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 Chart & Table – [Sections 80A to 80U (Chapter VIA)]

Direct Taxes Ready Reckoner, Gross Total Income, Misc. Provisions, Tax Management / ,
Sections Particulars Assessee to whom Allowed Quantum of Deduction
Section 80A/AB/AC Basic rules of deductions NA NA
Section 80C Deduction in respect of life  insurance premia, deferred  annuity, contributions to  provident fund, subscription to  certain equity shares or  debentures, etc.  Sum paid or deposited in the  name of a girl child under the  Sukanya Samriddhi Account  Scheme also eligible for  deduction.

Any amount deposited by an  employee of the Central  Government as contribution  to the specified account of  the pension scheme referred  to in section 80CCD for a  fixed period of not less than  3 years shall also be eligible  for deduction

 Individuals or HUF Maximum  ₹1,50,000
Section 80CCC Deduction in respect of  contribution to certain pension  funds Only individuals Max. ₹1,50,000
Section 80CCD Deduction in respect of  contribution to pension scheme  of Central Governmen Salaried employee or  self employed  individual In case of  employees  maximum 10% of  salary and in case  of self-employed  persons 20% of  gross total income  Deduction of  ₹50,000 available  under section  80CCD(1B)  whether or not  any deduction is  allowed to  the assessee u/s 80CCD(1)  The limit for  employer’s  contribution u/s  80CCD(2) has  been increased  from 10 to 14%  of contribution  made by the  Central  Government to  the account of  its employee
Section 80CCE Limit of deduction u/ss. 80C,  80CCC and 80CCD (only  employees/assessee’s  contribution to New Pension  Scheme to be included for the  limit of ₹1,50,000) Individual or HUF Max. ₹1,50,000  However  additional  deduction of  ₹50,000 to be  allowed by newly  inserted subsection (1B) of  section 80CCD  shall not form  part of the above  limit of  ₹1,50,000
Section 80D Deduction in respect of medical  insurance premia including any  contribution made to the CGHS  or such other scheme as may be  notified by the Central  Government

Any payment upto ₹5,000 made  on account of preventive health  check-up of the assessee or his  family shall also be eligible  (payment for  this may be made even in cash)  The whole of the amount paid  on account of medical  expenditure in respect of a  senior citizen, (if no payment  has been made to keep in force  an insurance on the health of  such person), as does not  exceed ₹50,000 shall be allowed as  deduction to any of the persons  mentioned in column 3 who has  paid such amount

 Individual or HUF  whether resident or  non-resident

(a) an individual,  provided the amount  is incurred by the  assessee on himself  or any member of his  family

(b) HUF, provided  the amount is  incurred for very senior citizen who is  the member of HUF  (c) An individual,  provided the amount  is incurred for very  senior citizen who is  the parent of such  individual

 In case of  individuals 

(i) For individual  himself, spouse  and dependent  children ₹25,000

(ii) For parents of  the individual,

whether  dependent or not  ₹25,000

In case of HUF  ₹25,000

Note.—Addl.  ₹25,000 if any of  the above person  insured is a senior citizen  In case of senior  citizen, amount  paid on account  of medical  expenditure as  does not exceed  ₹50,000.

However, total  deduction under  this section  cannot exceed  ₹75,000.
Section 80DD Deduction in respect of  maintenance including medical  treatment of a dependant who is  a person with disability/severe  disability Individual or HUF

Resident in India

 ₹75,000/

₹1,25,000
Section 80DDB/Rule  11DD Deduction in respect of medical  treatment, etc. Individual or HUF  resident in India  For senior citizen Actual  expenditure  incurred subject  to maximum of  ₹40,000

For senior citizen  —  Addl. ₹60,000  i.e. maximum  ₹1,00,000
Section 80E Deduction for entire amount of  interest paid on a loan taken for  pursuing higher education Individual whether  resident or not Entire amount of  interest paid  during the  previous year
Section 80EE Deduction to in respect of interest  on loan taken from financial  institutions for residential house  property, if certain conditions are  satisfied. Individual Maximum  ₹50,000 for the  assessment year  beginning on  1.4.2017 and subsequent  assessment years
Section 80EEA  [W.e.f. A.Y.  2020-21] Deduction in respect of interest  on loan taken for certain house  property which was sanctioned  till 31.03.2020 (Extended till  31.03.2021 by Finance Act,  2020) Individual Maximum  ₹1,50,000
Section 80EEB  [W.e.f. A.Y.  2020-21] Deduction in respect of  purchase of electric vehicle Individual Maximum  ₹1,50,000
Section 80G Deduction in respect of  donations to certain funds,  charitable institutions, etc.  Donations to Swachh All assessees (a) 100% or 50%  of eligible  donations,  without  Bharat Kosh, Clean Ganga  Fund (provided such sum is not  spent in pursuance of CSR)  eligible for deduction w.r.e.f.  A.Y. 2015-16 and National  Fund for Control of Drug  Abuse also eligible for  deduction w.e.f. A.Y. 2016-17  applying  qualifying limit  in certain cases  (b) 100% or 50%  of eligible donations, after  applying  Qualifying limit  of 10% of  adjusted GTI.
Section 80GG Deductions in respect of rent  paid Individual only Maximum ₹5,000  p.m.
Section 80GGA Deduction in respect of certain  donations for scientific research  or rural development, etc. All assessees not  having business  income 100% of sum  donated
Section 80GGB Deduction in respect of  contributions given by  companies to political parties Company assessee Amount so  contributed
Section 80GGC Deduction in respect of  contributions given by any  person to political parties Any assessee other  than local authority  and every artificial  juridical person  wholly or partly  funded by the  Government Amount so  contributed
Section 80-IA Deduction in respect of profits  and gains from industrial  undertakings or enterprises  engaged in infrastructure  development, etc. Industrial undertaking  or enterprises  engaged in infrastructure  development, etc. 30% to 100% of  profits
Section 80-IAB Deduction in respect of profits  and gains by an undertaking or  enterprise engaged in  development of Special  Economic Zone Undertaking/  enterprises engaged  in development of  Special Economic  Zone 100% of profits  for 10  consecutive  assessment years
Section 80-IAC Special provision in respect of  eligible business of eligible  start up An assessee being an  eligible start-up 100% of the  profits and gains  derived from  such business for  three consecutive  assessment years  out of 7  assessment years  (out of 10 assessment  years as  amended by  Finance Act,  2020)
Section 80-IB Deduction in respect of profits  and gains from certain  industrial undertakings other  than infrastructure  development, etc. All assesses engaged  in the business of  industrial  undertakings/hotels/  ships/infrastructure  development/  scientific and  industrial research  and development. 25% to 100% for  prescribed no. of  years
Section 80-IBA Deduction in respect of profits  and gains from housing projects  provided the project fulfils  certain conditions.  Conditions have been modified  by the Finance (No. 2) Act,  2019 in respect of projects  approved on or after 1.9.2019.  The approval of the project  now allowed till 31.03.2021  instead of 31.03.2020 Any assessee A deduction of  an amount equal  to 100% of the  profits and gains  derived from  such business
Section 80-IE Special provisions in respect of  certain undertakings in North  Eastern States All assessees deriving  income from eligible  undertaking in any  North Eastern States 100% of the  profit for 10  consecutive years
Section 80JJA Deduction in respect of profits  and gains from business of  collecting and processing of bio  degradable waste All assessees 100% of profit  for 5 years
Section 80JJAA / Rule  19AB Deduction in respect of  employment of new workmen All persons having a  factory will be  eligible for deduction 30% of additional  wages for 3 years
Section 80LA Deduction in respect of certain  incomes of Offshore Banking  Units and International  Financial Services Centre Only Scheduled  Banks owning  offshore banking  units in a special  economic zone 100% of income  for first 5 years  and 50% for next  five years  W.e.f. A.Y.  2020-21, the  deduction shall  be increased to  100% for any ten  consecutive years. The assessee, at his  option, may  claim the said  deduction for any  ten consecutive  assessment years  out of fifteen  years beginning  with the year in  which the  necessary  permission was  obtained
Section 80M Deduction in respect of  certain intercorporate  dividends Domestic Company Amount equals  to so much of  the amount of  income by way  of dividend  received from  other domestic  company as  does not  exceed the  amount of  dividend  distributed by  the receipient  domestic  company on or  before the due  date.
Section 80P Deduction in respect of income  of co-operative societies. Co-operative  societies 100% of profit  but in some cases  amount is fixed
Section 80PA Deduction in respect of income  of Farm Producer Companies Producer Companies 100% of profit  and gains  attributable to  eligible business
Section 80QQB Deduction in respect of royalty  income, etc., of authors of  certain books other than text  books Individuals who are  residents in India and  are authors 100% of such  income

or

₹3,00,000

whichever is less
Section 80RRB Deduction in respect of royalty  on patents Individual who is  resident in India and  is a patentee 100% of such  income

or

₹3,00,000

whichever is less
Section 80TTA Deduction in respect of interest  on deposits in savings accounts Individual (other than  senior citizen) and  HUF Maximum  ₹10,000
Section 80TTB Deduction in respect of interest  on deposits in case of senior  citizens Senior citizen Maximum  ₹50,000
Section 80U/  Rule 11D Deduction in the case of a  person with disability/severe  disability Resident individuals ₹75,000/  ₹1,25,000

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See also  Income of certain Funds of National Importance, Educational Institutions and Medical Institutions is Exempt from Tax [Section 10(23C) and Rule 2C and 2CA]

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