Regarding 80c limit
Mahesh Radadiya (Manager Account) (39 Points)
03 June 2018
standard deduction is under head 80/c of Rs. 150000 limit or beyond 150000
Mahesh Radadiya (Manager Account) (39 Points)
03 June 2018
prasad Nilugal
( GST Practitioner & Accounts )
(14260 Points)
Replied 03 June 2018
Rs 150000/- is limit under 80C not beyond under section 80CCE of the income tax act 1961
GS
(NA)
(80 Points)
Replied 03 June 2018
Standard deduction is not under 80C. It is under Section 16
Sec 16(ia) :Standard deduction of Rs. 40,000 is allowed in respect of salary income to all employees in lieu of transport
allowance of Rs. 1600 per month and medical expenditure reimbursement of Rs. 15,000 p.a.
prasad Nilugal
( GST Practitioner & Accounts )
(14260 Points)
Replied 03 June 2018
I think he is asking limit on deductions under 80C , let him clerify standard deduction or maximum deduction under 80/ C
RAJA P M
("Do the Right Thing...!!!")
(127582 Points)
Replied 03 June 2018
Ram Agrahari
(250 Points)
Replied 03 June 2018
Rajkiran Ghosh
(479 Points)
Replied 03 June 2018
Kartikey Jain
(Intern)
(2377 Points)
Replied 04 June 2018
Finance Act 2018 has amended the Section 16 of the Income Tax Act 1961 and reintroduced the standard deduction of Rs 40000/- for the salaried employees which will subsume and replace the existing Transport allowance and Medical allowance of Rs 19200 and Rs 15000 allowed earlier.
This has effectively resulted in additional benefit of Rs 5800 to the salaried employees and this amendment shall also save the employers and organisations from the administrative work of processing medical bills.
This deduction is over and above the 1.5 Lakhs deduction allowed under Section 80C of the Income Tax Act. So assessees having salary income can take benefit of both Rs 40000 standard deduction as well as Rs 150000 deduction under Sec 80C.
Srikanth Yekkaldevi
(179 Points)
Replied 05 June 2018
Deduction under 80C - 150000, which would includes,insurancepremiums,pfcontributions,house loan repayments,contributions to national savings certificate or fixed deposits etc.
Deduction under 80CCC - 150000, which will includes contributions for pension fund with LIC and other Pvt firms
Deduction under 80CCD(1) - 150000, which will include contributions for pension fund with government.
Additional deduction under 80CCD(2) - 50000, contribution to pension fund with government.
But in total, deduction shall not be more than
* Rs 150000 (80C + 80CCC + 80CCD(1))
* Rs 200000 (80C +80CCC +80CCD(1) + 80CCD(2)).
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