chart of deductions will give instant and fair idea about certain deductions to individual tax payers. (section 80IAB to 80IE are not discussed which are specific to business men ) .
Sl No
|
Section
|
Details of deductions
|
Quantum
| |
1
|
80C
|
General deduction for investment in PPF,PF,Life Insurance, ULIP, Stamp duty on house, Fixed deposits for 5 years , bonds etc
|
Maximum Rs 1 ,00,000 is allowed.
Investment need not be from taxable income.
| |
2
|
80CCC
|
Deduction in case of contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income.
|
Maximum is Rs 1,00,000
| |
3
|
80CCD
|
Deduction in respect to contribution to new pension scheme. Employees of central and others are eligible.
|
Maximum is sum of employer’s and employee’s contribution to the maximum : 10 % of salary.
| |
4
|
It should be noted that as per section 80CCE , the maximum amount of deduction which can be claimed in aggregate of 80C ,80CCC & 80CCD is Rs 1,00,0000
| |||
5
|
80D
|
Medical insurance on self, spouse , children or parents
|
Rs 15,000 for self , spouse & children
Extra Rs 15,000 for insurance on parents. IF parents are above 65 years, extra sum should be read as Rs 20,000
Thus maximum is RS 35,000 per annum
| |
6
|
80DD
|
For maintenance including treatment or 7insurance the lives of physical disable dependent relatives
|
Rs 50,000 . In case disability is severe , the amount is Rs 1,00,000.
| |
7
|
80DDB
|
For medical treatment of self or relatives suffering from specified disease
|
Acutal amount paid to the extent of Rs 40,000. In case of patient being Sr Citizen , amount is Rs 60,000
| |
8
|
80E
|
For interest payment on loan taken for higher studies for self or education of spouse or children
|
Actual amount paid as interest and start from the financial year in which he /she starts paying interest and runs till the interest is paid in full.
| |
9
|
80G
|
Donations to charitable institution
|
100% or 50% of amount of donation made to 19 entities (National defense fund , Prime minister relief fund etc. )
| |
10
|
80GG
|
For rent paid.
|
This is only for people not getting any House Rent Allowance. Maximum is Rs 2000 per month. Rule 11B is method of computation.
| |
11
|
80GGA
|
For donation to entities in scientific research or rural development f
|
Only those tax payers who have no business income can claim this deduction .Maximum is equivalent to 100 % of donation.
| |
12
|
80GGC
|
For contribution to political parties
|
100 % of donations
| |
13
|
80QQB
|
Allowed only to resident authors for royalty income for books other than text book
|
Royalty income or Rs 3,00,000 whichever is less.
| |
14
|
80RRB
|
For income receipt as royalty on patents of resident individuals
|
Actual royalty or Rs 3,00,000 whichever is less.
| |
15
|
80U
|
Deduction in respect of permanent physical disability including blindness to taxpayer
|
RS 50,000 which goes to Rs 1,00,000 in case taxpayer is suffering from severe disability.
|
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