Deductions - Sandeep Presents
Chapter VI –A (Deduction)
Not available From LTCG, STCG u/s 111A, lottery income, races etc.
Sec. | Available to | Condition | Deduction |
80C | Individual /HUF | · Subscription to notified bond of NABARD · ≥5 years term deposit in bank/ Post office · LIP – Self , Spouse, Children (Dependent, Independent, Married, Unmarried) · Contribution to Provident Fund, Superannuation Fund · NSC · Tuition Fees (for full time education of two children in India) · 15 year PPF [Self, Spouse, Children (Minor)] · Payment towards Cost of purchase / construction of Residential property Including Repayment of housing loan (Only Principle Component) · Notified Unit of UTI, Mutual fund, LIC · Subscription to Public Deposit Scheme of HUDCO (Housing & Urban Development Corporation Ltd.) · Senior Citizen Saving Scheme | Up to ` 1,00,000 (Sec. 80CCE) |
80CCC | Individual | Deposit to Pension Fund of LIC or other insurer | |
80CCD | Individual | Deposit to Pension Fund Scheme Notified by CG (Employed by CG or other Employer) Up to 10% of Salary (Employer Contribution) Up to 10% of Salary (Employee Contribution) | |
80CCF | Individual /HUF | Long term Infrastructure Bond notified by CG Tenure of the Bond · A minimum period of 10 years · The minimum lock in period for an investor shall be five years. | Up to ` 20,000 |
80D | Individual /HUF | Mediclaim Policy of GIC paid by any mode other than cash or Central Government Health Scheme. · Insurance can be taken on the health of Self, Spouse and Dependent Children | Up to ` 15,000 Up to ` 20,000 (if any one is Senior Citizen) |
· Insurance can be taken on the health of Parents (Father & Mother whether dependent or not) | Up to ` 15,000 Up to ` 20,000 (if any one is Senior Citizen) | ||
80DD | Resident Individual/ HUF | Maintenance including Medical Treatment of dependent with disability · Medical Treatment · Deposit in Scheme of LIC or other insurer in this behalf · Disable dependent must not claim Deduction u/s 80U · Spouse, Parent, Children, Brother, Sister | Fixed Deduction ` 50,000 or ` 1,00,000 (if disability > 80%)` |
80DDB | Resident Individual/HUF | Medical Treatment of Specified disease of Self, Spouse, Parent, Children, Brother, Sister · Amount received from Insurance Company shall be deducted from ` 40,000/ ` 60,000 | Up to ` 40,000 or Up to ` 60,000 if incurred in respect of Senior Citizen |
80E | Individual | Payment of Interest on loan taken for higher studies · Self, Spouse, Children (Dependent, Independent, Married, Unmarried) · Available for 8 AY beginning with AY year in which payment of interest begins · Any Studies after passing Xth including Vocational Studies | Amount of interest paid (Not the principal sum) |
80G | Any assessee | Donation (in cash) · Available in respect of fund set up for Charitable purpose not religious purpose GTI xx Less: LTCG, STCG U/S 111A xx Less: Exempted Income xx Less: All deduction u/s 80C to 80U except 80G xx Adjusted GTI xx | See Note after the Chart |
80GGB | Indian Company | Donation to Political Party or Electoral Trust | Amount donated |
80GGC | Any assessee other than Indian Company | ||
80QQB | Resident Individual | Royalty income of Author Case 1 : Copy right transferred for lumpsum consideration Case 2 : Copy right not transferred, Royalty Received whether in Lumpsum or otherwise · For the purpose of Deduction in Case 2, royalty received not to exceed 15% of value of book sold. · Amount Received in India in convertible foreign exchange within 6 month from end of PY shall be taken as Royalty received | Royalty Received less expenses or ` 3,00,000 whichever is lower |
80RRB | Resident Individual | Royalty on Patent · Amount Received in India in convertible foreign exchange within 6 month from end of PY shall be taken as Royalty received | |
80U | Individual | Suffering from disability (Blindness, low vision, leprosy-cured, hearing impairment, locomotors disability, Mental retardation, mental illness) | Fixed Deduction ` 50,000 or ` 1,00,000 (if disability > 80%) |
Note:
Deduction under section 80G
(A) Donations eligible for deduction without any limit:
1. 100% Deduction will be allowed if donations are given to-
(a) Prime Minister’s National Relief Fund;
(b) Armenia Earthquake Relief fund;
(c) Africa (Public contribution-India) fund
(d) National foundation for Communal Harmony;
(e) National illness Assistance Fund;
(f) National Cultural Fund set up by government;
(g) Gujarat Govt.’s Earthquake Relief fund;
(h) National Defence Fund set up by government.
(i) National sports Fund set up by Govt;
(j) Zila Sakaharta Samiti
(k) An appkroved University or other educational institution of national eminence;
(l) Maharastra Chief Minister’s Earthquake Relief Fund;
(m) The National Blood Transfusion Council or any State Blood Transfusion Council;
(n) Any fund set up by a State Government to provide medical relief to the poor;
(o) Central Welfare fund for Army or Air Force or Indian Naval Benevolent Fund;
(p) Andhra Pradesh Chief ministers Cyclone Relief Fund;
(q) Fund for Technology Development and Application set up by Govt.;
(r) Chief Ministers Relief fund or Lieutenant governor’s Relief Fund of any State or Union Territory;
(s) Welfare trust for persons with Autism, Cerebral Palsy and Multiple Disabilities.
2. 50% deduction will be allowed if donations made to-
(a) Jawaharlal Nehru Memorial Fund
(b) Rajiv Gandhi Foundation
(c) Indira Gandhi Memorial Trust
(d) National Children’s Fund
(e) Prime Minister’s Drought Relief Fund
(B) Donations eligible for deduction subject to Qualifying limit (i.e. 10% of Adjusted GTI):
1. 100% deduction shall be allowed subject to the qualifying amount if donations are made:
(a) To government or any approved local authority, institution or association to be utilized for promoting family planning;
(b) By company to Indian Olympic Association or other notified association / institution in India for development of infrastructure for sports and games, or sponsorship thereof in India.
2. 50% deduction shall be allowed subject to the qualifying amount if donations are made:
(a) To Government or any approved local authority, for charitable purpose except promoting family planning.
(b) To approved charitable institution, which satisfies the conditions of section 80G (5).
(c) For renovation or repair of any temple, mosque, gurudwara, church or other place notified to be of historic / archaeological artistic importance or as a place of public worship of renown;
(d) To housing development authority or city / town / village development authority constituted in India by or under any law
(e) Corporation for promoting interests of minority community as given under section 10(26BB)
Available to | Condition | Project to be completed | Deduction |
Sec. 80IA | |||
Indian Company | Developing, Operating, Maintaining, Infrastructure Facility · Road, Toll road, bridge or a rail system · Highway Project including housing · Water Supply Project , Solid waste management System | 100% for 10 AY out of 20 AY | |
· A Port, Airport, Inland waterways, inland Port or navigational channel in the sea | 100% for 10 AY out of 15 AY | ||
Any Assessee | Providing Telecommunication Service | 31.3.05 | 100% for 5 AY 30% for 5 AY |
Maintains & Operates Industrial Park or SEZ | 31.3.05 | 100% for 10 AY | |
Generation or distribution of Power (Includes Substantial Renovation i.e. new plant and Machinery > 50% of old P&M on 1.4.04) | |||
Indian Company | Laying and operating cross-country natural gas distribution network | 100% for 10 AY out of 15 AY | |
Sec. 80IAB | |||
Any Assessee | Maintains & operates Industrial Park or SEZ (after 1.4.05) | 100% for 10 AY out of 15 AY | |
Sec. 80IB | |||
Any Assessee | Industrial undertaking in Backward area (Production of Alcohol, Cigarettes Prohibited) | 31.3.04 (31.3.12 for J&K) | 100% -5 AY 25% -5 AY (30% in case of company) |
Cold Chain Facility | |||
SSI in any Area | 25%- 10 AY (30% in case of company) | ||
Indian Company | Hotel (old building eligible) in hilly area | 31.3.01 | 50% - 10 AY |
Hotel (old building eligible) in other area (except metro) | 30% - 10 AY | ||
Any Assessee | Building, Owning, Operating Multiplex Theatre, Convention Center (Auditorium) *Old Building not eligible | 31.3.05 | 50% - 5 AY |
Any Assessee | Construction and development of housing project | 4 years from end of FY in which approved | 100% till sold |
Indian Company | Scientific research & Industrial development | 100% - 10 AY | |
Any Assessee | Production or Refining of Mineral oil & Natural gas | 31.3.2012 | 100% -7 AY |
Handling , Storage and transportation of food grains | 100%- 5 AY 25% - 5 AY (30% in case of company) | ||
Processing, Reservation and Packaging of fruits & vegetables | |||
Hospital in Rural area (At least 100 beds) | 100% -5AY | ||
Sec. 80IC
Undertaking in Special Category State
· Manufacturing or producing eligible article or thing
· Undertakes substantial expansion New P&M > 50% of old P&M (but before Depreciation)
State | Production Up to | Deduction |
Sikkim North eastern State | 31.3.07 | 100% for 10 AY |
Himachal Pradesh Uttaranchal | 31.3.12 | 100% for 5 AY 25% for 5 AY (30% in case of company) |
Sec. 80ID
Business. | Hotel (2,3,4 Star), Convention Centre |
Specified Area | Delhi, Faridabad, Gurgoan, Ghaziabad, Budh Nagar |
Construction Period | 1.4.07 to 31.7.10 |
Deduction | 100% for 5 AY |
Objective | Accommodate visitors to Commonwealth games held in Oct 2010 |
Sec. 80IE
Undertaking in North Eastern States (includes State of Sikkim also)
(i) Manufacture or produce eligible article or thing
(ii) Undertakes Substantial expansion (New P&M >25% of old P&M)
(iii) Carry on eligible business – Hotel above 2 Star Category, Information technology, Bio technology, Old age home, Nursing home >25 bed, Vocational training Institute for Hotel Management
(iv) Period of Operation to Commence – 1.4.2007 to 31.3.2017
(v) Deduction – 100% for 10 AY
