deductions

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                    Introduction

  Deductions to be made [Section 80A] :
  The total income of an assessee is to be computed
  after making deductions permissible u/s 80C to 80U.
  However, the aggregate amount of deductions cannot
  exceed the Gross Total Income.
  No deduction from certain (following) Incomes :
      Long term Capital Gains referred u/s 112, and Short
      Term Capital gains referred u/s 111A.
      Winnings from lotteries, races, etc. as referred to in
      section 115BB.
      Incomes referred to in section 115A (1) (a), 115AC,
      115ACA, 115AD, 115BBA and 115D.


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         Deduction for Payment of
Life Insurance Premia, etc., [Section 80C]
Deduction under this section is allowed as follows –
Deduction is available only in respect of „specified
sums‟ actually paid or deposited during the previous
year (sum not actually paid and outstanding is not
allowed)
Specified sums must have been paid/deposited by
an Individual or HUF; and
The total amount of deduction under this section is
                   subject to a maximum limit of
                         Rs.1,00,000.




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    Contribution To Certain Pension Funds
               [Section 80CCC]
 Amount paid or deposited by individual in the previous
  year –
    out of his income chargeable to tax
    to effect or keep in force a contract for any annuity plan
     of LIC or any other insurer
    for receiving pension from the fund referred to in section
     10(23AAB).
 Quantum of Deduction: Deduction shall be allowed to
  the extent of lower of the following –
    Amount so paid or deposited; or
    Rs. 1,00,000



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Contribution to Pension Scheme of Central Government or
            any Other Employer [Sec. 80CCD]


 Deduction in respect of: Deduction is available in
   respect of both of the following –
    Sum deposited by assessee in his account in notified
     pension scheme; and
    Contribution made by Central Govt. or any other employer
     to assesse‟s A/c.
 Quantum of Deduction: Deduction shall be allowed to
  the extent of aggregate of the following -

  Sum paid/deposited by assessee to the credit of his a/c or 10% of salary,
  whichever is lower

  Sum contributed by the employer in assesse’s A/c or 10% of salary,
  whichever is lower


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Aggregate Limit u/s 80C, 80CCC & 80CCD


        The aggregate amount of
        deductions under section 80C,
        section 80CCC and section
        80CCD shall not, in any case,
        exceed Rs.1,00,000.




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            Deduction In Respect Of
      Health Insurance Premia [Sec. 80D]
 Deduction is available in respect of the amount paid to
  effect or to keep in force health insurance under a
  scheme –
    made by General Insurance Corporation of India (GIC) and
     approved by Central Government; or
    made by any other insurer and approved by Insurance
     Regulatory and Development Authority.
 Deduction shall be to the extent of lower of –
    Health insurance premia paid in respect of health of any
     member                         of that HUF; or
    Rs. 15,000 (Rs. 20,000 in case the insured is a senior
     citizen).



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      Maintenance of A Dependant Being
     Person With Disability [Section 80DD]

 Deduction is available in respect of –
    expenditure incurred for medical / treatment / nursing /
     training/ rehabilitation, or
    amount paid under scheme LIC / UTI other insurer
     approved by CBDT for maintenance, of a “dependant”,
     being a person with disability.
 Deduction shall be allowed to the extent of –
    Rs. 50,000 (Rs. 75,000 in case of dependant suffering with
     severe disability), irrespective of expenditure incurred or
     sum paid.




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            Deduction in respect of
     Medical Treatment, etc. [Sec. 80DDB]
 Deduction is available in respect of sum actually paid
  during previous year for medical treatment of prescribed
  disease or ailment for the following –
    In case of individual: himself or his spouse, children,
     parents, brothers and sisters,
    In case of HUF: its member(s),
    dependant mainly on such individual or HUF for his support
     and maintenance.
 Deduction shall be available to the extent of lower of the
                  following –
    sum actually paid; or
    Rs. 40,000 (Rs. 60,000 in case of a senior citizen).



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Deduction in respect of Interest on Loan
 taken for Higher Education [Sec.80E]

 Deduction in available in respect of
    sum paid by the assessee in the
    previous year, out of his income
    chargeable to tax, by way of interest
    on loan taken –
     for his higher education, or
     for the higher education of his
         relative.
 100% of the amount of interest on
    such loan Deduction will be admissible.
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   Deduction in respect of Donations
            [Section 80G]
 Deduction is allowed under this section to all assesses
  in respect of donations of sum of money in the
  following manner –
     100% deduction will be allowed if donations are given
      to any of the 19 specified funds.
     50% deduction will be allowed if donations made to any
      of the 5 specified funds.
     100% deduction shall be allowed subject to the
      qualifying amount if donations are made for promoting
      family planning.
     50% deduction shall be allowed subject to the
      qualifying amount if donations are made towards any of
      the 5 specified purposes.


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 Deductions in respect of Rents Paid
            [Sec.80GG]
 Rent actually paid for any furnished or
  unfurnished      residential  accommodation
  occupied by the Individual, who is not in
  receipt of any House Rent Allowance (HRA).
 The deduction shall be allowed to the extent
  of least of the following –
   Rs. 2,000 per month;
   25% of adjusted total income;
   Rent paid less 10% of adjusted Total
     Income.

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      Deduction in respect of person with
           Disability [Section 80U]


  Eligible Assessee: Individual resident
   in India, who, at any time during the
   previous year, is certified by the
   medical authority to be a person with
   disability
  Deduction: Rs. 50,000 (Rs. 75,000
   for     severe   disability).  Severe
   disability means 80% or more of
   disability.
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               Other Deductions
  Deduction in respect of certain Donations for Scientific
  Research or Rural Development [Sec.80GGA]
  Deduction in respect of Contribution to Political Parties
  [Sec. 80GGB & 80GGC]
  Profits & Gains from Industrial Undertaking engaged in
  Infrastructure Development [Sec. 80 IA]
  Profits & Gains from Undertaking engaged in
  Development of SEZs [Sec. 80IAB]
  Profits & Gains from Industrial Undertaking engaged in
  other than in Infrastructure Development [Sec.80IB]




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 Contd…
    Deduction available to certain Undertakings in certain
    Special category States [Sec.80IC]
    Profits & Gains from business of Hotels & Convention
    Centre in Specified Areas [Sec. 80ID]
    Special provisions in respect of certain Undertakings
    in North-Eastern States [Sec. 80IE]
    Deduction available to assessee in the business of
    Collecting & Processing Bio-Degradable Waste
                     [Sec.80JJA]
    Deduction in respect of Employment of New Workmen
    [Sec. 80JJAA]



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 Contd…
    Deduction from incomes of Off-shore Banking Units
    &    International    Financial Services   Centre
    [Sec.80LA]
    Deduction in respect of income of Co-operative
    Society [Sec. 80P]
    Deduction in respect of Royalty Income, etc. of
    Author of certain Books other than Text Books
    [Sec.80QQB]
    Deduction in respect of Royalty Income of Patents
                    [Sec. 80 RRB]


                                            Index
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