deductions under chapter vi a
TRANSCRIPT
3CD CLAUSE 26PRESENTED BY
CA BHARAT THAKKAR (A.C.A)
trin trin : 91 9825715531Identity on web [email protected]
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