deduction 80

8/3/2019 Deduction 80

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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 the assesses for

achieving certain economic objectives.


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Rule 1:

o The aggregate amount of deductions under sections

80C to 80U cannot exceed gross total income.

Rule 2:

o These deductions are to be allowed only if the assesses

claims these and gives the proof of such investments/

expenditure/ income.


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1. To encourage savings

2. For certain personal expenditure

3. For socially desirable activities

4. For physically disabled persons


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From AY 2007-08 onwards.

Applicable only to Individual & HUF.

This section provides for deduction in respect of

certain expenditure/ investments paid or

deposited by the assessee in the previous year.


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Life Insurance Premium Paid.

Deferred Annuity Contract.

Statutory Provident Fund and Recognized Provident Fund.

15 Year Public Provident Fund.

Approved Superannuation Fund.

National Savings Certificates.

Unit-linked Insurance Plan (Ulip).

Dhanraksha Plan ofLIC Mutual Fund.

Jeevan Dhara, Jeevan Akshay, New Jeevan Dhara.

Notified Units of Mutual Fund or UTI.


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100% of the amount invested or ` 100,000/- whichever is

lower.


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Deduction in respect of Contribution to CertainPension Funds.

Individual

Eligible Amount amount paid/deposited underan annuity plan of the Life Insurance Corporation ofIndia or any other insurer for receiving pension.


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Taxable income.

This must not be allowed as deduction u/s 80C.

Any amount withdrawn or pension received fromthe plan is taxable in the hands of the assessee ornominee in the year of receipt.


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Amount paid or ` 10,000/- whichever is lower.


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Deduction in Respect of Contribution to PensionScheme of Central Government.

Individual who is an employee of CentralGovernment on or after 1.1.2004.

Eligible Amount Deposit made under a pensionscheme notified by the Central Government.


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No deduction must have been claimed u/s 80C.

Any amount received from the scheme, is taxable

in the hands of the assess in that year or receipt.

Salary for the purpose of this section includesdearness allowance if under the terms of

employment.


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Aggregate of amount deposited by the employee and the

Central government, or 10% of the salary, whichever is

lower.


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The aggregate amount of deductions under 80C, 80CCC and80CCD put together cannot exceed

`1,00,000


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Deduction in respect of Medical InsurancePremium.

Individuals/HUF.

Eligible Amount - Insurance premium paid inaccordance with the scheme framed by theGeneral Insurance Corporation of India andapproved by the Central Government.


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The amount should be paid by cheque out of thetaxable income.

The policy is taken on the health of the assessee,on the health of spouse, dependent parents ordependent children of the assessee. In case ofHUF on the health of any member of the family.


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100% of premium paid subject to a maximum of:

o ` 15,000 in case of senior citizen. (Above 65 years)o ` 10,000 in case of others.


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Deduction in respect of dependent relative.

Individuals/HUF who is a Resident of India.

Eligible Amount expenditure incurred on medicaltreatment OR/AND amount paid or depositedunder any scheme framed by the LIC of India or anyother insurer for the payment of an annuity or alump sum amount for the benefit of suchdependent.


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The assess shall have to furnish a certificate in the

prescribed form.

Dependant means the spouse, children, parents

and siblings in case of individuals, or any member

of the family in case of HUF.

Person with severe disabilities means a person

suffering from 80% or more of one or more

disabilities.


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` 50,000 in case of normal disabilities.

` 75,000 in case of severe disabilities.

o This is irrespective of the amount expended.


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Deduction In Respect Of Medical Treatment

Individuals/HUF who is a Resident of India.

Eligible amount expenditure incurred for themedical treatment of such diseases specified inRule 11D(e.g. Parkinson's disease, malignantcancers, full blown AIDS, chronic renal failure, etc)for self or dependant individual.


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The concerned assessee must attach a copy of

certificate in the prescribed Form no. 10-1 along

with the return of income.

Dependant again means the spouse, children,

parents and siblings in case of individuals, or any

member of the family in case of HUF.

The deduction shall be reduced by the amount

received, if any, under an insurance from an

insurer for the medical treatment of person

mentioned in this section or reimbursed by the

employer.


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100% of the expenses incurred subject to a

maximum of :o ` 60,000 in the case of expenses incurred for senior citizens (above

65 years)o ` 40,000 in the case of others.


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Amount is paid out of his income chargeable to tax.

Higher education means full-time studies for any

graduate or post-graduate course in engineering,

medicine, management or for post-graduate coursein applied science or pure sciences including

mathematics and statistics.

The deduction shall be allowed for the previous year

in which the assessee starts repaying the loan or

interest thereon and seven previous years

immediately succeeding it or until the loan together

with interest thereon is paid by the assessee in full

,whichever is earlier.


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Financial institution means banking company or

financial institution notified by the central

government.

Approved Charitable Institutions means an

institution referred u/s 10(23C) of the act.


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Actual interest paid or `40,000 whichever is lower.


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Deduction in respect of amount of rent paid.

Any assessee other than assessee having income

allowance consisting HRA.

Eligible Amount Any expenditure incurred by himon payment of rent in excess of 10% of his total

income.


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The assessee files a declaration in Form No. 10BAregarding the payment of rent.

Such accommodation is occupied by him for his

own residence.Deduction under this section can be claimed evenif accommodation at concessional rent is providedby the employer.

Adjusted Gross Total income( Adj.GTI) for thispurpose means his gross total income minus long-term capital gain, short term capital gain taxableu/s 111A, and all deductions u/s 80CCC to 80Uexcept any deduction under this section.


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The amount of deduction under this section will be

the least of the following:

Excess of actual rent paid over 10% of adjusted gross total income:

25% of his adjusted gross total income; and` 2,000 p.m.


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Deduction in case of person with disability.

Individual resident of India.

Eligible amount Flat deduction to a person with

disability.


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A fixed deduction of :

o ` 50,000 in case of a person with disability

o ` 75,000 in case of a person with severe disability.( having anydisability over 80%)


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Under the income tax act first of all income under each

head is computed.

The aggregate of income under each head is known as

Gross Total Income. Out of this gross total income certain deductions are

allowed.

The income after such deductions is called Total Income

The total deductions from section 80 C - 80 U cannotexceed the total income.


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Monil Chiripal

Santosh Nair

Rinku Kumari

deduction 80

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