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Deduction under Chapter VI A for AY 2019-20 (Section 80C to Section 80U)


          Deduction Under Chapter VI A (Section 80C to Section 80U)

In Computing total income of an assessee, deduction under chapter VI A (u/s 80C to u/s 80U ) are allowed from Gross Total Income(GTI). Deduction under chapter VI A helps assessee to reduce tax liability.

Some Important point to be noted –

a) Deduction under chapter VI A shall not exceed Gross Total Income. It means Gross Total Income can not be negative.

e.g. if Gross Total Income – Rs. 2,30,000 and Total deduction under chapter VI A – Rs.2,75,000. So in this case, deduction upto Rs 2,30,000 is allowed. So that Gross Total Income can be reduced to NIL. Remaining deduction can not be carried forward for next assessment year.

b) Deduction is allowed only if it is claimed by assessee in his return of Income.

c) Deductions are not allowed from certain income. e.g. Long Term Capital Gain, Short term capital gain covered under section 111A, Winning of lotteries, Winning of races etc.

 

             Section-wise Deduction List

Sections
Particulars
Assessee
  Deduction Amount(Rs)
 

 

80C

Payment of LIC, PF/PPF, Fixed deposit with schedule bank, Post office deposit, Home Loan Principal amount, Tution fee, etc. 

 

Individual / H.U.F

Up to Rs.1,50,000.
80CCCContribution to Pension FundIndividual
80CCD(1)Contribution by employee to pension scheme notified by Central Government up to 10% of salary /gross total income.Individual
80CCEThis maximum limit of Rs. 1,50,000 is the aggregate of the deduction that may be claimed under Sections 80C , 80CCC and 80CCD(1).
80CCD(2)Contribution by Central govt/ employer to pension scheme notified by Central Government up to 10% of salary /gross total income.IndividualAmount deposited or 10% of salary whichever is lower.
80CCD(1B)Amount deposited by assessee under NPS.IndividualUp to Rs.50000.
80CCGInvestment made under an equity saving scheme.Resident Individual & new investor with Gross Total Income up to Rs. 12 lakh.50% of amount invested or Rs,25000, whichever is lower.
80DMedical Insurance premium and Medical expenditure(Senior & super senior citizen).Individual / H.U.F.Paid premium for Self + parents = Rs.25,000 + Rs. 50,000(if senior citizen)

 

For H.U.F. Rs.25000.

80DDMaintenance of dependent disable.Individual / H.U.F.

 

(resident)

 

Rs.75,000 or Rs. 1,25,000 in case of severe disability.
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80DDB

Medical treatmentIndividual/H.U.F. (resident)Amount paid or Rs.40000/ Rs.1,00,000 (Senior/very senior citizen) whichever is less.
 

 

80E

Interest paid on higher education loan.

 

 

IndividualActual amount paid (max 7 Assessment years).
80GDonations to charitable institutions, certain funds etc.All assessee100% or 50% of eligible donation ; or

 

100% or 50% after applying qualifying limit of 10% of adjusted Gross Total Income.

80GGRent Paid.Individual 25% of total income or rent paid minus 10% of total income or 5,000 p.m.  whichever is lower.
80QQBRoyalty Income etc of authors of books other than text books.Individual (resident & author)100% of such income or Rs.300000 whichever is less.
80RRBRoyalty Income on Patents.Individual

 

(resident & Patentee)

100% of such income or Rs.300000 whichever is less.
80TTAInterest on deposits in saving accounts.Individual / HUFMax. Rs.10,000.
80TTBInterest on deposits in saving accounts.  senior & Super senior citizen (Individual) Max Rs. 50,000.
80UIn the case of person with disability.Resident IndividualsRs. 75000 (in disability) or Rs.125000 (in severe disability).

 

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