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Provided by the Income Tax Act, 1961.
Contained in Chapter VI – A and in the form of deductions from section 80C to 80U.
They are the permissible amount by which the gross total income is reduced to arrive at the total income liable to tax. They are intended to act as incentive to the assessee for achieving certain economic objectives.
Basic Rules Rule 1 The aggregate amount of deductions under sections 80C to 80U cannot exceed gross total income. Rule 2 These deductions are to be allowed only if the assessee claims these and gives the proof of such investments/ expenditure/ income.professoraugustin. www.com .
com . For certain personal expenditure 3. To encourage savings 2.Categories of Deductions 1. For physically disabled persons www. For socially desirable activities 4.professoraugustin.
professoraugustin.Deduction u/s 80C From AY 2007-08 onwards. Applicable only to Individual & HUF.com . This section provides for deduction in respect of certain expenditure/ investments paid or deposited by the assessee in the previous year. www.
Statutory Provident Fund and Recognized Provident Fund. 15 Year Public Provident Fund. Dhanraksha Plan of LIC Mutual Fund.professoraugustin. Jeevan Akshay. Notified Units of Mutual Fund or UTI. Unit-linked Insurance Plan (Ulip). Approved Superannuation Fund. Jeevan Dhara. New Jeevan Dhara.com . National Savings Certificates. Deferred Annuity Contract.The gross qualifying amount under this section refer to the payment/investment under some of the following schemes:Life Insurance Premium Paid. www.
com .Amount of Deduction 100% of the amount invested or Rs. 1. www.professoraugustin.000/whichever is lower.00.
Deduction u/s 80CCC Deduction in respect of Contribution to Certain Pension Funds.professoraugustin.com . www. Individual Eligible Amount – amount paid/deposited under an annuity plan of the Life Insurance Corporation of India or any other insurer for receiving pension.
Conditions Taxable income.professoraugustin.whichever is lower. Amount of Deduction Amount paid or Rs.com .000/. Any amount withdrawn or pension received from the plan is taxable in the hands of the assessee or nominee in the year of receipt. 10. This must not be allowed as deduction u/s 80C. www.
com .professoraugustin.1.Deduction u/s 80CCD Deduction in Respect of Contribution to Pension Scheme of Central Government. Individual who is an employee of Central Government on or after 1. Eligible Amount – Deposit made under a pension scheme notified by the Central Government. www.2004.
com . Amount of Deduction Aggregate of amount deposited by the employee and the Central government.professoraugustin. www. whichever is lower. Any amount received from the scheme. is taxable in the hands of the assess in that year or receipt.Conditions No deduction must have been claimed u/s 80C. or 10% of the salary. Salary for the purpose of this section includes dearness allowance if under the terms of employment.
com .1.000 www.professoraugustin.00.The aggregate amount of deductions under 80C. 80CCC and 80CCD put together cannot exceed Rs.
www. Individuals/HUF.Deduction u/s 80D Deduction in respect of Medical Insurance Premia. Eligible Amount .com .professoraugustin.Insurance premium paid in accordance with the scheme framed by the General Insurance Corporation of India and approved by the Central Government.
on the health of spouse.Conditions The amount should be paid by cheque out of the taxable income. The policy is taken on the health of the assessee.com . www.000 in case of senior citizens (above 65 years) Rs. Amount of Deduction 100% of premium paid subject to a maximum of: Rs.professoraugustin. 10.000 in case of others. 15. dependent parents or dependent children of the assessee. In case of HUF on the health of any member of the family.
Deduction u/s 80DD Deduction in respect of dependent relative. Eligible Amount – expenditure incurred on medical treatment OR/AND amount paid or deposited under any scheme framed by the LIC of India or any other insurer for the payment of an annuity or a lump sum amount for the benefit of such dependent www. Individuals/HUF who is a Resident of India.com .professoraugustin.
Person with severe disabilities means a person suffering from 80% or more of one or more disabilities.000 in case of normal disabilities and Rs. 75000 in case of severe disabilities.com . Amount of Deduction Rs. or any member of the family in case of HUF. Dependant means the spouse. This is irrespective of the amount expended. parents and siblings in case of individuals.Conditions The assess shall have to furnish a certificate in the prescribed form.professoraugustin. 50. www. children.
etc) for self or dependant individual. Parkinson's disease. malignant cancers. chronic renal failure. www.professoraugustin. full blown AIDS. Eligible amount – expenditure incurred for the medical treatment of such diseases specified in Rule 11D(e.g.com .Deduction u/s 80DDB Deduction In Respect Of Medical Treatment Individuals/HUF who is a Resident of India.
children. 10-1 along with the return of income. Dependant again means the spouse.Conditions The concerned assessee must attach a copy of certificate in the prescribed Form no.com . or any member of the family in case of HUF. The deduction shall be reduced by the amount received. under an insurance from an insurer for the medical treatment of person mentioned in this section or reimbursed by the employer. parents and siblings in case of individuals. if any.professoraugustin. www.
000 in the case of others. 60.com . 40.Amount of Deduction 100% of the expenses incurred subject to a maximum of Rs.000 in the case of expenses incurred for senior citizens (above 65 years) Rs. www.professoraugustin.
www.Deduction u/s 80E Deduction in respect of repayment of loan taken for higher education.com . Individual Eligible Amount – any amount paid by way of interest on loan taken from any financial institution or any approved charitable institution for higher education.professoraugustin.
professoraugustin.com . management or for post-graduate course in applied science or pure sciences including mathematics and statistics. www. medicine. the deduction shall be allowed for the previous year in which the assessee starts repaying the loan or interest thereon and seven previous years immediately succeeding it or until the loan together with interest thereon is paid by the assessee in full .whichever is earlier. Higher education means full-time studies for any graduate or post-graduate course in engineering.Conditions Amount is paid out of his income chargeable to tax.
professoraugustin.000 whichever is lower. Approved Charitable Institutions means an institution referred u/s 10(23C) of the act. www.Financial institution means banking company or financial institution notified by the central government. Amount of Deduction Actual interest paid or Rs.com . 40.
Any assessee other than assessee having income allowance consisting HRA.Deduction u/s 80GG Deduction in respect of amount of rent paid. www.professoraugustin.com . Eligible Amount – Any expenditure incurred by him on payment of rent in excess of 10% of his total income.
professoraugustin. Deduction under this section can be claimed even if accommodation at concessional rent is provided by the employer. Such accommodation is occupied by him for his own residence. 10BA regarding the payment of rent. short term capital gain taxable u/s 111A.Conditions The assessee files a declaration in Form No.com . and all deductions u/s 80CCC to 80U except any deduction under this section. www. Adjusted Gross Total income( Adj.GTI) for this purpose means his gross total income minus long-term capital gain.
www. 2.professoraugustin.m.Amount of Deduction The amount of deduction under this section will be the least of the followingexcess of actual rent paid over 10% of adjusted gross total income: 25% of his adjusted gross total income. and Rs.000 p.com .
Individual resident of India.Deduction u/s 80U Deduction in case of person with disability.professoraugustin. www. Eligible amount – Flat deduction to a person with disability.com .
com . at any time during the previous year. 75. 50.000 in case of a person with severe disability.( having any disability over 80%) www.professoraugustin.Conditions He is certified by the medical authority to be a person with disability. He furnishes a certificate issued by the medical authority in the prescribed form along the return of income. Amount of Deduction A fixed deduction of Rs.000 in case of a person with disability Rs.
www.com .professoraugustin. Out of this gross total income certain deductions are allowed.Conclusion Under the income tax act first of all income under each head is computed. The income after such deductions is called ‘Total Income’ The total deductions from section 80 C .80 U cannot exceed the total income. The aggregate of income under each head is known as ‘Gross Total Income’.
professoraugustin.Anthony Cruz – 05A012 Amit D’Souza – 05A007 Jayson Pereira – 05A025 www.com .
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