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SNO SECTION1 80CCC
The handicapped dependent should be a dependent relative
suffering from a
permanent disability (including blindness) or menta lly retarded, as certified by a
specified physician or psychiatrist.
A person with severe disability means a
person with 80% or more of one or more disabilities
as outlined in section 56(4)
of the “Persons with Disabilities (Equal opportunit ies, Protection of Rights and
Full Participation) Act.
NATURE OF DEDUCTIONS
Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs.
Deposit made by an employee in his pension account to the
extent of 10% of his salary
Subscription to long term infrastructure bonds
Investment under Rajiv Gandhi Equity Savings Scheme ,
Payment of medical insurance premium. Deductio n is
available upto Rs.
15,000/ for self/ family and also upto Rs.
15,000/- for insurance in respect of parent/ par ents of the
assessee.In case of senior citizens, a deduction upto
Rs.20,000/- shall be available under this Section.
premiume of senior citizen parent/ parents of the a ssessee
also eligible for enhanced deduction of Rs. 20000/-
Deduction of Rs.40,000/ — In respect of (a) expendi ture
incurred on medical treatment, (including nursing), training
and rehabilitation of handicapped dependent relativ e. (b)
Payment or deposit to specified scheme for maintena nce of
dependent handicapped relative.
W.e.f. 01 .04.2004 the
deduction under this section has been enhanced t o
Rs.50,000/- Further, if the dependent is a person with severe
disability a deduction of Rs.1,00,000/–
shall be available
under this sectionBudget 2015 has Further Proposed to hike
the limit from
A.Y. 2016-17 to Rs. 75000 from existing Rs.
50,000/- and for person with severe disability to Rs. 1.25
lakh from existing Rs. 1 Lakh.
The premium must be deposited to keep in force a co ntract for an annuity plan of
the LIC or any other insurer for receiving
pension from the fund
. The Finance Act
2015 has enhanced the ceiling of deduction under Se ction 80CCC from
100,000 to Rs. 1,50,000 with effect from A.Y. 2016- 17
Where the Central Government makes any contribution to the pension account,
deduction of such contribution to the extent of
10% of salary
shall be allowed.
Further, in any year where any amount is received f rom the pension account such
amount shall be
charged to tax as income of that previous year.
Subscription made by individual or HUF to the exten t of Rs. 20,000 to notified
long term infrastructure bonds is exempt from A.Y. 2011-12 onwards.
deduction is discontinued w.e.f. A.Y. 2013-14
deduction was 50 % of amount invested in such equit y shares or RS 25,000,
whichever is lower
. The maximum Investment permissible for claiming d eduction
under RGESS is Rs. 50,000
. The benefit is in addition to deduction available u/s
The premium is to be
paid by any mode of payment other than cash
insurance scheme should be framed by the General Insurance Corporation of
India & approved by the Central Govt. or Scheme fra med by any other insurer and approved by the Insurance Regulatory & Development Authority. The premium
should be paid in respect of health insurance of th e assessee or his family
members. The Finance Act 2008 has also provided ded uction upto Rs. 15,000/- in
respect of health insurance premium paid by the ass essee towards his
parent/parents. w.e.f. 01.04.2011, contributions ma de to the Central Government
Health Scheme is also covered under this section.
Expenditure must be actually
incurred by resident assessee on himself or
dependent relative for medical treatment of specifi ed disease or ailment
diseases have been specified in Rule 11DD.
A certificate in form 10I is to be
furnished by the assessee from a specialist working in a Government
.Budget 2015 has Proposed for the purpose of claimi ng deduction under
the section assessee will be required to obtain a p rescription from a specialist
doctor instead of Certificate.
This provision has been introduced to provide relie f to students taking loans for
The payment of the interest thereon will be allowed as deduction
over a period of upto 8 years
by Finance Act, 2007
deduction under this section shall be available not only in respect of loan for
pursuing higher education by self but also by spouse or children of
the assessee.W.e.f. 01.04.2010 higher education mea ns any course of study
pursued after passing the senior secondary examinat ion or its equivalent from any
recognized school, board or university.
Vide Finance Act 2013,
an individual is allowed a deduction upto a limit o f Rs
1,00,000 being paid as interest
on a loan taken from a Financial Institution,
sanctioned during the period 01-04- 2013 to 31-03-2 014 (loan not to exceed Rs 25 lakhs) for acquisition of a residential house whose value does not exceed Rs 40
lakhs. However the deduction is available if the as sessee does not own any
residential house property on the date of sanction of the loan.
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.
(1) Assessee or his spouse or minor child should
not own residential
accommodation at the place of employment
. ( 2) He
not be in receipt of house rent allowance
. (3) He
not have a self-occupied residential
premises in any other place.
Section 80TTA is introduced wef A.Y. 2013-14 to pro vide deduction to an
individual or a Hindu undivided family in respect o f
interest received on deposits
(not being time deposits) in a savings account held with banks, cooperative banks
and post office
. The deduction is
restricted to Rs 10,000 or actual interest
whichever is lower
Deduction of Rs.40,000/- in respect of medical expe
incurred.W.e.f. 01.04.2004, deduction under thi s section
shall be available to the extent of Rs.
40,000/- or the
amount actually paid, whichever is less.In case of senior
citizens, a deduction upto Rs.60,000/
- shall be available
under this Section.Budget
2015 has proposed deduction of
Rs. 80000/- for seniot citizen aged 80 year or More from
A.Y. 2016-17 Deduction in respect of payment in the previous yea r of
interest on loan taken from a financial institution or approved
charitable institution for higher studies.
Deduction in respect of
interest on loan
taken for residential
Donation to certain funds, charitable instituti ons etc. -
Deduction available is the least of (i)
Rent paid less 10% of total income (ii)
Rs.2000 per month
(iii) 25% of total income.
Deduction in respect of interest on deposits in sav ings
Payment limited to 20% of salary.
For individual, can be in the name of self/spouse, any child
Certificate should be obtained on prescribed format
from a notified ‘Medical
authority’Finance Act 2013 has provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income not
exceeding Rs 5,00,000/-.
The amount of rebate is Rs 2000/- or the amount of tax
payable, whichever is lower. WEF A.Y. 2014-15
The following investments/payments are inter alia e ligible for deduction u/s 80C:-
This section has been introduced by the Finance Act
, 2005.This section provides deduction from total income in respect of various investments/
expenditures/payments in respect of which tax rebat e u/s 88 was earlier available.
The total deduction under this section is limited to Rs. 1.50
Rs.50,000/- to an individual who suffers from a
physical disability (including blindness) or mental
if the individual is a person with severe
disability, deduction of Rs.75,000/- shall be avail able u/s
this limit has been raised to Rs. 1
.Budget 2015 proposed to amend section 80U to rai se
limit of deduction in respect of a person with disa bility from
Rs. 50,000/ to Rs. 75,000
and for person with severe
1,00,000/ to 1,25,000/
Rebate Of Rs 2000
For Individuals Having Total Income
Upto Rs 5 Lack.Deduction in respect of any
income by way of royalty in
respect of a patent registered on or after 01.04.2003 under the
Patents Act 1970 shall be available as :- Rs. 3 lacs or the income received, whichever is les s
Deduction in respect of
royalty or copyright income
for authoring any book of literary, artistic or
scientific nature other than text book
shall be available to the
Rs. 3 lacs or income received, whichever is less
Contribution by employee to a Recognised Provident Fund or an approved superannuation fund. NATURE OF INVESTMENT
Life Insurance Premium
Sum paid under contract for deferred annuity
Sum deducted from salary payable to Govt. Servant f or
securing deferred annuity for self, spouse or child .
Contribution made under Employee’s Provident Fund
Contribution to PPF The assessee who is a
patentee must be an individual resident in India
assessee must furnish a
prescribed form duly signed by the
alongwith the return of income.
The assessee must be an
individual resident in India
who receives such income
in exercise of his profession. To avail of this ded uction, the assessee must furnish
certificate in the prescribed form
along with the return of income.
– in case of individual, on life of assessee, as sessee’s spouse and any child of
in case of HUF, on life of any member of the HUF
In case of individual, on life of the individual, i ndividual’s spouse and any child
of the individual (however, contract should not con tain an option to receive
in lieu of annuity)
i) Eligible issue of capital means capital issued by a public co./ Public financial
institution for utilizing the proceeds wholly & exc lusively towards purposes of
any business referred in Sec. 80IA(4).
Available in respect of any two children.
This has been included in Section 80C by the Financ e Act 2006.
For HUF, it can be in the name of any member of the
It may be noted that the aggregate amount of deduct ions under sections 80C, 80CCC and 80CCD are subjec t to an overall ceiling of Rs. 1.50
Tuition fees paid at the time of admission or other
wise to any
school, college, university or other educational in stitution
situated within India for the purpose of full time education. This has been included in Section 80C by the Financ e Act 2007 and has come into effect from 1.4.2008.
Any term deposit for a fixed period of not less than five years with the scheduled bank.
Subscription to notified bonds issued by NABARD
Payment made into an account under the Senior Citiz ens
Savings Scheme Rules, 2004.
Payment made as five year time deposit in an accoun t under
the Post Office Time Deposit Rules, 1981
Contribution to notified deposit scheme/Pension fun d set up
by the National Housing Bank.
Certain payment made by way of instalment or part p ayment
of loan taken for purchase/ construction of residen tial house
Condition has been laid that in case the property i s transferred before the expiry of 5 years from the end of the financial year in which possession of such property is
obtained by him, the aggregate amount of deduction of income so allowed for
various years shall be liable to tax in that year.
Subscription to units of a Mutual Fund notified u/s 10(23D)
Subscription to deposit scheme of a public sector c ompany
engaged in providing housing finance.
Any subscription to Equity shares/ Debentures formi ng part
of any eligible issue of capital by a Public compan y/ Public
Financial Institution, wherein.Subscription to any notified savings certificates.Contribution to Unit Linked Insurance Plan of LIC M utual Fund.
Contribution to Sukanya Samriddhi Account Opened in the
Name of Daughters. This has been introduced vide Finance Act 2014 wef
This has been introduced by Finance Act, 2008 and s
hall come into effect from
Subscription to any notified securities/notified de
e.g. NSC VIII issue.e.g. Dhanrakhsa 1989