DEDUCTIONS UNDER CHAPTER VI-A

Pages : 1

CA CS Prakash Somani (A helpin
CA CS B. Com. NCFM (Capital market)

[ Scorecard : 21750]

Posted On 23 June 2010 at 19:22

Section	Nature of Deduction	Remarks
80CCC	Payment of premia for annuity The premium must plan of LIC or any other insurer, be deposited to keep Deduction is available upto a in force a contract for maximum of Rs. 10,000	The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.
80D	Payment of medical insurance premia. Deduction is available upto Rs. 10,000	The premium is to be paid by cheque and the insurance scheme should be framed by the General Insurance Corporation of India & approved by the Central Govt. or any other insurer and approved by the regulatory authority & Development authority.The premium should be paid in respect of health insurance of the assessee or his family members
80DD	Deduction of Rs. 40,000 in respect of a) expenditure incurred on medical treatment, (including nursing), training and rehabilitation of a handicapped dependent relative.	The handicapped dependent should be a dependent relative suffering a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.
80DD	b) Payment or deposit to specified scheme for maintenance of dependent handicapped relative	Note : The new section 80DD replace the earlier sections of 80DD and 80DDA which are now clubbed together under the new section.
80DDB	Deduction of Rs. 40,000 in respect of medical expenditure incurred	Expenditure must be actually incurred by resident assessee on himself or dependant relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule HDD. A certificate in form 101 is to be furnished by the assessee from any registered doctor
80E	Deduction in respect of repayment of loan taken upto Rs. 40,000 per year.	This provision has been introducedto provide relief to students taking loans for higher studies. The repayment of the principal amount of loan and interest thereon will be allowed as deduction upto Rs. 3.2 lakhs over a period of 8 years.
80G	Donations to certain funds,charitable institutions etc.	The various donations specified in Sec.80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec 80G
80GG	Deduction available is the least of (i) Rent paid less 10% of total income (ii) Rs. 2,000 per month (iii) 25% of total income	1) Assessee or his total spouse or minor child should not own residential accommodation at the place of employment.
		2) He should not be in receipt of house rent allowance.
		3) He should not have a self occupied residential premises in any other place
80L	Interest/Dividend/Income from : a) any Govt. Security (Central or State) b) NSC, VI, VII & VIII issues c) Notified debentures of public sector undertakings, cooperative societies/Land mortgage bank or land development bank. d) Notified National Deposit Scheme e) Any other deposit Scheme framed by Central Govt. and notified. f) Deposit under Post Office Monthly Income Account rules, 1987. g) deposits with banking companies, banking co-op, societies, land mortgage or land development bank. h) deposits with banks established under any law made by Parliament. i) Deposits with financial corporations approved by Central Government j) Deposits with any authority constituted in India under any law for planning,development or improvement of cities, towns and villages etc. k) Deposits with co-op. Societies. 1) Deposits, with any public companies providing long term finance for construction or purchase of houses. m) Income from U.T.I. n) Income from Units of Mutual Fund specified under clause (23D) of Sec. 10.	Rs. 9000 plus an addition deduction of Rs. 3000 allowed in respect of interest on any Central/State Govt. Securities
80U	Deduction of Rs. 40,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation	Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.