“Unlock insights into Income Tax Act 1961 Chapter VIA exemptions. From Section 80C to 80U, explore deductions for individuals, HUFs, and companies. Stay informed on recent changes for comprehensive tax planning.”
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To calculate the taxable income of an assesse from his gross total income there are certain deduction allowable under sections 80C to section 80U under Chapter VI of the Income Tax Act 1961. Section 80C to Section 80GGC are applicable to Individuals and Hindu Undivided Family, while Section 80IA to section 80PA are applicable to other than individual or HUF i.e. companies, while section 80QQQB to 80U applicable to individuals and senior citizens. Except section 111A i.e. short term capital gain, any long term capital gain and section115A, 115AB, 115AC, 115AD, and 115D gross total income of assesse should not be more than deduction. If the assesse has not claimed deduction in return of income he will not get deduction.
Following are the deductions under various section of Section 80.
1. Section 80C: under this section deductions in respect of
- life insurance premium,
- contribution to provident fund,
- investment in public provident fund,
- deferred annuity,
- contribution to approved superannuation fund,
- unit linked insurance plan of the LIC mutual fund,
- units of mutual fund,
- notified pension fund,
- home loan account scheme,
- notified deposit scheme of a public sector company,
- tuition fees of any two children,
- any units of any mutual fund referred to in section 10(23D) and approved by Board,
- payment for the purpose of purchase or construction of residential house,
- subscription to equity shares or debentures forming part of any eligible issue of capital approved by the board,
- notified scheme of term deposit,
- subscription to notified bonds, issued by the National Bank of Agriculture and rural development,
- Deposit in an account under the Senior citizens Savings Scheme Rules, 2004 ,
- 5 year time deposit.
2. Section 80CCC:
Deduction in respect of contribution to certain pension funds:
- The assesse is an individual;
- The assesse has in the previous year paid or deposited any amount Out of his income chargeable to tax;
3. Section 80CCD:
Deduction in respect of contribution to pension scheme of Central Government:
- The assesse is an individual, employed by the Central Government on or after 1st January, 2004, or any other employer or any other assesse, being an individual;
- The assesse has paid or deposited in the previous year or deposited any amount in his account under a pension scheme;
- In the case of an assesse referred to in condition above, the Central Government or State Government any other employer makes any contribution to employee’s account referred to in condition above.
Amount of deduction:
Total deduction available for all the three sub sections will be Rs. 1,50,000
Hindu Undivided Family:
In the case of HUF, as per the notification dated 12/05/2005 you cannot open PPF account in the name of HUF. It has also been clarified that, account which are continued will be continue till date of maturity. You can regularly deposit amount every year till it is continue. If someone has open PPF account in the name of HUF on 1st April, 2005, it will continue till 31st March 2020 with regular investment. Please remember that after 13th May 2005, you cannot open PPF account in the name of HUF, but you can open PPF account in the name of member and invest the fund of PPF in that account you will get deduction in account of HUF up to Rs. 1,50,000
So far as Life Insurance Policy premium, paid on the life of any member of HUF from the fund of HUF is also entitled for deduction u/s 80C within limit of Rs. 1,50,000.
Additional benefit u/s 80CCD(1B):
National Pension Scheme Under this any tax payer invest up to Rs. 50,000, which will be deducted from his gross total income over and above Rs. 1,50,000. This is an additional benefit to tax payers. If he has not invested any amount u/s 80C and have invested on under National Pension Scheme, he is entitled for deduction of Rs. 50,000
So an assesse can get benefit up to Rs.2,00,000 if he will invest in both the schemes of section 80C and 80CCD(1B).
Deduction in respect of Health Insurance premium: Section 80D:
When an assesse take medical insurance and pay the premium he will get deduction under section 80D, with the following conditions:
- The assesse is an individual or a Hindu Undivided Family
- The assesse has paid by any mode of payment
(1) Including cash, in respect of any sum paid on account of preventive health checkup;
(2) Other than cash, in all other cases other than preventive health c checkup, in the previous year out of his income chargeable to tax.
In the case of an individual:
(i) such payment is made to effect or to keep in force an insurance on his health or his spouse health or dependent children,
(ii) such payment is made to effect or to keep in force an insurance on the health of parents,
(iii) any payment made on account of preventive health chek up of the assesse or his family,
- Such insurance is in accordance with a scheme framed in this behalf by-
(A) the General insurance Corporation of India and approved by the Central Government, or
(B) any other insurer and approved by the Insurance Regulatory and Development authority
Amount of Deduction:
Where aggregate of such payment/contribution does
| not exceed Rs. 25,000 , | the whole of such sum; |
Where aggregate of such payment/contribution
| exceeds Rs. 25,000 | Rs. 25,000 |
| In case of senior citizen | Rs 50,000 |
In respect of payment for preventive health check-up:
In the case of an individual:
(A) where the aggregate of such payment does not
| Exceed rs. 5,000 | the whole of such sum; |
(B) where the aggregate of such payment exceed
| Rs. 5,000 | Rs. 5,000 |
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Whether contribution towards NPS for salaried employees is exempted from IT under the New Tax Regime or not ????????