Synopsis of Deduction And Allowances Under the IT Act

Deduction & Allowances                       Under 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