deductions under chapter vi a

3CD CLAUSE 26PRESENTED BY

CA BHARAT THAKKAR (A.C.A)

trin trin : 91 9825715531Identity on web bjthakker_411@yahoo.co.in

DEDUCTIONS UNDER CHAPTER

VI-A

FOR TAX AUDIT (3CD)

Clause 26•Section wise details of deduction , if any, admissible under chapter VIA

GENERAL POINTS TO BE KEPT IN MIND

• THE EXPENDITURE SHOULD BE INCURRED BY THE ASSESSEE DURING THE PREVIOUS YEAR

• IT MUST BE OUT OF TAXABLE INCOME• NOT CLAIMED AS EXPENDITURE UNDER ANY

HEAD OF INCOME OR UNDER ANY OTHER PROVISION OF THE ACT

• REQUSITE CERTIFICATES, REPORTS SHOULD BE OBTAINED IN PARTICULAR FORM IN PRESCRIBED MANNER AND TO BE FURNISHED WITHIN TIMELIMIT WITH PRECRIBED AUTHORITY

DETAILED DESCRIPTION OF EACH DEDUCTION

SECTIONS SECTION REFERENCE

ELIGIBLE ASSESEE

AMOUNT OF DEDUCTION

SPECIAL REMARKS

80C DEDUCTION IN RESPECT OF LIC PREMIUM, CONTRIBUTIONS TO PROVIDENT FUND, SUBSCRIPTION TO CERTAIN EQUITY SHARES OR DEBENTURES

INDIVIDUAL OR HUF

MAX. RS. 100000/-

DETAILED DESCRIPTION EACH DEDUCTIONSECTION SECTION

REFERENCEELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80 CCC DEDCTION IN RESPECT OF CONTRIBUTION TO CERTAIN PENSION FUNDS

INDIVIDUAL WHOLE AMOUNT DEPOSITED OR PAID B`11UT SUBJECT TO MAX. OF RS. 100000/-

80 CCD DED. IN RESPECT OF CONTRIBUTION TO PENSION SCHEME OF CENTRAL GOVERNMENT

ANY EMPLOYEES (INDIVIDUAL) OF ANY EMPLOYER

AMOUNT NOT EXCEEDING 10% OF SALARY

SALARY=BASIC+DA(IF TERMS OF EMPLOYMENT PROVIDE)

AS PER SECTION 80CCE AGGREGATE AMOUNT OF DEDUCTIONS U/S 80C, 80CCC AND 80CCD SHALLNOT EXCEED RS. 100000/-

BOND HAS TAX BONDING EFFECT

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80CCF DEDUCTION IN RESPECT OF INVESTMENT IN LONG TERM INFRASTRUCTURE BONDS

INDIVIDUAL OR HUF (ANY MEMBER OF THAT HUF)

ACTUAL INVESTMENT BUT SUBJECT TO MAX. OF RS. 20000(ADDITIONAL DEDUCTION)

THIS DEDUCTION WILL BE IN ADDITION TO EXISTING AGGREGATE DEDUCTION OF RS. 100000/- U/S 80C TO 80CCC

MEDICLAIM INSURANCE PREMIASECTION SECTION

REFERENCEELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80D DEDUCTION IN RESPECT OF HEALTH INSURANCE PREMIA (MEDICLAIM INSURANCE PREMIA)

INDIVIDUAL OR HUF (ANY MEMBER OF THAT HUF)

ACTUAL PREMIUM BUT SUBJECT TO MAX. OF RS. 20000 IN CASE OF SENIOR CITIZEN, MAX. UPTO RS 15000 IN ANY OTHER CASE

MODE OF PAYMENT OTHER THAN CASHFAMILY =THE SPOUSE AND DEPENDENT CHILDREN

INDEPENDENT WILL GET BENEFIT OF DEPENDENT

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80DD DEDUCTION IN RESPECT OF MAINT., MEDICAL TREATMENT OF DEPENDENT PERSON WITH DISABILITY

RESIDENT INDIVIDUAL OR HUF (ANY MEMBER OF THAT HUF)

FOR SEVERE DISABILITY RS. 75000/- AND RS. 50000/- FOR OTHER DISABILITY

1.TO FURNISH ALONGWITH RETURN OF INCOME A COPY OF CERTIFICATE ISSUED BY MEDICAL AUTHORITY 2. DEPENDENT =SPOUSE, CHILDREN, PARENTS, BROTHERS, SISTERS OR ANY OF THEM

DEDUCTION U/S 80U HAS NOT BEEN CLAIMED BY DEPENDENT

UNDERSTAND VALUE OF MEDICAL TREATMENT

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80DDB DEDUCTION IN RESPECT OF MEDICAL TREATMENT

RESIDENT INDIVIDUAL OR HUF (ANY MEMBER OF THAT HUF)

AMOUNT ACTUALLY PAID OR RS. 40000/- WHICHEVER IS LESSBUT IN CASE OF SENIOR CITIZEN RS. 60000/- ALLOWABLE INSTEAD OF RS. 40000/-

1.TO FURNISH ALONGWITH RETURN OF INCOME A COPY OF CERTIFICATE FROM SPECIALIST 2. DEPENDENT =SPOUSE, CHILDREN, PARENTS, BROTHERS, SISTERS OR ANY OF THEM

DEDUCTION TO BE REDUCED BY THE AMOUNT RECEIVED FROM INSURER OR REIMBURSE BY AN EMPLOYER

EDUCATION AT ITS BESTSECTION SECTION

REFERENCEELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80E DEDUCTION IN RESPECT OF INTEREST ON LOAN TAKEN FOR HIGHER EDUCATION

INDIVIDUAL PAYMENT OF INTEREST ON LOAN TAKEN FOR HIGHER EDUCATION

1.DEDUCTION FOR 8 ASSESSMENT YEARS 2. RELATIVE =SPOUSE, CHILDREN, THE STUDENT FOR WHOM THE INDIVIDUAL IS LEGAL GUARDIAN

HIGHER EDUCATION MEANS ANY COURSE OF STUDY AFTER PASSING SENIOR SECONDARY EXAMINATION

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80G DEDUCTION IN RESPECT OF DONATIONS TO CERTAIN FUNDS, CHARITABLE INSTITUTAIONS

ALL ASSESSEES 1.100% WITHOUT QUALIFYING LIMIT 2. 50% WITHOUT QUALIFYING LIMIT3. 100% WITH QUALIFYING LIMIT 4. 50% WITH QUALIFYING LIMIT

1.QUALIFYING LIMIT=10% OF ADJUSTED GROSS TAXABLE INCOME (AGTI) 2. AGIT= GTI-STCG(111A)-LTCG-ALL DEDUCTIONS UNDER CHAPTER VIA EXCEPT U/S 80G

CHARITABLE PURPOSE NOT INCLUDE WHOLE OR SUBSTANTIALLY WHOLE OF RELIGIOUS NATURE AND DEDUCTION ALLOWED IF DONATION IS OF A SUM OF MONEY

DONATE GENEREOUSLY TO GET TAX BENEFIT

ASSESSEE WITHOUSE HOUSE GET DEDUCTION

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80GG DEDUCTION IN RESPECT OF RENTS PAID

ONLY INDIVIDUAL

LEAST OF FOLLOWING1. RENT PAID-

10% OF AGTI

2. 25% OF AGTI

3. MAX. OF RS. 2000/- PER MONTH

1. APLICABLE WHERE THE ASSESSEE DOES NOT OWN SELF OCCUPIED ACCOMODATION 2. AGIT= GTI-STCG(111A)-LTCG-ALL DEDUCTIONS UNDER CHAPTER VIA EXCEPT U/S 80G

ASSESSEE NOT HAVING ANY INCOME FALLING U/S 10(13A)- HOUSE RENT ALLOWANCE

ENCOURAGEMENT TO WORLD OF POLITICSSECTION SECTION

REFERENCEELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80GGA DEDUCTION IN RESPECT OF DONATIONS FOR SCIENTIFIC RESEARCH OR RURAL DEVELOPMENT

ALL ASSESSEE ANY SUM PAID (100%)

GTI OF ASSESSEE SHALL NOT INCLUDE ANY INCOME WHICH IS CHARGEABLE UNDER HEAD “P OR G OF B OR P”80GGB DEDUCTION IN INDIAN ANY SUM PAID RESPECT OF COMPANY (100%) CONTRIBUTION BY COMPANIES TO POLITICAL PARTIES

80GGC DEDUCTION IN OTHER THAN ANY SUM PAID EXCEPT LOCAL RESPECT OF INDIAN (100%) AUTHORITY OR CONTRIBUTION COMPANY EVERY BY ANY PERSON TO ARTIFICIAL POLITICAL PARTIES JUDICIAL PERSON

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80JJA DEDUCTION IN RESPECT OF P & G FROM B OF COLLECTING & PROCESSING OF BIO-DEGRADABLE WASTE

ALL ASSESSEES 100% OF SUCH P & G FOR 5 CONSECUTIVE ASSESSMENT YEAR S BEGINNING WITH ASSESSMENT YEAR RELEVANT TO PREVIOUS YEAR IN WHICH SUCH BUSINESS COMMENCES

WASTE BECOME BEST

NEW WORKER=NEW BENEFIT

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80JJAA DEDUCTION IN RESPECT OF EMPLOYMENT OF NEW WORKMEN(NEW REGULAR WORKMEN)

INDIAN COMPANY

30% OF ADD. WAGES PAID UPTO FIRST 3 ASSESSMENT YEARS FROM ASSESSMENT YEAR IN WHICH SUCH EMPLOYMENT PROVIDED

1.ASSESSEE HAS TO FURNISH WITH ROI THE REPORT OF THE CHARTERED ACCOUNTANT2. NOT FORMRD BY SPILLITING UP OR RECONSTRUCTION OR AMALGAMATION

BECOME AUTHOR

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80QQB DEDUCTION IN RESPECT OF ROYALTY INCOME ETC. OF AUTHORS OF CERTAIN BOOKS OTHER THAN TEXT-BOOKS

RESIDENT INDIVIDUAL

1. ROYALTY OR COPYRIGHT FEES OR RS. 300000/- WHICHEVER IS LESS

2. IN CASE OF SALES OF BOOKS, 15% OF VALUE OF BOOKS SOLD

1.IF INCOME EARNED O/S INDIA, SO MUCH INCOME AS BROUGT WITHIN INDIA AS PERMITTED BY COMPETENT AUTHORITY2. NO DEDUCTION IN RESPECT OF INCOME UNDER ANY OTHER PROVISION

ASSESSEE SHALL FURNISH WITH ROI A CERTIFICATE DULY VERIFIED BY PERSON RESPONSIBLE FOR PAYMENT AND TO FURNISH A CERTI. IF INCOME EARNED O/S INDIA(2 SEPEARTE CETI)

ROYALTY ACHIEVE NEW HEIGHTS

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80RRB DEDUCTION IN RESPECT OF ROYALTY PATENTS

RESIDENT INDIVIDUAL

1. ROYALTY OR RS. 300000/- WHICHEVER IS LESS

1.IF INCOME EARNED O/S INDIA, SO MUCH INCOME AS BROUGT WITHIN INDIA AS PERMITTED BY COMPETENT AUTHORITY2. NO DEDUCTION IN RESPECT OF INCOME UNDER ANY OTHER PROVISION

ASSESSEE SHALL FURNISH WITH ROI A CERTIFICATE DULY VERIFIED BY PERSON RESPONSIBLE FOR PAYMENT AND TO FURNISH A CERTI. IF INCOME EARNED O/S INDIA(2 SEPEARTE CETI)

DISABILITY CONVERTED INTO INDIRECT ABLILITY

SECTION SECTION REFERENCE

ELIGIBLE ASSESSEE

AMOUNT OF DEDUCTION

SPECIAL REMRKS

80U DEDUCTION IN CASE OF A PERSON WITH DISABILITY

RESIDENT INDIVIDUAL

IN CASE OF SEVERE DISABILITY RS. 100000/- (W.E.F. ASSESSMENT YEAR 2010-2011 OR IN ANY OTHER CASES RS. 50000

ASSESSEE SHALL FURNISH A CERTIFICATE FROM MEDICAL AUTHORITY WITH ROI