.
Total income (excluding long term capital gains) 3,42,000 ii. Medical Expenditure of ` 50,000 towards surgery of his grandmother : Deduction is allowable
Total income (including long term capital gains) 5,92,000 under section 80D, in respect of medical expenditure in curred by an assessee for himself or any
Tax on total income (including long-term capital gains of ` 2,50,000) member of the family or parents, if any of such person(s) is of the age of 80 years or more and no
payment has been made to keep in force an insurance on the health of such person(s).
LTCG (` 2,50,000 x 20%) 50,000
Balance total income ` 3,42,000 : Tax @5% on ` 42,000 2,100 In the present case, no deduction is allowable to Mr. Bharadwaj, since he incurred medical expenditure
(` 3,42,000 – ` 3,00,000, being the basic exemption limit for senior citizen) 52,100 towards surgery of his grandmother, who does not fall within the definition of “family” under section
80D. Apart from family, deduction is only allowable in respect of premium paid for parents, and not
Add: Health & Education cess @ 4% 2,084
grandparents.
Total tax liability 54,184
Total tax liability (rounded off) 54,180
Notes : 14 RTP Nov 18
1. Computation of deduction under section 80G: Mr. Anay manufactures toys in a factory located in Noida. His profit from the manufacture of toys for
Assessment year 2022-23 is ` 1.85 crore and total turnover is ` 18.70 crore.
Particulars `
On 1st April 2021, there were 100 employees engaged in his factory. Due to increase in demand of his
Gross total income (excluding long term capital gains) 5,50,000 products, he employed 140 additional employees during the previous year 2021-22 comprises of:
Less: Deduction under section 80C, 80D & 80TTB 1,90,000 (a) 15 casual employees employed on 15th April 2021 till 31st January 2021 on monthly emolument
3,60,000 of ` 22,000 per month
10% of the above 36,000 (b) 40 regular employees employed on 1st May, 2021 on monthly emolument of ` 22,000 per month
Contribution made to Public Charitable Trust 50,000 (c) 25 contractual employees employed on 1st July 2021 for 2 years on monthly emolument of
Lower of the two eligible for deduction under section 80G 36,000 ` 15,000 per month
Deduction under section 80G – 50% of ` 36,000 18,000 (d) 35 regular employees employed on 1st August, 2021 on monthly emolument of ` 30,000 per
2. Deduction under section 80G is allowed only if amount is paid by any mode other than cash, in month
case of amount exceeding ` 2,000. Therefore, the contribution made to public charitable trust is (e) 25 regular employees employed on 1st October, 2021 on monthly emolument of ` 22,000 per
eligible for deduction since it is made by way of an account payee cheque. month
3. Deduction of ` 15,000 under section 80TTB is allowed, inter alia, to an individual assessee if Compute the deduction under Section 80JJAA, if available to Mr. Anay for Assessment year 2022-23,
gross total income includes interest income from deposits in a saving account with bank. Since assuming that monthly emoluments were paid by use of ECS. The regular and contractual employees
Gross Total Income of Mr. Raja includes interest income of ` 15,000 on savings bank deposit, he is participate in the recognised provident fund while casual employees do not.
eligible for deduction of ` 15,000 under section 80TTB. Would your answer be different if Mr. Anay is engaged in the manufacture of apparel? Examine.
[Note - Ignore the amount of deduction available under section 80JJAA to Mr. Anay, for the employees
MTP Aug 18
employed in preceding previous years, while computing the deduction under 80JJAA for the
13 Assessment year 2022-23]
The Gross Total Income of Mr. Bharadwaj, a resident, for the year ended 31-03-2022 is ` 15 lakhs.
Examine the allowability of the deduction to Mr. Bharadwaj from the following information.
(i) He has contributed ` 2 lakh towards Clean Ganga Fund set up by the Central Government
(ii) He has incurred medical expenditure of ` 50,000 towards surgery for his grandmother who is
85 years of age. (No Premium is paid to keep in force an insurance on her health).

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Answer (iv) He had deposited ` 50,000 in fixed deposit with Bank of Baroda in the name of his son in March
2020. Interest earned on such deposit ` 5,000.
Computation of deduction under section 80JJAA
(v) He donated ` 5,000 in cash to Swabhiman, a NGO set up for the destitute (the association was
Mr. Anay is eligible for deduction under section 80JJAA since he is subject to tax audit under section registered under section 80G of the Income -tax Act, 1961).
44AB for AY 2022-23, as his total turnover from business exceeds ` 1 crore and he has employed (vi) He paid life insurance premium on his life ` 10,000 (sum assured ` 1,00,000) Compute the gross
“additional employees” during the PY 2021-22. total income of Mr. Sharma for the AY 2022-23.
Additional employee cost = [` 22,000 × 40 new regular employees × 11 months] + [` 15,000 per month
× 9 months × 25 new contractual employees]
Answer
= ` 96,80,000 + ` 33,75,000 = ` 1,30,55,000
Computation of gross total income of Mr. Sharma for the AY 2022 -23
Deduction under section 80JJAA = 30% of ` 1,30,55,000 = ` 39,16,500.
Particulars ` `
Working Note : Number of Additional employees employed during the PY 2021 -22
Income from Other Sources
No. of
Royalty 6,00,000
Particulars additional
employees Less: Expenses incurred for writing book 20,000 5,80,000
Total number of additional employees employed during the year 140 Value of Statue of Lord Ganesh 55,000
Less : Casual workmen employed on 15th April 2021, who do not participate in the 15 [The fair market value of the statue (sculpture) received by his
recognised provident fund minor daughter as gift (not on account of her skill) from his friends
would be taxable, since its value exceeds ` 50,000. It would be
Regular employees employed on 1st August 2021, since their total monthly included in the hands of Mr. Sharma, assuming his income
emoluments exceed ` 25,000 35 before considering clubbing provisions is higher than his wife].
Regular employees employed on 1st October 2021, for a period of less than 240 25 75 Less: Exemption u/s 10(32) 1,500 53,500
days during the PY 2021 -22
Value of Gold Chain Nil
Total number of additional employees employed during the PY 2021-22 65
[The Fair market value of ` 35,000 of gold chain received on
Yes, the answer would be different, if Mr. Anay is engaged in the business of manufacture of apparel. occasion of his son’s thread ceremony would be exempt, since
Since the number of days of employment in a year has been relaxed from 240 days to 150 days in case it is received from a relative.]
of apparel industry, wages paid to regular employees employed on 1.10.2021 would also qualify for Interest on Fixed Deposit in the name of his son [It would 5,000
deduction under section 80JJAA for AY 2022-23. be included in the hands of Mr. Sharma, assuming his income
Additional employee cost = ` 1,30,55,000 + ` 33,00,000 (` 22,000 x 6 x 25) before considering clubbing provisions is higher than his wife]
= ` 1,63,55,000 Less: Exemption u/s 10(32) 1,500 3,500
Deduction under section 80JJAA = 30% of ` 1,63,55,000 = ` 49,06,500

15 Nov 18 (Old) 16 RTP May 19

Mr. Sharma, a resident individual, aged 40 years, suffers from severe disability as certified by Mr. Darshan aged 61 years, working with G Ltd., submits the following particulars of investments
medical authority. He gives the following information for the previous year 2021-22; and payments made by him during the previous year 2021-22:
(i) He had written a book for Himalaya Publication on “Yoga and its benefits”. A lump sum amount of - Deposit of ` 1,50,000 in public provident fund
royalty income earned in the previous year 2021-22 amounted to ` 6,00,000. Expenses incurred - Payment of life insurance premium of ` 62,000 on the policy taken on 01.4.2019 to insure his life
for writing the book amounted to ` 20,000. (Sum assured – ` 3,00,000).
(ii) His friends gifted a statue of Lord Ganesh to his daughter Ms. Diya (aged 14 years) on the - Deposit of ` 55,000 in a five year term deposit with bank.
successful completion of her secondary school. Fair market value of the statue is ` 55,000.
- Contributed ` 1,95,000, being 15% of his salary (basic salary plus dearness allowance, which
(iii) The following gift was received on the occasion of his son’s (aged 10 years) thread ceremony;
forms part of retirement benefits) to the NPS of the Central Government. A matching
• from in-laws a gold chain worth ` 35,000
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contribution was made by G Ltd. 80D (i) (a) Medical insurance premium for self and his 47,000
- On 1.4.2021, mediclaim premium of ` 1,08,000 and ` 80,000 paid as lumpsum to insure his and his wife, deduction would be equal to ` 47,000 (` 27,000
wife (aged 58 years) health, respectively for four years medical insurance and incurred ` 46,000 + ` 20,000), being 1/4th of lumpsum premium, since
towards medical expenditure of his father, aged 90 years, not dependent on him. No insurance policies would be in force for four previous years.
policy taken for his father.
(b) Preventive health check up ` 6,000 for wife restricted 3,000
- He spent ` 6,000 for the preventive health-check up of his wife. to ` 3,000 (` 50,000 - ` 47,000, since maximum allowable
- He has incurred an expenditure of ` 90,000 for the medical treatment of his mother, being a deduction is ` 50,000 in case assessee or one of the
person with severe disability. family member is senior citizen)
(ii) Medical Expenditure for his father would be fully 46,000
His income comprises of income from salary of ` 18,50,000 and interest on fixed deposits of `
allowed as deduction, since no insurance policy is
75,000.
taken on his name
Compute the deduction available to Mr. Darshan under Chapter VI-A for AY 2022-23. Would your Total of (i) and (ii) 96,000
answer be different, if Mr. Darshan contributed ` 1,30,000 (being, 10% of his salary) towards NPS of
80DD Deduction of ` 1,25,000 in respect of expenditure on 1,25,000
the Central Government?
medical treatment of his mother, being a person with
severe disability would be allowed irrespective of the
Answer fact that amount of expenditure incurred is ` 90,000
(i) Deduction available to Mr. Darshan under Chapter VI -A for AY 2022-23 80TTB Interest on fixed deposits with bank of ` 75,000, 50,000
deduction restricted to
Section Particulars ` ` Deduction under Chapter VI -A 6,01,000
80C Deposit in public provident fund 1,50,000
Notes:
Life insurance premium paid ` 62,000 (deduction 30,000 (1) The deduction under section 80CCD(1B) would not be subject to overall limit of ` 1.50 lakh
restricted to ` 30,000, being 10% of ` 3,00,000, which is under section 80CCE. Therefore, it is more beneficial for Mr. Darshan to claim deduction
the sum assured, since the policy was taken on or after under section 80CCD(1B) first in respect of contribution to NPS. Thereafter, the remaining
01.04.2012) amount of ` 1,45,000 can be claimed as deduction under section 80CCD(1), subject to a
maximum limit of 10% of salary i.e. ` 1,30,000.
Five year term deposit with bank 55,000
(2) The entire employer’s contribution to notified pension scheme has to be first included under
2,35,000
the head “Salaries” while computing gross total income and thereafter, deduction under
Restricted to 1,50,000 section 80CCD(2) would be allowed, subject to a maximum of 10% of salary. Deduction under
80CCD(1) Contribution to NPS of the Central Government, section 80CCD(2) is also not subject to the overall limit of ` 1,50,000 under section 80CCE
` 1,45,000 [` 1,95,000 – ` 50,000, being deduction (ii) If the contribution towards NPS is ` 1,30,000, here again, it is beneficial for Mr. Darshan to first
under section 80CCD(1B)], restricted to 10% of salary [` claim deduction of ` 50,000 under section 80CCD(1B) and the balance of ` 80,000 can be claimed
1,95,000 x 10/15] [See Note 1] 1,30,000 under section 80CCD(1), since the deduction available under section 80CCD(1B) is over and above
the aggregate limit of ` 1,50,000 under section 80CCE. In any case, the aggregate deduction of `
2,80,000
2,30,000 [i.e., ` 1,50,000 under section 80C and ` 80,000 under section 80CCD(1)] cannot exceed
80CCE Aggregate deduction under section 80C and 80CCD(1), 1,50,000 the overall limit of ` 1,50,000 under section 80CCE. The total deduction under Chapter VIA would
` 2,80,000, but restricted to remain the same i.e., ` 6,01,000.
80CCD(1B) ` 50,000 would be eligible for deduction in respect of 50,000
contribution to NPS of the Central Government
80CCD(2) Employer contribution to NPS, restricted to 10% of
salary [See Note 2]

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17 May 19 (Old) Deduction under section 80E

31,000
Prakash is retired Government Officer aged 65 years, resides in Cochin, derived following income : Interest on loan taken from bank for MBA course 6,500
pursued by his daughter
`
Deduction under section 80G
Pension 6,60,000
Donation to an approved institution for promoting Nil
Interest from bank on fixed deposits (Gross) 55,000 family planning not allowed since the amount
Compute the total income of Mr. Prakash for the Assessment year 2022-23 from the following exceeding ` 2,000 is paid in cash
particulars: Deduction under section 80TTB
i. Life insurance premium paid by cheque ` 22,500 for insurance of his life. The insurance policy was Interest on fixed deposit with bank allowable as 50,000 1,07,500
taken on 08-09-2017 and the sum assured is ` 2,00,000. deduction upto ` 50,000, since Mr. Prakash is a senior
citizen
ii. Premium of ` 26,000 paid by cheque for health insurance of self and his wife.
iii. ` 1,500 paid in cash for his health check-up and ` 4,500 paid through cheque for preventive
health check-up of his parents, who are senior citizens.
iv. Paid interest of ` 6,500 on loan taken from bank for MBA course pursued by his daughter.
18 RTP Nov 19
v. A sum of ` 15,000 donated in cash to an institution approved for the purpose of section 80G for
promoting family planning. Mr. Arihant, a resident individual aged 40 years, has Gross Total Income of ` 7,50,000 comprising of
income from Salary and income from house property for the Assessment year 2022-23. He provides
the following information:
Answer
Paid ` 70,000 towards premium for life insurance policy of his handicapped son (section 80U disability).
(i) Computation of total income of Mr. Prakash for AY 2022 -23 Sum assured ` 4,00,000; and date of issue of policy 1-8-2018.
Particulars ` ` ` Deposited ` 90,000 in tax saver deposit in the name of his major son in Punjab National Bank of India.
Income under the head “Salaries” Paid ` 78,000 towards medical insurance for the term of 3 years as a lumpsum payment for himself and
Pension 6,60,000 his spouse. Also, incurred ` 54,000 on medical expenditure of his father, a resident aged 68 years. No
Less: Standard deduction u/s 16(ia) medical insurance policy is taken in the name of his father. His father earned ` 4,50,000 interest from
Lower of ` 50,000 or actual salary/pension 50,000 6,10,000 fixed deposit.
Income from Other Sources Contributed ` 25,000 to The Clean Ganga Fund, set up by the Central Government. Compute the Total
Interest from bank on fixed deposit (Gross) 55,000 Income and deduction under Chapter VI-A for the AY 2022-23.
Less: Deduction under Chapter VI -A Answer
Deduction under section 80C Computation of Total Income of Mr. Arihant for AY 2022-23
LIC premium of ` 22,500 (restricted to 10% of ` 2,00,000, 20,000
being the sum assured, as the policy is taken after Particulars ` ` `
31.3.2014) Gross Total Income 7,50,000
Deduction under section 80D Less: Deduction under Chapter VI -A
Premium for health insurance for self and his wife paid 26,000 Under section 80C
by cheque, allowed upto ` 50,000 since Mr. Prakash is a - Life insurance premium of ` 70,000 (restricted to ` 60,000 60,000
senior citizen i.e., 15% of ` 4,00,000, being the sum assured, since the
Preventive health check-up for self, ` 1,500, and for 5,000 policy has been taken on or after 01.04.2013, in respect
his parents, ` 4,500, restricted to ` 5,000 (deduction of his handicapped son suffering from disability u/s 80U)
allowed even if the same is paid in cash)

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- Tax saver deposit of ` 90,000 in the name of his major Nil 60,000 Answer
son does not qualify for deduction under section 80C, Computation of total income of Mr. Mukesh for A.Y.2022-23 [As per the original return filed by
since such deposit has to be made in the name of the him]
assessee himself to qualify for deduction u/s 80C
Under section 80D Particulars ` `
- Medical insurance premium for self and his wife, 25,000 (i) Salaries (Computed) 7,30,000
pertaining to the previous year 2020-21 is ` 26,000, (ii) Income from Other Sources
being 1/3rd of ` 78,000, the lumpsum premium, since
Interest on savings bank account 12,700
the policy would be in force for three previous years.
The said deduction would be restricted to Interest on fixed deposits 43,000 55,700
- Deduction in respect of medical expenditure of ` 54,000 50,000 75,000 7,85,700
for his father, being a senior citizen would be allowable, Less: Deductions under Chapter VI-A
since no insurance policy is taken in his name, to the (i) Deduction u/s 80C 1,50,000
extent of (ii) Deduction u/s 80D 25,000
Under section 80G (iii) Deduction u/s 80TTA 10,000 1,85,000
- Contribution by a resident towards the Clean Ganga 25,000 1,60,000 Total Income 6,00,700
Fund, set up by the Central Government would be
eligible for 100% deduction without any qualifying Computation of tax liability of Mr. Mukesh for A.Y.2022-23 (As per original return)
limit.
`
Tax on total income [20% of ` 1,00,700 (i.e., ` 6,00,700 – ` 5,00,000) + ` 12,500] 32,640
Add: HEC@4% 1,306
19 Nov 20 (New) Tax payable on total income 33,946

Tax payable on total income (rounded off ) 33,950
Mr. Mukesh born on 1.4.1962 furnished his original return for Assessment Year 2022-23 on 30.07.2022. Less: Tax deducted at source u/s 192 33,950
He has shown salary income of ` 7.30 lakhs (computed) and interest from his savings bank of ` 12,700
Tax Payable Nil
and from his fixed deposits of ` 43,000. He also claimed deduction under section 80C ` 1.50 lakhs.
He had claimed deduction u/s 80D of ` 25,000. He also claimed deduction u/s 80TTA of ` 10,000. His Need for filing revised return - Analysis
employer had deducted TDS of ` 33,950 from his salary, which he adjusted fully against tax payable.
Since Mr. Mukesh’s birthday falls on 1.4.2022, he would be treated as having completed 60 years of
He paid health insurance premium of ` 38,000 by account payee cheque for self and wife. He paid age in the P.Y.2021-22, and hence, he would be eligible for the benefit of higher deduction u/s 80D,
` 1,500 in cash for his health check-up and ` 4,000 by cheque for preventive health check-up of his higher deduction of up-to ` 50,000 u/s 80TTB (instead of ` 10,000 u/s 80TTA) while computing his
parents. He also paid medical insurance premium of ` 33,000 during the year to insure the health of total income as well as for higher basic exemption limit of ` 3,00,000 in the P.Y.2021-22 itself while
his mother, aged 80 years, staying with his younger brother. He further incurred medical expenditure computing his tax liability. Also, he would be entitled to deduction in respect of medical insurance
of ` 25,000 on his father, aged 81 years, who is staying with him. His father is not covered under any premium paid to insure the health of his mother and medical expenses incurred on his father who
mediclaim policy. is not covered under any Mediclaim policy. Accordingly, having discovered such omissions in the
original return, he has to file his revised return of income u/s 139(5) on or before 31.3.2022 to avail
He seeks your advice about possibility of revising his return and if possible file his revised return. these benefits which he has not availed while filing his original return of income. The computation of
Analyse the above narrated facts as per applicable provisions of the Income Tax Act, 1961. Does he total income and tax liability (refund due) as per the revised return are worked out hereunder -
need to revise his return and for what reasons ? Please advise him suitably and if needed, re-compute
his income and tax payable or refund due for the Assessment Year 2022-23. Computation of Total Income of Mr. Mukesh for the A.Y. 2022-23 [As per the Revised Return]
Particulars ` `
(i) Salaries (Computed) 7,30,000
(ii) Income from Other Sources

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Interest on fixed deposits 43,000

20 MTP Apr 21
55,700
Deepak is retired Government Officer, aged 65 years, resides in Hyderabad, derived following income:
Less: Deductions under Chapter VI-A `
(i) Deduction u/s 80C 1,50,000 Pension 6,60,000
(ii) Deduction u/s 80D Interest from bank on fixed deposits (Gross) 55,000
Medical insurance premium for self and 38,000
spouse Compute the total income of Mr. Deepak for the assessment year 2022-23 from the following
Preventive health check-up for self 1,500 particulars:
(allowable even if paid in cash) i. Life insurance premium paid by cheque ` 22,500 for insurance of his life. The insurance policy was
Fully allowed as it is within the overall limit 39,500 taken on 08-09-2015 and the sum assured is ` 2,00,000.
of ` 50,000 for family
ii. Premium of ` 26,000 paid by cheque for health insurance of self and his wife.
Medical insurance premium for mother 33,000
iii. Paid interest of ` 6,500 on loan taken from bank for MBA course pursued by his daughter.
Medical expenditure for father not covered 25,000
under any policy iv. A sum of ` 15,000 donated in cash to an institution approved for the purpose of section 80G for
Preventive health check-up for parents (` 3,500 promoting family planning.
4,000, restricted to ` 3,500, being ` 5,000 –
` 1,500 claimed for self and spouse) Answer
61,500
Computation of total income of Mr. Deepak for A.Y.2022-23
Restricted to maximum of ` 50,000 for 50,000 89,500
parents
Particulars ` `
(iii) Deduction u/s 80TTB
Income under the head “Salaries”
Pension 6,60,000
Interest on fixed deposits 43,000
Less: Standard deduction u/s 16(ia)
55,700
Lower of ` 50,000 or actual salary/pension 50,000 6,10,000
Restricted to maximum of ` 50,000 50,000
2,89,500
Interest from bank on fixed deposit (Gross) 55,000
Computation of tax liability of Mr. Mukesh for A.Y.2022-23 [As per the Revised Return] Less: Deduction under Chapter VI-A
Deduction under section 80C
`
LIC premium of ` 22,500 (restricted to 10% of ` 2,00,000, being the sum 20,000
Tax on total income [5% of `1,96,200 (i.e., `4,96,200 – ` 3,00,000 basic exemption limit) 9,810 assured, as the policy is taken after 31.3.2012)
Less: Rebate u/s 87A (Since his total income does not exceed ` 5 lakh) – ` 12,500 or tax 9,810 Deduction under section 80D
on total income, whichever is lower Premium for health insurance for self and his wife paid by cheque, allowed 26,000
Tax payable on total income Nil upto ` 50,000 since Mr. Deepak is a senior citizen
Less: Tax deducted at source u/s 192 33,950 Deduction under section 80E
Refund due 33,950 Interest on loan taken from bank for MBA course pursued by his daughter 6,500
Therefore, Mr. Mukesh has to file a revised return showing the above revised computation of total
Donation to an approved institution for promoting family planning not Nil
income and tax liability on or before 31.3.2022 to claim the enhanced deductions which he had not
allowed since the amount exceeding ` 2,000 is paid in cash
claimed in the original return and get refund of the entire income-tax of ` 33,950 deducted at source
by his employer.
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Deduction under section 80TTB 80CCD(1) Contribution to NPS of the Central Government, ₹ 1,60,000
Interest on fixed deposit with bank allowable as deduction upto ` 50,000, 50,000 1,02,500 [₹ 2,10,000 – ₹ 50,000, being deduction under section
since Mr. Deepak is a senior citizen 80CCD(1B)], restricted to 10% of salary [₹ 2,10,000 x 10/15]
[See Note 1]
1,40,000
2,90,000
21 MTP Mar 21 80CCE Aggregate deduction under section 80C and 80CCD(1),
₹ 2,90,000, but restricted to
1,50,000
Compute the deduction available to Mr. Dhyanchand under Chapter VI-A for A.Y.2022-23. Mr. 80CCD(1B) ₹ 50,000 would be eligible for deduction in respect of 50,000
Dhyanchand, aged 65 years, is working with ABC Ltd. His income comprises of salary of ₹ 18,50,000 contribution to NPS of the Central Government
and interest on fixed deposits of ₹ 75,000. He submits the following particulars of investments and 80CCD(2) Employer contribution to NPS, restricted to 10% of salary [See 1,40,000
payments made by him during the previous year 2021-22: Note 2]
- Deposit of ₹ 1,50,000 in public provident fund 80D (i) (a) Medical insurance premium for self and his wife, 47,000
deduction would be equal to ₹ 47,000 (₹ 27,000 +
- Payment of life insurance premium of ₹ 62,000 on the policy taken on 01.4.2018 to insure his life
₹ 20,000), being 1/4th of lumpsum premium, since
(Sum assured – ₹ 4,00,000).
policies would be in force for four previous years.
- Deposit of ₹ 45,000 in a five year term deposit with bank. (b) Preventive health check up ₹ 6,000 for wife restricted 3,000
- Contributed ₹ 2,10,000, being 15% of his salary (basic salary plus dearness allowance, which forms to ₹ 3,000 (₹ 50,000 - ₹ 47,000, since maximum
part of retirement benefits) to the NPS of the Central Government. A matching contribution was allowable deduction is ₹ 50,000 in case assessee or
made by ABC Ltd. one of the family member is senior citizen)
- On 1.4.2021, mediclaim premium of ₹ 1,08,000 and ₹ 80,000 paid as lumpsum to insure his and 50,000
his wife (aged 58 years) health, respectively for four years (ii) Medical Expenditure for his father would be fully allowed 46,000
as deduction, since no insurance policy is taken on his
- Incurred ₹ 46,000 towards medical expenditure of his father, aged 85 years, not dependent on name
him. No insurance policy taken for his father.
Total of (i) and (ii) 96,000
- He spent ₹ 6,000 for the preventive health-check up of his wife.
80DD Deduction of ₹ 1,25,000 in respect of expenditure on medical 1,25,000
- He has incurred an expenditure of ₹ 90,000 for the medical treatment of his mother, being a treatment of his mother, being a person with severe disability
person with severe disability. would be allowed irrespective of the fact that amount of
expenditure incurred is ₹ 90,000
80TTB Interest on fixed deposits with bank of ₹ 75,000, deduction 50,000
Answer
restricted to
Deduction available to Mr. Dhyanchand under Chapter VI-A for A.Y.2022-23 Deduction under Chapter VI-A 6,11,000
Section Particulars ₹ ₹ Notes:

80C Deposit in public provident fund 1,50,000 (1) The deduction under section 80CCD(1B) would not be subject to overall limit of ₹ 1.50 lakh under
Life insurance premium paid ₹ 62,000 (deduction restricted to 40,000 section 80CCE. Therefore, it is more beneficial for Mr. Dhyanchand to claim deduction under
₹ 40,000, being 10% of ₹ 4,00,000, which is the sum assured, section 80CCD(1B) first in respect of contribution to NPS. Thereafter, the remaining amount of
since the policy was taken on or after 01.04.2012) ₹ 1,60,000 can be claimed as deduction under section 80CCD(1), subject to a maximum limit of
Five year term deposit with bank 45,000 10% of salary i.e. ₹ 1,40,000.
2,35,000 (2) The entire employer’s contribution to notified pension scheme has to be first included under
Restricted to 1,50,000 the head “Salaries” while computing gross total income and thereafter, deduction under section
80CCD(2) would be allowed, subject to a maximum of 10% of salary. Deduction under section
80CCD(2) is also not subject to the overall limit of ₹ 1,50,000 under section 80CCE.

6290948313 | 8420129525 | 6290935202 | 033 2555 2254 +91 9830741471 | +91 33 2555 1197 +91 9830741471 | +91 33 2555 1197 6290948313 | 8420129525 | 6290935202 | 033 2555 2254
22 RTP Nov 21
Preventive health check-up for self, ₹ 3,500, and for his mother, 5,000
₹ 4,500, restricted to ₹ 5,000 (deduction allowed even if the
same is paid in cash)
Mr. Uday Shankar (aged 67 years) is retired from a Public Sector Undertaking. He resides in Indore,
Madhya Pradesh. He provides you the following particulars of his income and certain payments/ 41,000
investments for the previous year 2021-22: Deduction under section 80E
- Pension income of ₹ 7,80,000 Interest on loan taken from bank for MBA course pursued by 9,500
his daughter
- Interest from fixed deposits of ₹ 2,35,000 (Gross)
- Life insurance premium paid by cheque ₹ 25,500 for insurance of his life. The insurance policy Donation to PM CARES Fund – 100% allowable 20,000
was taken on 08-09-2016 and the sum assured is ₹ 2,50,000.
Donation to an approved institution for promoting family 83,950
- Premium of ₹ 36,000 paid by cheque for health insurance of self and his wife, who is also a senior planning – 100% allowable subject to qualifying limit of ₹
citizen. 83,950 i.e., 10% of ₹ 8,39,500 being the adjusted total income
- ₹ 3,500 paid in cash for his health check-up and ₹ 4,500 paid through cheque for preventive Deduction under section 80TTB
health check-up of his mother aged 90 years. Interest on fixed deposit with bank allowable as deduction 50,000
- Paid interest of ₹ 9,500 on loan taken from bank for MBA course pursued by his daughter. upto ₹ 50,000, since Mr. Uday Shankar is a senior citizen
2,29,450
- A sum of ₹ 95,000 donated by cheque to an institution approved for the purpose of section 80G
for promoting family planning. Total Income 7,35,550
- ₹ 20,000 contributed towards PM CARES Fund by cheque.

Compute the total income of Mr. Uday Shankar for the assessment year 2022-23, assuming he does
not opt for section 115BAC.
Answer
Computation of total income of Mr. Uday Shankar for A.Y.2022-23
Particulars ₹ ₹ ₹
Income under the head “Salaries”
Pension 7,80,000
Less: Standard deduction u/s 16(ia)
Lower of ₹ 50,000 or actual salary/pension 50,000 7,30,000
Interest from bank on fixed deposit (Gross) 2,35,000
Less: Deduction under Chapter VI-A
Deduction under section 80C
LIC premium of ₹ 25,500 (restricted to 10% of ₹ 2,50,000, being 25,000
the sum assured, as the policy is taken after 31.3.2012)
Deduction under section 80D
Premium for health insurance for self and his wife paid by 36,000
cheque, allowed upto ₹ 50,000 since Mr. Uday Shankar is a
senior citizen


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For PD | D2H Enquiries : Fo r L i ve E nq u i r i e s : Fo r Li ve En qu ir ie s : For PD | D2H Enquiries :

Chapter 11 1. Computation of deduction under section 80G:

Income Tax Income Tax

Answer Interest deduction for AY 2022-23

Income Tax Income Tax

Income Tax Income Tax

RTP May 18/ MTP Oct 18

Income Tax Income Tax

Under section 80C in respect of PPF deposit 1,40,000 Answer

Income Tax Income Tax

15 Nov 18 (Old) 16 RTP May 19

Income Tax Income Tax

17 May 19 (Old) Deduction under section 80E

Income Tax Income Tax

19 Nov 20 (New) Tax payable on total income 33,946

Income Tax Income Tax

Interest on fixed deposits 43,000

Section Particulars ₹ ₹ Notes:

Income Tax Income Tax

- ₹ 20,000 contributed towards PM CARES Fund by cheque.

Income Tax Income Tax

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