CA. Devendra Kumar Somani
Article deal with recent Rumors in Social Media that If Income Tax Return not filed within due date, the entire Chapter VI-A deductions will not be allowed which includes some of the Popular deduction i.e. Section 80C, Section 80D, etc. Some have even called it as hidden Bomb of Union Budget 2018. By this article I would like to clarify that Finance Budget 2018 has not made any changes in relation to claim of such deductions and whatever circulating in social media is a mere rumor and we should not fall for such rumors.
Such Rumors ignited from the Proposed amendment to Section 80AC of the Income Tax Act, 1961 so lets analyse the proposed amendment in Section 80AC and see if it impacts deduction U/S. 80C , 80D etc.
Budget 2018: Analysis of proposed amendment in Section 80AC of the Act
In the finance budget 2018 one important amendment has been took place in section 80 AC of the Act.
Existing Provision:
Provision contained in the Section 80AC of the Act provides that No deduction would be admissible under section 80-IA or 80-IAB or 80-IB or 80-IC or 80-ID or 80-IE, unless the return of income by assessee is furnished on or before the due date specified under section 139(1) of the Act.
Proposed amendment in Budget 2018
It is proposed to extend the scope of the section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading “C- Deduction in respect of certain incomes” In chapter VIA shall not be allowed unless the return of income is filed by the due date.
And this amendment will take effect, from 1st April, 2018 and will accordingly apply in relation to the assessment year 2018-19 and subsequent assessment years.
Why the need arises to write this article on this particular Section
It has been misunderstood by many professionals and I received so many messages on whatsapp groups regarding No Deduction will be allowed under entire Chapter VI A… .including Section 80C, 80D etc….
My Analysis:
Firstly we have to look Chapter VI of the Income Tax Act and it is divided into five parts- PART A, PART B, PART C, PART CA and PART D.
Part A: General
It consists of Section 80A, 80AA,80AB,80AC and 80B
Part B- Deductions in respect of Certain Payments
It Consists of Section 80 C to 80 80GC
Part C- Deductions in respect of Certain Incomes
It Consists of Section 80H to 80 80RRB
Part CA- Deductions in respect of other incomes
It Consists of Section 80TTA
Part D- Other Deductions
It Consists of Section 80 U to 80VV
So this proposed amendments is relates to extend the coverage from section 80-IA or 80-IAB or 80-IB or 80-IC or 80-ID or 80-IE to entire Part C –Deduction in respect of Certain Incomes ( Section 80H to 80RRB). But this amendment does not cover the PART B (Section 80 C to 80 GC) or PART CA (Section 80TTA) or PART D (Section 80U to 80VV) as suggested in Whatsapp messages received in various group.
So there is no change in relation to claim of deduction under Section 80C, 80D, 80G or other deductions mentioned PART B, PART CA or Part D of Chapter VIA of the Income Tax Act and you can very well claim such deduction, even if you file Your Income Tax Returns after the due dates as prescribed U/s. 139(1)
Foe the ready reference of Readers List of Deductions falling under Part A, Part B, Part C, Part CA and Part D of Chapter VIA of Income Tax Act, 1961 is given below:-
Chapter: VI-A OF INCOME TAX ACT, 1961
DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME
Part A . – General
| Section 80A | Deductions to be made in computing total income |
| Section 80AA | Computation of deduction under section 80M |
| Section 80AB | Deductions to be made with reference to the income included in the gross total income |
| Section 80AC | Deduction not to be allowed unless return furnished |
| Section 80B | Definitions |
| Section 80C | Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. |
Part B. – Deductions in respect of certain payments
| Section 80CC | Deduction in respect of investment in certain new shares |
| Section 80CCA | Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan |
| Section 80CCB | Deduction in respect of investment made under Equity Linked Savings Scheme |
| Section 80CCC | Deduction in respect of contribution to certain pension funds |
| Section 80CCD | Deduction in respect of contribution to pension scheme of Central Government |
| Section 80CCE | Limit on deductions under sections 80C, 80CCC and 80CCD |
| Section 80CCF | Deduction in respect of subscription to long-term infrastructure bonds. |
| Section 80CCG | Deduction in respect of investment made under an equity savings scheme. |
| Section 80D | Deduction in respect of medical insurance premia |
| Section 80DD | Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability |
| Section 80DDA | **** |
| Section 80DDB | Deduction in respect of medical treatment, etc. |
| Section 80E | Deduction in respect of interest on loan taken for higher education |
| Section 80EE | Deduction in respect of interest on loan taken for residential house property. |
| Section 80F | Deduction in respect of educational expenses in certain cases |
| Section 80FF | Deduction in respect of expenses on higher education in certain cases |
| Section 80G | Deduction in respect of donations to certain funds, charitable institutions, etc. |
| Section 80GG | Deductions in respect of rents paid |
| Section 80GGA | Deduction in respect of certain donations for scientific research or rural development |
| Section 80GGB | Deduction in respect of contributions given by companies to political parties or an electoral trust |
| Section 80GGC | Deduction in respect of contributions given by any person to political parties |
Part C. – Deductions in respect of certain incomes
| Section 80H | Deduction in case of new industrial undertakings employing displaced persons, etc. |
| Section 80HH | Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas |
| Section 80HHA | Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas |
| Section 80HHB | Deduction in respect of profits and gains from projects outside India |
| Section 80HHBA | Deduction in respect of profits and gains from housing projects in certain cases |
| Section 80HHC | Deduction in respect of profits retained for export business |
| Section 80HHD | Deduction in respect of earnings in convertible foreign exchange |
| Section 80HHE | Deduction in respect of profits from export of computer software, etc. |
| Section 80HHF | Deduction in respect of profits and gains from export or transfer of film software, etc. |
| Section 80I | Deduction in respect of profits and gains from industrial undertakings after a certain date, etc. |
| Section 80IA | Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. |
| Section 80IAB | Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone |
| Section 80IAC | Special provision in respect of specified business. |
| Section 80IB | Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings |
| Section 80IBA | Deductions in respect of profits and gains from housing projects. |
| Section 80IC | Special provisions in respect of certain undertakings or enterprises in certain special category States |
| Section 80ID | Deduction in respect of profits and gains from business of hotels and convention centres in specified area |
| Section 80IE | Special provisions in respect of certain undertakings in North-Eastern States |
| Section 80J | Omitted |
| Section 80JJ | Omitted |
| Section 80JJA | Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste |
| Section 80JJAA | Deduction in respect of employment of new employees |
| Section 80K | Omitted |
| Section 80L | Omitted |
| Section 80LA | Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre |
| Section 80M | Omitted |
| Section 80MM | Omitted |
| Section 80N | Omitted |
| Section 80O | Deduction in respect of royalties, etc., from certain foreign enterprises |
| Section 80P | Deduction in respect of income of co-operative societies |
| Section 80Q | Deduction in respect of profits and gains from the business of publication of books |
| Section 80QQ | Omitted |
| Section 80QQA | Deduction in respect of professional income of authors of text books in Indian languages |
| Section 80QQB | Deduction in respect of royalty income, etc., of authors of certain books other than text-books |
| Section 80R | Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc. |
| Section 80RR | Deduction in respect of professional income from foreign sources in certain cases |
| Section 80RRA | Deduction in respect of remuneration received for services rendered outside India |
| Section 80RRB | Deduction in respect of royalty on patents |
| Section 80S | Omitted |
| Section 80T | Omitted |
| Section 80TT | Omitted |
Part CA – Deductions in respect of other incomes
| Section 80TTA | Deduction in respect of interest on deposits in savings account. |
Part D. – Other deductions
| Section 80U | Deduction in case of a person with disability |
| Section 80V | Omitted |
| Section 80VV | Omitted |
In case of any further query relating to above you may reach the author of this article CA. Devendra Kumar Somani on somani74@rediffmail.com or Whatsapp No. 9610556057
Is deduction of chapter IV not allowed, if filling revised return after due date?
sir can we take 115BAC in revised return filed after due date but the original return was filed before due date but at old tax regime.
If we do not submit or forget to submit Chapter VI-A proof to employer and suffer TDS can we still claim the same in ITR given notification that income and deductions in ITR must match with Form 16 by employer
If u the word used is heading C of chapter VI. As per u it should have been VI C, its confusing what is heading C of chapter viA
Chapter VI and VIA are different.
Thank you so much for timely updation in the service of profession.
Assessed retiring after September during the year are to continue in the same place and rented houses paying a very high house rent did to their children’s education are to be given special rebate forclaimg HRA rebate till the end of the financial year rather than Rs 5000 per month.
Regards
S. Ramsubramanian
How to calculate capital gain on share trading
Very good explanation.
Another unreasonable draconic provision. TDS certificates are generally issued sometime after June. One needs to file returns by 31st July. There are also late fee for delayed filing of return. The authorities think they can force any law on the people. THIS PROVISION MUST BE DROPPED.