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CA Sandeep Kanoi
The Income Tax Act provides that on determination of the gross total income of an assessee after considering income from all the heads, certain deductions therefrom may be allowed. These deductions detailed in chapter VIA of the Income Tax Act must be distinguished from the exemptions provides in Section 10 of the Act. While the former are to be reduced from the gross total income, the latter do not form part of the income at all.
The chart given below describes the deductions allowable under chapter VIA of the I.T. Act from the gross total income of the assessees having income from salaries.
| SECTION | NATURE OF DEDUCTION | REMARKS |
| 80CCC | Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs. 1,00,000/- | The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund. The Finance Act 2015 has enhanced the ceiling of deduction under Section 80CCC from Rs.100,000 to Rs. 1,50,000 with effect from A.Y. 2016-17Read more – Income Tax Deduction Under section 80CCC |
| 80CCD | Deposit made by an employee in his pension account to the extent of 10% of his salary. | Where the Central Government makes any contribution to the pension account, deduction of such contribution to the extent of 10% of salary shall be allowed. Further, in any year where any amount is received from the pension account such amount shall be charged to tax as income of that previous year. The Finance Act, 2009 has extended benefit to any individual assesse, not being a Central Government employee.Read More – Income Tax Deduction Under section 80CCD |
| 80CCF | Subscription to long term infrastructure bonds | Subscription made by individual or HUF to the extent of Rs. 20,000 to notified long term infrastructure bonds is exempt from A.Y. 2011-12 onwards. This deduction is discontinued w.e.f. A.Y. 2013-14. |
| 80CCG | Investment under Rajiv Gandhi Equity Savings Scheme, 2013 | The deduction was 50 % of amount invested in such equity shares or ₹ 25,000, whichever is lower. The maximum Investment permissible for claiming deduction under RGESS is Rs. 50,000. The benefit is in addition to deduction available u/s Sec 80C.Read More- Deduction under section 80CCG |
| 80D | Payment of medical insurance premium. Deduction is available upto Rs.15,000/ for self/ family and also upto Rs. 15,000/- for insurance in respect of parent/ parents of the assessee.In case of senior citizens, a deduction upto Rs.20,000/- shall be available under this Section. Insurance premiume of senior citizen parent/ parents of the assessee also eligible for enhanced deduction of Rs. 20000/- | The premium is to be paid by any mode of payment other than cash and the insurance scheme should be framed by the General Insurance Corporation of India & approved by the Central Govt. or Scheme framed by any other insurer and approved by the Insurance Regulatory & Development Authority. The premium should be paid in respect of health insurance of the assessee or his family members. The Finance Act 2008 has also provided deduction upto Rs. 15,000/- in respect of health insurance premium paid by the assessee towards his parent/parents. w.e.f. 01.04.2011, contributions made to the Central Government Health Scheme is also covered under this section.Read More – Deduction U/s 80D for Mediclaim Premium to Individual, HUF, Senior CitizensBudget 2015 Proposed increase in Deduction Limit U/s. 80D which can be read here-Section 80D- Hike in Deduction Limit for Mediclaim |
| 80DD | Deduction of Rs.40,000/ — In respect of (a) expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative. (b) Payment or deposit to specified scheme for maintenance of dependent handicapped relative. W.e.f. 01 .04.2004 the deduction under this section has been enhanced to Rs.50,000/- Further, if the dependent is a person with severe disability a deduction of Rs.1,00,000/– shall be available under this sectionBudget 2015 has Further Proposed to hike the limit from A.Y. 2016-17 to Rs. 75000 from existing Rs. 50,000/- and for person with severe disability to Rs. 1.25 lakh from existing Rs. 1 Lakh. Read more-Budget 2015- Section 80DD deduction Limit Raised | The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.Note: A person with severe disability means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the “Persons with Disabilities (Equal opportunities, Protection of Rights and Full Participation) Act.,”Read More – Deduction u/s. 80DD for expenses on medical treatment of disabled dependent |
| 80DDB | Deduction of Rs.40,000/- in respect of medical expenditure incurred.W.e.f. 01.04.2004, deduction under this section shall be available to the extent of Rs.40,000/- or the amount actually paid, whichever is less.In case of senior citizens, a deduction upto Rs.60,000/- shall be available under this Section.Budget 2015 has proposed deduction of Rs. 80000/- for seniot citizen aged 80 year or More from A.Y. 2016-17-Read More-Section 80DDB- Limit raised & waived condition of certificate | Expenditure must be actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10I is to be furnished by the assessee from a specialist working in a Government hospital.Budget 2015 has Proposed for the purpose of claiming deduction under the section assessee will be required to obtain a prescription from a specialist doctor instead of Certificate.Read More – Deduction under section 80DDB with FAQ |
| 80E | Deduction in respect of payment in the previous year of interest on loan taken from a financial institution or approved charitable institution for higher studies. | This provision has been introduced to provide relief to students taking loans for higher studies. The payment of the interest thereon will be allowed as deduction over a period of upto 8 years. Further, by Finance Act, 2007 deduction under this section shall be available not only in respect of loan for pursuing higher education by self but also by spouse or children of the assessee.W.e.f. 01.04.2010 higher education means any course of study pursued after passing the senior secondary examination or its equivalent from any recognized school, board or university.Read More – Section 80E – Deduction for Interest on education Loan |
| 80EE | Deduction in respect of interest on loan taken for residential house property | Vide Finance Act 2013, an individual is allowed a deduction upto a limit of Rs 1,00,000 being paid as interest on a loan taken from a Financial Institution, sanctioned during the period 01-04- 2013 to 31-03-2014 (loan not to exceed Rs 25 lakhs) for acquisition of a residential house whose value does not exceed Rs 40 lakhs. However the deduction is available if the assessee does not own any residential house property on the date of sanction of the loan.Read More – Section 80EE Income Tax Benefit on Home Loan Interest |
| 80G | Donation to certain funds, charitable institutions etc. | The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80GRead More – Deduction U/s. 80G of Income Tax Act, 1961 for donation |
| 80GG | Deduction available is the least of(i) Rent paid less 10% of total incomeii. Rs.2000 per monthiii. 25% of total income | (1) Assessee or his spouse or minor child should not own residential accommodation at the place of employment.(2) He should not be in receipt of house rent allowance.(3) He should not have a self-occupied residential premises in any other placeRead More – Section 80GG Deductions – For rent paid |
| 80TTA | Deduction in respect of interest on deposits in savings account | Section 80TTA is introduced wef A.Y. 2013-14 to provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower.Read More – S. 80TTA – Deduction in respect of interest on deposits in savings account |
| 80U | Deduction of Rs.50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs.75,000/- shall be available u/s 80U.W.e.f. 01.04.2010 this limit has been raised to Rs. 1 lakh.Budget 2015 proposed to amend section 80U to raise limit of deduction in respect of a person with disability from Rs. 50,000/- to Rs. 75,000 and for person with severe disability from one lakh rupees to one hundred and twenty five thousand rupees.Read more-Budget 2015- Section 80U deduction Limit Raised | Certificate should be obtained on prescribed format from a notified ‘Medical authority’.Read More – Deduction U/s. 80U for disabled persons |
| 87A | Rebate Of Rs 2000 For Individuals Having Total Income Upto Rs 5 Lakh | Finance Act 2013 has provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or the amount of tax payable, whichever is lower. WEF A.Y. 2014-15.Read More – Section 87A – Income Tax Rebate |
| 80RRB | Deduction in respect of any income by way of royalty in respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available as :-Rs. 3 lacs or the income received, whichever is less. | The assessee who is a patentee must be an individual resident in India. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority alongwith the return of income. |
| 80QQB | Deduction in respect of royalty or copyright income received in consideration for authoring any book of literary, artistic or scientific nature other than text book shall be available to the extent of Rs. 3 lacs or income received, whichever is less. | The assessee must be an individual resident in India who receives such income in exercise of his profession. To avail of this deduction, the assessee must furnish a certificate in the prescribed form along with the return of income. |
| 80C | This section has been introduced by the Finance Act, 2005. Broadly speaking, this section provides deduction from total income in respect of various investments/ expenditures/payments in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section is limited to Rs. 1.50 lakh only. Read More-Deduction under section 80C and Tax Planning |
The following investments/payments are inter alia eligible for deduction u/s 80C:-
| NATURE OF INVESTMENT |
REMARKS |
| Life Insurance PremiumRead more-Life Insurance Premium- Eligible Amount Under Section 80C |
– in case of individual, on life of assessee, assessee’s spouse and any child of assessee – in case of HUF, on life of any member of the HUF |
| Sum paid under contract for deferred annuity | in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity) |
| Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self, spouse or child | Payment limited to 20% of salary. |
| Contribution made under Employee’s Provident Fund Scheme | — |
| Contribution to PPF | For individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family. |
| Contribution by employee to a Recognised Provident Fund or an approved superannuation fund. | — |
| Subscription to any notified securities/notified deposits scheme. | — |
| Subscription to any notified savings certificates. | e.g. NSC VIII issue. |
| Contribution to Unit Linked Insurance Plan of LIC Mutual Fund | e.g. Dhanrakhsa 1989 |
| Contribution to notified deposit scheme/Pension fund set up by the National Housing Bank. | — |
| Certain payment made by way of instalment or part payment of loan taken for purchase/ construction of residential house property. | Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year. |
| Subscription to units of a Mutual Fund notified u/s 1 0(23D) | — |
| Subscription to deposit scheme of a public sector company engaged in providing housing finance. | — |
| Any subscription to Equity shares/ Debentures forming part of any eligible issue of capital by a Public company/ Public Financial Institution, wherein. | i) Eligible issue of capital means capital issued by a public co./ Public financial institution for utilizing the proceeds wholly & exclusively towards purposes of any business referred in Sec. 80IA(4). |
| Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education. | Available in respect of any two children. |
| Any term deposit for a fixed period of not less than five years with the scheduled bank. | This has been included in Section 80C by the Finance Act 2006. |
| Subscription to notified bonds issued by NABARD | This has been included in Section 80C by the Finance Act 2007 and has come into effect from 1.4.2008. |
| Payment made into an account under the Senior Citizens Savings Scheme Rules, 2004 | This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009. |
| Payment made as five year time deposit in an account under the Post Office Time Deposit Rules, 1981 | This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009. |
| Contribution to Sukanya Samriddhi Account Opened in the Name of Daughters – | This has been introduced vide Finance Act 2014 wef A.Y. 2015-16 |
It may be noted that the aggregate amount of deductions under sections 80C, 80CCC and 80CCD are subject to an overall ceiling of Rs. 1.50 lakh.
(Republished with Amendments)
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Author Bio
I AM ELECRICITY CONTRATORE ,HAVE RESIVED A BII OF RS 4 LAKH & ODD.HAD SUBMITTED ITR 2015-16 .BUTCPC INFORED ME A.Y .I CONNOT UNDERSTAND….. PLESE HELP ME I HAVA RESIVED T D S
iam apensioner getting 500/- per month as med.all that is 6000/-per annum it is taxable i know for which can i claim it as 6000/- or 15ooo/- as 80D exemption pl.enlighten me
excellent points neatly given helping salry employees- hats off to u sir pl. continue the noble service can i claim 500×12 6000 under 80-D medical bills pl.enlighten me
After deduction under80s my taxable income is 531000. Can I purchase additional tax saving infrastructure bond to save more tax?
Pensioner assesses received medical allowance of Rs.350/- per month. Can this amount of Rs.350/- X 12months = Rs.4200/- be deducted from total pension amount received for IT calculations.
Kindly send clarification to the e-mail address.
Where are the infrastructure bond for 2015-16 as declared in the 2015 budget under 80 CCF? please give details if possible ? – See more at: https://taxguru.in/income-tax/deductions-chapter-applicable-assessees-income-salaries.html#sthash.TL3MX61k.dpuf
Dear Sir,
Is there any changes in exemption for Island Special Duty Allowance (ISDA) for govt. employee posted at A & N Islands for IT calculation FY2015-16? TA limit extended Rs.800/- to Rs.1600/-pm is a very good step. Also continuing Tax deduction of Rs.2000/- U/s. 87 (A)is a good step for Gruop B, C D Employee.
Thanking you,
Yours sincerely,
Sanjiv Kumar Hra
Sir
Please inform me the limit of chapter vi a for at 2016-17
phani
can the sbi deposits under tax saving scheme are eligible for 80c for all the 5 years please clarify me
I am an author of technical books.May I know whether I can get tax deduction /exemption on royalty of books being paid by Publisher.I heard that 80qqb with 10ccd forms,authors are permitted to avail the tax benefits.Pl do send me email with you your advise/reply.
Dear sir,
deductions u/s 80 CCD is to it is eligible and what amount is eligible to get deductions
Respected Sir,
I am salaried person. In the form 16 my employer has not mentioned Travelling Allowance deduction which is under section 10(4). Maximum allowed is 1600 per month my office is 30 km from my house So how can I claim TA while filing returns
also please let me know If I can claim Medical expense incurred during last year I have no medical Policy
Avinash
Is income, from fix deposits interest with scheduled bank for maturing after five or more years, tax free?
salary paid assesse received following allowance which are exempted or not
Medical, leave travelling, food coupons, personel, variable, special, additional special, statutory bonus, uncollected food coupon, holiday pay.
kindly confirm
thanks and with regards
INDER HASIJA
How to fill Deduction U/S 24 HBL
80c not stated by mistake against 1st deduction above. its innocent typo error. thank u for article.
Hi,
I received FORM-16 from my employer.In the section VI-A under 80C LIC premium showing double that the actual.I declared the amount 49000 but it is showing 98000 in form 16.Hence my TDS was also less than the actual should be.While tax returning what should I do?Please help me out.
Hi Sir,
I took two bhima plus units in 2004 and surrendered in 2014, surrender value is 2.9 lakh, according to 194DA IT act they have to deduct 2% of tax, but LIC deducted 2% of tax and credited to my account mentioning as 194C (i.e contractual pay) IT section.
I am falling into 30% bracket income for IT.
Now can you please answer below questions ?
1. Its credited with 194C section, so is it attracts additional tax liability for me ?
2. Whom should I report for correction of that section ? complained to LIC but they had deaf ear.
3. If its under 194DA then do I need to pay any additional tax ?
Your urgent reply helps me a lot.
Thanks,
Santosh.
I retired during August 2014. I received Accrued PF / Gratuity and PL encashment apart from 5 months salary and 6 months pension. I assume that all the amounts received should be shown in IT return form and then claim eligible exmptions.
But the online ITR-1 does not contain any column to show the income other than Salary and other incomes and also no columns for showing ‘exemptions’ with details under relevant heads/chapters.
Please let me know how to file IT Return
Sir,
I got encashed(redeemed) Sardar Sarovar Nigam L. deep discount bonds of yr 1992. The face value was Rs. 110000 but the encashed chq rcd this year was Rs. 50000 . Is it taxable for ay 2015-16?
Your suggestion will be very helpful to me as I am a salaried person. This will ease my self E-Filing online for ITR AY 15-16.
Thanking you,
Yours Sincerely,
Dr.V.G.RANA
dtd.31.7.15
Respected sir, i am individual and i recived salray income income along with commition income from the diifreent companies. Can i treat it as my business come in one head.and Which ITR, i needs to file for F.Y.14-15 and within which due date.
Respected sir, i am indidual and i recived salray income along with commition income from the diifreent companies . Which ITR, i needs to file for F.Y.14-15 and within which date.
AFTER RETIREMENT ON 30-06-2014 FROM CENTRAL GOVT,I HAD PURCHASED CGHS (MEDICAL LONG LIFE SCHEME FROM MINISTRY OF HEALTH &FW)FOR VALUE OF Rs60,000/ FOR MY FAMILY . MY EN-QUERY IS WHETHER Rs60,000/ WILL BE EXEMPTED FROM INCOME TAX FOR FY- 2014-15.
hi i m ganesh i earn a income from lic commission & salary
so which itr i will filling plz guide
IF COMPANY PER ANNUAL TOTAL INCOME IS 100 CRORE SO WHAT IS THAT EXCEMPTION AND ALL DEDUCTIONS, AND FULL DETAILS OF THE COMPANY LIKE COMPUTAION ELEGIBILITY OF THE ALL PROCETURES.
Sir,
I am a senior citizen retired from PSU in the month of January 2015. I have received PF, Gratuity, Leave encashment and commutation of pension during the FY 2015-15. Please guide me which form I have to use for filing returns. ITR-1 do not seems to have the required columns for showing the exempted amount of these items.
Thanks,
E Mohan
Compulsory Min. income in Apr 2014 to Mar 2015 to efile ITR1
Dear Sir,
Very informative and useful
Sir, MY CA used to filed my ITR ONLINE and he has given his own E-mail I.D in Online Return. But now unfortunately he is passed away and now I am not able to file my ITR because I don’t know the password. Please held me what to do?????
I am a senior citizen (less than 80 years)with taxable income (after deductions etc) for AY 2015-16 as Rs 629820. I calculated tax (without adding cess of 3%) as Rs 45964. While filling up ITR 2 I find that though gross income tallied as Rs 45964, but the system generated a tax (before cess of 3%) of Rs 47644. I brought this to the notice of CPC to check up the apparent glitch in the software but without any concrete response. Is there anything wrong in my calculation?
sir,
our clint is a govt staff. He spent lumpsum amount for his daughter marriage on februvary. whether he can deduct that amount from his salary income during the year for income tax caculation.
AFTER RETIREMENT ON 31-03-2014 FROM CENTRAL GOVT,I HAD PURCHASED CGHS (MEDICAL LONG LIFE SCHEME FROM MINISTRY OF HEALTH &FW)FOR VALUE OF Rs60,000/ FOR MY FAMILY in May 2014. MY EN-QUERY IS WHETHER Rs60,000/ WILL BE EXEMPTED FROM INCOME TAX FOR FY- 2014-15/ AY 2015-16 or can I get rebate of R 20000/for next three years under section 80 D
. – See more at: https://taxguru.in/income-tax/deductions-chapter-applicable-assessees-income-salaries.html#sthash.zsH39FW4.dpuf
AFTER RETIREMENT ON 31-03-2014 FROM CENTRAL GOVT,I HAD PURCHASED CGHS (MEDICAL LONG LIFE SCHEME FROM MINISTRY OF HEALTH &FW)FOR VALUE OF Rs60,000/ FOR MY FAMILY . MY EN-QUERY IS WHETHER Rs60,000/ WILL BE EXEMPTED FROM INCOME TAX FOR FY- 2014-15. – See more at: https://taxguru.in/income-tax/deductions-chapter-applicable-assessees-income-salaries.html#sthash.zsH39FW4.dpuf
Mr sandeep ,
if your retrun is process than you do not revise return . if cpc centre not process than you revise return with in one year.
2nd I advised to you that if you have not confident on your return than you file mannual return. than you have opation
Any kind of tax queries drop your mails at this respective ID:[email protected]
what is the maximum deduction available to the individual , partnership , company from 80c to 80u from the income tax calculation?
I am paying VAT during purchase of many items and in hotels etc. I will get income tax deduction on that amount or not
please let me know that maximum deduction available against medical reimbursement of salary under section 10 – for the FY 2015-16
As per my company policy I had purchased on mobile hand set which was reimbursable.This reimbursable amount has been paid to me through my salary and accordingly tax has been deducted. I want to know whether reimbursable amount against purchasing of mobile hand set for use of company business is taxable ?
Sir I am senior citizen and I have paid Rs 60000/- towards my CGHS card for current year(January 2015).kindly let me know how much amount I can avail as tax benifet during 2014_2015 fy.
Sir,
I Want ITR file 360000/- FY 2014-15 (salary)
HRA – 5000 pm
Transportation 800/- pm
lic 2364/- pm
Please my payble I Tax
i want to take refund of TDS which was cut during 2009 fin year how should i do this kindly suggest the procedure
thanks.dkr