What is Taxable Income ?
Income Computed in Accordance With the provisions of the
Income Tax Act Shall Alone be deemed as the income of the assesse and which is
included in the gross total income.
What is Income -Tax Deduction Section 80C to 80U ?
Now we discuss Deduction and they are Section in given below
.
1.Deduction Under Section (U/S)- 80C
Deduction in
respect of Payment for life insurance premium, Own Contribution
to Provident Fund, Purchase of N.S.C and Post office Cumulative Time deposit
etc. by an individual or a Hindu Undivided (HUF) following payments are eligible for
deduction U/S- 80C subject to maximum of Rs.1,50,000 along with deduction u/S-
80CCC, 80CD and 80CCE
2. Deduction Under Section (U/S)- 80CCC
Deduction in respect of
Contribution to Pension Fund of LIC or other insurance Company U/s-
80CCC Deduction is allowable to an individual for the Amount Paid or deposited by him During the previous year
out of his income chargeable to annuity plan of LIC or annuity plan of other
insurance Companies for receiving pension from the fund under pension scheme.
Maximum Amount of deduction is
Rs.1,00,000/-
3.Deduction Under Section (U/S)- 80CCD
Deduction is allowable to an individual for the amount paid
or deposited by a Central Government employee or by any other employee to the
employee’s account in a notified pension scheme of Central Government subject
to a maximum of 10% of his Salary.
[Note:- Salary includes Basic +Da ,if the terms of
employment so provide ]
4. Limit of deduction U/s- 80C, 80CCC and 80CCD [Sec. 80CCE]
According to Sec . 80CCE the permissible deduction u/s 80C.
80CCC and 80CCD Cannot Exceed the Overall limit of Rs.1,50,000/-.
5. Deduction U/s 80 CCG in Respect of investment made under an equity savings Scheme.
This deduction is allowable
to an individual and resident in india
provided that :
i)
Assessee acquired listed equity shares in
accordance with the scheme as may be notified by the Central
Govt.
ii)
Gross total income of the assesse for the
relevant assessment year should not
exceed Rs.10,00,000/-
iii)
Assessee is a New retail investor in respect of above
notified scheme.
iv)
The amount so invested is locked in for a period
of thee years from the date of acquisition of such listed equity shares.
v)
The investor satisfied such other condition as may be prescribed.
Amount of deduction
The amount of deduction is 50% of actual
investment or Rs.25,000/- whichever is less
The deduction is allowable to an assesse resident in India
being an individual or a HUF for payment of medical insurance premium and other
health schemes alike CGHS provided that:
i)
The amount was paid by any Mode of payment other
than cash out of income Chargeable to Tax.
ii)
The Amount Was Paid on a Policy under a Scheme
of health insurance to the General
Insurance Corporation of India or any
Other Insurer Approved by the insurance
regulatory and development Authority.
iii)
In case of an individual ,the premium was
paid on the health of tax-payer od his
/her spouse or dependent children or parents .
iv)
In case of HUF , The premium was paid On The
health of any Member of the Family .
Amount of deduction
(a)
On the Health of the Assesse , Spouse and dependent Children : Maximum amount of
deduction is Rs.15,000/- for a Senior citizen (Age exceeding 60 years)…the Maximum
deduction will be Rs.20,000/-
(b)
On the Health of parent or parents (Whether
dependent or not ):Maximum deduction will be Rs.15,000/- for a senior citizen maximum amount will be
Rs.20,000/-
(c)
For H.U.F : Maximum amount Rs.15,000/- for a
Senior Citizen Maximum Deduction Will be
Rs.20,000/-
(d)
Amount Paid for preventive Health checkup of
self ,Spouse , dependent children and Parents can not Rs.5000/- and shall be
Within the over all ceiling as above a, b & c.
7) Deduction U/s- 80DD [ Medical
Treatment and Maintenance of Handicapped dependants]
The deduction is allowable to an
assesse resident in india being an individual or a HUF for
(a)
Any Expenditure incurred by way of medical
Treatment and rehabilitation of a
handicapped dependent.
(b)
Deposit in any scheme of the LIC or UTI or any Other insurer approved by the CBDT for the benefit
of handicapped dependants.
Amount of Deduction
The Amount of deduction is
Rs.50,000/- irrespective of the Expenditure or amount actually deposited. In
case of person with severe disability , the amount of deduction allowable will
be Rs 1,00,000/-
8)Deduction U/s- 80DDB [ medical
treatment ]
This deduction is allowable to an
assesse resident in India being an individual or HUF for any Expenditure
incurred by way of medical treatment of specified disease for assesse or for a
member of HUF.
Amount of Deduction
The amount of deduction is actual
expenditure or Rs.40,000/- whichever is less. If the expenditure is incurred
for a senior citizen , the allowable deduction is actual expenditure or Rs.60,000/-
whichever is less. The Amount of deduction will be reduced by the amount of
reimbursement .
9) Deduction -80E [ interest on
loan taken for higher education]
This deduction is allowable to an
individual assesse who has taken loan
for higher education .
Amount of Deduction
Any amount paid as interest on such loan is allowable as
deduction for a Maximum period of 8 years beginning from the year of repayment.
10) Deduction U/s -80EE [interest
on loan for acquiring residential]
This deduction is allowed to an
individual only in respect of interest on Loan for acquiring residential unit
if following conditions are satisfied .
i)
Tha Loan is sanctioned by bank housing finance
company.
ii)
The amount of loan does not exceed
Rs.25,00,000/-
iii)
The Value of house property does not exceed
Rs.40,00,000/-
iv)
The assee does not own any residential house
property .
The amount of deduction subject to
maximum Rs. 1,00,000/- for the assessment year 2020-21.
11) Deduction U/s-80G [respect of Donation ]
All categories of assesse are
entitled to get deduction in respect of donation U/s-80G I following Conditions
are satisfied .
i) The Donations to be made to certain funds , Charitable Institutions etc .Which are qualified under this section.
ii)
Donation in kind does not qualify for deduction.
iii)
In case of certain donations it is restricted to
10% of Gross Total Income (G.T.I )
iv) Donation of any sum exceeding Rs. 10,000/- Paid
in cash or otherwise by cross cheque
,shall not be allowed as deduction .
12) Computation Of Gross Total Income U/s -80G
Gross Total Income as reduced by LTCG, Deduction allowable
U/s-80C to 80U (excluding -80G ),any income which is not taxable and Income U/S
115 AA ,115BB, 115AC and 115AD where special rate of taxes are applicable.
Computation Of Gross Total Income
U/s-80G
Gross Total Income (Taking all heads of Income) ***
Less: Deduction allowable U/s 80C to 80U (excluding 80G) ***
***
Less: Long-term Capital Gain ***
Less: Income referred in Section 115A,115B,115AC and 115AD ***
Gross Total Income ***
13) Deduction-80GG [rent paid by
an assesse]
i) He Should not be in receipt of
any house rent allowance from his
employer.
ii)the individual assesse or
assessee’s spouse or minor child or in case of HUF any member of HUF ,does not
own any house at the place where the assesse performs duties of office or
employment or carries on his business or profesion .
iii) Assessee is not the owner of any house which is determined as
self-occupied property at any other place.
iv) He files a declaration in Form 10BA.
Actual amount of deduction
The amount of deduction U/s-80GG
is the least of the following three alternatives:
i)
Excess of actual rent paid over 10% of total
income
ii)
Rs.2000/-per month
iii)
25% of total income
14) Deduction-80GGA [Donation for
scientific Research or Rural Development ]
Donations Paid to the following institutions or associations
in previous year qualify for deduction :
i)
A
University or other Institution approved U/s 35 (1) (iii) for research
in social science
ii)
A scientific research /university /ABY other
approved instiution U/s-35(1)(ii)
iii)
An institution
or association set up for rural
development U/s-35CC or Training
of persons for rural development program
approved U/s-35CCA(2) .
iv)
A public
sector company ,local authority or approved institution
or association for carrying out any
eligible project or scheme approved U/s-35AC.
v)
An approved institution or association has its
object to undertake any programme of
conservation of natural resources or afforestation approved U/s-35CCB
vi)
A rural development fund set up and notified by
the Central Government for the Purpose
of u/s- 35CCA(1)(c).
vii)
National fund for rural development set up and
notified by the Central Government.
viii)
Any Sum Paid to the National Urban poverty
Eradication Fund set up by Central Government U/s-35CCA.
15) Deduction U/s-80GGB [ Donation
or contribution by any person to any Political Party]
Any contribution Made by an Indian
company to a Political party(Registered U/S-29A
of people Act 1951) not exceeding gross total income is allowable as
deduction if such amount paid by cross Cheque.
16) Deduction U/s- 80GGC [donation
or contribution by any person to any political Party]
Any contribution Made by any person other than
local authority and artificial Juridical person wholly or partly funded by the
government to a political party (Registered U/S-29A of people Act 1951) not exceeding gross total
income is allowable as deduction if such amount paid by cross Cheque.
17) Deduction U/s-80IA
Deduction in respect of profit and
Gains from industrial undertaking or enterprises engaged in infrastructural
development etc.
Amount of deduction :
For an undertaking rngaged with
providing telecommunication Service:
1.For 1st 5 years 100%
2.for next 5 years 30% of the
profit
3.for all other undertakings 100 %
of the profit for 10 years.
18) Deduction U/s- 80IAB
Deduction in respect of profit and
Gains by an undertaking or an enterprise engaged in development of SEZ.
Amount of deduction.
The deduction will be allowed an
amount equal to 100 % of profit & Gains derived from such business. The
deduction is available for 10 consecutive assessment years out of 15 years beginning from the year of
staring of its business.
18) deduction U/s- 80ID
This deduction is available to an
Undertaking engaged in the Business of new hotels and Covention center in
national Capital Territory of Delhi and adjoining areas. Hotel may be two star
,three star or Four star category .
Amount of Deduction
100% of the profit and gains for first 5 years.
19) Deduction U/s- 80IE [profit
and gains from specified undertakings in North-Eastern States ]
This deduction is available to an undertaking Located in any North
–Eastern State and Has Begun or Begins.
Deduction – 100% of profit and
Gains for 1st 10years.
20) Deduction U/s -80JJA [profit
and gains from business of collecting and processing of BIO-degradable Waste.
Where the Gross Total Income of an
assesse includes any profit and gains derived from collecting and processing or
treating of Bio-degradable waste for generating power or producing
“BIO-fertilizer”, Bio-pesticides or other biological agents or for producing
bio-gas or making pellets or briquettes for fuel or organic Manner.
Amount of deduction
100 % of the profit derived from
such Business for a period of 5 Consecutive Years from year in Which the
business Commences.
21) Deduction U/s -80JJAA
[Deduction in respect of employment of new regular workmen ]
Indian Company deriving profit
from manufacture of goods in its factory ,Which
Has Fulfilled the Following Conditions can claim this deduction.
I)
The company is engaged in the manufacture or production of article or
things.
II)
It has at least 100 Workmen.
III)
It should not be formed by splitting – up or
reconstruction of an existing
undertaking or amalgamation with
another industrial undertaking.
IV)
The assesse should submit a return along with a report of chartered
accountant in For, 10DA.
V)
Increase of regular Workmen employed in a year
should be 10% or more of the Total Workmen of the last year.
Actual Amount of Deduction
30% of the additional Wages of the
new regular workmen employed by the assesse in the previous year. This
deduction is available for 3 assessment years Only .
22) Deduction- U/S-80LA [Deduction
in respect of Certain incomes of offshore Banking Units]
This deductions eligible to a
scheduled bank (Not being a bank incorporated by or Under the laws of a country outside India )
Owning and offshore Banking Units in a
SEZ.
Amount of deduction
a)
For first 3 consecutive Year 100 % of income.
b)
For the next 2 consecutive year 50% of income.
23) Deduction U/s- 80P [Income of
co-operative Societies ]
1.where the assesse is a
co-operative society and Its Gross Total
Income is from any one or more of the following activities are deductible @ 100% of the profit :
i) Carrying on the Bisiness of
Banking or providing credit facilities to its Memebrs.
ii) A cottage industry.
iv) Marketing
of agricultural produce grown by its members.
v) Collective Disposal of labour to its Members.
vi) Fishing or allied activities.
2. Restricted deduction is allowed
for profits attributable to other than above specified activities.
24) Deduction U/s-80 QQB
[Deduction in respect of royalty of an author or authors.]
Deduction under this section shall
be allowed to an individual resident in India being an author ,or co-author –
the gross total Income includes any Income Derived by him in the exercise of
his profession .
Amount of deduction
100 % of the royalty income etc
.subject to a maximum Rs.3,00,000/- in case of royalty or copyright, fees shall
be restricted to 15 % of the Value of
Books Sold During the previous year.
25) Deduction U/s- 80RRB
[deduction in respect of royalty on patents]
An assesse being an individual
,resident in India and a patentee and who received any income by way of royalty
in respect of a patent registered on or after 01.04.03 under the patents Act
1970 can claim such deduction .
Amount of deduction
a)
Income from India : 100% of such Income By Means
of Royalty or Rs.3,00,000/- whichever is less.
b)
Income from outside india : The amount of
deduction shall be restricted to the actual amount brought into India within 8 months from the end of the previous
Year.
26) Deduction U/s- 80TTA [
Deduction In respect of interest on deposits in Savings Account.
This deduction is allowed to an
individual or a Hindu coincided Family
.if gross total Income Includes any Income by way of interest on deposits in a savings accounts is –
i)
The Banking Control Act 1949
applies to all banking institutions.
ii)
A co-operative Bank (Including Land mortgage
Bank or Land Development Bank )
iii)
A Post
Office Saving A/c.
Deduction
Actual Amount of deduction is actual amount of
interest subject to maximum Rs.10,000/-
27) Deduction U/s-
80U [ Deduction In the case of blind or permanent Physically Handicapped
persons]
A resident Individual
suffering from a permanent Physical disability or is Subject to mental Retardation and Which has the
effect of reducing substantially has
capacity for Normal Work , is entitled to a Government Hospital .in Form 10IA
Amount Deduction
a)
Rs.50,000/- irrespective of actural Expenditure.
b)
Rs.100,000/- irrespective of actural Expenditure
in case of a Person Of severe Disability
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1 Comments
Sir,please send pdf file in English
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