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IT Deductions allowed Under Chapter VI-A Sec 80C, 80CCC, 80CCD, 80D, 80DD,
80DDB etc
Income Tax Deductions allowed Under Chapter VI-A of Income Tax Act. Under Chapter VI-A, the Sections covered are
Sec.80C, Sec.80CCC, Sec.80D, Sec.80CCG, Sec.80DD, Sec.80U, Sec.80DDB, 80E. Let us discuss briefly about all the Sections with
reference to the Income Tax Act 2014-15.

Section 80C - Various Investments-Click Here


Section 80CCC - Pension Funds-Click Here
Section 80CCD - CPS Subscriptions-Click Here
Section 80CCG - Equity Savings Schemes-Click Here
Section 80D - Medical Insurance-Click Here
Section 80DD - Medical Expediture of Disabled Dependent-Click Here
Section 80 U - Persons with Disability-Click Here
Section 80DDB - Medical Expenditure-Click Here
Section 80EE - Interest on Loan on House Property-Click Here
Section 80G - Donations-Click Here

Details of IT Deductions Allowed under Chapter VI-A of IT Act


In computing the taxable income of the employee, the following deductions under Chapter VIA of the Act are to be allowed from
his gross total income:
Deductions allowed Under Section 80C Rs.1,50,000 (Key Points)
Section 80C, entitles an employee to deductions for the whole of amounts paid or deposited in the current financial year in the
following schemes, subject to a limit of Rs.1,50,000/

1 Payment of insurance premium to effect or to keep in force an insurance on the life of the individual, the spouse or
any child of the individual.
2 Any payment made to effect or to keep in force a contract for a deferred annuity.

3 Any sum deducted from the salary payable by, or, on behalf of the Government to any individual, being a sum deducted
in accordance with the conditions of his service for the purpose of securing to him a deferred annuity or making provision
for his spouse or children, in so far as the sum deducted does not exceed 1/5th of the salary; (From the above APGLI,
GIS are covered)
4 Any contribution made by an individual to any Provident Fund to which the Provident Fund Act 1925 applies.

5 Any subscription to any such saving certificates as defined under section 2(c) of the Government Saving Certificate Act,

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1959 as the Government may, by notification in the Official Gazette, specify in this behalf. [The Central Government has
since notified National Saving Certificate (VIIIth Issue) vide Notification S.O. No. 1560(E) dated 3.11.05 and National
Saving Certificate (IXth Issue) vide Notification . G.S.R. 848 (E), dated the 29th November, 2011, publishing the National
Savings Certificates (IX-Issue) Rules, 2011 G.S.R. 868 (E), dated the 7th December, 2011, specifying the National Savings
Certificates IX Issue as the class of Savings Certificates FNo1-13/2011-NS-II r/w amendent Notification No.GSR 319(E),
dated 25-4-2012]
6 Any sum paid as contribution in the case of an individual, for himself, spouse or any child, a. for participation in the Unit
Linked Insurance Plan.(ULIPS)
7 Any subscription made to any units of any Mutual Fund, of section 10(23D). The investments made after 1.4.2006 in
plans formulated in accordance with Equity Linked Saving Scheme, 1992 or Equity Linked Saving Scheme, 1998 shall also
qualify for deduction under section 80C.
8 Any sums paid by an assessee for the purpose of purchase or construction of a residential house property, the income
from which is chargeable to tax under the head "Income from house property" (or which would, if it has not been used for
assessee's own residence, have been chargeable to tax under that head) where such payments are made towards or by
way of any installment or part payment of the amount due under any self financing or other scheme of any Development
Authority, Housing Board etc.
9 Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other educational
institution situated in India, for the purpose of full-time education of any two children of the employee. It is also clarified
that full-time education includes play-school activities, pre-nursery and nursery classes. It is clarified that the amount
allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution
in India.
10 Subscription to equity shares or debentures forming part of any eligible issue of capital made by a public company,
which is approved by the Board or by any public finance institution.
11 Investment as a term deposit for a fixed period of not less than five years with a scheduled bank, which is in
accordance with a scheme framed and notified by the Central Government, in the Official Gazette for these purposes. [The
Central Government has since notified the Bank Term Deposit Scheme, 2006 for this purpose vide Notification S.O. No.
1220(E) dated 28.7.2006]
12 Subscription to such bonds issued by the National Bank for Agriculture and Rural Development, as the Central
Government may, by such notification in the Official Gazette, specify in this behalf.
13 Any investment as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.

Section 80CCC: Deduction in respect of Contribution to certain Pension Funds


Section 80CCC allows an employee deduction of an amount paid or deposited out of his income chargeable to tax to effect or
keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from
the Fund referred to in section 10(23AAB). However, the deduction shall exclude interest or bonus accrued or credited to the
employee's account, if any and shall not exceed Rs. 1 lakh.

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Section 80CCD: Deduction in respect of Contribution to Pension Account (CPS)(by Assessee}


Section 80CCD(1) allows an employee, being an individual employed by the Central Government or any other employer, on or
after the 01.01.2004, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as
notified vide Notification F. N. 5/7/2003- ECB&PR dated 22.12.2003 or as may be notifed by the Central Government. However,
the deduction shall not exceed an amount equal to 10% of his salary(includes Dearness Allowance but excludes all other
allowance and perquisites).
As per Section 80CCD(2), where an employee receives any contribution in the said pension scheme from the Central Government
or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by
the Central Government or any other employer subject to limit of 10% of his salary of the previous year.

Note:It is emphasized that as per the section 80CCE the aggregate amount of deduction under sections 80C, 80CCC
and Section 80CCD(1) shall not exceed Rs.1,50,000/-. However the contribution made by the Central Government or
any other employer to a pension scheme u/s 80CCD(2) shall be excluded from the limit of Rs.1,50,000/- provided
under this Section.

The Below are the Sections covered under Chapter-IV but excluded from 1.50 Lakh Limit
Sec 80CCG: Equity Savings Scheme: Rajiv Gandhi Equity Saving Scheme.
Section 80CCG provides deduction w.e.f .assessment year 2013-14 in respect of investment made under notified equity saving
scheme. Rajiv Gandhi Equity Savings Scheme 2012 has been notified vide SO No 2777 E dated 23.11.2012 as a scheme under
this section. The scheme wasmodified in December 2013 vide notification SO No. 3693 dated 18.12.2013 as RGESS 2013. The
investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme. The amount of
deduction is at 50% of amount invested in equity shares/units. However, the amount of deduction under this provision cannot
exceed Rs. 25,000

(a) The assessee is a resident individual


(b) His gross total income does not exceed Rs. 12 lakhs;
(c) He has acquired listed shares in accordance with a notified scheme or listed units of an equity oriented fund as defined
in section 10(38);
(d) The assessee is a new retail investor;
(e) The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme;
(f) The assessee satisfies any other condition as may be prescribed.

Amount of deduction –The amount of deduction is at 50% of amount invested in equity shares/units. However, the amount of
deduction under this provision cannot exceed Rs. 25,000.

Section 80D: Deduction in respect of health insurance premia paid (Medical Insurance):
Section 80D provides for deduction available for health insurance premia paid, etc. which is
calculated as under:
Persons for
Sl whom Mode of Allowable
Nature of payment
No payment payment Deduction (in Rs)
made
The whole of the amount paid to effect or to keep in force an insurance
on the health of the employee or his family or Any contribution made to Aggregate allowable
any mode
Employee or the CGHS or such other scheme as may be notified by Central is Rs 15,000/ {For
1 other than
his family Government (Finance Act 2013) A any payment on account of Senior Citizens it is
cash
preventive health check-up of the employee or family, [restricted to Rs 20000/-}.
Rs 5000/-; cash payment allowed here]

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The whole of the amount paid to effect or keep in force an insurance


Aggregate allowable
Parent or on the health of the parent or parents of the employee or v any any mode
is Rs 15,000/ {For
2 Parents of payment made on account of preventive health check-up of the parent other than
Senior Citizens it is
employee or parents of the employee [restricted to Rs 5000/-; cash payment cash
Rs 20000/-}
allowed here]
Section 80DD: Medical treatment of a dependent who is a person with disability
Under section 80DD, where an employee, who is a resident in India, has, during the previous year
(a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a
person with disability; or
(b) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or
the Administrator or the specified company subject to the conditions specified in this regard and approved by the Board in this
behalf for the maintenance of a dependant, being a person with disability, the employee shall be allowed a deduction of a sum of
fifty thousand rupees from his gross total income of that year.
However, where such dependant is a person with severe disability, an amount of one hundred thousand rupees shall be allowed as
deduction subject to the specified conditions.

Section 80U: Deductions for a Person with 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.

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 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 any Registered Doctor.

Section 80EE: Interest on loan taken for residential house property


, Vide Finance Act 2013, an individual is allowed a deduction upto a limit of Rs 1,00,000 being paid as interest on a loan taken
from a Financial Institution, sanctioned during the period 01-04-2013 to 31-03-2014 (loan not to exceed Rs 25 lakhs) for
acquisition of a residential house whose value does not exceed Rs 40 lakhs. However the deduction is available if the
assessee does not own any residential house property on the date of sanction of the loan.

Section 80G: Deduction in respect of Various Donations


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. The Donations made SWF, PMRF, CMRF etc will come under this section. No deduction under this section is
allowable in case of amount of donation if exceeds Rs.10000/- unless the amount is paid by any mode other than cash.

Disclaimer: We are not responsible for any mistakes might have occured unexpectedly. If any mistakes Found please mail at
apteachers@yahoo.in for correction.
More Details on Income Tax and IT Act, IT Calculation -Click Here

Author:: Zakir Ali APTEACHERS Posted On Monday, October 14, 2013


Categories:: INCOME TAX, PROCEEDINGS

43 comments:

excellent piece of information, I had come to know about your website from my friend kishore, pune,i have read

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atleast 8 posts of yours by now, and let me tell you, your site gives the best and the most interesting information.
This is just the kind of information that i had been looking for, i'm already your rss reader now and i would regularly
watch out for the new posts, once again hats off to you! Thanx a lot once again, Regards, kakatiya university

Replies

Hi, My income is 22 lakh. After normal deductions the taxable income is 20lakh. I pay 5 lakh as TAX. So
my taxable income should be 20-5 = 15 lakh. Why should I pay Tax on taxed amount I paid to
government? INCOME SHOULD BE CONSIDERED ONLY AFTER TDS.

Reply

ur giving an excellent message to our teachers it 's nice website

Assalamualikum vry valuable information, helping and appreciate the efforts taken by Mr Zakir Ali

Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
US residential investment property

thanks for so much useful information


c a k c agarwal

All the deductions under Chapter VI-A are not given here, which disappoint me.

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nice information to all thank u

What are the chances of new insurance policy broker success becoming a reality? Intense analysis of certified
Department Providers records determine that only 6% of agents endure a little bit over 4.3 years. insurance agents

is there excemption if we buy house plot or house not pleadged in bank

Great & Accurate Information Sir

is stamp duty and registration fees to buy site exempted from income tax

Replies

It is amazing issue regarding your guideline in this field. still provide some live examples in different fields
regarding exemptions claimed be different tax payers.thank you. Umakanth.BR.. Mysore

This comment has been removed by the author.

No Madhavi Latha it is included while tax calculations

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Reply

No... no such deduction or exemption is allowed under the IT act.


Further the amt you pay as Registration chrgs. or Stamp duty is treated as capital expenditure i.e
it is to be added to the value of asset purchased

GENERAL PROVIDENT FUND LOAN REPAYMENT AMOUNT IS TAXABLE OR NOT

Replies

its an exemptoin

Reply

When benefit of VA is not available?

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Dear Sir,

To return file my IT, to claim dedction for EWF& SWF , CM relief fund deduction amounts, required 'deductor Pan
no', and 'deductor details', other wise not accepting there. So please suggest required information, why because
those amounts deducted directly from salaries, we dont have any information regarding those deductions.

Please give me required information.

Thank you.

if the premium paid for my wifes policy, can i calim as deduction for my it purpose?

Replies

Yes. You can take deduction u/s 80c. if premium is paid by you on policy of your spouse and children.

Reply

Please explain the topic with an example will gives more and more clear understanding.Hoping in the next posts for
the same

Sir the contribution of Rs.90/- or Rs.120/- can be claimed exemption under section 80D of income tax

Housing Loan Principal allowable deduction Amount ?

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What I understood from this article is that if a person comes under NPS then he can get tax exemption upto 300000.
Under 80c 150000 and 150000 his employer's contribution for NPS... Am I right???

Replies

Reply

how much is the total tax exemption a person is eligible under chapter VI A

I am getting scholarship for my Phd which is more than Rs 3 Lakhs but income tax act under Section 10(16) the
scholarships are tax free. I am filling my income tax return before start of my PhD therefore I would like to file my
income tax but I am confused under which part of Section 80 deduction, I should apply to get deduction?

Rs.150000 are exempted U/S 80c. Rs.50000 are more exempted for what?

Replies

Thanks

Reply

Medical exemption of 15000 will come into this 1,50,000 cap ?

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If employee availed Maternity leave(eg.January to June) & joined school does she get CL leaves full or any
deduction,for that year ?

Replies

she will get her full CL for the year also, she also can opted for CCE for the same financial year if
needed.

Reply

Good explanation. thank you

My contribution in NPS is 80000 rs and the same is by employer. in PPF I have put 100000 rs. would i get deduction
260000 under sction VI A

hi, i m paying emi and my property is under construction. i wanted to know that can i claim the principal component
of my EMI in sec 80c deduction which is 1,50,000/plz confirm

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Replies

As Per section 80c sub section 2 (xviii) repayment of amount borrowed for the purchase or construction
of a (ONE) residential house property is exempt upto Rs.150000/- if there is no other deduction as
specified in section 2 . SUPPOSE if ONE OR MORE other deduction eg insurance Premium
paid,contribution to PF, Stamp duty/Reg fees on purchse of a house property , term deposit with bank/
post office for 5 years, tuition fees for self, spouse, child etc as specified under sub section of section
80C, THEN the aggregate of the sum exempted is Rs 150000/-

Reply

This comment has been removed by the author.

Excellent but latest details for FY 2016-17 has not updated.

For instance in the event that you give a sizable add up to philanthropy associations which don't have benefit
intention, at that point a rate of such gift might be guaranteed as tax credit in tax returns. 1099

Hi I'm working in public sector undertaking by government of Karnataka. Karnataka power corporation Ltd. Having
doubt is under 80c we can show up to 1.5lak we com under New define contributory pension scheme which they will
deduct 10% basic from our salary n they will credit d same to our account .
Im having homeloan While filling we can show up to 1.5lak in 80c and another 50k employees contribution can be
shown in 80ccd2. Pz clarify this

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Comment as:

Publish

Important Information

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