DEDUCTION

Deductions
Cc
Indoors or out, no one relaxes in July, that month of Deductions and

taxes, Deductions will presently disappear,
the taxes last us all the year.
73 Taxation Attach passion to your dreams.

SRK of Deductions
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Ankur Agarwal - B.com, M.com, M.A. CA(I), PGDT, B.ed, MBA, Phd* DEDUCTIONS
DEDUCTIONS
SECTIONS PARTICULARS
80C Deduction in respect of Life Insurance premium,

Contributions to provident fund etc.
80CCC Deduction in respect of contribution to certain pension fund
80CCD Deductions for contribution to Central Government pension scheme.
80CCE Aggregate amount of deduction
80D Deduction in respect of medical Insurance premium
80DD Deduction in respect of medical treatment of

Handicapped Dependent relatives.
80U Deduction in case of a person with disability
80DDB Deduction in respect of Medical Treatment
80E Deduction in respect of Interest on loan from higher education

80EEA Deduction in respect of Interest on House loan.
80EEB Deduction in respect of Interest on electric vehicle loan.
80G Deduction in respect of donation etc.

80GG Deduction in respect of rents paid
80GGA Deduction in respect of donation for scientific research or rural

development
80GGB Deduction in respect of contribution to political parties
80GGC Deduction in respect of contribution given by any person to political
parties
80JJAA Deduction in respect of employment of new workmen
80QQB Deduction in respect of Royalty Income

80RRB Deduction in respect of royalty on patents.
80TTA Deduction of interest on deposits in savings account (age below 60yr)

80TTB Deduction of interest on deposits in savings account(age 60 & above)
Sher apni kabiliyat se jungle ka raja hota hai…jungle me chunav nahi hote dost . Page 75
Deductions under section 80C to 80U are allowed from gross total income to compute total
income however such deduction is allowed only from normal income.
 As per section 112, such deductions are not allowed from long term capital gains.
 As per section 58(4), such deductions are not allowed from casual income.
 As per section 111A, such deduction are not allowed from short term capital gains on the sale of
short term equity shares.
 As per section 112A, such deduction are not allowed from long term capital gains on the sale of
long term equity shares.
Deduction of Life Insurance Premium, Provident Fund etc. Section 80C

Applicability : Only Individual and HUF
Quantum of Deduction: Maximum Rs. 1,50,000.
Nature of Payment: On the following amounts deduction is allowed.
(i) Life Insurance Premium on life of himself, spouse and Children(MBBS), in HUF any
member of family, (maximum 20% 10% of the actual Capital Sum assured from
1.4.2012).
15% of actual Capital Sum assured a person with disability referred to in section 80U &
80DDB.
Meaning of actual capital sum assured – minimum amount Assured under the policy
which may be received on happening of insured event.
CQ.64: Mr. India taken LIC policy having sum assured of Rs.1 lakh during your previous year,
he paid Rs.15000 as premium, calculate deduction.
CQ: 65: What will be your Answer if policy taken on march 2012?
CQ.66: Mr. Mukambo taken LIC policy having sum assured of Rs.18 lakh during your previous
year, he paid Rs.160000 as premium, calculate deduction.
(ii) Contributions by employee to statutory/ recognized / public provident fund;
(iii) Contribution by an employee to an approved Superannuation fund ;

(iv) Contribution to notified tax saving Mutual Fund & units of UTI
(v) Subscription to NSS 1992
(vi) Subscription to NSC and interest accrued thereon which is deemed to be reinvested.
Amount can be invested in the name of self, spouse or minor children and HUF can invest the
amount in the name of any of its members.
(vii) Tuition fees (excluding donation or development fee etc.) at the time of admission or
thereafter - For full time education
 For any two children of such individual
 To any university, college, school or other educational institution situated in India.
CQ.67: Fees paid to Ankur sir for taxation in a coaching is allowed as deduction?
(viii) Repayment of loan taken from Central Govt/ State Govt/ any other Bank/ LIC / National
Housing Bank, employer where employer is statutory corporation or public company or
university or local authority or a co-operative society for purchase or construction of a
residential house property.
CQ.68: Miss Chameli has taken loan of Rs. 50 lakhs for purchase of residential house from her
Sahali (friend) she repaid 5 lakh principle & 1 lakh interest during P.Y. calculate deduction.
(ix) Any deposite made in sukanya samridhi Account.
(x) Investment in a term deposit for a fixed period of not less than 5 years with a scheduled
bank.
(xi) Subscription to any notified bonds of NABARD
(xii) Amount deposited under Senior Citizens Saving Scheme.
(xiii) Amount deposited in five year time deposit scheme in post office.F.D.
(xiv) Amount deposited in PPF.
(xv) Contribution by a Central Government employee to additional account under NPS

(Tier II account) referred to in section 80CCD for a fixed period of not less than 3 years.
GYAN SEVA
There are two types of NPS account i.e., Tier I and Tier II, to which an individual can contribute. Section
80CCD provides deduction in respect of contribution to individual pension account [Tier I account] under the
NPS,
whereas deduction under section 80C is allowable in respect of contribution by Central Government employee
to additional account [Tier II account] of NPS, which does not qualify for deduction under section 80CCD.
Deduction in respect of contribution to certain pension funds

Section 80CCC
Applicability - An individual
Nature of payment: - Amount paid or deposited in an annuity plan of LIC or any other insurer
for receiving pension from pension fund.
Quantum of Deduction - Amount deposited or Rs. 1,50,000 whichever is lower.
Conditions:-
1.Deduction is allowed only to an individual and individual can take the policy only in his name.
2. If Surrender before maturity- It shall be taxable in the previous year of receipt.
Pension received shall be taxable in the year of receipt.
Key Note: - Where any amount has been allowed as a deduction under this section,
no deduction with reference to such amount shall be allowed u/s 80C.
E.g. champak chacha has taken Jeevan Suraksha Policy in his name and has paid premium of Rs.10,000, in this case
deduction allowed shall be Rs.10,000, but if Policy has been taken in the name of Mrs.champak chacha and has
paid premium of Rs.10,000, in this case deduction will not be not allowed.
Deduction in respect of contribution to Pension scheme of Central Government
(NPS / Atal pension yogna) Section 80CCD
Employee contribution : 80CCD (1)

Individuals employed by Central Government or any other employer or self employed.
 Nature of Payment - Amount deposited by him during previous year in the pension scheme
(NPS) notified by the Central Government.
Quanum of Deduction :-
 In the case of an employee of Central Government or any other employer:
- Amount paid or
-10% of salary, whichever is lower. (SUBJECT TO 1,50,000)
 In the case of self employed person

- Amount paid or
-20% of his gross total income in previous year. (SUBJECT TO 1,50,000)
 80CCD (1B)
Additional Deduction of upto Rs.50000 shall be given for the amount Deposited to NPS
in previous year, whether or not deduction is allowed under section 80CCD (1)
Employer contribution: 80CCD (2)

If the central govt. or any other employer makes any contribution to his account, the
assessee shall allowed a deduction of-
1. Amount contributed by the central govt. or any other employer.

2. 14% of his salary in case of Central Govt. / 10% of salary in case of other YER.
Whichever is less.
Conditions :- If assessee or nominee receives pension or other amount upon closure or

surender of pension scheme, then such amount shall be taxable in P/Y in which received.
Key Note :-
1. Where any amount has been allowed as deduction under this section, no deduction with
reference to such amount shall be allowed u/s 80C.
2. "Salary' includes dearness allowance, if the terms of employment so provide, but
excludes all other allowance and perquisites.
Any payment from the National Pension System Trust to an employee on closure of his account or on
his opting out of the pension scheme referred to in section 80CCD, upto 60% shall be exempt u/s
10(12) at the time of such closure or his opting out of the scheme.
Aggregate amount of deduction Section 80CCE
The aggregate amount of deductions under section 80C, section 80CCC and
Section 80CCD (except contribution by Employer) shall not exceed Rs. 1,50,000.
EXPECTED CQ.69.Following are the info. of investments and payments made by Ms.DITTO employed with ABCD Ltd.,
- Deposited Rs.1,20,000 in public provident fund
- Paid life insurance premium of Rs.15,000 on the policy taken on 1.5.2012 to insure his life (Sum assured – Rs.1,20,000).
- Deposited Rs.30,000 in a five year term deposit with bank.
- Contributed Rs.1,80,000, being 15% of his salary, to the NPS of the Central Government. A matching contribution was
made by ABCD 2 Ltd. Compute the deduction available to Ms. DITTO under Chapter VI-A.
CQ.70.Would your answer be different, if Ms.ditto contributed Rs.1,20,000 (being, 10% of his salary) towards NPS of the CG ?
Sol. 69 Deduction available to Ms. DITTO under Chapter VI-A
Section Particulars Rs. Rs.

80C Deposit in public provident fund 1,20,000
Life insurance premium paid 15,000 12,000
(deduction restricted to 12,000, being
10% of 1,20,000, Being sum assured
since the policy was taken after 31.3.2012)
Five year term deposit with bank 30,000
1,62,000
Restricted to 1,50,000
80CCD(1) Contribution to NPS of the Central

Government, 1,30,000 [ 1,80,000 –
50,000], being deduction under section 1,20,000
80CCD(1B)], restricted to 10% of salary
(1,80,000 x 10/15) [See Note 1]
2,70,000
80CCE Aggregate deduction Under section 80C 1,50,000

and 80CCD(1), 2,70,000, but restricted to
80CCD(1B) Rs. 50,000 would be eligible for deduction in

respect of contribution to NPS of the Central 50,000
Government
80CCD(2) Employer contribution to NPS, restricted to
10% of salary [See Note 2] 1,20,000
Deduction under Chapter VI-A 3,20,000
Notes:
(1) The deduction under section 80CCD(1B) would not be subject to overall limit of 1.50 lakh under section 80CCE. Therefore, it is more
beneficial for Ms DITTO to
claim deduction under section 80CCD(1B)first in respect of contribution to NPS.
Thereafter, the remaining amount of 1,30,000 can be claimed as deduction under section 80CCD(1),
subject to a maximum of 10% of salary.
 The entire employer’s contribution to notified pension scheme has to be first included under the head “Salaries” while computing gross total
income and thereafter, deduction under section 80CCD(2) would be allowed, subject to a maximum of 10% of salary.
Sol.70 If the contribution towards NPS is Rs.1,20,000, here again, it is beneficial for Ms.DITTO to first claim deduction of
Rs.50,000 under section 80CCD(1B) and the balance of Rs. 70,000 can be claimed under section 80CCD(1), since the
deduction available under section 80CCD(1B) is over and above the aggregate limit of Rs.1,50,000 under section 80CCE.
In any case, the aggregate deduction of Rs.2,20,000 [i.e., 1,50,000 under section 80C and Rs.70,000 under section
80CCD(1)] cannot exceed the overall limit of Rs.1,50,000 under section 80CCE. The total deduction under Chapter VIA
would remain the same i.e., Rs.3,20,000
CQ: 71:
Deduction of Medical Insurance Premium Section 80D
Applicability - Individual or HUF
Nature of payment – Premium of Mediclaim insurance policy and

any contribution made to the Central govt.
Health Scheme (CGHS) taken.
1. In case of individual, in the name of individual, his spouse,

parents (whether dependent or not) and dependent children.
2. In case of HUF, in the name of any member.
Quantum of deduction :-
Individual HUF
Premium can be paid by any Taxpayer, spouse Parents of the Any

mode other than cash. and dependent taxpayer whether member
children dependent or not of family
Maximum amount deductible 25,000 25,000 25,000
Additional amount which is

deductible when policy is taken
on the health of a senior citizen 50,000 50,000 50,000
(i.e. resident in India and 60
years or more).
DEDUCTION FOR Medical expenses for senior citizen.( Self/spouse/parents)-

 No payment of insurance premium for such super senior citizen person.
Deduction allowed for any amount paid on account of preventive health check:
 Payment by Individual on account of preventive health check of-
Self, spouse, dependent children and parents. Is eligible for deduction.
 Maximum deduction allowed is Rs. 5000 within the existing limit of
25000/50000.
 Payment of preventive health up can be made by any mode including cash.
 Maximum deduction allowed is Rs. 50,000. In any case.
CQ:72: Mr. X, aged 40 years, paid medical insurance premium of Rs.18,000 by cheque to insure his health as
well as the health of his spouse. He also paid medical insurance premium of Rs.26,000 by cheque during the
year to insure the health of his father, aged 63 years, who is not dependent on him. He contributed Rs.5,000
by cheque to Central Government Health Scheme during the year. He has incurred Rs.3,000 in cash on
preventive health check-up of himself and his spouse and Rs.4,000 by cheque on preventive health check-up
of his father. Compute the deduction allowable under section 80D.
Solution:
Deduction allowable under section 80D
Particulars Rs. Rs.
Actual Maximum
Payment deduction
allowable
A. Premium paid and medical expenditure incurred for self and spouse
(i) Medical insurance premium paid for self and spouse 18,000 18,000
(ii) Contribution to CGHS 5,000 5,000
(iii) Exp. on preventive health check-up of self & spouse 3,000 2,000
26,000 25,000
B. Premium paid and medical expenditure incurred for father, who is a
senior citizen
(i) Mediclaim premium paid for father, who is 63 years of age 26,000 26,000
(ii) Expenditure on preventive health check-up of father 4,000 3,000
30,000 29,000
Total deduction under section 80D (25,000 + 29,000) 54,000
Deduction in respect of Medical Treatment of Handicapped Dependent relatives

section 80DD
Applicability - Individual or HUF, resident in India.
Nature of Expenditure:
(i) Expenditure incurred for medical treatment (including nursing, training etc.) of
dependent relative suffering from disability.
(ii) Amount paid to LIC/UTI or other insurer under approved scheme for annuity for the
benefit of the handicapped dependent after the demise of the asessee.
Quantum of Deduction :-
(a) For disability Rs. 75,000 (fixed)
(b) For severe disability Rs. 1,25,000 (fixed)
Conditions :-
(i) The disability should be certified by the
specialist doctor.
(ii) The assessee shall furnish a copy of the certificate issued by medical authority in the
prescribed form with the return of income u/s 139.
(iii) The relative should not be dependent on any person other than the assessee.
Key Notes :-
1. Dependent Relative means:-
i. in the case of an individual(bacchan-ji) the spouse, children, parents, brothers
and sisters of the individual.
ii. in the case of HUF, any member of HUF
2. Disability means blindness, low vision, leprosy, hearing impairment, locomotor disability
mental retardation, mental illness.
3. "Person with disability" means a person suffering from atleast 40% of the above disability as
certified by medical authority. "Severe disability" means atleast 80% of the above disabilities.
4. If the handicapped dependent predeceases the assessee, amount paid or deposited will be
treated as income of the previous year in which it is received by the assessee.
CQ-73: Mr.Bacchan is a resident individual. He deposits a sum of

Rs.25,000 with Life Insurance Corporation every year for the
maintenance of his handicapped Sister. A copy of the certificate
from the medical authority is submitted. Compute the amount of
deduction available under section 80DD.
Solution: Since the amount deposited by Mr. Bacchan was for his
Dukhi dependend-Sister, he will be allowed deduction of Rs. 75,000
under section 80DD. Assuming she is 40% disable.
Deduction in case of a person with disability Section 80U
Applicability- Individual resident in India, who is suffering from a disability.
Quantum of Deduction
(a) For disability Rs. 75,000 (fixed)
(b) For severe disability Rs. 1,25,000 (fixed)
Key Notes :-
(i) Disability & severe disability means - Same meaning as in Section 80DD
(ii) For claiming deduction, certificate obtained from medical authority to be furnished with
ROI for relevant previous year.
CQ.74: Miss Rani is suffering from a severe disability and has gross total income Rs.12,00,000. She has
invested Rs.3,00,000 in NSC, calculate her ducuctions.
Sol: In this case deduction allowed under section 80C shall be Rs.1,50,000 and under section 80U shall be
Rs.1,25,000.(assuming all the conditions of Sec.80U have been fulfilled)
Deduction in respect of Medical Treatment Section 80DDB
Applicability - Individual or HUF, resident in India.
Nature of Expenditure- Expenditure incurred for

medical treatment of Himself or dependent relative
suffering from specified disease.
Quantum of Deduction
 General Rs. 40,000 or amount actually paid, whichever is less.
 Senior citizens Rs. 1,00,000 or amount actually paid whichever is less.
Conditions :-
(i) The assessee shall furnish a certificate in the prescribed form.
(ii) The certificate shall be from a neurologist, an oncologist, a urologist, a
haematologist, an immunologist or such other prescribed specialist working in
government Hospital.
Key Notes :-
1. Dependent Relative means - Same as 80DD
2. Specified Diseases - Neurologist diseases, cancer, AIDs, Chronic renal failure,
Hemophilia, Thalassaemia.
Eg :Mr. Danny age 43, has incurred Rs.1,00,000 on the treatment of a specified disease for himself, in this case
deduction allowed shall be Rs.40,000
Deduction in respect of interest on loan for higher education

Section 80E
Applicability - Individual
Nature of Expenditure - Payment of interest on education

loan taken from financial institution or approved
charitable institution for the purpose of pursuing higher
education.
Quantum of Deduction - Payment of interest to financial

institution or a approved charitable institution.
Conditions -
1. The loan was taken by the assessee for the purpose of pursuing his own higher
education or for higher education of his relative.
2. Deduction shall be allowed for eight assessment years starting from the
assessment year in which the assessee starts paying the interest on loan, or until
the interest thereon is paid by assessee in full, whichever is earlier.
Key Note :- Meaning of higher education
-Higher education means full time studies for any graduate or post-graduate course in
engineering medicine, mathematics, management etc. or all field of studies (including vocational
studies) pursued after passing the Senior Secondary Examination or its equivalent from any
school, board or university recognised by the Central Government or State Government or local
authority or by any other authority authorized by the Central government or State Government
or local authority to do so.
Meaning of relative -Spouse and Children of the individual or the student for whom the
individual in the legal guardian.
Deduction in respect of interest on loan taken for residential house property.

Section 80EEA
Applicability Individual
Nature of  Interest payable on loan taken by him from any financial
Expenditure institution for the purpose of acquisition or construction of a
residential house property.
Quantum of  Interest paid or Rs. 1,50,000. Which ever is less

Deduction:  Deduction would be available till the loan continue.
 this is in addition to deduction u/s 24(b)
The loan is sanctioned by the financial Deduction u/s 24 (b)

institution during the shall also be allowed u
period 1.4.2019 ‐ pto Rs. 2,00,000.
31.3.2021
Conditions
The assessee does not own The SD value
any residential house property of the residential house property
on the date of sanction of the loan ≤ Rs. 45 lakh
RAZZ KI BAAT
Deduction in respect of INTEREST on loan taken for ELECTRIC VEHICLE

Section 80EEB
Applicability Individual
Nature of  Interest payable on loan taken by him from any financial
Expenditure institution(Bank) for the purpose of acquisition of a Electric Vehicle.
 Interest paid or Rs. 1,50,000. Which ever is less

Quantum of  Deduction would be available till the loan continue.
Deduction:  The loan is sanctioned by the financial institution during the period
1.4.2019 ‐ 31.3.2023
DEDUCTION IN RESPECT OF DONATION TO NOTIFIED INSTITUTIONS.
SECTION - 80G
Applicability- All assessee
(A) 100% deduction without qualifying limit

1. National Defense Fund
2. Prime Minister's National Relief Fund
3. Prime Minister's Armenia Earthquake Relief Fund
4. Africa (Public Contributions) India Fund
5. National Foundation for Communal Harmony
6. Approved University / Educational Institutions of national Eminence
7. Maharashtra Chief Minister's Earthquake Relief Fund
8. National/ State Blood Transfusion Council
9. Zila Saksharta Samithi of any district
10. Any fund set up by a State Govt. to provide medical relief to the poor.
11. Army Central Welfare Fund, Air Force Central Fund or Indian Navel benevolent Fund
12. Andhra Pradesh Chief Minister's Cyclone Relief Fund
13. National Illness Assistance Fund
14. Chief Minister/Lieutenant Governor's Relief Fund for any State/Union Territory
15. National Sports Fund
16. National Trust for welfare of persons with autism, cerebral palsy, mental retardation &
multiple disabilities.
17. Gujarat Relief Fund
18. Fund for Technology & Application.
19. National Children Fund.
20. Swachh bharat kosh.
21. clean ganga fund.
22. national fund for control of drugs abuse.
23. The Prime Minister’s Citizen Assistance and
Relief in Emergency Situations Fund
(PM CARES FUND)
(B) 50% deduction without qualifying limit

(i) Jawaharlal Nehru Memorial Fund.
(ii) Indira Gandhi memorial trust.
(iii) Rajiv Gandhi Foundation.
(iv) Prime Minister Drought Relief Fund
(C) 100% Deduction with qualifying limit
(i) Donation to Government or approved institution to be utilized for promoting
family planning.
(ii) Sum paid by company to Indian Olympic Association or their notified institutions
for development of infrastructure for sports or sponsorship of sports & games in
India.
(D) 50% deduction with qualifying limit
(i) Donation to Govt/ approved Institution for any charitable purpose except family
planning.
(ii) Approved Charitable Institution, which satisfied conditions of 80G.
(iii) Authority engaged in Planning, development of cuties, town etc.
(iv) Corporation established by CG or SG for

promoting interest of minority community.
(v) Notified Temple, Church, Mosque,

Gurudwara or other place notified by CG or
Artistic Importance for Renovation/ Repairs.
Key Notes :-
(i) Qualifying limit: - 10% of Adjusted Gross Total Income
(ii) Adjusted Gross Total Income means

Gross Total Income
Less (i) Deduction u/s 80C to 80U except u/s 80G
(ii) LTCG ( if already included in GTI)
(iii) STCG u/s 111
Essential condition: Donation in kind are not eligible

Proof of payment is furnished along with the return.
No deduction shall be allowed under this section in respect of
donation of any sum exceeding Rs.2000, unless such sum is paid
by any mode other than cash.
CQ.75: Mr. daanveer provides following information, you are required to

calculate total Income. Incomes are- House property 2 lakh, lottery 70,000, section 111A 50,000. LIC premium
paid 10,000. House loan principal paid 5000, contribution in NSC 3000 & in PPF 2000. He Donated 15000 in
approved charitable institution & 15000 for promoting family planning.
CQ:76: What will the deduction u/s 80G if in question 75 family planning is Rs. 20000 & charity Rs. 10,000.
Deduction in respect of Rents paid. Section 80GG
Applicability- Individual
Conditions -
(a) Assessee should not be entitled to HRA
(b) The assessee should not own any residential house himself or his spouse, minor
child or HUF at the work place.
(c) No claim for self occupied property should be made in respect of any
accommodation.
(d) Assessee should file a declaration in Form 10BA.
Quantum of deduction –
Least of the following is allowed as deduction
(i) Excess of Rent paid over 10% of adjusted Gross Total income.
(ii) 25% of Adjusted Gross Total income
(iii) Rs. 5,000 per month
Key Notes:-
Adjusted Gross Total Income:
Gross total income
Less:
(i) Deduction u/s 80C to 80U except 80GG
(ii) LTCG ( if already included in GTI)
(iii) STCG u/s 111A
Deduction in respect of donation for scientific research or rural development

Section 80GGA
applicability - All assessee (provided no P.G.B.P. Income)
Quantum of deduction - 100% of sum paid to such institutions
The following sums paid shall be deducted

(i) Donation given to an institution notified under section 35 for scientific research /
research in social science or statistical research.
(ii) Sums paid by the assessee in the previous year to a rural development fund setup and
National Urban Poverty Eradication Fund, notified by the Central Government for the
purpose of section 35CCA.
(v) Donation given to an institution notified under section 35AC for eligible project.
 No deduction shall be allowed under this section in respect of donation of any sum exceeding
Rs.2000, -unless such sum is paid by any mode other than cash.
Eg: Mr. gulgule has donated Rs.2,00,000 by cheque to an institution notified under section 35AC for eligible
projects and Mr. gulgule do not have any business/profession, in this case he will be allowed deduction
under section 80GGA for Rs.2,00,000,but if he has business/profession, he will not be allowed deduction
under section 80GGA rather he will be allowed to debit the amount to profit and loss account(in PGBP).
Deduction in respect of contribution given by an Indian Company to Political

parties Section 80GGB
Applicability - Indian Company

Name of Contribution - Sum contributed to any political
party or donation to electoral trusts.
 It includes expenditure on advertisement in a brochure,
pamphlet or the like of a political party.
Nature of Deduction - 100% of sum paid - by any mode,

other than cash.
Deduction in respect of contribution give by any

person to Political parties. Section 80GGC
Applicability - Any person other than Indian Company

( except local authority and artifical judical person wholly or party funded by Government)
Nature of contribution - Sum contributed to any political party or donation to electoral

trusts.
Quantum of Deduction - 100% of sum paid. - by any mode, other than cash.
Deduction in respect of interest on deposits in savings account Section 80TTA
 Deduction to an individual (age < 60 years) or HUF

 In respect of interest received on SAVING A/C deposits From bank or post office,
 Deduction = Interest received or 10,000 which-ever is less.
Deduction in respect of interest on deposits in savings account Section 80TTB
 Deduction only to a senior citizen

 In respect of interest received on SAVING A/C deposits From bank or post office,
 Deduction = Interest received or 50,000 which-ever is less.
CQ.79: Mr. ladoo received interest from post office saving a/c Rs.22000.salary income
Rs,400000, calculate total income.
DEDUCTION IN RECEPT OF EMPLOYMENT OF NEW WORKMEN
80JJAA
Nature All Asseesee has Income from Business & Subject to Tax Audit {i.e. 44AB applies}
Deduction 30% of Additional Employee Cost for 3 Assessment years {30 % of cost}
Add. cost means
In Case of Excisting Business  Additional Employee Cost NIL, If :
COST 1) There if NO increase in No. of Employee from no. of Employee

Employed on last day of Previous year.
2) Emolument Paid otherwise by A/c cheque /DD,E-transfer,UPI.
In Case of New Business  Total Enrolments paid or payable to new employee shall be
deemed to be additional cost.
No.Spiliting Business should not be formed by splitting up or Re-structuring of Existing Business.

Up
Audit Report Accounts should be Audited by C.A. & Audit Report furnished with ROI.
& ROI
Condition 1) Additional Employees are new Employee Employed during the year.
Exclude
 Employee whose Emoluments >25000/M
 Govt. Employee
 Employed for Period < 240 Days in P.Y.
 Who Does not Participate in RPF
In the case of an assessee who is engaged in the business of manufacturing of apparel or

footwear or leather products, 240 days shall be taken as 150 days.
2) Emolument not include Retirement Benefits Like P.F ,Pension ,L. Encashment,VRS etc.
CQ.80: NOV.2016: Mr. Satya is a manufacturer of household goods in a factory & commenced his business
on 1st April, he employed 120 new work-men during the previous year which included:
(a) 20 employee whose total emoluments paid @ Rs.30,000 p.m. per employee;
(b) 40 worker employed on 01st April.
(c) 35 worker employed on 1st May.
(d) 25 worker employed on 5th October.
Compute the Deduction under Section 80JJAA, if available to Mr. Satya, if wages are paid to each worker @
Rs.3,000 per month. His profit from the manufacture of goods is Rs. 9.50 lakhs. The Assessee is liable to
Audit his accounts.
Solution:
 Mr. Satya is eligible for deduction under section 80JJAA since he is liable to Audit of his accounts.
 Calculation of Additional employee cost = (3,000 x 12 x 40) + (3,000 x 11 x 35) = 25,95,000
 Deduction u/s 80JJAA = 30% of 25,95,000 = 7,78,500
Calculation of additional employee

Particulars No. of Employee
Total No. of workmen employed 120
Less: Employee Emoluments paid @ 30,000 p.m. (20)
Less: Employee Employed for less than 240 days (employed on 05.october) (25)
Total No. of Additional Employee ` 75
Deduction from Royalty Income Section 80QQB
Applicability: - Individual resident in India, who is author

of a book.
Source of Income: - Royalty or copyright fee.
Quantum of Deduction: - Least of the following

(i) Whole of such income (royalty maximum @ 15% of the value of such books sold) less
expenses attributable to such income.
(ii) Rs. 3,00,000
Key Notes :-
(i) Such book should be a work of literary, artists or scientific nature and not textbooks for schools,
guides, commentaries newspapers, journals, pamphlets and other publication of similar nature.
(ii) Where Royalty income is from outside India, deduction only for that foreign exchange brought into
India within 6 months from end of previous year of such extended time by RBI.
(ii) For claiming deduction a certificate in the prescribed from signed by the prescribed authority is
required to be furnished.
e.g. Mr.Amithab is an author of a book of literary nature and print price is Rs.200 and total copies sold
are 3000 and he claims that he is getting royalty @ 50% of print price,
in this case deduction allowed shall be 200 x 15% x 3000 = 90,000.
CQ-81: NOV.2001 Mr. Ankur, a writer, furnishes the following particulars for the previous year :
(a) Royalty on books (eligible for deduction u/s 80QQB) 42,000
(b) Expenditure on books 8,000
(c) Income from profession 3,80,000
(d) Deposited in public provident fund during previous year 70,000
You are required to compute Taxable income,
SOLUTION: Computation of total income and tax payable by Mr. X
Income from business/profession
Income from profession 3,80,000
Income under the head Business/Profession 3,80,000
Income under the head Other Sources
Royalty on books 42,000
Less: Expenses (8,000)
Income under the head Other Sources 34,000
Gross Total Income 4,14,000
Less: Deduction u/s 80C (70,000)
Less: Deduction u/s 80QQB (34,000)
Total Income 3,10,000
Deduction in respect of Royalty on Patents Section 80RRB
Applicability- Individual resident in India, who is

(a) a patentee
(b) in receipt of income by way of royalty in
respect of a patent registered under the
patents act 1970.
Sources of Income: Royalty income in

respect of a patent.
Quantum of Deduction:-Least of the

following
(i) Whole of such income or
(ii) Rs. 3,00,000
Key Notes :-
1. Where royalty income earned is from
outside India, deduction only for the foreign exchange brought into India within 6
months from end of previous year or such extended time by RBI.
2. For claiming deduction a certificate in the prescribed from signed by the prescribed
authority is required to be furnished.
GYAN SEVA
APPLICATION FOR PROVIDING TUTION FEE DETAILS

FOR DEDUCTION UNDER section 80C FOR SESSION_________
The Accounts Officer Date:
ABES Engineering College
Ghaziabad
Sir,
I, ____________________, Admission No.___________, S/D/o___________________, Roll
No._______________, Category_________, Mode of Admission______________, permanent
R/o__________________________________________________________ am student of B.Tech.
/MCA/MBA and studying in ______________ semester.
I am residing/not residing in the hostel.
I have applied/not applied and received/not received any scholarship from any agency (if yes, please
provide the details).
(a) Name of Scholarship___________________
(b) Applied for Session____________
(c) Applied Date_______
(d) Received date of scholarship_______
(e) Amount_______
You are requested to kindly provide me Tuition fees details, which I have paid for session ________ vide fee
receipt no.________ dtd.________ (photocopy of fee receipt enclosed) for the purpose of availing deduction
under Income Tax Act for the session _________ by my father or mother.
I will be highly thankful to you.
(Signature of Student with date)

Application received on:
(Signature of Office Staff with date)

Name:
Fee details received on:
(Signature of Office Staff with date)

Name:

DEDUCTION

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Deductions

Indoors or out, no one relaxes in July, that month of Deductions and

the taxes last us all the year.

73 Taxation Attach passion to your dreams.

74 Taxation Attach passion to your dreams.

80C Deduction in respect of Life Insurance premium,

80D Deduction in respect of medical Insurance premium

80DD Deduction in respect of medical treatment of

80E Deduction in respect of Interest on loan from higher education

80G Deduction in respect of donation etc.

80GGA Deduction in respect of donation for scientific research or rural

80JJAA Deduction in respect of employment of new workmen

80QQB Deduction in respect of Royalty Income

80TTA Deduction of interest on deposits in savings account (age below 60yr)

Deduction of Life Insurance Premium, Provident Fund etc. Section 80C

(ii) Contributions by employee to statutory/ recognized / public provident fund;

(iii) Contribution by an employee to an approved Superannuation fund ;

(ix) Any deposite made in sukanya samridhi Account.

(xii) Amount deposited under Senior Citizens Saving Scheme.

(xiv) Amount deposited in PPF.

(xv) Contribution by a Central Government employee to additional account under NPS

Deduction in respect of contribution to certain pension funds

Quantum of Deduction - Amount deposited or Rs. 1,50,000 whichever is lower.

Employee contribution : 80CCD (1)

 In the case of self employed person

Employer contribution: 80CCD (2)

1. Amount contributed by the central govt. or any other employer.

Conditions :- If assessee or nominee receives pension or other amount upon closure or

Section Particulars Rs. Rs.

80CCD(1) Contribution to NPS of the Central

80CCE Aggregate deduction Under section 80C 1,50,000

80CCD(1B) Rs. 50,000 would be eligible for deduction in

Deduction of Medical Insurance Premium Section 80D

Applicability - Individual or HUF

Nature of payment – Premium of Mediclaim insurance policy and

1. In case of individual, in the name of individual, his spouse,

2. In case of HUF, in the name of any member.

Premium can be paid by any Taxpayer, spouse Parents of the Any

Maximum amount deductible 25,000 25,000 25,000

Additional amount which is

DEDUCTION FOR Medical expenses for senior citizen.( Self/spouse/parents)-

Deduction in respect of Medical Treatment of Handicapped Dependent relatives

Applicability - Individual or HUF, resident in India.

CQ-73: Mr.Bacchan is a resident individual. He deposits a sum of

Deduction in case of a person with disability Section 80U

Applicability- Individual resident in India, who is suffering from a disability.

Applicability - Individual or HUF, resident in India.

Nature of Expenditure- Expenditure incurred for

Deduction in respect of interest on loan for higher education

Nature of Expenditure - Payment of interest on education

Quantum of Deduction - Payment of interest to financial

Deduction in respect of interest on loan taken for residential house property.

Quantum of  Interest paid or Rs. 1,50,000. Which ever is less

The loan is sanctioned by the financial Deduction u/s 24 (b)

Deduction in respect of INTEREST on loan taken for ELECTRIC VEHICLE

 Interest paid or Rs. 1,50,000. Which ever is less

Applicability- All assessee

(A) 100% deduction without qualifying limit

(B) 50% deduction without qualifying limit

(D) 50% deduction with qualifying limit

(ii) Approved Charitable Institution, which satisfied conditions of 80G.

(iii) Authority engaged in Planning, development of cuties, town etc.

(iv) Corporation established by CG or SG for

(v) Notified Temple, Church, Mosque,