Income Tax Exemptions for the Year 2010

8/6/2019 Income Tax Exemptions for the Year 2010

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Income tax exemptions for the year 2010-11

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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 valueor employer

contribution is considered income. Maximum is Rs 1,00,000

3 80CCD

Deduction in respect to contribution to

new pension scheme. Employees ofcentral and others are eligible.

Maximum is sum of employers and

employees contribution to themaximum : 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 startfrom 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. )
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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

nobusiness incomecan claim thisdeduction .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 blindnessto taxpayer

RS 50,000 which goes to Rs 1,00,000

in case taxpayer is suffering fromsevere disability

Exemptions:

1) 80 C Limit Unchanged (Rs. 1,00,000)(refer to our earlier blog for all

options under section 80 C (http://bit.ly/4px5hz)

2) 80 CCF Additional Rs. 20,000 on investments towards approved

Infrastructure bonds3) 80CCD:

Contribution to NPS and returns on NPS tax free, but withdrawal still taxable

4) 80 D

Mediclaim Premium on the Health of Investment limit

a) Self Spouse and Children Rs. 15,000

b) Parent/Parents Rs. 15,000

c) If Parent/ Parents Senior citizen Rs. 20,000

5) Section 80DD

Deduction under section 80DD

Exemption given for Expenditure made for a disabled dependant towards

Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance

premium paid towards maintenance of such dependant.
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Maximum deduction allowed is Rs. 50,000/- in case of normal disability

and Rs. 1 Lakh in case of severe disability.

6) 80DDB

Deduction under section 80DDB

Exemption given for expenditure incurred on specified disease or ailments

such as cancer/aids.

Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens,

maximum deduction allowed is Rs. 60,000/-

7) Section 80E

Deduction under section 80E

Deduction is allowed for repayment ofinterest component of Higher Education

loan. All education after Class 12 is allowed, either vocational or Fulltime. But

should be from a school/institute/university recognized by the government.

8 ) Section 80G

Contribution to exempt charities 25/50/75/100% depending on the charityand as per approval

100% exemption on donation to political parties

9) 80U

Deduction under section 80U

Deduction upto Rs. 50,000/- is allowed in case of Permanent Disability.

In case of Permanent Disability exceeding 80%, maximum deduction allowed

is Rs. 75,000/-.

10) Section 24(1)(vi)

Housing loan interest. Maximum Investment Limit Rs. 1,50,000 (for loans

taken after 1 April 1999, for loans before that Maximum Investment Limit

30,000).

11) Superannuation Any contribution made by a company to superannuation

fund upto Rs. 1,00,000 tax free in the hands of the employee

12) Conveyance/Transport Allowance Any Conveyance / Transport Allowance

given to an employee is tax free upto Rs. 9,600 /- (No Supporting Bills required)

13) Medical Allowance Any Medical Allowance given to an employee is tax free

upto Rs. 15,000 /- (Supporting Bills required)

14) HRA Any House Rent Allowance given to an employee is tax free upto the

minimum value of the following conditions (subject to when an employee canproduce rent paid receipts from landlord for the period and if the employee has not

availed of tax exemptions for home loan interest / principal repayment):

a) 50% of Annual Basic (40% of Annual Basic in case of non-metros)

b) Actual HRA received

c) Rent Paid (10% of Annual Basic)


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15) Professional Tax Any Professional Tax deducted from an employees salary

can be reduced from the annual salary income to arrive at taxable salary

16) Provident Fund Provident Fund contributions (under section 80 C and

subject to an overall investment limit of Rs. 1,00,000 ) deducted from an

employees salary are tax exempt.

Income Tax Exemptions for the Year 2010

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