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.
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. |
| 80CCC | Contribution to Pension Fund | Individual | |
| 80CCD(1) | Contribution by employee to pension scheme notified by Central Government up to 10% of salary /gross total income. | Individual | |
| 80CCE | This 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. | Individual | Amount deposited or 10% of salary whichever is lower. |
| 80CCD(1B) | Amount deposited by assessee under NPS. | Individual | Up to Rs.50000. |
| 80CCG | Investment 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. |
| 80D | Medical 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. |
| 80DD | Maintenance of dependent disable. | Individual / H.U.F.
(resident)
| Rs.75,000 or Rs. 1,25,000 in case of severe disability. |
80DDB | Medical treatment | Individual/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.
| Individual | Actual amount paid (max 7 Assessment years). |
| 80G | Donations to charitable institutions, certain funds etc. | All assessee | 100% or 50% of eligible donation ; or
100% or 50% after applying qualifying limit of 10% of adjusted Gross Total Income. |
| 80GG | Rent Paid. | Individual | 25% of total income or rent paid minus 10% of total income or 5,000 p.m. whichever is lower. |
| 80QQB | Royalty Income etc of authors of books other than text books. | Individual (resident & author) | 100% of such income or Rs.300000 whichever is less. |
| 80RRB | Royalty Income on Patents. | Individual
(resident & Patentee) | 100% of such income or Rs.300000 whichever is less. |
| 80TTA | Interest on deposits in saving accounts. | Individual / HUF | Max. Rs.10,000. |
| 80TTB | Interest on deposits in saving accounts. | senior & Super senior citizen (Individual) | Max Rs. 50,000. |
| 80U | In the case of person with disability. | Resident Individuals | Rs. 75000 (in disability) or Rs.125000 (in severe disability). |
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