"Calculation of Total Income: Deductions under Chapter


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 Calculation of Total Income: Deductions under Chapter VI

 
 
 
 
Total income or taxable income  can be obtained after deducting the eligible deduction u/c VI A from gross total income.  
 
 
(1) Following portion of gross income cannot be adjusted   against deductions VI A
 
 
Long term capital gain
 
 
Short Term capital gain due to transfer of shares and mutual funds ( after the applicability  of security transaction tax )
 
Income arises from winning lottery and horse  racing
 
Income of some heads related with section 115
 
 
(4)  Aggregate Sum of all deductions cannot be more than Gross Total   Income  
 
 
5)  To claim the deductions submission of supporting document is the responsibility of assessee.
 
 
6) Investment for Claiming  deduction can be made from income of any financial year
 
 
 
Some of important applicable deductions under chapter VI A
 
 
80C   -     Investment in saving scheme (initially allowed u/s 88 ) such as GPF / PPF / LIC / GIS / PLI / NSC / NABAD Bond / ELSS , Tuition fees of children and repayment of house loan principal , without any interim limit, maximum up to a limit of RS 1 Lac including Bank FD For 5 year or more
 
 
 
80CCC - Premium amount deposited in pension scheme of govt./ private insurance co., maximum up to Rs 10, 000/- yearly for F.Y. 05-06 . But this limit is increased up to Rs. 1 Lac from the F. Y. 06-07
 
 
 
80CCD – Contribution of assessee ( individual ) / employer in pension scheme of central govt. up to the limit of 10% of salary
 
 
80CCE – Investment done u/s 80C, 80CCC and section 80CCD combined should not be more than Rs.100,000/-