6. 80C
This section is applicable from the assessment year 2006-
2007.Under this section 100%deduction would be available
from Gross Total Income subject to maximum ceiling given
u/s 80CCE.Following investments are included in this
section:
Contribution towards premium on life insurance (20% of
the sum insured )
Contribution towards Public Provident Fund .
(Max.70,000 a year )
Contribution towards Employee Provident Fund/General
Provident Fund
Unit Linked Insurance Plan (ULIP).
NSC VIII Issue
Interest accrued in respect of NSC VIII Issue
Equity Linked Savings Schemes (ELSS).
Repayment of housing Loan (Principal).
Tuition fees for child education. (No Limit)
Investment in companies engaged in infrastructural
facilities.
7. 80CCC
Deduction in respect of pension Fund
Deduction is allowed for the amount Deduction in
respect of contribution to certain Pension Funds
:paid or deposited by the assessee during the
previous year out of his taxable income to the
annuity plan (Jeevan Suraksha) of Life Insurance
Corporation of India or annuity plan of other
insurance companies for receiving pension from the
fund referred to in section 10(23AAB)
Amount of Deduction: Maximum Rs. 10,000/-
8. 80CCD
Deduction in respect of contribution to a notified
pension scheme of central Government or any
other employer
Deduction is available if:
The taxpayer is an individual
He is employed by the Central Government or by any
other employer on or after January 1,2004
He has in the previous year paid or deposited any
amount in his account under a pension scheme
notified by Central Government
9. 80D
Deduction in respect of Medical Insurance Premia
Deduction is allowed for any medical insurance premium under
an approved scheme of General Insurance Corporation of India
popularly known as MEDICLAIM) or of any other insurance
company, paid by cheque, out of assessee’s taxable income
during the previous year, in respect of the following
In case of an individual – insurance on the health of the
assessee, or wife or husband, or dependent parents or
dependent children.
In case of an HUF – insurance on the health of any member of
the family
Amount of deduction : Maximum Rs. 15,000, in case the
person insured is a senior citizen (exceeding 65 years of
age) the maximum deduction allowable shall be Rs. 20,000
10. 80DD
Deduction in respect of maintenance including medical treatment of
handicapped dependent :
Deduction is allowed in respect of – any expenditure incurred by an assessee,
during the previous year, for the medical treatment training and rehabilitation
of one or more dependent persons with disability; and
Amount deposited, under an approved scheme of the Life Insurance Corpn.
Or other insurance company or the Unit Trust of India, for the benefit of a
dependent person with disability.
Amount of deduction : the deduction allowable is Rs. 50,000 (Rs. 40,000 for
A.Y. 2003-2004) in aggregate for any of or both the purposes specified above,
irrespective of the actual amount of expenditure incurred. Thus, if the the
total of expenditure incurred and the deposit made in approved scheme is Rs.
45,000, the deduction allowable for A.Y. 2004-2005, is Rs. 50,000
11. 80DDB
Deduction in respect of medical treatment
A resident individual or Hindu Undivided family
deduction is allowed in respect of during a year for the
medical treatment of specified disease or ailment for
himself or a dependent or a member of a Hindu Undivided
Family.
Amount of Deduction Amount actually paid or Rs. 40,000
which ever is less (for A.Y. 2003-2004, a deduction of Rs.
40,000 is allowable In case of amount is paid in respect of
the assessee, or a person dependent on him, who is a
senior citizen the deduction allowable shall be Rs. 60,000.
12. 80E
Deduction in respect of Repayment of Loan taken for
Higher Education
An individual assessee who has taken a loan from any
financial institution or any approved charitable institution
for the purpose of pursuing his higher education i.e full
time studies for any graduate or post graduate course in
engineering medicine, management or for post graduate
course in applied sciences or pure sciences including
mathematics and statistics.
Amount of Deduction : any amount paid by the assessee in
the previous year, out of his taxable income, by way of
repayment of loan or interest thereon, subject to a
maximum of no limit
13. 80G
Deduction in respect of donations to certain
funds, charitable institutions, etc.
100 % deduction is allowed in respect of donations
to : National Defence Fund, Prime Minister’s National
Relief Fund, Armenia Earthquake Relief Fund, Africa
Fund, National Foundation of Communal Harmony,
an approved University or educational institution of
national eminence, Chief Minister’s earthquake Relief
Fund etc.In all other cases donations made qualifies
for the 50% of the donated amount for deductions.
14. 80GG
Deduction in respect of Rent Paid :
Any assessee including an employee who is not in
receipt of H.R.A. u/s 10(13A)
Amount of Deduction : Least of the following
amounts is allowable :
i. Rent paid minus 10% of assessee’s total income ; or
ii. Rs. 2,000 p.m. ;
iii. 25% of total income.
15. 80GGA
Donations for Scientific Research or Rural
Development :
In respect of institution or fund referred to in clause
(e) or (f) donations made upto 31.3.2002 shall only be
deductible.
This deduction is not applicable where the gross total
income of the assessee includes the income
chargeable under the head Profits and gains of
business or profession. In those cases, the deduction
is allowable under the respective sections specified
above
16. 80-IA
Deduction in respect of profit and gains from
industrial undertaking or enterprises engaged in
infrastructure development.
If some conditions are satisfied which is describe in
this section than 100 per cent of the profit is
deductible for 10 year. The deduction commences
from the initial assessment year.
17. 80IAB
Deduction in respect of profits and gains by an
undertaking or enterprises engaged in development
of Special Economic Zone
Conditions
The taxpayer is a developer of a SEZ
The GTI of the taxpayer undertaking from any business of
developing a SEZ
The SEZ in notified after 1st April 05 and books of accounts
are audited
If the above conditions are satisfied, the taxpayer can
claim 100 per cent deduction in respect of aforesaid profit.
18. 80IB
Deduction in respect of profits and gains from
certain industrial undertakings other than
indrastructure development undertaking
Conditions
It should be a new undertaking
It should not be formed by transfer or old plant and
machinery
Manufacture or production should be started within a
stipulated time limit.
It should employ 10/20 Workers.
Return of Income should be submitted on or before due date
19. 80IC
Deduction in respect of profits and gains of certain undertaking in
certain special category of states
Conditions
Not Formed by splitting up or reconstruction of existing
business
Not formed by transfer of old plant and machinery
Setup in Certain Special Category of States
Manufacture/Production of Specified Goods
If the aforesaid conditions are satisfied, then deduction is
available in Himachal Pradesh or Uttaranchal 100% Deduction
of the Profit and Gains
20. 80ID
Deduction in the case of hotels and convention
centre in NCR
This section 80ID has been inserted with effect from
the assessment year 2008-09
If some conditions are satisfied, 100 per cent of the
profit and gains derived from the aforesaid business is
deductible for five consecutive assessment year
beginning from the initial assessment year. Initial
assessment year for this purpose means the
assessment year relevant to the previous year
21. 80IE
Deduction in Respect of certain Undertaking in
North-Eastern States
Conditions
The taxpayer begins manufacture or production of goods
The aforesaid activity takes place in any North-Eastern States
The Business is not formed by the splitting up, or the
reconstruction, of a business already in existence
If the aforesaid conditions are satisfied 100 per cent of
profit from the aforesaid business/services shall be
deductible for 10 years.
22. 80JJA
Deduction in respect of profits from the business of
processing of bio-degradable waste
This Section is applicable where gross total income of an
assessee includes ant profits and gains derived from the
business of collection, processing or treating of bio-
degradable waste for generating power or producing bio-
fertilizers
The Whole of the Profits and gains of the above activities
shall be deductible for a period of five consecutive
assessment years beginning with the assessment year
relevant to the previous year in which such business
commences.
23. 80JJAA
Deduction in respect of employment of new workmen
Conditions
The taxpayer is an indian company
Income of the taxpayer includes any profit and gains derived
from any industrial undertaking
Industrial undertaking is not formed by splitting up or
reconstruction of another indl. Undertaking
The amount of deduction is equal to 30 per cent of
additional wages paid to new regular workmen employed
by the assessee in the previous year.
24. 80LA
Deduction in respect of certain income of offshore Banking
Units and International Financial Service Centre
Conditions
The assessee is a Scheduled Bank, A foreign Bank or a unit of
International Financial Services Centre.
The Gross total income of the assessee includes income from the
offshore banking unit in SEZ
The report from a CA in form no.10CCF certifying that the
deduction has been correctly claimed
If the above conditions are satisfied, then 100 per cent of the
aforesaid income is deductible for 5 consecutive assessment
year
25. 80P
Deduction in respect of income of a co-operative
Society
Conditions
Carrying on the business of banking or providing credit
facilities to its members
A cottage industry
Marketing of the agriculture produce grown by its members
Collective disposal of the labour of its members
Deduction under section 80P in respect of business
income of a co-operative shall be available with reference
to income after claiming deduction under section 80HH,
80HHA, 80HHB, 80HHC, 80 HHD, 80-I, and 80-IA.
26. 80QQB
Deduction in respect of royality income of authors
Conditions
Resident individual
Author or Joint author
Literary work
Income Include royalty
Finishing of form No.10CCD
If the aforesaid Conditions are satisfied, then the amount
of deduction is|:--- Rs. 3,00,000.00 or Income from royalty
as stated above.
27. 80R
Deduction is respect of remuneration from
certain foreign sources in the case of professors,
teachers, ect…
No deduction under section 80R is available from the
assessment year 2005-06 onwards
28. 80RRB
Deduction in respect of royalty on patents
Conditions
The taxpayer is an individual
He is residend in india
He is Owner/co-owner of patent
He is receipt of any income by way of royalty in respect of
patent
The assessee Should furnish a Certificate in form no 10CCE
If the aforesaid conditions are satisfied, then the amount
of deduction is Rs.3,00,000.00 or income from “Royalty” as
stated above.
29. 80U
Deduction in the case of a person with disability
Conditions
The taxpayer is an individual
He is resident in india
The taxpayer suffers 40% of more bye Blindness, Low Vision,
Leprosy-cured, hearing impairment, mental illness
This is certified by medical authority
If the aforesaid conditions are satisfied then a fixed
deduction of Rs.50,000 is available. A higher Deduction of
Rs.75,000 is allowed in respect of a person with severe
disability
