Income Tax Guide - Section 80 Deductions (For FY 2014-15 (with changes listed for FY 2015-16))
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Deductions on Section 80C, 80CCC & 80CCD
Section 80C
The deduction under section 80C is allowed from your Gross Total Income. These are available to an Individual or a HUF. The deduction is allowed for various investments, expenses and payments.
Total Deduction under section 80C, 80CCC and 80CCD (1) together cannot exceed Rs 1, 50,000 for the financial year 2014-15 (assessment year 2015-16). The limit for financial year 2015-16 is also Rs 1, 50,000.
The deduction under section 80C is allowed from your Gross Total Income. These are available to an Individual or a HUF. The deduction is allowed for various investments, expenses and payments.
Total Deduction under section 80C, 80CCC and 80CCD (1) together cannot exceed Rs 1, 50,000 for the financial year 2014-15 (assessment year 2015-16). The limit for financial year 2015-16 is also Rs 1, 50,000.
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Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer
This section provides deduction to an Individual for any amount paid or deposited in any annuity plan of LIC or any other insurer for receiving pension from a fund referred to in Section 10(23AAB).
In case the annuity is surrendered before the date of its maturity, the surrender value is taxable in the year of receipt.
In case the annuity is surrendered before the date of its maturity, the surrender value is taxable in the year of receipt.
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Section 80CCD: Deduction in respect of Contribution to Pension Account
For FY 2014-15 (assessment year 2015-16)
Total Deduction under Section 80C, 80CCC and 80CCD (1) cannot exceed Rs 1, 50,000.
For FY 2015-16 (assessment year 2016-17)
A new section 80CCD (1B) has been introduced to provide for additional deduction for amount contributed to NPS of up to Rs 50,000.
Therefore for financial year 2015-16, Total Deduction under Section 80C, 80CCC, 80CCD (1) and 80 CCD (1B) cannot exceed Rs 2, 00,000.
From assessment year 2012-13, employer's contribution under section 80CCD (2) towards NPS is outside the monetary ceiling mentioned above.
Total Deduction under Section 80C, 80CCC and 80CCD (1) cannot exceed Rs 1, 50,000.
For FY 2015-16 (assessment year 2016-17)
A new section 80CCD (1B) has been introduced to provide for additional deduction for amount contributed to NPS of up to Rs 50,000.
Therefore for financial year 2015-16, Total Deduction under Section 80C, 80CCC, 80CCD (1) and 80 CCD (1B) cannot exceed Rs 2, 00,000.
From assessment year 2012-13, employer's contribution under section 80CCD (2) towards NPS is outside the monetary ceiling mentioned above.
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Deductions on Savings Bank Account
Section 80 TTA: Deduction from gross total income with respect to any Income by way of Interest on Savings account
Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account with a bank, co-operative society or post office. Section 80TTA deduction is not available on interest income from fixed deposits.
Section 80GG: Deduction with respect to House Rent Paid
• This deduction is available for rent paid when HRA is not received. Assesses or his spouse or minor child should not own residential accommodation at the place of employment.
• Assesses should not be in receipt of house rent allowance.
• He should not have self occupied residential premises in any other place.
Deduction available is the least of
1. Rent paid minus 10% of total income
2. Rs. 2000/- per month
3. 25% of total income
• This deduction is available for rent paid when HRA is not received. Assesses or his spouse or minor child should not own residential accommodation at the place of employment.
• Assesses should not be in receipt of house rent allowance.
• He should not have self occupied residential premises in any other place.
Deduction available is the least of
1. Rent paid minus 10% of total income
2. Rs. 2000/- per month
3. 25% of total income
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Section 80E: Deduction with respect to Interest on Loan for Higher Studies
Deduction in respect of interest on loan taken for pursuing higher education. This loan is taken for higher education for the assesses, spouse or children or for a student for whom the assesses is a legal guardian.
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Section 80EE: Deductions on Home Loan Interest for First Time Home Owners
This section provided deduction on the Home Loan Interest paid and is valid for financial years 2013-14 & 2014-15 (Assessment year 2014-15 and 2015-16) only. The deduction under this section is available only to Individuals for first house purchased where the value of the house is Rs 40lakhs or less and loan taken for the house is Rs 25lakhs or less. And the Loan has been sanctioned between 01.04.2013 to 31.03.2014. The total deduction allowed under this section is Rs 1, 00,000.
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Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)
The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget. Investors whose gross total income is less than Rs. 12 lakhs can invest in this scheme. Upon fulfillment of conditions laid down in the section, the deduction is lower of - 50% of amount invested in equity shares or Rs 25,000.
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Section 80D: Deduction in respect of Medical Insurance
For financial year 2014-15 - Deduction is available up to Rs. 15,000/- to an assesses for insurance of self, spouse and dependent children. If individual or spouse is more than 60 years old the deduction available is Rs 20,000. An additional deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 15,000/- if less than 60 years old and Rs 20,000 if parents are more than 60 years old. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. (From AY 2013-14, within the existing limit a deduction of up to Rs. 5,000 for preventive health check-up is available).
For financial year 2015-16 – Deduction is raised from Rs 15,000 to Rs 25,000. The deduction for senior citizens is raised from Rs 20,000 to Rs 30,000. For uninsured super senior citizens (more than 80 years old) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D. However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs 30,000.
For financial year 2015-16 – Deduction is raised from Rs 15,000 to Rs 25,000. The deduction for senior citizens is raised from Rs 20,000 to Rs 30,000. For uninsured super senior citizens (more than 80 years old) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D. However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs 30,000.
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Deductions on Medical Expenditure for a Handicapped Relative
Section 80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative
Deduction is available on:
1. expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative
2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Where disability is 40% or more but less than 80% - fixed deduction of Rs 50,000. Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1, 00,000.A certificate of disability is required from prescribed medical authority.
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.
For financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1, 00,000 has been raised to Rs 1, 25,000.
Deduction is available on:
1. expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative
2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Where disability is 40% or more but less than 80% - fixed deduction of Rs 50,000. Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1, 00,000.A certificate of disability is required from prescribed medical authority.
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.
For financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1, 00,000 has been raised to Rs 1, 25,000.
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Deductions on Medical Expenditure on Self or Dependent Relative
Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative
A deduction to the extent of Rs. 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assesses 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 assesses from any Registered Doctor.
In case of senior citizen the deduction can be claimed up to Rs 60,000 or amount actually paid, whichever is less.
For financial year 2015-16 – for very senior citizens Rs 80,000 is the maximum deduction that can be claimed.
A deduction to the extent of Rs. 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assesses 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 assesses from any Registered Doctor.
In case of senior citizen the deduction can be claimed up to Rs 60,000 or amount actually paid, whichever is less.
For financial year 2015-16 – for very senior citizens Rs 80,000 is the maximum deduction that can be claimed.
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Section 80U: Deduction with respect to Person suffering from Physical Disability
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. 100,000/- shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.
For financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1, 00,000 has been raised to Rs 1, 25,000.
For financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1, 00,000 has been raised to Rs 1, 25,000.
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Section 80G: Deduction for donations towards Social Causes
The various donations specified in Sec. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec. 80G. 80G deduction not applicable in case donation is done in form of cash for amount over Rs 10,000.
Donations with 100% deduction without any qualifying limit:
• National Defense Fund set up by the Central Government
• Prime Minister's National Relief Fund
• National Foundation for Communal Harmony
• An approved university/educational institution of National eminence
• Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
• Fund set up by a State Government for the medical relief to the poor
• National Illness Assistance Fund
• National Blood Transfusion Council or to any State Blood Transfusion Council
• National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
• National Sports Fund
• National Cultural Fund
• Fund for Technology Development and Application
• National Children's Fund
• Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund with respect to any State or Union Territory
• the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996
• The Maharashtra Chief Minister's Relief Fund during October 1, 1993 and October 6,1993
• Chief Minister's Earthquake Relief Fund, Maharashtra
• Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
• Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
• Prime Minister's Armenia Earthquake Relief Fund
• Africa (Public Contributions — India) Fund
• Swachh Bharat Kosh (applicable from financial year 2014-15)
• Clean Ganga Fund (applicable from financial year 2014-15)
• National Fund for Control of Drug Abuse (applicable from financial year 2015-16)
Donations with 50% deduction without any qualifying limit.
• Jawaharlal Nehru Memorial Fund
• Prime Minister's Drought Relief Fund
• Indira Gandhi Memorial Trust
• The Rajiv Gandhi Foundation
Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income
• Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
• Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.
Donations with 100% deduction without any qualifying limit:
• National Defense Fund set up by the Central Government
• Prime Minister's National Relief Fund
• National Foundation for Communal Harmony
• An approved university/educational institution of National eminence
• Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
• Fund set up by a State Government for the medical relief to the poor
• National Illness Assistance Fund
• National Blood Transfusion Council or to any State Blood Transfusion Council
• National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
• National Sports Fund
• National Cultural Fund
• Fund for Technology Development and Application
• National Children's Fund
• Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund with respect to any State or Union Territory
• the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996
• The Maharashtra Chief Minister's Relief Fund during October 1, 1993 and October 6,1993
• Chief Minister's Earthquake Relief Fund, Maharashtra
• Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
• Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
• Prime Minister's Armenia Earthquake Relief Fund
• Africa (Public Contributions — India) Fund
• Swachh Bharat Kosh (applicable from financial year 2014-15)
• Clean Ganga Fund (applicable from financial year 2014-15)
• National Fund for Control of Drug Abuse (applicable from financial year 2015-16)
Donations with 50% deduction without any qualifying limit.
• Jawaharlal Nehru Memorial Fund
• Prime Minister's Drought Relief Fund
• Indira Gandhi Memorial Trust
• The Rajiv Gandhi Foundation
Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income
• Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
• Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.
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Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income
• Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
• Government or any local authority to be utilized for any charitable purpose other than the purpose of promoting family planning
• Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
• Any corporation referred in Section 10(26BB) for promoting interest of minority community
• For repairs or renovation of any notified temple, mosque, gurudwara, church or other place.
• Government or any local authority to be utilized for any charitable purpose other than the purpose of promoting family planning
• Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
• Any corporation referred in Section 10(26BB) for promoting interest of minority community
• For repairs or renovation of any notified temple, mosque, gurudwara, church or other place.
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Section 80GGB: Deduction in respect of contributions given by companies to Political Parties
Deduction is allowed to an Indian company for amount contributed by it to any political party or an electoral trust. Deduction is allowed for contribution done by any way other than cash.
Political party means any political party registered under section 29A of the Representation of the People Act. Contribution is defined as per section 293A of the Companies Act, 1956.
Political party means any political party registered under section 29A of the Representation of the People Act. Contribution is defined as per section 293A of the Companies Act, 1956.
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Section 80GGC: Deduction in respect of contributions given by any person to Political Parties
Deduction is allowed to an assesses for any amount contributed to any political party or an electoral trust. Deduction is allowed for contribution done by any way other than cash.
Political party means any political party registered under section 29A of the Representation of the People Act.
Political party means any political party registered under section 29A of the Representation of the People Act.
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Section 80RRB: Deduction with respect to any Income by way of Royalty of a Patent
Deduction in respect of any income by way of royalty is respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available up to Rs. 3 lacs or the income received, whichever is less. The assesses must be an individual resident of India who is a patentee. The assesses must furnish a certificate in the prescribed form duly signed by the prescribed authority.
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In the Finance Budget 2015 have some changes , but the Tax Slab is Same as previous Financial Year. The Major Changes is Raised the some Tax Section which is given below :-
1 U/s 80 U :- Max Limit Rs. 75,000/- for General from 40% to 80% for Phy.Disable Person and Rs. 1,25000/- for more than 80%.
2. U/s 10 Transport/Traveling Allowance :- Max Limit Rs. 1600 P.M. for general and Rs. 3200/- P.M. for Phy.Disable persons.
3. U/s 80D Medical Health Insurance :- Max Limit Rs. 25,000/- for below 60 years age and Rs. 30,000/- for above 60 years age.
4. U/s 80CCC Pension Scheme :- Max Limit Rs. 1,50,000/-
5. U/s 80 DDB Sever Medical Treatment :- Max Limit Rs. 80,000/- instead of 40,000/-
6. U/s 80C :- One New deduction has incorporated as Sukanya Samriddhi Account for minor girl child who's age below 10 Years, and Max Limit Rs. 15000/-
7. U/s 80TTA relief from Savings Bank Interest is also entitled in this financial year up to Rs. 10,000/- who's taxable Income below Rs. 5 Lakh.
8. U/s 87A :- Tax Rebate Rs. 2,000/- is also entitled in this financial year as before.
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