CA Jasmeet Singh Arora 1

DEDUCTION FROM GROSS TOTAL INCOME

 Deduction is allowed from Gross Total Income. If GTI is less than deduction then, deduction
is restricted to the amount of GTI.
 No Deduction is allowed from STCG u/s 111A , LTCG u/s 112, LTCG u/s 112A and casual income.

SECTION 80C DEDUCTION IN RESPECT OF CERTAIN PAYMENTS/INVESTMENTS

1. Assesee - Individual / HUF

2. Deduction - Amount Invested or ₹ 1.5 lacs – Whichever is lower
3. Payment Is Made Towards
(i) Life Insurance Policy for self, spouse & child. Subject to a maximum of 10% of the actual
capital sum assured.(15% for person who is a person with disability as referred to in
section 80U or suffering from disease as specified in section 80DDB)
(ii) In respect of policy issued before 01.04.2012, 10% shall be taken as 20%
(iii) Contribution made in Unit Linked insurance Plan (ULIP) of UTI or mutual fund.
(self, spouse and any child or any member of HUF)
(iv) Investment in fixed deposit for a period of 5 years or more
(v) Invested in five year post office time deposit account
(vi) Contribution by individual to SPF / RPF.
(vii) Contribution made by individual or HUF to Publuc Provident Fund (self, spouse and any
child or any member of HUF)
(viii) Deduction shall be allowed if amount has been invested in National Saving Certificate
(NSC).
(ix) Interest accrued on NSC shall be income under the head other sources also deduction is
allowed for such interest u/s 80C. However, no deduction shal be allowed for Interest
accrued in last year.
(x) Repayment of Principle amount of Housing Loan.
(xi) Stamp duty, registration fee or other charges paid for acquisition of house property
(xii) Payment of tuition fees (maximum two children and it should be whole time education)
(xiii) Senior Citizens Savings Scheme.
(xiv) Investment in Sukanya Samridhi Account.
(xv) Contribution to any notified pension scheme of Mutual fund or UTI
(xvi) Contribution to NPS Tier-2 account by CG EE for a fixed period of 3 years or more.

SECTION 80CCC DEDUCTION IN RESPECT OF CONTRIBUTION TO CERTAIN PENSION FUNDS

 Assesee - Individual
 Deduction - Amount Invested or ₹ 1.5 lacs – Whichever is lower
 Payment Is Made Towards
a. Pension plan of Life Insurance Corporation (LIC) also known as annuity scheme; or
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b. Pension Plan of any other Private Insurer as approved by Controller of Insurance.

Section 80CCD Deduction in respect of contribution to Pension Scheme of Central Government

1. Assesee - Individual
2. Assessee’s own contribution
 Section 80CCD(1)
a) Salaried EE = EE’s Contribution subject to maximum 10% Of RBS
b) Other Individual = Assessee’s Contribution subject to maximum 20% of GTI
 Section 80CCD(1B)
An additional deduction of upto ₹ 50,000 is allowed over and above u/s 80CCD (1)
Note: Always claim deduction under 80CCD(1B) first and then balance under 80CCD (1)
3. ER Contribution to EE’s NPS [Section 80CCD(2)]
a) Amount contributed by ER is Added to Gross Salary
b) Also Deduction is allowed for such contribution subject to maximum 10% Of RBS
(14% of RBS in case contribution is made by CG/SG)

SECTION 80 CCE RESTRICTION ON DEDUCTION

 Maximum deduction allowed under section 80C + 80CCC + 80CCD(1) shall be ₹1,50,000.
 Note: ER Contribution u/s 80CCD(2) and Additional Deduction u/s 80CCD(1B) is not covered u/s
80CCE. In other words, these are allowed separately to assessee

SECTION 80CCH DEDUCTION IN RESPECT OF CONTRIBUTION TO AGNIPATH SCHEME

1. Agnipath scheme is a Central Government scheme launched in 2022 for enrolment of Indian
youth in the Indian Armed Forces
2. Each Agniveer is to contribute 30% of his monthly customized Agniveer Package to the
individual's Agniveer Corpus Fund. Further, the Government will also contribute a matching
amount to the 'Agniveer Corpus Fund
3. The Agniveer Corpus Fund means a fund in which consolidated contributions of all the
Agniveers and matching contributions of the Central Government along with interest on
both these contributions are held.
4. Deduction
a) Assessees own contribution Section 80CCH (1)
Agniveer is eligible for contribution made to individual's Agniveer Corpus Fund.

b) Contribution made by CG Section 80CCH (2)

Central Government's contribution to the Agniveer Corpus Fund would be included in
the salary of the assessee and then whole amount of contribution is allowed as a
deduction.
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SECTION 80 D DEDUCTION IN RESPECT OF FAMILY INSURANCE PREMIUM

1. Assessee - Individual / HUF

2. Payment Made For –
a) Health insurance premium
b) Contribution in Central Govt. Health Scheme
c) Preventive Health Checkup (PHC)
3. Deduction
i. Self / Spouse/ dependant Children - Amount paid Subject to max 25,000. (In case of
Resident Senior Citizen max ₹ 50,000)
ii. Parents (dependent / Not dependent) - Amount paid Subject to max 25,000. (In case of
Resident Senior Citizen max ₹ 50,000)
4. In case of Resident senior citizen, Deduction of ₹ 50,000 is allowed in case of medical
expenditure even if no insurance premium is paid
5. Maximum Deduction for Preventive Health-Check up of Family & Parents is ₹ 5,000 which is
included in overall limit of ₹25,000 / ₹ 50,000.
6. No Deduction is allowed for the payment of premium made in cash. PHC payment can be made
by any mode.
7. Where medical insurance is paid in lumpsum for more than 1 year, deduction shall be allowed
for each PY as follows:
𝑳𝒖𝒎𝒑𝒔𝒖𝒎 𝑷𝒓𝒆𝒎𝒊𝒖𝒎
Deduction per year =
𝑷𝒀 𝒇𝒐𝒓 𝑾𝒉𝒊𝒄𝒉 𝑰𝒏𝒔𝒖𝒓𝒂𝒏𝒄𝒆 𝒊𝒔 𝑽𝒂𝒍𝒊𝒅

SECTION 80DD DEDUCTION IN RESPECT OF MAINTENANCE OF DISABLED DEPENDANT

1. Assessee - Resident Individual / HUF

2. Deduction - ₹75,000 irrespective of the expenditure (₹ 1,25,000 in case of severe disability)
3. Dependant -
a) For Individual - Spouse, children, parents, brothers and sisters who are dependent on the
individual
b) For HUF - Any member of the Hindu Undivided Family
Note: Assessee should incur expenses on medical treatment including nursing or paid/deposited
amount in LIC scheme for the maintenance of dependent disabled.

SECTION 80DDB MEDICAL TREATMENT OF SPECIFIED DISEASE

1. Assessee - Resident Individual / HUF

2. Expenditure - Treatment of disease specified in the rule 11DD
3. Incurred On –
a) For Individual – Self or a Dependent Spouse, children, parents, brothers and sisters
b) For HUF- Any member dependent on the Hindu Undivided Family
4. Deduction –
a) Amount incurred or ₹40,000 whichever is less.
b) For senior citizen - Amount incurred or ₹1,00,000 whichever is less.
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SECTION 80E PAYMENT OF INTEREST ON LOAN TAKEN FOR HIGHER EDUCATION

1. Assessee – Individual
2. Deduction - Payment of interest on loan taken by him from any financial institutions for
pursuing higher education (any course after class XII th)
3. Education of - self or spouse or children or any person for whom the assessee is legal guardian
4. No deduction shall be allowed for repayment of the principal loan amount
5. Deduction is allowed for a maximum period of 8 years starting from the year in which first
payment of interest was given

SECTION 80EE INTEREST ON LOAN TAKEN FOR CERTAIN HOUSE PROPERTY

1. Assessee – Individual
2. Deduction - Interest payable on loan taken from any financial institution for acquisition of a
residential house property (Max deduction = ₹ 50,000).
3. Conditions:
a) Loan has been sanctioned during 1/4/2016 – 31/3/2017
b) Value of house should not exceed ₹ 50 Lakh.
c) Loan amount is upto ₹ 35 lakh
d) Assessee doesn’t own any RHP on the date of loan sanction
4. Assessee shall claim deduction u/s 24(b) first and then remaining interest shall be allowed
under this section.
Note: Loan should be taken from banks or financial institutions.

SECTION 80EEA INTEREST ON LOAN TAKEN FOR CERTAIN HOUSE PROPERTY

1. Assessee – Individual
2. Deduction - Interest payable on loan taken from any financial institution for acquisition of a
residential house property (Max deduction = 1.5 Lacs).
3. Conditions:
a) Loan has been sanctioned during 1/4/19 – 31/3/22
b) SDV ≤ 45 Lakh.
c) Assessee doesn’t own any RHP on the date of loan sanction
d) Assessee shall claim deduction u/s 24(b) first and then remaining interest shall be allowed
under this section.
Note: Loan should be taken from banks or financial institutions.

SECTION 80EEB INTEREST ON LOAN TAKEN FOR PURCHASE OF ELECTRIC VEHICLE

1. Assessee – Individual
2. Deduction - Interest payable on loan taken from any financial institution for purchase of
electric vehicle (Max deduction = 1.5 Lacs).
3. Conditions: Loan has been sanctioned during 1/4/19 – 31/3/23
4. Deduction is allowed irrespective of fact whether e-vehicle is purchased for official or personal
use.
Note: Loan should be taken from banks or financial institutions.
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SECTION 80G DONATIONS TO CERTAIN FUNDS, CHARITABLE INSTITUTIONS ETC.

1. Deduction is available to all the assesses for donation made to eligible funds or institutions
2. Donations in kind shall not qualify for deduction.
3. No deduction shall be allowed in respect of donation of exceeding ₹ 2,000 unless such sum is
paid by any mode other than cash.
4. Quantum of deduction:
There are four categories of deductions
Category 1: Donation qualifying for 100% deduction, without any qualifying limit
(1) The National Defence Fund set up by the Central Government
(2) Prime Minister’s National Relief Fund.
(3) Prime Minister’s Armenia Earthquake Relief Fund
(4) The National Children’s Fund
(5) The National Foundation for Communal Harmony
(6) Approved University or educational institution of national eminence
(7) Chief Minister’s Earthquake Relief Fund, Maharashtra
(8) Any Zila Saksharta Samiti
(9) Any State Government Fund set up to provide medical relief to the poor
(10) The Army Central Welfare Fund or Indian Naval Benevolent Fund or Air Force Central Welfare
Fund established by the armed forces of the Union for the welfare of past and present
members of such forces or their dependents.
(11) The National Illness Assistance Fund
(12) The Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund in respect of any State
or Union Territory
(13) The National Sports Fund set up by the Central Government
(14) The National Cultural Fund set up by the Central Government
(15) The Fund for Technology Development and Application set up by the Central Government
(16) The Swachh Bharat Kosh
(17) The Clean Ganga Fund
(18) The National Fund for Control of Drug Abuse

Category 2: Donation qualifying for 50% deduction, without any qualifying limit
Prime Minister’s Drought Relief Fund

Category 3: Donation qualifying for 100% deduction, subject to qualifying limit

(1) The Government or to any approved local authority, institution or association for promotion
of family planning
(2) Sum paid by a company as donation to the Indian Olympic Association or any other
association/institution established in India.

Category 4: Donation qualifying for 50% deduction, subject to qualifying limit.

(1) Any Institution or Fund established in India for charitable purposes
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(2) The Government or any local authority for utilisation for any charitable purpose other than the
purpose of promoting family planning
(3) An authority constituted in India by or under any other law enacted either for dealing with and
satisfying the need for housing accommodation or for the purpose of planning, development
or improvement of cities, towns and villages, or both
(4) Any Corporation established by the Central Government or any State Government for
promoting the interests of the members of a minority community.
(5) for renovation or repair of Notified temple, mosque, gurdwara, church or any other similar
place

Qualifying limit: The eligible donations referred to in category 3 and 4 should be aggregated and
the sum total should be limited to 10% of the adjusted gross total income.

Adjusted Total Income Means GTI as reduced by LTCG (u/s 112/112A) & STCG u/s 111A & All
Deductions except 80G

SECTION 80GG DEDUCTION IN CASE OF PAYMENT OF RENT

1. Assessee - Individual (Must Not be receiving HRA/RFAC)

2. Deduction – Lower of following shall be allowed as deduction:
a) ₹ 5,000 Per Month
b) Rent paid - 10% of Adjusted GTI
c) 25% of Adjusted GTI
3. Adjusted GTI Means GTI as reduced by LTCG (u/s 112/112A) & STCG u/s 111A & All Deductions
except 80GG.
4. Other Conditions:
 Individual should not have any house in his name or spouse name or minor child name or
in the name of HUF of which he is a member, at a place of his duty.
 Assessee may have house at any other place but it should not be self occupied i.e. it may
be let out or vacant

SECTION 80GGB CONTRIBUTIONS TO POLITICAL PARTIES OR ELECTORAL TRUST

1. Assessee - Indian Company

2. Deduction – 100% of Amount Contributed

SECTION 80GGC CONTRIBUTIONS TO POLITICAL PARTIES OR ELECTORAL TRUST

1. Assessee – Any person other than Indian Company

2. Deduction – 100% of Amount Contributed

SECTION 80JJAA DEDUCTION IN CASE OF NEW EMPLOYMENT

1. Assessee - All Assessee’s whose accounts are required to be audited u/s 44AB (i.e. TO > ₹
1cr/10cr).
2. Deduction - 30% of additional employee cost incurred. Deduction is allowed for 3 assessment
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years including the assessment year in which such employment is provided.

3. Conditions
a) Emoluments should be paid through account payee cheque, an account payee bank draft
or by use of electronic clearing system
b) Additional employee” means an employee who has been employed during the previous
year and whose employment has the effect of increasing the total number of employees
employed by the employer as on the last day of the preceding year.
c) Additional EE does not include —
(i) an employee whose total emoluments are more than ₹ 25,000 per month; or
(ii) an employee employed for a period of less than 240 days during PY (in case of business
of manufacturing of apparel or footwear or leather products, 150 days shall be
considered).
(iii) an employee who does not participate in the recognised provident fund.
4. If an EE is employed for less than 240/150 days as the case may be during the PY, but is
employed for a period of 240/150 days or more in the immediately succeeding year, then he
shall deemed to be employed in succeeding year and accordingly ER shall be entitled for
deduction under this section for such EEs in the succeeding year.

SECTION 80QQB ROYALTY INCOME, ETC., OF AUTHORS OF BOOKS OTHER THAN TEXT BOOKS

1. Assessee - Resident individual

2. Deduction – Royalty income or ₹3,00,000 whichever is less.
However, Royalty received in excess of 15% of the value of books sold during the previous year
shall be ignored
3. Royalty from Foreign Country: Deduction allowed if Royalty brought to India in convertible
foreign exchange within 6 Months from the end of previous year.

SECTION 80RRB DEDUCTION IN RESPECT OF ROYALTY ON PATENTS

1. Assessee - Resident individual

2. Deduction – Royalty income or ₹3,00,000 whichever is less.
3. Royalty from Foreign Country: Deduction allowed if Royalty brought to India in convertible
foreign exchange within 6 Months from the end of previous year.

SECTION 80TTA INTEREST ON DEPOSITS IN SAVINGS ACCOUNT

1. Assessee - Individual / HUF (other than senior citizen)

2. Deduction – Lower of Following is allowed as deduction
a) Interest Amount
b) ₹ 10,000
3. Interest income on saving bank accounts with any Bank/ Post Office is eligible for deduction
under this section.
4. No deduction is allowed from interest on time deposit/ fixed deposit.
Note: As per section 10(15), Interest on Post Office Savings Bank Account to the extent of ₹3,500
per year shall be exempt from income tax and in the case of joint account, exemption shall be
allowed upto ₹7,000 per year.
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SECTION 80TTB INTEREST ON DEPOSITS IN CASE OF SENIOR CITIZENS

1. Assessee - Senior citizen

2. Deduction – Lower of Following is allowed as deduction
a) Interest Amount
b) ₹ 50,000
3. Interest income on Saving, fixed, time, recurring or any other deposit is eligible for deduction
under this section.

SECTION 80U DEDUCTION FOR HANDICAPPED ASSESSEE

1. Assessee – Resident Individual

2. Deduction – ₹ 75,000 (₹ 1,25,000 for severe Disability)