Various tax deduction

1. TAX DEDUCTIONS
TOPIC
SUBMITTED BY:-
MANISH YADAV
MANMOHAN SINGH
AATUR PORWAL
VISHAL PATEL
VIJAY KUMAR PATIDAR
SUBMITTED TO:-
MR. SUNIL KUMAR VERMA

3. Deduction U/S 80E
 Section 80E: Deduction for Interest on Education Loan for Higher Studies.
 A deduction is allowed for interest on loan taken for pursuing higher
education.
 This loan may have been taken for the taxpayer, spouse or children or for a
student for whom the taxpayer is a legal guardian.
 The deduction is available for a maximum of 8 years or till the interest is
paid, whichever is earlier. There is no restriction on the amount that can be
claimed.

4. Who can claim this deduction
 Only an individual can claim this deduction.
 It is not available to HUF or any other kind of taxpayer.
 And the loan should be taken for the higher education of self, spouse or
children or the student for whom the individual is a legal guardian.
Where the loan should be taken
 The loan should be taken from any Bank / financial institution or any
approved charitable institutions.
 Loans taken from friends or relatives don’t qualify for the deduction.

5. Deduction Amount
 The deduction allowed is the total interest part of the EMI paid during the
financial year.
 You need to obtain a certificate from your Bank. Such certificate should
segregate the principal and interest portion of the education loan paid by you
during the financial year.
 The total interest paid will be allowed as deduction. No Tax benefit is allowed
for the principal repayment.
Period of Deduction
 The deduction for the interest on loan starts from the year in which you start
repaying the loan.
 It is available only for 8 years starting from the year in which you start repaying
the loan or until the interest is fully repaid whichever is earlier.

6. Section 80G
(Section 80G of the Income Tax Act offers tax deduction on
contributions made to certain charitable institutions
prescribed under the act.)
 The various donations specified in Sec. 80G are eligible for deduction up to
either 100% or 50% with or without restriction as provided in Sec. 80G.
80G deduction not applicable in case donation is done in form of cash for
amount over Rs 10,000.
 From Financial Year 2017-18 onwards – Any donations made in cash
exceeding Rs 2000 will not be allowed as deduction. The donations above
Rs 2000 should be made in any mode other than cash to qualify as
deduction u/s 80G.

7. Section 80GG
(Deduction for House Rent Paid Where HRA is not Received)
 This deduction is available for rent paid when HRA is not received. The
taxpayer, spouse or minor child should not own residential accommodation
at the place of employment.
 The taxpayer should not have self-occupied residential property in any other
place.
 The taxpayer must be living on rent and paying rent.

8.  Deduction available is the minimum of:
 Rent paid minus 10% of total income
 Rs 5000/- per month
 25% of total income
 For the financial year 2016-17 – Deduction calculation has been raised to
Rs 5,000 a month from Rs 2,000 per month. Therefore a maximum of Rs
60,000 per annum can be claimed as a deduction.

9. Section 80GGA
 Section 80GGA- Allows deductions for donations made towards scientific
research or rural development. This deduction is allowed to all assesses
except those who have income (or loss) from business and profession.
 Mode of payment – Donations can be made in cheque or by draft or in
cash.

10. Eligibility
 Deduction u/s 80GGA can be claimed by all individuals except those with
income from business/profession.
Amount of deduction
 The whole amount donated, i.e., 100% of amount donated qualifies for
deduction. There is no cap or upper limit on the deduction amount.

11. Types of institutions prescribed u/s 80GGA
 Donation made to an approved Scientific Research Association, university,
college, or other institution to be used for scientific research.
 Donation made to an approved university, college or other institution for
statistical research or research in social science.
 Donation made to an association or institution engaged in any approved
programme for rural development, or which is engaged in training of
persons for implementation of rural development programmes.
 Donation made to a public sector company or a local authority, or to an
association or institution approved by the National Committee, for carrying
out any eligible project or scheme.

12. Deduction U/S 80GGB
 Section 80GGB: Deduction on contributions given by companies to
Political Parties.
 Deduction is allowed to an Indian company for amount contributed by it to
any political party or an electoral trust. Deduction is allowed for
contribution done by any way other than cash.
 Political party means any political party registered under section 29A of the
Representation of the People Act. Contribution is defined as per section
293A of the Companies Act, 1956.

13.  Section 80GGC: Deduction on contributions given by any person to
Political Parties.
 Deduction is allowed to a taxpayer for any amount contributed to any political
party or an electoral trust. Deduction is allowed for contribution done by any
way other than cash.
 Political party means any political party registered under section 29A of the
Representation of the People Act.
Deduction U/S 80GGC