Chapter VI A

8/8/2019 Chapter VI A

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Chapter VI A

Vikas

Tushar

Neha

SonaliAbhishek

Reethika


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Introduction

Provided by the Income Tax Act, 1961.

Contained in Chapter VI A and in the form of

deductions from section 80C to 80U.

They are the permissible amount by which the

gross total income is reduced to arrive at the

total income liable to tax.

They are intended to act as incentive to theassessee for achieving certain economic

objectives


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Basic Rules

Rule 1

The aggregate amount of deductions

under sections 80C to 80U cannot exceedgross total income.

Rule 2

These deductions are to be allowed only ifthe assessee claims these and gives the

proof of such investments/ expenditure/

income.


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Categories of Deductions

To encourage savings

For certain personal expenditure

For socially desirable activities

For physically disabled persons


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Deductions 80 C to 80 U


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Sections Particulars Assessee to

whom allowed

Quantum of

deduction

80C Deduction in respect of life

insurance premia. deferred

annuity, contributions to

provident fund, subscription

to certain equity shares or

debentures, a term deposit fora fixed period of not less than

5 years with a scheduled

bank, bonds issued by

NABARD, Post Office 5 year

Time Deposit, Senior Citizen

Savings Scheme etc.

Individual or

HUF

Max. Rs. 1,00.000 .

80CCC Deduction in respect of

contribution to certain

pension funds

Only

individuals

Max. Rs. 1,00,000


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80CCD Deduction in

respect of

contribution

to newpension

scheme

Central

Government or any

other employee. From

assessment year 2009-10 benefit extended to

self-employed persons

also

Employers and

employees contribution

subject to maximum of

10% of salary

The aggregate amount of deductions under 80C, 80CCCand 80CCD put together cannot exceed Rs.1,00,000


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80D Deduction in

respect of

medical

insurancepremia

Individual or HUF

whether resident or

non-resident

In case of individuals

(/) For individual himself,

spouse and dependent children

Rs. 15,00(//) For parents of the

individual, whether dependent

or not Rs. 15,000

In case of HUF Rs. 15,000

Note.Addl. Rs. 5,000 if any

of the above person insured is asenior citizen

80DD Deduction in

respect of

maintenance

includingmedical

treatment of

person with

physical

disability

Individual or HUF

resident in India:

with disability

with severedisability

Rs. 50,000 Rs. 75,000

Increased to Rs. 1,00,000

W.e.f. A.Y. 2010-11


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80E Deduction for interest paid

on loan taken for pursuing

his higher education or for

the purpose of highereducation of his relative.

W.e.f. A.Y. 2010-11

meaning of higher

education has been

enlarged to cover all post

schooling courses

Relative means the

spouse and children of the

individual.

Individual

whether resident

or not

Actual amount

paid

80DDB Deduction in respect of

medical treatment, etc.

Individual or

HUF resident in

India For seniorcitizen

Rs. 40,000 Addl.

Rs. 20.000


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80G Deduction in respect

of donations to

certain funds,

charitable institutions,

etc.

All

assessees

(a) 100% or 50% of

eligible donations, without

applying qualifying limit

in certain cases

(b) 100% or 50% of

eligible

donations, after applyingQualifying limit of 10% of

adjusted GTI.

80GG Deductions in respect

of rent paid

Individual

only

Maximum Rs. 2,000 p.m.

80GGA Deduction in respectof certain donations

for scientific research

or rural development,

etc.

All assesseesnot having

business

income.

100% of sum donated


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80GGB Deduction in respect ofcontribution to political

parties.

W..e.f. A.Y. 2010-11,

contribution to Electoral

Trust also eligible for

deduction.

Indiancompanies

100% of sumcontributed

80GGC Deduction in respect of

contribution to political

parties.

W.e.f. A.Y. 2010-11,

contribution to ElectoralTrust also eligible for

deduction

All assessees

(except local

authority and

artificial judicial

person)

100% of sum

contributed


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Deduction 80 IANature of Industry Assessee Period of commencement

of businessDeductions

Infrastructure facility

(new undertaking;

agreement with the

Central Govt.)

Indian Company On or after 1-4-1995

100% for 10 years

out of 20 years.

In case of Port

out of 15 years.

Telecommunication (New

undertaking: new

Plant)

Any undertaking .In case of

domestic

satellite Indian

Company

1-4-95 to 31-3-2005

100% for first 5

years; 30% for

next 5 years.

Industrial Park or SEZ Any undertaking

IP- 1-4-97 to 31-3-2006. .

SEZ- on or after 1-4-2001

to 31-3-2006

100% for 10 years

out of 5 years

Power ( New undertaking

: New Plant)Any undertaking

New network 1-4-99 to

31-3-2006. .

Substantial renovation.

1-4-2004 to 31-3-2006.

100% for 10 years

out of 15 years


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Deduction 80 IAB

Profits and gains by an undertaking or enterprise engaged in

development of Special Economic Zone

The gross total income of the tax payer includes profits and

gains derived by an undertaking from any business of

developing a SEZ.

Amount of Deduction 100% deduction available for 10

consecutive assessment years.


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Deduction 80 IB

Undertaking When Set upRate

PeriodCompany Others

I. Industrial Undertaking [ Section 80-IB(2)]

(a) Industry set up in

Industrial backward state.1-4-93 to 31-3-2004

100%

30%

100%

25%

For first 5 years

For next 5 years

(b) Industry set up in North

Eastern States1.10.93 to 31.3.2004

100%

30%

100%

25%

For first 5 years

For next 5 years

(c) Industry set up in

A. category backward district

B. category backward district

1.10.94 to 31.3.2004

1.10.94 to 31.3.2002

1.10.94 to 31.3.20041.10.94 to 31.3.2002

100%

30%

100%30%

100%

25%

100%25%

For first 5 years

For next 5 years

For first 5 yearsFor next 5 years

(d) Other Industries

A. in small sector co-op.

B. any other in priority sector

1.4.91 to 31.3.2002

1.4.91 to 31.3.1995

30%

30%

25%

25%

12 years for coop.

other 10 years

----do----


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II. Production of Mineral

oil in North Eastern region

or any where in India

[80IB(4E)]

From 1.4.97

onwards 100% 100% First 7 years

III. Refining of mineral oil

in North Eastern region or

any where in India [80-

IB(4E)]

From 1.10.98

onwards100% 100% First 7 years

IV. Construction and

development of housing

project of residential units

whose area does not

exceed 1,000 sq. feet.

From 1.10.98 ,

Project must be

completed by

31.3.2003

100% 100%

V. Profit from anundertaking engaged in

the integrated business of

handling, storage and

transportation of food

grains [ 80-IB(11A)]

From 1.4.2001

onwards

100%

30%

100%

25%

For first 5 years

For next 5

years


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VI. Setting up of

multiplex theaters.

1.4.2002 to

31.3.2005 50% 50% For first 5 years

VII. Setting up of

convention center

1.4.2002 to

31.3.200550% 50% For first 5 years

VIII. Hotel :

(a) in hilly area or in rural

areas outside municipal

limits.

1.4.90 to 31.3.1994

and

1.4.97 to 31.3.2001

50%

50%

Nil

Nil

For first 10years

For first 10

years

(b) at place other than

Clacutta, Chennai,

Mumbai & Delhi

1.4.97 to 31.3.2001 50% Nil For first 10years

(c) Any where in India 1.4.91 to 31.3.1995 30% NilFor first 10

years


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80-IC Deduction in

respect of certain

undertakings or

enterprises in

certain special

category States

All assessees deriving

income from an

under-takings or

enterprises situated in

special category States

which begin

manufacturing/ production

between specified dates

25% to 100%

of profits

80-ID Deduction in

respect of profits

and gains from

business of hotels

and conventioncentres in specified

area

All assessees engaged in

the business of hotel or

engaged in the business of

building, owning &

operating a conventioncentre

W.e.f A.Y. 2009-10 hotels

located in specified

districts having a World

Heritage Site in India

100% for 5

consecutive

assessment

years


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80-IE Deduction in respect

of profits and gains

from an undertakingin any of the North-

Eastern States

Assessees who have

begun or begin to

manufacture or produceeligible articles or

things or undertake

substantial expansion or

carry on any eligible,

business on or after 1-4-

2007.

100% for 10

consecutive

assessmentyears

80JJA Deduction in respect

of profits and gains

from business of

collecting and

processing of biodegradable waste

All assessees 100% of profit

for 5 years


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80JJAA Deduction in respect ofemployment of new

workmen

Only Indiancompanies

30% of additional wagesfor 3 years

80LA Deduction in respect of

certain income of

offshore Banking Units

Only Scheduled

Banks owning

etaxindia.org

offshore

Banking Units

in a special

economic zone

100% for first 5 years and

50% for next 5 years

80P Deduction in respect of

income of co-operativesocieties except in case

of certain co-operative

banks.

Co-operative

societies

100% of profit


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80QQB Deduction in respect

of royalty income, etc.of authors of certain

books other than text

books

Individuals who

areresidents in Ind

ia and are

authors

Actual income or Rs.

3,00,000, whichever isless

80RRB Deduction in respect

of royalty on patents

Individual who

is resident inIndia and is a

patentee

100% of such income

orRs. 3,00,000 whichever

is less

80U Deduction in the case

of permanent physical

disability (includingblindness).

etaxindiaorg

Resident

individual:

withdisability

with severe

disability

Rs. 50,000 Rs. 75,000

Documents

Chapter VI A