Monday, 5 January 2015

Easy chart of deductions u/s 80C to 80U every individual should aware of !


The season of tax has arrived. Therefore , there is need for easy chart of all tax deduction u/s 80c to 80U for an Individual taxpayer?Under Income tax , deduction u/s 80C,80CCC, 80D, 80DD,80DDB,80G , 80GG, 80GGA, 80GGC , 80IAB , 80IB , 80IC , 80ID ,80IE , 80JJA , 80QQB ,80RRB , 80U  are relevant to Individuals depending on the condition fulfillment. The following
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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