Deductions 80C to 80U

 
DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME

From gross total income deductions shall be allowed under section 80C to 80U. The aggregate amount of deductions under sections 80C to 80U shall not exceed the gross total income. However, deductions are not allowed against short- term capital gains specified in sec.111A and long-term capital gains.

1)   Sec.80C: for individuals and H.U.F.
·       Regarding payments of LIP; contribution to PF, PPF, etc.
·       Deductions: upto Rs.1, 50,000.

2)   Sec.80CCC: for individual
·       Regarding contribution to pension fund.
·       Deduction: Rs. 1, 50,000 maximum.

3)   Sec.80CCD: for individual
·       Regarding contribution to pension scheme of central Government.
·       Deduction: Upto 10% of salary contributed by employee+ upto 10% of salary contributed by the employer; other individual upto 20% of G.T.I.

4)   Sec.80CCE: for individual
·       Regarding deductions u/ss80C, 80CCC and 80CCD.
·       Deduction: upto Rs.1, 50,000.

4)   A) Sec.80CCG: for individual
·       Regarding investment in listed equity shares or listed units of equity oriented fund.
·       Deduction 50% of amount invested or Rs.25, 000, whichever is less.

5)   Sec.80D: for individual and H.U.F.
·       Medical insurance premia paid by any mode of payment other cash for insurance of his health or the health of his spouse or dependent children.
·       Deduction: for children/Parents/member of H.U.F. upto Rs. 25,000. In case of senior citizen deductible upto Rs.25, 000.

6)   Sec.80DD: for individuals and H.U.F. resident in India
·        Regarding (a) Expenditure on medical treatment, training and rehabilitation of a disable dependent or/ and (b) amount paid under any scheme framed by the L.I.C. or other insurer etc.
·        Deductions: (a) disability Rs. 75,000, (b) severe disability Rs. 1, 25,000.

7)   Sec. 80DDB: for individual and H.U.F. resident in India.
·       Regarding medical treatment.
·       Deduction: (a) Amount paid or Rs.40, 000, whichever is less. (b) For senior citizen – Amount paid or Rs.60, 000, whichever is less? (c) Very senior citizen – amount paid or Rs. 80,000, whichever is less.
From the aforesaid amount the amount received from an insurer or reimbursed by employed shall be deducted and the balance shall be allowed.

8)   Sec.80E: for individual
·       Regarding payment of interest on loan taken for higher studies of self and relative.
·       Deduction: amount paid.

8A) sec.80EE: for individual
·       Regarding interest on loan taken for resident house.
·       Deduction: upto Rs.50, 000.

9)   Sec.80G: for all assessee
·       Regarding donation to approved funds or institutions in the form of a sum of money.
·       Deduction: 50% and in certain cases 100% of the qualifying amount of donation.

10)          Sec.80GG: for individual
·       Regarding expenditure on house rent in excess of 10 % of T.I. by self-employed persons and salaried person not getting H.R.A.
·       Deduction: Maximum 25% of total income /Rs.5, 000 p.m., whichever is less.

11)   Sec.80GGA: for all assessees
·       Regarding payments made to a scientific research association or to a university or college etc. For scientific research or social or statistical research or to an association or institution engaged in any programme or rural development or of training persons for such programme.
·       Deduction: 100% of the amount paid.

12)   Sec.80GGB: for Indian companies
·       Regarding contribution to political parties etc.
·       Deduction: 100%of sum paid.

13)   Sec.80GGC: for all assessees except Local Authority, Juridical person and Indian company
·       Regarding contribution to political parties etc.
·       Deduction: 100%of sum paid.

14)   Sec.80-IA
·       Regarding infrastructural facility.
·       Deduction: 100%of profits for ten assessment years.

15)   Sec.80-IAB
·       Regarding profit from development of special economic zone.
·       Deduction: 100% of profits for ten consecutive assessment years.

15) A) Sec.80-IAC
·       Regarding specified business
·       Deduction: 100% for three consecutive assessment years.

16)Sec.80-IBA
·       Regarding House project.
·       Deduction: 100% of profits.

17)Sec.80-IC
·       Regarding profits from enterprise in special category states.
·       Deduction: 100% of profits for initial five assessment years and next five assessment years- company @30% and others @25%.

18)Sec.80-IE
·       Special provision in respect of Undertakings in North-Eastern States.

·       Deduction: 100% of profits for ten consecutive assessment years.

19)Sec.80JJA: for all assessees
·       Regarding profits from business of collecting and processing of bio-degradable waste etc.
·       Deduction: 100% of profits for initial five assessment years.

20)Sec.80JJAA: for an assessee engaged in the manufacture of goods in a factory
·       Regarding employment of new workmen.
·       Deduction: 30% of additional wages paid to the new regular workmen’s employed by the assessee during the previous year.

21)Sec.80LA: for a scheduled bank etc.
·       Regarding income of offshore banking unit etc.
·       Deduction: 100% of such income for five assessment years and thereafter 50% of such profits for five assessment years.

22)Sec.80QQB: individual(author) resident in India
·       Regarding royalty in respect of books.
·       Deduction: Upto Rs.3, 00,000.

23)Sec.80RRB: individual (patentee) resident in India
·       Regarding royalty in respect of patent.
·       Deduction: Upto Rs.3, 00,000.

24)Sec80.TTA: individual and H.U.F.
·       Regarding interest on savings accounts.
·       Deduction: Upto Rs. 10, 000.

25)Sec.80U: for resident individual
·       From income of disabled person.
·       Deduction: (a) disability Rs.75, 000; (b) Severe disability Rs.1, 25,000.