DEDUCTION FROM GROSS TOTAL INCOME- CHAPTER VI-A

DEDUCTION FROM GROSS TOTAL INCOME- CHAPTER VI-A

I Deductions in respect of certain payments

80C		Individual or HUF		contribution to PPF, Payment of LIC premium, etc. Sums paid our deposit in the previous year by way of -          Life insurance premium. -          Contribution to PPF/ SPF/ RPF and approved superannuation fund -          Repayment of housing loan taken from Govt., Bank, LIC, specified employer etc. -          Tuition fees to any Indian university, collage, school for full-time education of any two children -          Term deposit for a fixed period not less than 5 years with schedule bank -          Subscription to notified bond of NABARD -          Five-year post-office time deposit -          Senior citizen’s saving scheme Account etc. -          Contribution by CG (Central Government) employee to additional account (Tier II A/c) of NPS referred to u/s 80CCD					Sum paid or deposited, subject to a maximum of ₹1,50,000
80CCC		Individual		Contribution to certain pension funds Any amount paid or deposited to keep in force a contract for any annuity plan of LLC of India or any other insurer for receiving pension from depot					Sum paid or deposited, subject to a maximum of ₹1,50,000
80CCD		Individual employed by CG (central government) or any other employer any, other individual assesses.		contribution to pension scheme of CG (central government) An individual employed by the CG (central government) on or after 1.1.2014 or any other employer or any other assessee, being an individual, who have paid or deposited any amount in his account under a notified pension scheme (to hit individual pension account (tier I A/C) t under NPS & Atal pension yojana.					Employee’s contribution/ Individual’s Contribution In case of a salaried individual, deduction of own contribution u/s 80CCD (1) is restricted to 10% of his salary. In case other case deduction u/s 80CCD (1) is restricted to 20% of gross total income. Further, additional deduction of up-to ₹50,000 is available u/s 80CCD (1B) Employer’s Contribution The entire employer’s contribution would be included in the salary of the employee. The deduction of employer’s contribution u/s 80CCD (2) would be restricted to 14% of salary, where the employer is the CG; and 10%, in case of any other employer.
Note- As per section 80CCE, maximum permissible deduction u/s 80C, 80CCD (1) is ₹1,50,000. However, the limit ₹1,50,000 u/s 80CCE does not apply to deduction u/s 80CCD (2) and 80CCD(1B)
80D		Individual or HUF		Medical Insurance Premium 1.        Any premium paid, otherwise than by way of cash, to keep in force insurance on the health of   In case of an Individual Self, Spouse, and dependent children In case of HUF Family members   2.        In case of an individual contribution, otherwise than by way of cash, to CGHS or any other scheme as notified by CG 3.        Any premium paid, otherwise than by way of cash, to keep in force insurance on the health of parents, whether dependent on the individual or not Notes: (i.)                   Any amt paid, otherwise than by way of cash, on account of medical expenditure incurred on the health of the Assessee or his spouse, dependent children, or his parent, who is a senior citizen and no amt has been paid to effect or to keep in force an insurance on the health of such person. (ii.)                Payment, including cash payment, for preventive health checkup of himself, spouse, dependent children, and parents.					Maximum R25,000 (R50,000, in case the individual or his or her spouse is a senior citizen)       Maximum R25,000 (R50,000, in case either or both parents are senior citizens)   Amount paid subject to a cap of R50,000 (in case one parent is a senior citizen, in respect of whom insurance premium is paid, and the other is a senior citizen on whom medical expenditure is incurred, the total deduction cannot exceed R50,000) Amount paid subject to a cap of R5,000, in aggregate (subject to the overall individual limits of R25,000/ R50,000, as the case may be)
80DD		Resident Individual or HUF		Maintenance including medical treatment of a dependent disabled Any amt incurred for the medical treatment (including nursing), training and rehabilitation of a dependent disabled and / or Any amt paid or deposited under the scheme framed in this behalf by the LIC or any other insurer or Administrator or Specified Company and approved by Board Meaning of Dependent   In case of an Individual Self, Spouse, and dependent children In case of HUF Any members Persons mentioned in column (2) should be wholly or mainly dependent on the person mentioned in corresponding column (1) for support and maintenance. Such persons should not have claimed deduction u/s 80U in computing TI of that year.					Flat deduction of R75,000. In case of severe disability (i.e., person with 80% or more disability) the flat deduction shall be R1,25,000.
80DB		Resident Individual or HUF		Deduction for medical treatment of specified diseases or ailments Amount paid for specified diseases or ailment   Assessee Amount spent Individual For himself or his dependent being spouse, children, parents, brothers, or sisters wholly or mainly dependent on the individual for support and maintenance HUF For any members					1.        Actual sum paid               Or 2.        ₹40,000 (₹1,00,000 if the payment is for medical treatment of a senior citizen) Whichever is lower – (minus) the amt received from the insurance company or reimbursed by the employer
80E		Individual		Interest on loan taken for higher education Interest on loan taken from any financial institution (FI) or approved charitable institution. Such loan is taken for pursuing his higher education or higher education of his or her relative i.e., spouse or children of the individual or the student for whom the individual is the legal guardian.					The deduction is available for interest payment in the initial A.Y (year of commencement of interest payment) and seven A.Y. immediately succeeding the initial A.Y. Or until the interest is paid in full by the assessee, whichever is earlier
80EE		Individual		Deduction for interest on loan borrowed from any FI [bank/ housing finance company (HFC)] for acquisition of residential house property					Deduction of up to ₹50,000 would be allowed in respect of interest on loan taken from a FI Conditions Loan should be sanctioned during P.Y. 2016-17 Loan sanctioned ≤ ₹35 lakhs Value of house ≤ ₹50 lakhs The assessee should not own any residential house on the date of sanction of loan.
80EEA		Individual		Deduction in respect of interest payable on loan taken from a FI (bank or HFC) for acquisition of residential house property (In case the property is self-occupied, the deduction would be over and above the deduction of ₹2 lakhs u/s 24)					Deduction of up to ₹.1,50,000 would be allowed in respect of interest payable on loan taken from a FI for acquisition of house property. Conditions: • Loan should be sanctioned by a FI during the period between 1 st April 2019 to 31st March 2022. • Stamp Duty Value of house ≤ ₹45 lakhs • The individual should not own any residential house on the date of sanction of loan. • The individual should not be eligible to claim deduction u/s 80EE.
80EEB		Individual		Deduction in respect of interest payable on loan taken from a FI (bank or certain NBFCs) for purchase of electric vehicle					Deduction of up to ₹1,50,000 would be allowed in respect of interest payable on loan taken for purchase of electric vehicle. Loan should be sanctioned by a FI during the period from 1.4.2019 to 31.3.2023
80G		All Assessees		Donations to certain funds, charitable institutions etc. There are four categories of deduction:   S.no Category Donee 1. 100% deduction of amount donated, without any qualifying limit Prime Minister’s National Relief Fund, National Children’s Fund, Swachh Bharat Kosh, National Defence Fund, PM CARES Fund etc. 2. 50% deduction of amount donated, without any qualifying limit Prime Minister’s Drought Relief Fund, Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation. 3. 100% deduction of amount donated, subject to qualifying limit Government or local authority, institution for promotion of family planning etc. 4. 50% deduction of amount donated, without any qualifying limit Government or any local authority to be used for charitable purpose, other than promotion of family planning, notified temple, church, gurudwara, mosque etc   Computation of Qualifying limits for category 3 & 4 donation Step 1: Compute adjusted total income, i.e., the gross total income as reduced by the following: 1. Deduction under Chapter VI-A, excepts u/s 80G 2. Short term capital gains taxable u/s 111A 3. Long term capital gains taxable u/s 112 & 112A Step 2: Calculate 10% of adjusted total income. Step 3: Calculate the actual donation, which is subject to qualifying limit Step 4: Lower of Step 2 or Step 3 is the maximum permissible deduction. Step 5: The said deduction is adjusted first against donations qualifying for 100% deduction (i.e., Category III donations). Thereafter, 50% of balance qualifies for deduction u/s 80G.   Note:- No deduction shall be allowed for donation in excess of ₹2,000, if paid in cash.
80GG		Individual not in receipt of house rent allowance		Rent paid for residential accommodation				Least of the following is allowable as deduction: (1) 25% of total income. (2) Rent paid – 10% of total income (3) ₹5,000 p.m.  No deduction if any residential accommodation is owned by the assessee/ his spouse/ minor child/ HUF at the place where he ordinarily resides or performs the duties of his office or employment or carries on his business or profession.
80GGA		Assessee not having income chargeable under the head “PGBP”		Donation made for scientific research or to National Urban Poverty Eradication Fund etc. - any sum paid to a research association which has, as its object the undertaking of scientific research or to a university/ college/ institution [approved u/s 35(1)(ii)] to be used for scientific research. - any sum paid to a research association which has as its object the undertaking of research in social science or statistical research or to a university/ college/ institution [approved u/s 35(1)(iii)] to be used for research in social science or statistical research. - any sum paid to the National Urban Poverty Eradication Fund set up and notified by the CG for the purposes of section 35CCA(1)(d). Note - No deduction shall be allowed for donation in excess of ₹2,000, if paid in cash.
80GGB		Indian Company		Contributions to political parties Any sum contributed by it to a registered political party or an electoral trust.				Actual Contribution (otherwise than by way of cash)
80GGC		Any person, other than local authority and an artificial juridical person funded by the Govt.		Contributions to political parties Amount contributed to a registered political party or an electoral trust.				Actual contribution (otherwise than by way of cash)
II Deductions in respect of Certain Incomes
As per section 80AC, furnishing return of income on or before due date is mandatory for claiming deduction in respect of certain incomes. Refer table no 2 for deduction under sections 80-IA to 80-IE.
Section		Eligible Assessee		Eligible Income				Permission Deduction
80JJA		An assessee whose GTI includes profits and gains derived from the business of collecting and processing or treating biodegradable waste		Deduction in respect of profits and gains derived from the business of collecting and processing or treating of biodegradable waste – (1) for generating power; or (2) producing bio-fertilizers, bio-pesticides, or other biological agents; or (3) for producing biogas; or (4) making pellets or briquettes for fuel or organic manure.				Deduction is allowable for an amt equal to the whole of such profits and gains for a period of 5 consecutive A.Ys. beginning with the A.Y. relevant to the P.Y. in which the business commences.
80JJAA		An assessee to whom section 44AB applies, whose Gross total income includes profits and gains derived from business		Deduction in respect of employment of new employees				30% of additional employee cost incurred in the P.Y. Deduction is allowable for 3 A.Ys. including A.Y. relevant to the P.Y. in which such employment is provided. Note: For conditions to be satisfied, read Chapter 11 of Module 2 of the Study Material.
80M		A domestic company		Deduction in respect of inter-corporate dividend Any income by way of dividends received from any other domestic company or foreign company or a business trust.				Amount of dividend received from other domestic company or foreign company or business trust or the amt of dividend distributed by such domestic company on or before the due date i.e., one month prior to the date of furnishing return of income, whichever is less.
80QQB		Resident individual, being an author		Royalty income, etc., of authors of certain books other than textbooks Consideration for assignment or grant of any of his interests in the copyright of any book, being a work of literary, artistic, or scientific nature or royalty or copyright fee received as lumpsum or otherwise.				Income derived in the exercise of profession or ₹3,00,000, whichever is less. In respect of royalty or copyright fee received otherwise than by way of lumpsum, income to be restricted to 15% of value of books sold during the relevant P.Y.
80RRB		Resident individual, being a patentee		Royalty on Patents Any income by way of royalty on patents registered on or after 1.4.2003				Whole of such income or ₹3,00,000, whichever is less.
III Deductions in respect of Other Income
80TTA		Individual or HUF, other than a resident senior citizen		Interest on deposits in savings account Interest on deposits in a savings account with a bank, a co-operative society, or a post office (not being time deposits, which are repayable on expiry of fixed periods)				Actual interest subject to a maximum of ₹10,000.
80TTB		Resident senior citizen (i.e., an individual of the age of 60 years or more at any time during the previous year)		Interest on deposits Interest on deposits (both fixed deposits and saving accounts) with banking company, co-operative society engaged in the business of banking or a post office				Actual interest or ₹50,000, whichever is less.
IV Other Deductions
80U		Resident Individual		Deduction in case of a person with disability Any person, who is certified by the medical authority to be a person with disability.				Flat deduction of ₹75,000, in case of a person with disability. Flat deduction of ₹1,25,000, in case of a person with severe disability (80% or more disability).
80-IA		(i)      Developing; or (ii)     Operating and maintaining; or (iii)   D e v e l o p i n g , operating and maintaining any         infrastructure    facility				On or after 1.4.1995 but not later than 1.4.2017	Infrastructure Facility of road, or a bridge or a rail system or a highway project or a water supply project: 10 consecutive A.Ys. out of 20 years beginning from the year in which the enterprise develops or begins to operate the eligible business. Other eligible businesses: 10 consecutive A.Ys. out of 15 years beginning from the year in which the enterprise develops or begins to operate the eligible business.			100% of the profits and gains derived from such business for 10 consecutive A.Ys.
		(i)    Develops; or (ii)  Develops and operates; or (iii) Maintains and operates an industrial park				Industrial parks: Notified by the CG for the period on or after 1.4.1997 & ending on 31.3.2011.
		Power undertakings				Generation or Generation and distribution: Set up b/w 1.4.1993 & 31.3.2017. Transmission or distribution: Start transmission during the period from 1.4.1999 & 31.3.2017. Renovation and modernization of existing network: Undertakes substantial renovation and modernization during the period on or after 1.4.2004 & ending on 31.3.2017.
80-IAB		Development of Special Economic Zones (SEZs)				Develops SEZ, notified on or after 1.4.2005 but before 1.4.2017.	10 consecutive A.Ys. out of 15 years beginning from the year in SEZ have been notified			100% of the profits and gains derived from such business.
80-IAC		A business carried out by an eligible start-up engaged in innovation, development, or improvement of products or processes, or services or a scalable business model with a high potential for employment generation or wealth creation				The company or LLP is incorporated during the period 1.4.2016 - 31.3.2022	3 consecutive A.Ys. out of 10 years beginning from the year in which the company or LLP, was incorporated. Total turnover should not exceed R100 crores in the P.Y. relevant to the A.Y. for which deduction is claimed			100% of the profits and gains derived from such business.
80-IB		1	An industrial undertaking, being a co-operative society including a small-scale industrial undertaking (SSI) in Jammu and Kashmir			Begins to manufacture or production of any article or thing or operate cold storage plant during the period 1-4-1993 and 31-3- 2012.	Not exceeding 12 consecutive A.Ys.			100% of the profits and gains derived from such industrial undertaking for the initial 5 A.Ys. and thereafter 25% of such profits and gains.
		2	Commercial production of mineral oil or commercial production of natural gas in licensed blocks			Commercial production of mineral oil: On or after 1.4.1997 but not later than 31.3.2017 Commercial production of natural gas: On or after 1.4.2009 but not later than 31.3.2017	7 consecutive A.Ys. including the initial Assessment Year			100% of the profits and gains from such business
		3	P r o c e s s I n g, preservation, and packaging of fruits or vegetables or meat and meat products or poultry or marine or dairy products or from the integrated business of handling, storage, and transportation of foodgrains			Processing, preservation, and packaging of meat or meat products or poultry or marine or dairy products: On or after 1.4.2009 Other eligible businesses: On or after 1.4.2001	10 consecutive A.Ys. beginning with the initial A.Y.			100% of the profits and gains derived from such business for 5 A.Ys. beginning with the initial A.Y. 25% (30% in case of a company) for remaining 5 years
80-IBA		(i)     (ii)	Developing and building housing projects [Section 80-IBA (1)]; or rental housing project [Section 80-IBA(1A)] notified by the CG on or before 31.3.2022 and fulfilling the specified conditions			Housing Project referred u/s 80-IBA(1) is approved after 1.6.2016 but on or before 31.3.2022 and the project is completed within 5 years from the date of approval by the competent authority				100% of the profits and gains derived from the such housing projects.
80-IE	Undertaking begun or begins, in any of the NorthEastern States (i.e., the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura) - (1) to manufacture or produce any eligible article or thing; (2) to undertake substantial expansion to manufacture or produce any eligible article or thing; (3) to carry on any eligible business.				between 1.4.2007 and ending before 1.4.2017		10 consecutive A.Ys. commencing with the initial A.Y.			100% of the profits and gains derived from such business