Chapter VI A
-
Upload
guptareethika -
Category
Documents
-
view
230 -
download
0
Transcript of Chapter VI A
-
8/8/2019 Chapter VI A
1/20
Chapter VI A
Vikas
Tushar
Neha
SonaliAbhishek
Reethika
-
8/8/2019 Chapter VI A
2/20
Introduction
Provided by the Income Tax Act, 1961.
Contained in Chapter VI A and in the form of
deductions from section 80C to 80U.
They are the permissible amount by which the
gross total income is reduced to arrive at the
total income liable to tax.
They are intended to act as incentive to theassessee for achieving certain economic
objectives
-
8/8/2019 Chapter VI A
3/20
Basic Rules
Rule 1
The aggregate amount of deductions
under sections 80C to 80U cannot exceedgross total income.
Rule 2
These deductions are to be allowed only ifthe assessee claims these and gives the
proof of such investments/ expenditure/
income.
-
8/8/2019 Chapter VI A
4/20
Categories of Deductions
To encourage savings
For certain personal expenditure
For socially desirable activities
For physically disabled persons
-
8/8/2019 Chapter VI A
5/20
Deductions 80 C to 80 U
-
8/8/2019 Chapter VI A
6/20
Sections Particulars Assessee to
whom allowed
Quantum of
deduction
80C Deduction in respect of life
insurance premia. deferred
annuity, contributions to
provident fund, subscription
to certain equity shares or
debentures, a term deposit fora fixed period of not less than
5 years with a scheduled
bank, bonds issued by
NABARD, Post Office 5 year
Time Deposit, Senior Citizen
Savings Scheme etc.
Individual or
HUF
Max. Rs. 1,00.000 .
80CCC Deduction in respect of
contribution to certain
pension funds
Only
individuals
Max. Rs. 1,00,000
-
8/8/2019 Chapter VI A
7/20
80CCD Deduction in
respect of
contribution
to newpension
scheme
Central
Government or any
other employee. From
assessment year 2009-10 benefit extended to
self-employed persons
also
Employers and
employees contribution
subject to maximum of
10% of salary
The aggregate amount of deductions under 80C, 80CCCand 80CCD put together cannot exceed Rs.1,00,000
-
8/8/2019 Chapter VI A
8/20
80D Deduction in
respect of
medical
insurancepremia
Individual or HUF
whether resident or
non-resident
In case of individuals
(/) For individual himself,
spouse and dependent children
Rs. 15,00(//) For parents of the
individual, whether dependent
or not Rs. 15,000
In case of HUF Rs. 15,000
Note.Addl. Rs. 5,000 if any
of the above person insured is asenior citizen
80DD Deduction in
respect of
maintenance
includingmedical
treatment of
person with
physical
disability
Individual or HUF
resident in India:
with disability
with severedisability
Rs. 50,000 Rs. 75,000
Increased to Rs. 1,00,000
W.e.f. A.Y. 2010-11
-
8/8/2019 Chapter VI A
9/20
80E Deduction for interest paid
on loan taken for pursuing
his higher education or for
the purpose of highereducation of his relative.
W.e.f. A.Y. 2010-11
meaning of higher
education has been
enlarged to cover all post
schooling courses
Relative means the
spouse and children of the
individual.
Individual
whether resident
or not
Actual amount
paid
80DDB Deduction in respect of
medical treatment, etc.
Individual or
HUF resident in
India For seniorcitizen
Rs. 40,000 Addl.
Rs. 20.000
-
8/8/2019 Chapter VI A
10/20
80G Deduction in respect
of donations to
certain funds,
charitable institutions,
etc.
All
assessees
(a) 100% or 50% of
eligible donations, without
applying qualifying limit
in certain cases
(b) 100% or 50% of
eligible
donations, after applyingQualifying limit of 10% of
adjusted GTI.
80GG Deductions in respect
of rent paid
Individual
only
Maximum Rs. 2,000 p.m.
80GGA Deduction in respectof certain donations
for scientific research
or rural development,
etc.
All assesseesnot having
business
income.
100% of sum donated
-
8/8/2019 Chapter VI A
11/20
80GGB Deduction in respect ofcontribution to political
parties.
W..e.f. A.Y. 2010-11,
contribution to Electoral
Trust also eligible for
deduction.
Indiancompanies
100% of sumcontributed
80GGC Deduction in respect of
contribution to political
parties.
W.e.f. A.Y. 2010-11,
contribution to ElectoralTrust also eligible for
deduction
All assessees
(except local
authority and
artificial judicial
person)
100% of sum
contributed
-
8/8/2019 Chapter VI A
12/20
Deduction 80 IANature of Industry Assessee Period of commencement
of businessDeductions
Infrastructure facility
(new undertaking;
agreement with the
Central Govt.)
Indian Company On or after 1-4-1995
100% for 10 years
out of 20 years.
In case of Port
out of 15 years.
Telecommunication (New
undertaking: new
Plant)
Any undertaking .In case of
domestic
satellite Indian
Company
1-4-95 to 31-3-2005
100% for first 5
years; 30% for
next 5 years.
Industrial Park or SEZ Any undertaking
IP- 1-4-97 to 31-3-2006. .
SEZ- on or after 1-4-2001
to 31-3-2006
100% for 10 years
out of 5 years
Power ( New undertaking
: New Plant)Any undertaking
New network 1-4-99 to
31-3-2006. .
Substantial renovation.
1-4-2004 to 31-3-2006.
100% for 10 years
out of 15 years
-
8/8/2019 Chapter VI A
13/20
Deduction 80 IAB
Profits and gains by an undertaking or enterprise engaged in
development of Special Economic Zone
The gross total income of the tax payer includes profits and
gains derived by an undertaking from any business of
developing a SEZ.
Amount of Deduction 100% deduction available for 10
consecutive assessment years.
-
8/8/2019 Chapter VI A
14/20
Deduction 80 IB
Undertaking When Set upRate
PeriodCompany Others
I. Industrial Undertaking [ Section 80-IB(2)]
(a) Industry set up in
Industrial backward state.1-4-93 to 31-3-2004
100%
30%
100%
25%
For first 5 years
For next 5 years
(b) Industry set up in North
Eastern States1.10.93 to 31.3.2004
100%
30%
100%
25%
For first 5 years
For next 5 years
(c) Industry set up in
A. category backward district
B. category backward district
1.10.94 to 31.3.2004
1.10.94 to 31.3.2002
1.10.94 to 31.3.20041.10.94 to 31.3.2002
100%
30%
100%30%
100%
25%
100%25%
For first 5 years
For next 5 years
For first 5 yearsFor next 5 years
(d) Other Industries
A. in small sector co-op.
B. any other in priority sector
1.4.91 to 31.3.2002
1.4.91 to 31.3.1995
30%
30%
25%
25%
12 years for coop.
other 10 years
----do----
-
8/8/2019 Chapter VI A
15/20
II. Production of Mineral
oil in North Eastern region
or any where in India
[80IB(4E)]
From 1.4.97
onwards 100% 100% First 7 years
III. Refining of mineral oil
in North Eastern region or
any where in India [80-
IB(4E)]
From 1.10.98
onwards100% 100% First 7 years
IV. Construction and
development of housing
project of residential units
whose area does not
exceed 1,000 sq. feet.
From 1.10.98 ,
Project must be
completed by
31.3.2003
100% 100%
V. Profit from anundertaking engaged in
the integrated business of
handling, storage and
transportation of food
grains [ 80-IB(11A)]
From 1.4.2001
onwards
100%
30%
100%
25%
For first 5 years
For next 5
years
-
8/8/2019 Chapter VI A
16/20
VI. Setting up of
multiplex theaters.
1.4.2002 to
31.3.2005 50% 50% For first 5 years
VII. Setting up of
convention center
1.4.2002 to
31.3.200550% 50% For first 5 years
VIII. Hotel :
(a) in hilly area or in rural
areas outside municipal
limits.
1.4.90 to 31.3.1994
and
1.4.97 to 31.3.2001
50%
50%
Nil
Nil
For first 10years
For first 10
years
(b) at place other than
Clacutta, Chennai,
Mumbai & Delhi
1.4.97 to 31.3.2001 50% Nil For first 10years
(c) Any where in India 1.4.91 to 31.3.1995 30% NilFor first 10
years
-
8/8/2019 Chapter VI A
17/20
80-IC Deduction in
respect of certain
undertakings or
enterprises in
certain special
category States
All assessees deriving
income from an
under-takings or
enterprises situated in
special category States
which begin
manufacturing/ production
between specified dates
25% to 100%
of profits
80-ID Deduction in
respect of profits
and gains from
business of hotels
and conventioncentres in specified
area
All assessees engaged in
the business of hotel or
engaged in the business of
building, owning &
operating a conventioncentre
W.e.f A.Y. 2009-10 hotels
located in specified
districts having a World
Heritage Site in India
100% for 5
consecutive
assessment
years
-
8/8/2019 Chapter VI A
18/20
80-IE Deduction in respect
of profits and gains
from an undertakingin any of the North-
Eastern States
Assessees who have
begun or begin to
manufacture or produceeligible articles or
things or undertake
substantial expansion or
carry on any eligible,
business on or after 1-4-
2007.
100% for 10
consecutive
assessmentyears
80JJA Deduction in respect
of profits and gains
from business of
collecting and
processing of biodegradable waste
All assessees 100% of profit
for 5 years
-
8/8/2019 Chapter VI A
19/20
80JJAA Deduction in respect ofemployment of new
workmen
Only Indiancompanies
30% of additional wagesfor 3 years
80LA Deduction in respect of
certain income of
offshore Banking Units
Only Scheduled
Banks owning
etaxindia.org
offshore
Banking Units
in a special
economic zone
100% for first 5 years and
50% for next 5 years
80P Deduction in respect of
income of co-operativesocieties except in case
of certain co-operative
banks.
Co-operative
societies
100% of profit
-
8/8/2019 Chapter VI A
20/20
80QQB Deduction in respect
of royalty income, etc.of authors of certain
books other than text
books
Individuals who
areresidents in Ind
ia and are
authors
Actual income or Rs.
3,00,000, whichever isless
80RRB Deduction in respect
of royalty on patents
Individual who
is resident inIndia and is a
patentee
100% of such income
orRs. 3,00,000 whichever
is less
80U Deduction in the case
of permanent physical
disability (includingblindness).
etaxindiaorg
Resident
individual:
withdisability
with severe
disability
Rs. 50,000 Rs. 75,000