INCOME TAX DEDUCTIONS (CHAPTER VI A)

Sl. No.

Sections

Description of Deduction

Who can Invest?

Limit for FY 2019-20

(AY 2020-21)

1

80C

Investing into very common and popular investment options like:

» Deduction on premium paid for a life insurance policy, ELSS (Mutual Fund), PPF
» EPF
» FD for 5 years
» Pension Plans
» NSC
» Sukanya Samriddhi Account
» Infrastructure Bonds
» Expenditure on Children Education
» Tuition fees
» Housing Loan Principal Repayment
» Deferred Annuity
» Approved Super Annuation Fund
» NABARD Rural Bond
» Stamp Duty for Purchase of New \House


Individual

Or

HUF

Sum paid or deposited, subject to a maximum of Rs.1,50,000

2

80CCC

Deduction in respect of contribution to certain pension funds

Individuals

Actual amount paid or deposited
(excluding any bonus accrued or interest credited to assessee account)

or
    Rs. 150,000/-
(whichever is lower)

3

80CCD (1)

Contribution to National Pension Scheme (NPS) notified under Central Govt.

Individuals

For Employees- 10% of Basic Salary
For Other individual-20% of GTI

or
Actual amount deposited or paid
(whichever is lower)

4

80CCD (1B)

Additional Deduction for Contribution to NPS

Individuals

Upto Rs. 50,000/-

5

80CCD (2)

Deduction in respect of contribution to pension scheme of central government

Individuals

Amount Contributed by Employer

or

14% of salary if employer is CG or 10% other employer

(whichever is lower)

6

80CCE

The aggregate amount of deductions under section 80C, section 80CCC and sub-section (1) of section 80CCD

Individuals

Shall not Exceed Rs. 1,50,000 and additional Rs.50,000 for section 80CCD(1B) over and above 1.5 lakh.

7

80D

Deduction for Payment of medical insurance premium

Individual
Or
HUF

Rs.25,000/ for self/ family
Rs.50,000/-for senior citizen
Rs.50,000/-for very senior citizen
(Payment should be by any mode other than Cash)

8

80DD

Deduction in respect of maintenance including medical treatment of a dependent who is a person with disability.

Individual
Or
HUF

Normal Disability: Rs. 75,000/

Severe disability: Rs.1,25,000/-

9

80DDB

Medical Expense on Self / Dependent relative for Specified disease or ailments

Individual
Or
HUF

Actual sum paid

or

Rs.40,000/-

(Rs.1,00,000/- if medical treatment of a senior citizen)

whichever is lower

Dependent means:

(a)  in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,
(b)  in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

10

80E

Deduction in respect of interest on loan taken for higher education

Individual

100% of the interest paid upto 8 assessment years
or
until the interest is paid in full by the assessee
(whichever is earlier)

11

80EE

Deduction in respect of interest on loan taken for residential house property

Individual

Upto Rs 50,000 subject to some conditions

Conditions:

» The home loan should have been sanctioned during / after FY 2016-17.
» Loan amount should be less than Rs 35 Lakh.
» The value of the house should not be more than Rs 50 Lakh &
» Home buyer should not have any other existing residential house in his name.

12

80EEA

Deduction in respect of interest payable on loan taken from a FI (bank or HFC) for acquisition of residential house property

In case the property is self occupied, the deduction would be over and above the deduction of Rs.2 Lakhs u/s 24

Individual

Upto Rs 1,50,000 subject to some conditions

Conditions:

» Loan should be sanctioned by a FI during P.Y. 2019-20.
» Stamp duty value of house should be less than or equal to 45 lakhs
» Home buyer should not have any other existing residential house in his name.
» Individual should not be eligible to claim deduction u/s 80EE.

13

80EEB

Deduction in respect of interest payable on loan taken from a FI (bank or certain NBFCs) for purchase of electric vehicle

Individual

Upto Rs 1,50,000 subject to some conditions

Conditions:

Loan should be sanctioned during April 2019 – March 2023

14

80G

Donation to certain funds, charitable institutions etc.

All Assessee

(Individual, HUF, Company etc)

100% or 50% of the Donated amount or Qualifying limit,
Allowed donation in cash upto Rs.2000/-

15

80GG

House rent paid for any furnished or unfurnished accommodation occupied for purpose of his own residence

Individual

Rs.60,000/-
25% of Total Income
Rent paid - 10% of Total Income
(whichever is lower of above)

16

80GGA

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

All assessees except those who have an income (or loss) from a business and/or a profession

100% of the amount donated.
Allowed donation in cash upto Rs.10,000/-

17

80GGB

Deduction in respect of contributions given to political parties.

Company

100% of the amount contributed
No deduction available for contribution made in cash

18

80GGC

Deduction in respect of contributions given to political parties.

Individual / HUF /

AOP / BOI / Firm

100% of the amount contributed.
No deduction available for contribution made in cash

19

80IA

Profits and Gains from Industrial Undertakings engaged in infrastructure development, etc.

Industrial Undertakings engaged in specified businesses

100% of the profit for 10 consecutive years out of 15 years beginning from year of commencement

20

80IAB

Profits and Gains to SEZ Developers

SEZ Developers

100% of the profit for 10 consecutive years out of 15 years beginning from year in which SEZ has been notified by CG

21

80IAC

Eligible startups

Company or LLP engaged in eligible business

100% of the profit for 3 consecutive years out of 7 years beginning from the year of commencement

22

80IB

Profits and Gains from certain Industrial Undertakings other than infrastructure development undertakings

Specified Industrial Undertakings

25%, 30% or 100% of the profit for such periods as may be specified subject to certain conditions

23

80IBA

Profits from Housing Projects

Individual / HUF / AOP / BOI / Company / Firm
Any other person engaged in the business of Housing Projects

100% of the profit

24

80IC

Certain Undertakings in Special Category States

Certain Industrial Undertakings

Sikkim - 100% of profit for 10 years
Himachal Pradesh/ Uttaranchal
100% of the profit (For first 5 years)
25% (For next 5 years), (30% in case of Companies)
North Eastern States - 100% of the profit for 10 years

25

80JJA

Profits and Gains from Business of collecting & processing of bio-degradable waste

Specified Business

100% of the profit for 5 consecutive years beginning from the year of commencement

26

80JJAA

Deduction in respect of employment of new employees

Employer subject to tax audit u/s 44AB

30% of additional employee cost for 3 years including the year in which employment is provided

28

80PA

Certain income of Producer Companies

Producer Companies engaged in eligible business

100% of the profit

29

80RRB

Royalty on Patents

Individuals

(Indian or foreign citizen being resident in India)

Rs. 3 lacs or the income received

(whichever is lower)

30

80QQB

Royalty Income of Authors

Individuals

(Indian or foreign citizen being resident in India)

Lumpsum Payment: Income received subj. to maximum of Rs. 3 Lacs

Others: Income received subj. to maximum of 15% of value of books sold

31

80TTA

Interest earned on Savings Accounts

Individuals (except Senior Citizen)

or

HUF

Actual amount of Interest or Rs.10,000 p.a
(whichever is lower)

32

80TTB

Interest Income earned on deposits (Savings/ FDs)

Individuals

(60 Years or above)

Actual amount of Interest or Rs.50,000/- p.a
(whichever is lower)

33

80U

Deductions for Disabled Individuals

Individuals

Normal Disability: Rs. 75,000/

Severe disability: Rs.1,25,000/-





 
     
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