Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Deductions

Deduction Under Section 80A to 80U (Chapter VIA)

Deduction Under Section 80A to 80U (Chapter VIA) from Gross Total Income

The aggregate of income computed under each head, after giving effect to the provisions for clubbing of income and set off of losses, is known as “Gross Total Income”. In computing the total income of an assessee, certain deductions are permissible under sections 80C to 80U from Gross Total Income. These deductions are however not …

Deduction Under Section 80A to 80U (Chapter VIA) from Gross Total Income Read More »

[Section 80C]- Deduction in respect of Life Insurance Premium, Deferred Annuity, Contribution to Provident Fund, Subscription to certain Equity Shares or Debenture, etc.

(A)        Which assessees are allowed Deduction U/s 80C This deduction is allowed only to the following assessees from their gross total income computed as per provisions of the Act: (i)            an Individual; or (ii)           a Hindu Undivided Family. (B) Deduction allowed on account of the following Savings / Investment cannot exceed Rs. …

[Section 80C]- Deduction in respect of Life Insurance Premium, Deferred Annuity, Contribution to Provident Fund, Subscription to certain Equity Shares or Debenture, etc. Read More »

[Section 80G]- Deduction in respect of Donations to Certain Funds, Charitable Institutions, etc.

Essential conditions for claiming deduction under this section: (1)          Deduction under this section is allowed to all assessees, whether company or non-company, whether having income under the head ‘profits and gains of business or profession’ or not. (2)          The donation should be of a sum of money. Donations in kind do not qualify …

[Section 80G]- Deduction in respect of Donations to Certain Funds, Charitable Institutions, etc. Read More »

[Section 80GG]- Deductions in respect of Rent Paid

Essential conditions for claiming deduction under this section: (1)          This deduction is allowed to an individual. (2)          The individual should pay rent for his residential accommodation, whether furnished or unfurnished. (3)          The individual is either a self-employed person or if he is an employee, he is neither entitled to any house rent …

[Section 80GG]- Deductions in respect of Rent Paid Read More »

[Section 80-IA]- Deduction in respect of Profits and Gains from Undertakings engaged in Infrastructure Development

The deduction under this section is available to an assessee whose Gross Total Income includes any profits and gains derived by: (a)           any enterprise carrying on the business of (i)          developing, (ii)           operating and maintaining, or (iii)          developing, operating, maintaining and any infrastructure facility; (b)          an undertaking which is engaged …

[Section 80-IA]- Deduction in respect of Profits and Gains from Undertakings engaged in Infrastructure Development Read More »

[Section 80-1B]- Deduction in respect of Profits and Gains from Certain Industrial Undertakings

The deduction under this section is available to an assessee whose Gross Total Income includes any profits and gains derived from the business of: (1)          commercial production and refining of mineral oil; (2)          processing, preservation and packaging of fruits or vegetables, meat and meat products or poultry or marine or dairy products; (3) …

[Section 80-1B]- Deduction in respect of Profits and Gains from Certain Industrial Undertakings Read More »

[Section 80-IBA]- Deduction in respect of Profits and Gains from Housing Projects

1.   [Section 80-IBA(1)]- 100% Deduction of Profit from Housing Projects Where the gross total income of an assessee includes any profits and gains derived from the business of developing and building housing projects, there shall, subject to the provisions of this section, be allowed, a deduction of an amount equal to 100% of the profits …

[Section 80-IBA]- Deduction in respect of Profits and Gains from Housing Projects Read More »

[Section 80P]- Deduction in respect of income of Co-operative Societies

Where the assessee is a co-operative society and its gross total income includes the following incomes, a deduction shall be allowed in accordance with and subject to the provisions of this section: (A) Where 100% deduction is allowed U/s 80P In the case of the following co-operative societies, full deduction is allowable in respect of …

[Section 80P]- Deduction in respect of income of Co-operative Societies Read More »

Deductions from Gross Total Income for computing Taxable Income

1.   [Section 80CCC]- Deduction in respect of Contribution to certain Pension Fund Essential Conditions for Claiming Deduction under this Section : (1)          Deduction is permissible , under this section, only to an Individual Assessee (2)          It is allowed in respect of any amount paid or deposited in the previous year by such individual to effect …

Deductions from Gross Total Income for computing Taxable Income Read More »