An Assignment on the Topic Deductions to be made while calculating Gross Total Income

For the subject of

Corporate Tax Planning and Management mba - 910

Kurukshetra University, Kurukshetra

DEDUCTIONS IN RESPECT OF CERTAIN PAYMENTS

1. Sec. 80C For Individual and H.U.F. a) Regarding Payment of LIP; contribution to PF, PPF, etc.
b)

Deduction is up to ` 1 lac

2. Sec. 80CC For Individual a) Regarding contribution to pension fund

b)

Deduction: ` 1 lac maximum

3. Sec 80CCD For Individual a) Regarding contribution to pension scheme of central govt. b) Deduction: up to 10% of salary contributed by employee + up to 10% of the salary contributed by the employer; other individual up to 10% of G.T.I. 4. Sec. 80CCE For Individual
a) b)

Aggregate amount of deductions u/s 80C, 80CCC, 80CCD Deduction: Up to ` 1 lac

(4A) Sec. 80CCF For Individual and H.U.F. a) Regarding subscription to long-term infrastructure bonds
b)

Deduction: Up to ` 20,000

5. Sec. 80D For Individual and H.U.F.

a)

Medical insurance premia paid by any mode of payment other than cash for insurance of his health or the health of his spouse or dependent children up to ` 15,000 + parent(s) up to ` 15,000, members of H.U.F. up to ` 15,000. In case of senior citizen deductible up to ` 20,000.

6. Sec. 80DD For Individuals and H.U.F. residents in India a) Expenditure on medical treatment, training and rehabilitation of a disable dependent or/and amount paid under any insurance scheme.
b)

Deduction for disability up to ` 50,000 and severe disability up to ` 1 lac

7. Sec. 80DDB For Individuals and H.U.F. residents in India

a) b)

Regarding Medical Treatment for specified diseases under rules. Deduction: amount paid or ` 40,000 whichever is less. In case of senior citizen, amount paid or ` 60,000 whichever is less

8. Sec. 80E For Individual a) Regarding payment of interest on loan taken for higher studies of self or relative. b) Deduction up to the amount paid Sec. 80G For all assessees a) Regarding donation to approved funds or institutions in the form of a sum of money. b) Deduction: 50% and in certain cases 100% of the qualifying amount of donation 10.Sec. 80GG For Individual

9.

a)

Regarding expenditure on house rent in excess of 10% of T.I. by selfemployed persons and salaried persons not getting H.R.A. Deduction: Maximum 25% of T.I. or ` 2,000 p.m., whichever is less

b)

11.Sec. 80 GGA For all assessees a) Regarding payments made to a Scientific Research Association or to a University or College, etc. for scientific research or social or statistical research or to an association or institution engaged in any programme or rural development or of training persons for such programme. b) Deduction of 100% of the amount paid. 12.Sec. 80GGB For Indian Companies a) Deduction of 100% of sum paid regarding contribution to political parties etc.
13. Sec.

80GGC For all assessees except Local Authority, Juridical Person and

Indian Company a) Deduction of 100% of sum paid regarding contribution to political parties etc.

DEDUCTIONS IN RESPECT OF CERTAIN INCOMES

14.Sec. 80IA a) Regarding infrastructural facility. b) Deduction: 100% of profits up to first 5 assessment years and 30% of profits for the next 5 assessment years in case of telecommunication services. Others 100% of profits for 10 assessment years. 15.Sec. 80 IAB a) Regarding profits from development of SEZ. b) Deduction: 100% of profits for 10 consecutive assessment years 16.Sec. 80IB a) Regarding profits of new industrial undertaking, ship, or hotel business, etc, b) Deduction: According to the charts 17.Sec. 80IC a) Regarding profits from enterprise in special category states
b)

Deduction: 100% and 50% according to deduction tables

18.Sec. 80ID a) Regarding business of hotels and convention centres in specified area. b) Deduction: 100% of profits for 5 consecutive assessment years. 19.Sec. 80IE a) Undertakings in north-eastern states b) Deduction: 100% of profits for 10 consecutive assessment years.
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20.Sec. JJA For any assessee a) Regarding profits from business of collecting and processing of biodegradable waste etc.
b)

Deduction: 100% of such profits for initial 5 assessment years. 80JJAA For an Indian Company engaged in the manufacture or

21. Sec.

production of article or thing a) Regarding employment of new workmen.

b)

Deduction: 30% of additional wages paid to the new regular workmen employed by the assessee during the previous year.

22.Sec. 80 LA For a Scheduled Bank etc. a) Regarding income of offshore banking unit etc. b) Deduction: 100% of such income for 5 assessment years and thereafter 50% of such profits for 5 assessment years. 23.Sec. 80QQB Individual (author) resident in India a) Regarding royalty in respect of books.
b)

Deduction: Up to ` 3 lac

24.Sec. 80RRB Individual (patentee) resident in India a) Regarding royalty in respect of patent.
b)

Deduction: Up to ` 3 lac

25.Sec. 80U For Resident Individuals a) From income of disabled person.

b)

Deduction: ` 50,000 for disability and ` 1 lac for severe disability.

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REFERENCES

- Mehrotra H.C. and Goyal S.P. (2011): Income Tax Law and Accounts, including Tax Planning; Sahitya Bhawan Publications; pp 428-467