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Deductions allowed from Gross Total Income under Chapter VI A of Income Tax Act, 1961

 

Section 80A of Income Tax Act 1961
As per section 80A(i) in computing the income of an assesse, deductions specified under sections 80C to 80U shall be allowed to deduct from Gross Total Income.

As per section 80A(ii) the aggregate amount of deductions under this chapter shall not in any case exceed the gross total income of the Assessee. Once the assessee has claimed the benefit of deduction under 35AD for a particular year in respect of specified business, he cannot claim benefit under chapter VIA under the heading deductions in respect of certain income for the same or any other year or vice versa.
 

 


Section 80AB of Income Tax Act 1961
Provision in this section is that the purpose of calculation of deductions specified under Chapter VI A under the heading "C-Deduction in respect of certain income", the net income computed in accordance with the provisions of Act (before making any deduction under chapter VI A) shall alone be regarded as income received by the assessee and which is included in Gross Total Income.

Section 80AC of Income Tax Act 1961
Furnishing return of Income on or before due date is mandatory for claiming exemption under section 80 IA, 80IAB, 80 IB, 80IC, 80ID and 80 IE

Section 80b(5) of Income Tax Act 1961
Gross Total Income means the income computed in accordance with the provisions of the Act without making any deductions under Chapter VI A


Deductions allowed from Gross Total Income in respect of Payments

80C- Deductions under Section 80C of Income Tax Act 1961
Deduction from Gross Total Income in respect of Investment in specified Asset available to individual and HUF
Deduction Allowed: Maximum Qualifying amount Rs. 1,00,000

80D - Deductions under Section 80D of Income Tax Act 1961
For individual assesses a deduction in respect of medical insurance premium paid to keep in effect an insurance on the health of self, spouse and dependent children or any contribution made to Central Government health scheme.
Deduction Allowed: Rs. 15,000/- a further deduction of Rs. 15000/- is allowed in case the premium paid is for the health insurance taken for the health of parents. If paid for senior citizen above 60 years a increased deduction of Rs. 20000 is allowed.

80DD - Deductions under Section 80DD of Income Tax Act 1961
Deduction respect of maintenance including medical treatment of a disabled person
Deduction allowed: Normal cases Rs. 50000 In case of severe disability Rs. 100000.

80DDB - Deductions under Section 80DDB of Income Tax Act 1961
DDB Deduction in respect of Medical Treatment expenses paid by individual or HUF
Deduction Allowed: Rs. 40000 or actual paid whichever is less. Senior citizens above 60 years Rs. 60000

80E - Deductions under Section 80E of Income Tax Act 1961
Deduction in respect of any interest on loan taken for higher education.
Deduction Allowed: Any interest on paid by the assesse during the previous year out of income chargeable to tax

80G - Deductions under Section 80G of Income Tax Act 1961
Deduction in respect of donation to certain funds, charitable institutions etc. If the assessee pays any sum as donation to eligible funds or institutions, the assesse is entitled a deduction subject to certain limitations, from the Gross total Income

Deduction Allowed: 100% for approved funds and 50% for others subject to qualifying amount

80GG - Deductions under Section 80GG of Income Tax Act 1961
Deduction in respect of Rent paid. The qualify for deduction under this section the Assesse should not be receiving any House Rent Allowance exempt under section 10(13A)

Deduction allowed: Actual rent paid less 10% of total Income before allowing deduction or 25% of total income after making all deductions under Chapter VI A whichever is lower

80GGA - Deductions under Section 80GGA of Income Tax Act 1961
Deduction in respect of donation to scientific research and rural development. Deduction in respect of donation made for scientific research and rural development by any not having income chargeable under the head Profit and gains of Business or Profession.

Deduction Allowed: Any sum paid by the Assessee in the Previous Year

80GGB - Deductions under Section 80GGB of Income Tax Act 1961
Deduction in respect of contribution paid to political parties by companies. Please see regulation under Companies Act also.

Deduction allowed: Any sum contributed by an Indian company to any political party during the previous year

80GGC - Deductions under Section 80GGC of Income Tax Act 1961
Deduction in respect of contribution made by any persons to political parties or an electoral trust.

Deduction allowed: Any sum contributed by any person during the previous year to any political party or electoral trust.


Deductions allowed in respect Incomes

80IA - Deductions under Section 80IA of Income Tax Act 1961
Deduction in respect of profit and gains from undertakings engaged in infrastructure development

Deduction allowed: 10 Year Tax holidays to an assessee, whose gross total income includes profit and gains derived by an undertaking or enterprise for from an eligible business. For details please see relevant section.

80IAB - Deductions under Section 80IAB of Income Tax Act 1961
Deduction in respect of profits and gains by undertaking or enterprise engaged in development of SEZ

Deduction allowed: 100% profit and gains derived for 10 consecutive assessment years

80IB - Deductions under Section 80IB of Income Tax Act 1961
Deduction in respect of profits and gains from certain Industrial undertaking other than infrastructure development undertaking

Deduction allowed: In case of Industrial undertakings 25% of the profits and gains for a period of 10 consecutive assessment years starting from initial year.
In case of Industrial undertakings 30% of the profits and gains for a period of 12 consecutive assessment years starting from initial year.

80IC - Deductions under Section 80IC of Income Tax Act 1961
Special Provision in respect of undertaking or enterprise in certain special category states. This section allows tax holidays to new undertakings or existing undertaking on their substantial expansion in the state of Himachal Pradesh, Uttaranchal, Sikkim and North Eastern States.

Deductions allowed: Himachal Pradesh - Tax holiday of 100% for the first five years 25% (30% in case of companies) for the next five years Sikkim and North Eastern States- 100% tax holiday for 10 assessment years commencing from the initial assessment year.

80ID - Deductions under Section 80ID of Income Tax Act 1961
Tax holidays in respect of profits and gains from business of hotel or business of building, owning and operating a convention centre in NCR . Eligible business are business of hotel or business of building owing and operating a convention centre in specified area for a period of consecutive assessment years beginning from the year in which such hotels starts functioning convention centre starts function on commercial basis. Specified area means National Capital Territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad.

Deduction allowed: 100% Profit and gains derived by an undertaking for eligible business for a period of 5 years. The benefit of 5 years has been now extended to two, three or four star hotels located in specific districts.

80IE - Deductions under Section 80IE of Income Tax Act 1961
Tax holiday in respect of profits and gains from eligible business of certain undertakings in North Eastern states. This incentive is available to an undertaking which has during the period between 1st April, 2007 and 1st April 2017, begun or begins in any of the North Eastern states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mozoram, Nagaland, Sikkim and Tripura. The business should be to (1) to manufacture or produce any eligible article or thing, (2) to undertake substantial expansion to manufacture or produce eligible article or thing (3)
to carry on any eligible business.

Deduction of 100% profits or gains arrived from such business for 10 consecutive years

80JJA - Deductions under Section 80JJA of Income Tax Act 1961
Deduction in respect of profit and gains from business collecting and processing of bio-degradable waste.

Deduction allowed: Deduction is allowable for an amount equal to the whole of such profits and gains for a period of five consecutive Assessment Years beginning with the Assessment Year relevant to the previous year in which the business commences.

80JJAA - Deductions under Section 80JJAA of Income Tax Act 1961
Deduction in Respect of employment of new workmen. The assessee should be an Indian Company has profits and gains from Industrial Undertaking engaged in manufacture or production of any article or thing.

Deduction allowed: Deduction shall be available for 30% of additional wages paid to new regular workmen employed by the Assessee in previous Year. The deduction shall be available for 3 assessment years including assessment relevant to the previous year in which the employment is provided.

80LA - Deductions under Section 80LA of Income Tax Act 1961
Deduction in respect of certain Income of offshore banking units and international financial centre. (i) This section applicable to the following assessees: (a) A Scheduled bank having an offshore banking unit in a SEZ; or (b) any bank incorporated by or under the laws of a country outside India, and having an offshore Banking unit in a SEZ; or (c) a unit of an International Financial Services Centre (IFSC

Deduction allowed: 100% of such income for 5 consecutive assessment years
50% of Income for next 5 consecutive Assessment Years

80P- Deductions under Section 80P of Income Tax Act 1961
Deduction in respect of Income of Cooperative Societies. Under this section certain specified income of a cooperative society would be allowed as deduction, in case the income is included in the Gross Total Income of the Society.

Deductions allowed: Items of income are specified in this section. Please read detailed section.

Regional Rural banks not eligible for deduction under Section 80-P

80QQB- Deductions under Section 80QQB of Income Tax Act 1961
Deduction in respect of royalty income etc of certain books other than text books. Deduction is allowed to an individual resident in India in respect of income derived as author.

Deduction allowed: A deduction upto maximum of Rs. 3,00,000 is allowed to individual resident in India. Deduction shall be income derived as author or Rs.3,00,000 whichever is less

80RRB- Deductions under Section 80RRB of Income Tax Act 1961
Deduction in respect of royalty on patents. This deduction is allowed to a resident individual in respect of income by way of royalty of a patent registered.

 Deduction allowed: Deduction to resident individuals in respect of income by way of a patent registered on or after 1.4.2003 upto an amount of Rs. 3,00,000

80TTA- Deductions under Section 80RTTA of Income Tax Act 1961
Deduction in respect of interest on deposit in Savings Account with Bank, Cooperative Society or post office. Deduction is allowed if the gross total income of any individual or HUF includes any income by way of interest on deposits in savings account (not being fixed deposits)

Deduction allowed: Rs. 10000 in aggregate shall be allowed while computing the total income of such assess.

80U- Deductions under Section 80U of Income Tax Act 1961
Deduction in the case of person with disability. This section is applicable to resident individuals who at any time during the previous year is certified by a medical authority to be a person with disability.

Deduction allowed: A deduction of Rs. 50000 is available in respect of person with disability and Rs. 100000 in respect of person with severe disability (over 80% disability).

 

 


 

Deductions under Chapter VIA Sections in Detail

80A Deductions to be made in computing taxable income as per section 80A, chapter via of Income Tax Act

80AB Any deduction is required to be made or allowed under any section included in Chapter VIA under the heading "C"

80AC Income Tax return needs be filed before due date to get deduction under few sections of VIA

80B meaning of Gross Total Income under Income Tax Act

80C Deduction in respect of LIC Premia, deferred annuity, PF contributions subscription to certain equity shares or debentures, etc.

80CCA Deduction available to assessee in respect of deposits under National Savings Scheme or payment to a deferred annuity plan

80CCB Deduction in respect of investment made under Equity Linked Savings Scheme

80CCC Deduction in respect of contribution to certain pension funds

80CCD Deduction in respect of contribution to pension scheme of Central Government

80CCE Limit on deductions under sections 80C, 80CCC and 80CCD

80CCG Deduction in respect of investment made under an equity savings scheme

80D Deduction in respect of health insurance premia

80DD Deduction of of maintenance including medical treatment of a dependant person with disability

80DDB Deduction against Medical Treatment Expenses etc incurred

80E Deduction against interest on loan taken for higher education

80EE Deduction against interest on loan taken for residential house property

80G Deduction against donations to certain funds, charitable institutions, etc

80GG Deductions against rents paid

80GGA Deduction in respect of certain donations for scientific research or rural development

80GGB Deduction in respect of contributions given by companies to political parties

80GGC Deduction against contributions given by any person to political parties

80HH Deduction against profits and gains from newly established industrial undertakings or hotel business in backward areas

80HHA Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas

80HHB Deduction in respect of profits and gains from projects outside India

80HHBA Deduction against profits and gains from housing projects in certain cases

80HHC Deduction in respect of profits retained for export business

80HHD Deduction of earnings in convertible foreign exchange

80HHE Deduction of profits from export of computer software

80HHF Deduction of profits and gains from export or transfer of film software, etc

80I Deduction profits and gains from industrial undertakings after a certain date, etc

80IA Deductions of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc

80IAB Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone

80IB Deduction of profits and gains from certain industrial undertakings other than infrastructure development undertakings

80IC Special provisions of certain undertakings or enterprises in certain special category States

80ID Deduction of profits and gains from business of hotels and convention centres in specified area

80IE Special provisions in respect of certain undertakings in North-Eastern Statesa>

80JJA Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste

80JJAA Deduction of employment of new workmen

80LA Deductions of certain incomes of Offshore Banking Units and International Financial Services Centre

80O Deduction of royalties, etc., from certain foreign enterprises

80P Deduction of income of co-operative societies

80Q Deduction of profits and gains from the business of publication of books

80QQA Deduction of professional income of authors of text books in Indian languages

80QB Deduction of royalty income, etc., of authors of certain books other than text-books

80R Deduction of remuneration from certain foreign sources in the case of professors, teachers, etc

80RR Deduction of professional income from foreign sources in certain cases

80RRA Deduction of remuneration received for services rendered outside India

80RRB Deduction of royalty on patents

80TTA Deduction of interest on deposits in savings account

80U Deduction in case of a person with disability

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