80C
Nature of Deduction:
This
section has been introduced by the Finance Act, 2005. Broadly speaking,
this section provides deduction from total income in respect of various
investments/expenditures/payments in respect of which tax rebate u/s 88
was earlier available. The total deduction under this section is limited
to Rs.1 lakh only.
80CCC
Nature of Deduction:
Payment of premium for annunity plan of LIC or any other insurer Deduction is available upto a maximum of Rs.10,000/-
Remarks:
The
premium must be deposited to keep in force a contract for an annuity
plan of the LIC or any other insurer for receiving pension from the
fund.The Finance Act 2006 has enhanced the ceiling of deduction under
Section 80CCC from Rs.10,000 to Rs.1,00,000 with effect from 1.4.2007.
80CCD
Nature of Deduction:
Deposit made by an employee in his pension account to the extent of 10% of his salary.
Remarks:
Where
the Central Government makes any contribution to the pension account,
deduction of such contribution to the extent of 10% of salary shall be
allowed. Further, in any year where any amount is received from the
pension account such amount shall be charged to tax as income of that
previous year. The Finance Act, 2009 has extended benefit to any
individual assesse, not being a Central Government employee.
80CCF
Nature of Deduction:
Subscription to long term infrastructure bonds.
Remarks:
Subscription
made by individual or HUF to the extent of Rs. 20,000 to notified long
term infrastructure bonds was exempt for the financial year 2010-11 and
2011-12. However, the exemption is no longer present from financial year
2012-13.
80D
Nature of Deduction:
Payment
of medical insurance premium. Deduction is available upto Rs.15,000/
for self/ family and also upto Rs. 15,000/- for insurance in respect of
parent/ parents of the assessee.
Remarks:
The
premium is to be paid by any mode of payment other than cash and the
insurance scheme should be framed by the General Insurance Corporation
of India & approved by the Central Govt. or Scheme framed by any
other insurer and approved by the Insurance Regulatory & Development
Authority. The premium should be paid in respect of health insurance of
the assessee or his family members. The Finance Act 2008 has also
provided deduction upto Rs. 15,000/- in respect of health insurance
premium paid by the assessee towards his parent/parents. W.e.f.
01.04.2011, contributions made to the Central Government Health Scheme
is also covered under this section.
80DD
Nature of Deduction:
Deduction
of Rs.40,000/ - in respect of (a) expenditure incurred on medical
treatment, (including nursing), training and rehabilitation of
handicapped dependant relative. (b) Payment or deposit to specified
scheme for maintenance of dependant handicapped relative. W.e.f.
01.04.2004 the deduction under this section has been enhanced to
Rs.50,000/-. Further, if the dependant is a person with severe
disability a deduction of Rs.1,00,000/- shall be available under this
section.
Remarks:
The
handicapped dependant should be a dependant relative suffering from a
permanent disability (including blindness) or mentally retarded, as
certified by a specified physician or psychiatrist. Note: A person with
severe disability means a person with 80% or more of one or more
disabilities as outlined in section 56(4) of the “Persons with
Disabilities (Equal opportunities, Protection of Rights and Full
Participation) Act.
80DDB
Nature of Deduction:
Deduction
of Rs.40,000 in respect of medical expenditure incurred. W.e.f.
01.04.2004, deduction under this section shall be available to the
extent of Rs.40,000/- or the amount actually paid, whichever is less. In
case of senior citizens, a deduction upto Rs.60,000/- shall be
available under this Section.
Remarks:
Expenditure
must be actually incurred by resident assessee on himself or dependent
relative for medical treatment of specified disease or ailment. The
diseases have been specified in Rule 11DD. A certificate in form 10 I is
to be furnished by the assessee from a specialist working in a
Government hospital.
80E
Nature of Deduction:
Deduction
in respect of payment in the previous year of interest on loan taken
from a financial institution or approved charitable institution for
higher studies.
Remarks:
This
provision has been introduced to provide relief to students taking loans
for higher studies. The payment of the interest thereon will be allowed
as deduction over a period of upto 8 years. Further, by Finance Act,
2007 deduction under this section shall be available not only in respect
of loan for pursuing higher education by self but also by spouse or
children of the assessee. W.e.f.01.04.2010 higher education means any
course of study pursued after passing the senior secondary examination
or its equivalent from any recognized school, board or university.
80G
Nature of Deduction:
Donation to certain funds, charitable institutions etc.
Remarks:
The
various donations specified in Sec. 80G are eligible for deduction upto
either 100% or 50% with or without restriction as provided in Sec. 80G.
80GG
Nature of Deduction:
Deduction available is the least of (i) Rent paid less 10% of total income (ii) Rs.2000 per month (iii) 25% of total income
Remarks:
(1)
Assessee or his spouse or minor child should not own residential
accommodation at the place of employment. (2) He should not be in
receipt of house rent allowance. (3) He should not have a self occupied
residential premises in any other place.
80U
Nature of Deduction:
Deduction
of Rs.50,000/- to an individual who suffers from a physical disability
(including blindness) or mental retardation.Further, if the individual
is a person with severe disability, deduction of Rs.75,000/- shall be
available u/s 80U. W.e.f. 01.04.2010 this limit has been raised to Rs. 1
lakh.
Remarks:
Certificate should be obtained on prescribed format from a notified ‘Medical authority’.
80RRB
Nature of Deduction:
Deduction
in respect of any income by way of royalty in respect of a patent
registered on or after 01.04.2003 under the Patents Act 1970 shall be
available as :-Rs. 3 lacs or the income received, whichever is less.
Remarks:
The
assessee who is a patentee must be an individual resident in India. The
assessee must furnish a certificate in the prescribed form duly signed
by the prescribed authority alongwith the return of income.
80QQB
Nature of Deduction:
Deduction
in respect of royalty or copyright income received in consideration for
authoring any book of literary, artistic or scientific nature other
than text book shall be available to the extent of Rs. 3 lacs or income
received, whichever is less.
Remarks:
The
assessee must be an individual resident in India who receives such
income in exercise of his profession. To avail of this deduction, the
assessee must furnish a certificate in the prescribed form along with
the return of income.
Writer Apurv Gourav is a part time Financial Planning Consultant with Birla Sun Life. He is also pursuing Certified Financial Planning.
