Deduction & AllowancesUnder the IT Act | ||
FOR THE ASSESSMENT YEAR 2012 – 2013 | ||
SECTION | NATURE OF DEDUCTION | WHO CAN CLAIM? |
UNDER THE HEAD “SALARIES” | ||
16(ii) | Entertainment Allowance (subject to maximum of Rs.5,000) | Government employees |
16(iii) | Tax on employment within the meaning of article 276(2) of the constitution, leviable by or under any law | Salaried employees |
UNDER THE HEAD “INCOME FROM HOUSE PROPERTY” | ||
23(1) Proviso | Taxes levied by local authority and paid by the owner | All Assessees |
24(a) | Standard Deduction [30% of Net Annual Value] | All Assessees |
24(b) | Interest on Borrowed Capital | All Assessees |
UNDER THE HEAD “CAPITAL GAINS” | ||
48 | Expenditure incurred wholly and exclusively in connection with transfer of capital asset | All Assessees |
48 | Cost of acquisition of capital asset and of any improvement thereto. | All Assessees |
UNDER THE HEAD “INCOME FROM OTHER SOURCES” | ||
57(i) | Any reasonable sum paid by way of commission or remuneration for the purpose of realizing dividend/interest on securities | All Assessees |
57(ii) | Repairs, insurance and depreciation of buildings, plant and machinery and furniture | Assessees engaged in the business of letting out of machinery, plant and furniture on hire |
57(iii) | Any other expenditure (not being capital expenditure) expended wholly and exclusively for earning such income | All Assessees |
DEDUCTION UNDER CHAPTER VI-A IN RESPECT OF PAYMENTS | ||
80C | Life insurance premia, provident fund contribution (maximum: Rs.1,00,000) | Individuals and HUFs |
80CCC | Pension Fund (maximum : Rs.1,00,000) | Individuals |
80CCD(1) | Contribution by an employee or any other individual towards notified pension scheme (up to 10% of the salary of the employee or up to 10% of gross total income in the case of any other individual) | Individuals |
80CCD(2) | Contribution by the employer towards notified pension scheme (up to 10% of salary of the employee) | Employees |
80CCE | Sumtotal of deduction u/s 80C,80CCC,80CCD shall not exceed Rs.1,00,000 | Individuals and HUFs |
80D | Medical insurance premia (subject to maximum of Rs. 40,000) | Individuals and HUFs |
80DD | Maintenance including medical treatment of a handicapped dependent who is a person with disability (maximum : Rs. 1,00,000) | Resident Individuals or Resident HUFs |
80DDB | Medical treatment expenses (maximum : Rs. 60,000) | Resident Individuals or Resident HUFs |
80E | Payment of interest on loan taken for higher studies | Individuals |
80G | Donations to certain funds, charitable institutions [subject to maximum of 50% of qualifying donation (100% in some cases)] | All Assessees |
80GG | Rent paid for furnished/unfurnished accommodation [subject to maximum of Rs. 24,000] | Individuals |
80GGA | Certain donations for scientific research or rural development | All Assessees not having any income chargeable under the head “Profits and gains of business or profession” |
80GGB/ 80GGC | Contribution to political parties. | Contributor |
DEDUCTION UNDER CHAPTER VI-A IN RESPECT OF CERTAIN INCOMES | ||
80-IA | Profits and gains from enterprises engaged in infrastructure development | All Assessees |
80-IAB | Profits and gains by a undertaking engaged in development of SEZ | Developer |
80-IB | Profits and gains from industrial undertakings | All Assessees |
80-IC | Profits of certain undertakings or enterprises in certain Special Category States | All Assessees |
80-ID | Profits and gains from the business of hotels/convention centres | Any |
80-IE | Understandings in North Eastern States | Any |
80JJA | Profits and gains from the business of collecting and processing of bio-degradable waste | Any Assessees |
80JJAA | Employment of new workmen | Indian Company |
80LA | Income of offshore Banking Units | Scheduled Bank |
80P | Specified incomes [subject to amount specified in sub-section (2)] | Co-operative society |
80QQB | Royalty income of authors (maximum of Rs.3,00,000) | Resident individuals |
80RRB | Royalty on Patents (maximum of Rs.3,00,000) | Resident individuals |
80U | Income of a person with disability [subject of maximum of Rs. 1,00,000] | Resident individuals |
Friday 20 April 2012
Synopsis of Deduction And Allowances Under the IT Act
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