Deductions from Gross Total Income

Computation of Taxable Income for the Assessment Year 2022-23

Particulars ₹

I). Income from Salary XXX

II). Income from House Property XXX
III). Income from Business Profession XXX
IV). Income from Capital Gains XXX
V). Income from Other Sources XXX
Gross Total Income XXX
Less. Deductions u/s : 80 C to 80 U
1).80 C (.....)
2).80 CCC (.....)
3).80 CCD (.....)
4).80 CCG (.....)
5).80 D (.....)
6).80 DD (.....)
7).80 DDB (.....)
8).80 E (.....)
9).80 EEA (.....)
10).80 G (.....)
11).80 GG (.....)
12).80 GGA (.....)
13).80 GGB / GGC (.....) (XXX)
Total Taxable Income XXX

Rules and Provisions for Deductions u/s : 80 C to 80 U

1.80 C
Deduction in respect of payment of life insurance premium, Provident Funds, Tuition fee of
children, Repayment of house loan, Mutual fund, FD(5 years), NSC, etc.Different investments
under this section are as follows
i).Life Insurance premium paid on a policy taken on his own life, life of the spouse or children
(dependent/ independent ). In the case of a Hindu undivided family, policy may be taken on
the life of any member of the family. The premium paid should be maximum of 20% of sum
assured before April 2012 and 10% of sum assured after April 2012.
ii).Contribution towards statutory provident fund and recognized provident fund.
iii).Contribution towards 15 year, Public Provident Fund (Maximum of ₹70,000/-).
iv).Contribution towards an approved superannuation fund.
v).Subscription to National Savings Certificates, 8th Issue.
vi).Tax Saving Mutual Funds.
vii).Senior Citizen Savings Scheme.
viii).5-Years Post Office or Bank Deposits.
ix).Tuition fee of kids.
x).Principal payment towards home loan.
xi).Stamp duty and Registration Cost of the House.
xii).Sukanya Samriddhi Account
xiii).Contribution for participating in the Unit-Linked Insurance Plan (ULIP) of Unit Trust of
India (UTI).
2.80 CCC
Deduction in respect of payment in Pension Fund Scheme.Deduction under Sec.80CCC is
available only for individuals who contribute to an annuity plan of the LIC of India or any other
insurer for receiving the pension.Here the amount should be paid or deposited out of the taxable
income.

3.80 CCD
Deduction in respect of contribution to Pension Scheme of the Central Government.The section
80 CCD is for allowing deduction to new central Government employees, if the following conditions
are satisfied :
i).The tax payer is an individual.
ii).He is employed by the Central Government on or after 1st January 2004.
iii).He has in the previous year paid or deposited any amount in his account under a pension
scheme notified by the Central Government.
Least of the following two is considered as the deductible amount
i).The total employee’s contribution and employer’s contribution to the notified pension scheme
during the year.
ii).10% of Salary.(Where Salary = Basic Salary + Deaness Allowance RB)

We add the amounts invested / spent in the 80 C, 80 CCC and 80 CCD schemes and this amount is
known as the Gross qualifying amount.
Least of the following two is considered as the deductible amount
i).Gross Qualifying Amount
ii).Limit ₹1,50,000/-

4.80 CCG
Deduction in respect of Investment in listed equity saving scheme.Investments in equity savings
schemes notified by the government are permitted for deductions, subject to the limit being 50%
of the amount invested.
Least of the following two is considered as the deductible amount
i).50% of Actual Amount Invested
ii).Limit ₹25,000/-

5.80 D
Deduction in respect of Payment of Medical Insurance Premium.If the following conditions are
satisfied then an assessee may claim deduction under section 80 D.
i).The tax payer is an Individual or a Hindu Undivided Family.
ii).Health insurance premium is paid by the tax payer in the General Insurance Corporation of
India (GIC) which is approved by the Central Government or by the Insurance Regulatory and
Development Authority, shall be eligible for deduction.
iii).The aforesaid Premium is Paid by Cheque.
iv).Payment should be made out of income chargeable to tax.
v).Mediclaim policy is taken on the health of the taxpayer, spouse, dependent parents or
dependent children of the taxpayer.
vi).In case of HUF on the health of any member of the family.
In case of self, wife & dependent children least of the following two is considered as the deductible
amount
i).Insurance Premium Paid
ii).Limit ₹25,000/- (₹50,000/- in case of senior citizens)
In case of his parents least of the following two is considered as the deductible
amount
i).Insurance Premium Paid
ii).Limit ₹25,000/- (₹50,000/- in case of senior citizens)
6.80 DD
Deduction in respect of Medical Treatment Expenditure of Disable Dependent Relative.If the
following conditions are satisfied then an assessee will get deduction under the Section 80 DD.
i).The assessee ia an Individual or HUF, who is resident in India.
ii).This deduction is given to the assessee if a person with disability is dependent upon him.
iii).A person with disability means disabilities like autism, cerebral palsy, mental retardation,
etc. as specified in Persons with Disabilities Act 1995.
iv).If the expenditure is incurred for medical treatment, and training of dependent relative
(being a person with a disability).
v).For claiming the deduction the assessee shall have to furnish a certificate by the prescribed
medical authority with the return of income.
vi).Can be claimed only when deposited or paid for any approved scheme of LIC (or any other
insurance) or UTI for the maintenance of such dependent relative.
If the above mentioned conditions are satisfied the amount of deduction is fixed at Rs. 75,000
irrespective of actual expenditure.
In case of a person with severe disability (over 80%) a higher deduction of Rs.1,25,000 shall be
allowed irrespective of actual expenditure.

7.80 DDB
Deduction in respect of Medical Treatment Expenditure of Specified Diseases.If the following
conditions are satisfied then an assessee will get deduction under section 80 DDB
i).The assessee ia an Individual or HUF, who is resident in India.
ii).The assessee has actually paid for the medical treatment of specified disease or ailment,for
himself or any dependent or any member of the family in case of a Hindu Undivided Family.
iii).The assessee furnishes a certificate, in the prescribed form from prescribed authority,along
with the return of income.
Least of the following two is considered as the deductible amount
i).Amount Paid
ii).Limit ₹40,000/- (₹1,00,000/- in case of senior citizens)
Note:- The deduction shall be reduced by the amount received, if any, under an insurance from an
insurer for the medical treatment of person mentioned in this section or reimbursed by the
employer.

8.80 E
Deduction in respect of Interest on Loan taken for Higher Education.If the following conditions
are satisfied then an assessee will get deduction under section 80E
i).Assessee is an individual.
ii).He has taken a loan from any financial institution/bank or an approved charitable
institution.
iii).The loan is taken is for the purpose of pursuing his higher education or for the education
of his relatives (Spouse, children or any student for whom the individual is legal guardian).
iv).During the previous year he has repaid some amount as interest on such loan.
v).Such amount is paid out of his income chargeable to tax.
The entire interest is deductible in the year in which the individual starts to pay interest on the
loan and subsequent 7 years or until the loan together with interest thereon is paid by the
assessee in full, whichever is earlier.
Note:- Higher education means full-time studies for any graduate or post-graduate course in
engineering, medicine, management or for post-graduate course in applied science or pure
sciences including mathematics and statistics.

9.80 EEA
Deduction in respect of Interest on Loan taken for Residential House Property.If the following
conditions are satisfied then an assessee will get deduction under section 80EEA
 i).Assessee is an individual.
ii).He has taken a loan from any financial institution/bank or an approved charitable institution
during April 1, 2019 and March 31, 2021.
iii).The loan is taken is for the purpose of acquisition of a Residential House Property.
iv).The stamp duty value of house does not exceed Rs. 45 Lakh.
v).The assessee does not own any residential house property on the date of sanction of the loan.
Least of the following two is considered as the deductible amount
i).Amount of Interest Paid
ii).Limit ₹i,50,000/-
Note:- If interest is claimed as deduction U/S 24(b), such interest is not again deductible.

10.80 G
Deduction in respect of donations to certain approved funds, trusts, charitable institutions, etc.
If the following conditions are satisfied then an assessee will get deduction under section 80G
i).This deduction can only be claimed when the contribution made by cheque or draft or in cash.
ii).In-kind contributions like food material, clothes, medicines etc. do not qualify for deduction
under this section.
A.Donations made to the following are eligible for 100% deduction without any qualifying limit.
i).National Defense Fund
ii).PM Relief Fund
iii).PM Armenia Earthquake Relief Fund
iv).Donation to an Approved University /Educational Institution
v).CM Earthquake Relief Fund
vi).Army, Air Force & Naval Welfare Fund
vii).National Children fund
viii).Clean Ganga fund
ix).Swachchh Bharat Kosh
x).Zila Shaksharta samiti
B.Donations made to the following are eligible for 50% deduction without any qualifying limit.
i).Jawaharlal Nehru Memorial Fund
ii).Prime Minister’s Drought Relief Fund
iii).Indira Gandhi Memorial Trust
iv).The Rajiv Gandhi Foundation.
C.Donations to the following are eligible for 100% deduction subject to qualifying limit (i.e.10% of
adjusted gross total income).
i).Donations to the Government or a local authority for the purpose of promoting family
planning.
ii).Sums paid by a company to Indian Olympic Association.
D.Donations to the following are eligible for 50% deduction subject to qualifying limit (i.e.10% of
adjusted gross total income).
i).Donation to the Government or any local authority for any charitable purposes.
ii).Donation to public charitable institution.
iii).Any authority set up for providing housing accommodation or for town planning
iv).Any notifies temple, mosque, gurudwara, church or other place for renovation and repairs.
Note:- The meaning of Adjusted Gross Total Income (GTI) = Sum of all the Head’s of Income - Long-
Term Capital Gain, Short-Term Capital Gain taxable - All Deductions u/s 80C to 80U except
Deduction u/s 80G.

11.80 GG
Deduction in respect of Payment of House Rent.This deduction is allowed to an individual assessee
in respect of rent paid by him for an accommodation used for his residential purposes,the following
conditions are to be satisfied
 i).The assessee is a self-employed person.
ii).The assessee is a salaried employee who is not in receipt of house-rent allowance from any
source.
iii).He or his spouse or minor children or the HUF, do not own any residential accommodation
at the place where the assessee resides, performs the duties of his office or carries on his
business or profession
Least of the following three is considered as the deductible amount
i).Actual Rent Paid – 10% of Adjusted Gross Total Income
ii).25% of his Adjusted Gross Total Income
iii).Limit ₹5,000/-
Note:- Deduction under this section can be claimed even if accommodation at concessional rent is
provided by the employer. In such a case the deduction will be given if the actual rent paid by
the employee exceeds 10% of his total income. Where, the rent-free house is provided to the
employee, no deduction will be allowed under this section.
The meaning of Adjusted Gross Total Income (GTI) = Sum of all the Head’s of Income - Long-
Term Capital Gain, Short-Term Capital Gain taxable - All Deductions u/s 80C to 80U except
Deduction u/s 80G.

12.80 GGA
Deduction in respect of Donation to Scientific Research or Rural Development.If donation is given
to an authorized scientific research center or any authority for rural development in India then it
is allowed as a deduction @ 100% of donation amount.

13.80 GGB / GGC

Deduction in respect of Donation to National Political Parties.If donation is given to National
Political Parties in India then it is allowed as a deduction @ 100% of donation amount.