Presented To : Anjani Tomar Ma’am

Presented By : Dhruv Brahmbhatt (18MB03)

(MBA 2018-20 Batch)
Introduction
Provided by the Income Tax Act, 1961.

Contained in Chapter VI – A 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 assessee for

achieving certain economic objective.
What is Income Tax Deduction?

A Tax Deduction reduces the amount

of income that is subject to tax
DEDUCTION IN RESPECT OF LIFE INSURANCE
PREMIUM, ETC. (SEC. 80C)

1) Life Insurance Policies payments (for spouse, self or

children)
2) Superannuation/provident fund payments
3) Payment made towards tuition fees to educate maximum
two children
4) Payments for construction or buying of a residential
property
5) Payments made towards a fixed deposit of minimum tenure
of 5 years
6) The Section 80C of the IT Act 1961 offers several
additional deductions such as mutual funds investment,
buying NABARD bonds, senior citizens savings schemes
etc.
 Allowed Eligible Petitioner
Section
Limit(Max) (Claimant)

Rs 1.5 lakhs
(cumulative of Hindu Undivided
80C
80C, 80CCC and Families/Individuals
80CCD)
DEDUCTION IN RESPECT OF PENSION FUND
(SEC. 80CCC)

Allowed Eligible Petitioner

Section
Limit(Max) (Claimant)

Rs 1.5 lakhs
(cumulative of
80CCC Individuals
80C, 80CCC and
80CCD)
DEDUCTION IN RESPECT OF CONTRIBUTION
TO PENSION SCHEME OF CENTRAL GOVT.
(SEC. 80CCD)

Section Allowed Limit(Max) Eligible Petitioner (Claimant)

Rs 1.5 lakhs
80CCD (cumulative of 80C, Individuals
80CCC and 80CCD)

He is employed by the Central Government on or after January 1, 2004.

Amount of Deduction

A) The total employee’s contribution and employer’s contribution to the

notified pension scheme during the year. OR
B) 10% of salary of the employee.
Whichever is less
DEDUCTION IN RESPECT OF MEDICAL
INSURANCE PREMIUM SEC 80D

Section Allowed Limit(Max) Eligible Petitioner (Claimant)

Hindu Undivided
80D Rs. 20, 000
Families/Resident Individuals

The aforesaid premium is paid by cheque

Mediclaim policy is taken on the health of the taxpayer, on the health
of spouse, dependent parents or dependent children of the taxpayer. In
case of HUF on the health of any member of the family.
Amount of Deduction:

a)Insurance premium paid OR

b)Rs. 15,000 For Spouse/Children ( For Senior Citizen Rs. 20,000)(Amended)
whichever is lower, is deductible.
DEDUCTION IN RESPECT OF DISABILITY OF
DEPENDENT SEC. 80 DD

Section Allowed Limit(Max) Eligible Petitioner (Claimant)

Rs. 75, 000 (general
disability) Hindu Undivided
80 DD
Rs. 1. 25 lakhs (critical Families/Resident Individuals
disability)
• A person with disability means a person suffering from disabilities like
autism, cerebral palsy, mental retardation, etc.
• In this case, the dependant can either be parents, spouse,
children or siblings.
Amount of Deduction
Rs. 75,000 for Normal Disability.
In case of a person with severe/critical 1.25 lakhs Rs.
DEDUCTION IN RESPECT OF MEDICAL
TREATMENT SECTION 80DDB

Section Allowed Limit(Max) Eligible Petitioner (Claimant)

Rs. 60, 000 (senior
Hindu Undivided
80DDB citizens)
Families/Resident Individuals
Rs. 40, 000 (others)

• The assessee has actually paid for the medical treatment of specified
disease or ailment, for himself or any dependent or in case of HUF any
member of the family.

Amount of deduction

a) The amount paid OR

b)Rs. 40,000 (For senior citizen Rs. 60,000 )
whichever is less;
DEDUCTION IN RESPECT OF REPAYMENT OF
LOAN TAKEN FOR HIGHER EDUCATION –
SEC. 80E

Deduction is available if:-

• He/She has taken a loan from any financial institution (bank)

or an approved Charitable Institution.
• The loan is taken is for the purpose of pursuing his higher education.

Amount of deduction:

a)The entire amount paid by way of interest on such loan

b) or Rs.40,000
whichever is less is deductible in this section.
DONATION TO CERTAIN FUNDS,
CHARITABLE INSTITUTION ETC. SEC. 80G

A. Donations made to following are eligible for 100% deduction without any qualifying limit.
1. Prime Minister’s National Relief Fund
2. National Defence Fund
3. Prime Minister’s Armenia Earthquake Relief Fund
4. The Africa (Public Contribution - India) Fund
5. Approved university or educational institution of national.
6. The Chief Minister’s Earthquake Relief Fund, Maharashtra
7. Donations made to Zila Saksharta Samitis.
B. Donations made to the following are eligible for 50% deduction without any qualifying limit.
1. Jawaharlal Nehru Memorial Fund
2. Prime Minister’s Drought Relief Fund
3. National Children’s Fund
4. Indira Gandhi Memorial Trust
5. The Rajiv Gandhi Foundation.
DEDUCTION IN RESPECT OF CERTAIN DONATION
FOR SCIENTIFIC RESEARCH OR RURAL
DEVELOPMENT- SEC. 80GGA

1) Sums paid to an approved scientific research association.

2) Sum paid to approved university, college or institution.
3) Sum paid to approved association for rural development
etc.
4) Donations made by such members towards the National
Poverty Eradication Fund

Amount of deduction:
100% of Contribution.
DEDUCTION IN RESPECT TO CONTRIBUTION TO
POLITICAL PARTIES SEC-80 GGB & GGC

Section Allowed Limit(Max) Eligible Petitioner (Claimant)

Depending on
80 GGB Indian Companies
quantum of donation
All assessee except local or
Depending on
artificial judicial
80 GGC quantum of donation
authorities funded by
Government

Amount of deduction:

100 % of Contribution is Deduct.

DEDUCTION IN RESPECT OF POFITS AND GAINS
FROM INDUSTRIAL UNDERTAKINGS ENGAGED IN
INFRASTRUCTURE DEVELOPMENT SEC. 80 IA

An enterprise carrying on the business of any infrastructure facility

shall be entitled if it fulfills the conditions:-

1) It is owned by a company registered in India.

2) This section Claim a tax deduction on the gains produced via
industrial activities.
3) Industrial enterprises can be related to power generation,
telecommunication, SEZs, industrial parks etc.

Amount of deduction:

100% for 10 consecutive years.

DEDUCTION IN RESPECT OF POFITS AND GAINS
FROM BUSINESS OF COLLECTING AND PROCESSING OF
BIO-DEGRADABLE WASTE SEC. 80 JJA

 Any profit and gains derived from the business of

collecting and processing or treating of bio-
degradable waste for generating power or producing
bio-fertilizers, bio-pesticides or other biological
agents or for producing bio-gas or making fuel or
organic manure.
 A deduction equivalent to 100 per cent of the profit
generated for 5 consecutive years since the
establishment of the business can be availed by
such assesse.
DEDUCTION IN RESPECT OF EMPLOYMENT OF
NEW WORKMEN – SEC 80 JJAA

 Being an Indian company.

 There shall be allowed a deduction of an amount
equal to 30% of additional wages paid to the new
regular workmen by the assessee.
 For the tenure of 3 assessment years.
DEDUCTION IN RESPECT OF ROYALTY INCOME OF
AUTHORS SEC-80 QQB

 The tax payer should be an individual resident in India.

 He is an author.
 The books authored by him is work of literacy, artistic or
scientific nature.
 However royalties from diaries, journals, textbooks, etc.
are not eligible for tax benefits.

Amount of Deduction:

A) Rs. 3,00,000 or
B)Actual royalty income
Whichever is lower.
DEDUCTION IN RESPECT OF ROYALTY
INCOME OF PATENT HOLDERS SEC-80 RRB

1) Tax relief to local individuals receiving income through

a royalty on their patent.
2) They can claim royalty up to a limit of Rs. 3 lakhs as a
deduction, depending on the registered patent after
March 31, 2003.

Amount of Deduction:

A) Rs. 3,00,000 or
B)Actual royalty income
Whichever is lower.
DEDUCTION IN RESPECT OF INTEREST
INCURRED IN BANK SAVINGS ACCOUNTS
SECTION 80-TTA

Section Allowed Limit(Max) Eligible Petitioner (Claimant)

Hindu Undivided
80 TTA Rs. 10, 000 per year
Families/Resident Individuals

• Under this section, they are allowed deductions up to Rs. 10, 000 every year
on the interest incurred on the investment made in bank savings accounts in
the nation.
Amount of deduction

a) The actual amount OR

b)Rs. 10,000
whichever is less;
DEDUCTION IN RESPECT OF A PERSON WITH
DISABILITY SEC- 80 U

Tax payer himself/herself to be Person with

Disability (PwD)
– Blindness
– Low vision
– Leprosy-cured
– Mental retardation
– Mental illness
– Autism etc.

Amount of Deduction:

1) Rs. 75,000 if normal disability (up to 80%)

2) Rs. 1,25,000 any severe/critical disability (over
80%)