DEDUCTION UNDER CHAPTER VI A

INCOME FROM SALARY

INCOME FROM HOUSE PROPERTY 350000
INCOME FROM BUSINESS / PROFESSION
INCOME FROM CAPITAL GAIN
INCOME FROM OTHER SOURCES 150000

GROSS TOTAL INCOME 500000

Deduction under chapter VI A

Sec 80 C to 80 U 600000 500000

Q no.1 Computation of Taxable Income of Mr.A for the Assessment year 2021-22

Income from Buisness 30000

Income form other sources 120000 Special Rate @30%

GROSS TOTAL INCOME 150000

Less Deduction chapter VI A

Sectioon 80 C
Sukanya scheme 10000
NSC 24000 30000
34000
TAXABLE INCOME 120000

sum no.2
Rs.
Self:
Policy taken before 01.04.2012
20% of sum asssured or actual premium paid (wel)
20% of 500000 or 51000 (wel)
100000 or 51000 (wel) 51000

Spouse:
Policy taken after 01.04.2012
10% of sum asssured or actual premium paid (wel)
10% of 150000 or 20000 (wel) 15000
15000 or 20000 (wel)

Disabled son:
Policy taken after 01.04.2013
 15% of sum asssured or actual premium paid (wel)
15% of 400000 or 80000 (wel)
60000 or 80000 (wel) 60000

126000

Deduction u.s.80C Rs.126000

Q no.3 COMPUTATION OF TAXABLE INCOME OF Mr.X FOR THE ASSESSMENT YEAR 2021-22

Income from salary (computed) 1000000 note 1:

Less: Loss from self-occ propty -30000 970000
Income from other sources 50000
Gross Total Income 1020000

Less: Deduction Chapter VI A

Section 80 C 150000 note 2:

TAXABLE INCOME 870000

sum no.4

basic 1200000 180000

DA (forming) 240000 (12L x 40% x 50%)
salary 1440000

Treatment in the hands of Mr.A (employee)

Employer contribution to NPS 15% of basic salary Less:

 15% of 1200000 Rs.180000

taxable under the head "Salaries"

and
later allowed as deduction u.s.80CCD(2) but not exceeding 10% of salary
Deduction u.s.80CCD (2): 10% of 1440000 Rs.144000
(separate deduction)

Employee contribution to NPS 15% of basic salary

15% of 1200000 Rs.180000

option 1: Deduction u.s.80CCD(1): 10% of salary

or
actual contribution
whichever is less

Section 80CCD(1): Rs.144000

The balance contribution Rs.36000 (180000-144000) can be claimed u.s.80CCD(1B)

Total amount to be claimed = 144000 + 36000 + 144000 = 324000

sum no.5 0
Amount withdrawn due to death of the assessee
shall not be treated as income in the hands of the nominee
hence, not taxable in the hands of the widow.

sum no.6

lumpsum withdrawal Rs.200000

Amount exempt is 60% of 2 lacs
balance 40% of 2 lacs is taxable
taxable amount is Rs.80000

sum no.7
lumpsum withdrawal Rs.5000000
Amount exempt is 60% of 50 lacs
balance 40% of 50 lacs is taxable
taxable amount is Rs.2000000

partial withdrawal:
amount withdrawn 2000000
 (-) exempt 25% of
the contributions
made by employee 500000 (20L x 25%)

Taxable amount 1500000

sum no.11
(i) Section 80DD: family does not include grand father

(ii) Section 80DD: Amount of deduction

severe disability Rs.125000

Amount deposited with LIC for maintenance

Rs.50000 is not relevant for claiming the deduction

Condition: Medical certificate is a must

Condition: The tax payer should be a resident

sum no.12 Mr.X (resident)

Amount of deduction u.s.80DDB Rs.90000

Actual expenditure 90000

or
Limit (max) 100000 senior citizen and resident
whichever is less

Mr.Y (resident)

Amount of deduction u.s.80DDB Rs.26000

Actual expenditure 26000

or
Limit (max) 40000 age 59
whichever is less

Mr.Z (resident)

Amount of deduction u.s.80DDB Rs.70000

Actual expenditure 70000

or
 Limit (max) 100000 age 64 and resident
whichever is less

Mr.A (resident)

Amount of deduction u.s.80DDB Rs.40000

Actual expenditure 100000

or
Limit (max) 40000 age 63 but non-resident
whichever is less

Mr.B (non-resident)

Amount of deduction u.s.80DDB 0

sum no.13:
Amount of deduction u.s.80E:

actual amount of interest paid to the bank Rs.48000

(20000 + 10000 + 18000)

Principal repayment not eligible for deduction u.s.80E

sum no.14: Mr.A

Interest for the p.y.20-21 354750

43 lacs x 9% x 11/12

Self-occupied property:
Annual value nil
Less: Section 24
Interest on housing loan 200000
Loss from hp -200000

U/s.80EEA:

SDV should not exceed Rs.45 lacs - ok

 Loan should be sanctioned during the period 01.04.2019 to31.03.2021 - ok
Loan should be borrowed from bank or HFC - ok
On the date of sanction of loan, assessee should not own any residential house - ok

On the balance interest (354750-200000)

154750 150000 (max u.s.80EEA)

Mr.B

Interest for the p.y.20-21 405000 (full year interest)

45 lacs x 9%

Self-occupied property:
Annual value nil
Less: Section 24
Interest on housing loan 200000
Loss from hp -200000

Section 80EEA:
SDV of the house is more than Rs.45 lacs;
hence no deduction u.s.80EEA

sum no.8
category I category II
Individual; parents
spouse; (need not be
dep children dependant)

a) Medical insurance 20000 + 3600 47000 age 63 years

b) preventive health check up 3000 4000

c) medical expenditure on
senior citizen (no mediclaim) 0 0

26600 51000

Deduction u.s.80D: 20000 + 3600 + 47000

1400 3000

25000 50000
sum no.9 category I category II
Individual; parents
spouse; (need not be
dep children dependant)

a) Medical insurance 2000 + 6000 50000 cannot be in cash

b) preventive health check up 8000 7000 can be in cash

c) medical expenditure on
senior citizen (no mediclaim) 0 0

16000 57000

Deduction u.s.80D: 2000+6000+5000 50000

13000

sum no.10 category I category II

Individual; parents
spouse; (need not be
dep children dependant)

a) Medical insurance 22000 + 6000 33000 mother; senior citizen

b) preventive health check up 0 0

c) medical expenditure on 0 20000

senior citizen (no mediclaim)

28000 53000

Deduction u.s.80D: 25000 50000

sum no.17 Mr.A

Amount of interest paid during the p.y.20-21

20 lacs x 10% x 11/12 183333.3

Amount of deduction u.s.80EEB: Rs.150000 (maximum)

conditions:
Loan should be borrowed from bank or NBFCs
Loan should be sanctioned during the period 01.04.2019 to 31.03.2023
 Mr.B No deduction u.s.80EEB

Loan was sanctioned before 01.04.2019

SECTION 80 GG
Q no.21
Incomes taxed at normal rates:
Income from profession 830000
Income from other sources 10000
WORKING NOTE:
Incomes taxed at special rates: CALCULATION OF DEDUCT
STCG on sale of listed shares 4000
LTCG (any other CA) 10000 25% AGTI
Winning from lottery (gross) 50000 25/100* Rs.6,07,000
Rs.5000 * 12
Gross Total Income 904000 Rent paid - 10 % AGTI
Less: Chapter VIA deductions 80000 - 10/100*Rs.607000
Sec 80 C - PPF 70000
Sec 80 D - Mediclaim 8+5) 13000
Sec 80 EEB _ Electric vehicle 150000
Sec 80 GG - House Rent (W Note) 19300 252300 Note: AGTI =

TAXABLE INCOME 651700

Q no.22
Income from salary (computed) 564000
Income from other sources:
Interest on fixed deposit 10000
Winning from races (gross) 7000
GROSS TOTAL INCOME 581000
Less: Chapter VIA deductions
Section 80C 20000
Section 80G (100%) 6000
Section 80GG 17200 Note
Total Income 537800

AGTI means: GTI 581000 a) 25% of AGTI

Less: Special rates b) Rs.5000 p.m.
Races 7000 c) 72000 - 54800
(6000*12)
 Less: Section 80C 20000 whichever is less is allowed
Section 80G 6000

AGTI 548000

note: It is assumed that the assessee is not in receipt of HRA

Q no.18 Computation of Taxable Income of Mr.X for the Assessment Year 2021-22
Note:
Income from Salary 800000 Donation to Clean Ganga F
Other Income 0 Donation to Swach Bharat

GROSS TOTAL INCOME 800000 Donation to PM Drought R

Less: Deduction under Chapter VIA Donation to Charitable Tru

Section 80 C 150000 Donation to Notified temp
Section 80 EEB 150000
Section 80 G (Note) 75000 375000
AGTI =
TAXABEL INCOME 425000

Qualifying Amount

Actutal Donation
(OR)
10% OF AGTI

Qualifying Amount is

Deduction @ 50% of Rs.50

sum no.19

Income from business 255000

Interest on debentures 50000
LTCG - gold 410000 special rate of 20% u.s.112
STCG - listed shares 20000 special rate of 15% u.s.111A
STCG - others 10000
Gross Total Income 745000
 Less: Chapter VIA deductions
Section 80C PPF 40000
Section 80D Medi Ins 25000 (MAX)
Section 80EEB 150000 (MAX)
Section 80G 15000

Total Income 515000

sum no.20

note 1:
Gross Total Income 925000
Less: Chapter VIA deductions
Section 80CCE (see note) 150000
Section 80D (see note) 25000
Section 80EEB 150000 (max)
Section 80 G (Note) 87500

TAXABLE INCOME 512500

note 2:
note: Section 80G

National C Fund (100%) 25000 note 3:

JWNF (50%) 12500 25000*50%
GOI for family planning 40000
Charitable institution 10000
87500
 note 4:
note: AGTI means:
GTI 925000
Less: Special rates 0
Less: Section 80CCE 150000
Less: Section 80D 25000
Less: Section 80EEB 150000
AGTI 600000

Qualifying amount:
Actual donation made to both
GOI for FP and Cha purpose
(40000 + 50000) 90000
or
10% of AGTI 60000

whichever is less shall qualify for deduction as follows:

Qualifying amount 60000

GOI for family planning (100%) 40000 100% 40000

On the balance 50% 20000 50% 10000

SECTION 80 JJAA
sum no.24 Case A: Turnover of p.y.20-21 exceeds Rs.1 crore

Additional employee cost:

a) Store-keeper (18000 x 11 months x 8) 1584000
b) Sales person (25000 x 10 months x 12) 3000000
c) Supervisor (salary > 25000 p.m.) 0
d) Helper (employed for < 240 days) 0
Additional employee cost: 4584000

Deduction u.s.80JJAA: 30% of 4584000 1375200

Note: Salary for the first year can be paid in cash to employees

Case B: Turnover of p.y.20-21 does not exceed Rs.1 crore

No deduction u.s.80JJAA

sum no.25 Case A: Turnover during the previous year 20-21 exceeds Rs.1 crore
 Additional employee cost:
a) Regular employees (24000 x 75 x 12)
b) Regular employees (> 25000 p.m.)
c) Casual employees (> 25000 p.m.)
d) Regular employees (employed for < 240 days)

Amount of deduction u.s.80JJAA: 21600000 x 30%

case B: In case Mr.A is engaged in the business of manufacture of footwe

Additional employee cost:

a) Regular employees (24000 x 75 x 12)
b) Regular employees (> 25000 p.m.)
c) Casual employees (> 25000 p.m.)
d) Regular employees (employed for > 150 days)

Amount of deduction u.s.80JJAA: 30% of 38400000

sum no.26:

Actual royalty (net of expenses) 560000

800000 - 240000
or
Limit 300000

whichever is less is allowed as deduction u.s.80QQB

Amount of deduction u.s.80QQB: Rs.300000

sum no.27:

Royalty (limit 15%) 75000 if 18% is 90000

(-) expenses 10000 65000 what is 15% ?
or
Maximum limit 300000

whichever is less is allowed as deduction u.s.80QQB

Amount of deduction u.s.80QQB: Rs.65000

sum no.28

Income from salary (computed) 2400000

Less: Loss from HP (max set off) 200000 2200000 (balance loss of Rs.50000 s

LTCG on sale of listed shares 400000 special rate @ 10% u.s.112

Dividend from domestic compa 1200000

Less: Interest expenditure 240000 960000 (actual interest on loan Rs.
(250000 or 240000)
Interest on savings account with bank 6000
Interest on savings account with PO 8500
Less: Exempt u.s.10(15) 3500 5000

Gross Total Income 3571000

Less: Chapter VIA deductions
Section 80TTA (6000 + 5000) 10000 (11000 or limit 10000)

Total Income of the assessee 3561000

sum no.29

Income from business 135000 deduction under chapter VIA is not availa
Winning from lottery (gross) 120000 against incomes taxed at special rates
Interest on fixed deposit 30000 therefore, deduction is restricted to Rs.1
GTI 285000 (135000 + 30000)
Less: Chapter VIA deductions
Section 80C 150000
Section 80TTB (senior citizen 30000 165000 (30000 or limit 50000) whichever is less
Total Income 120000

ALTERNATIVE SOLUTION
Income from business 135000
Interest on fixed deposit 30000
GTI 165000
Less: Chapter VIA deductions
Section 80C - PPF 150000
Section 80TTB 30000 165000
0
Add: Winning from lottery 120000
Total Income 120000

sum no.30 COMPUTATION OF TAXABLE INCOME OF Mr.X FOR THE ASSESSMENT YEAR 2021-22
Income from salary
Gross salary 480000
(-) section 16(ia) 50000 430000

Income from other sources:

a) interest on deposits 50000

b) Dividend received 1200000

(-) interest on loan (20%) 240000 960000 (20% of dividend or Rs.250000)

c) Interest on post office sav 12000

(-) exempt u.s.10(15) 3500 8500

Gross Total Income 1448500

Less: Section 80TTA 8500 (int on post office savings a/c)
Less: Section 80U 75000 60% disability
Total Income 1365000
Self-occupied property
Annual value nil
(-) section 24
Interest on loan 30000 (before 01.04.1999)
-30000

own life (100000 x 20%) or 25000 20000

before 01.04.2012
spouse 10000
major married son (not depandant) 10000
daughter (disability) after 01.04.2013
(15% of 100000) or 18000 15000

contribution to RPF 20000

PPF account 15000
ULIP 10000
Mutual fund 25000
Bank fixed deposit for 5 years 20000
SSS 10000
Tuition fees (X + Y) (14000+7000) 21000
Repayment of housing loan (principal) 20000
total 196000

180000 (1200000*15%)
144000 (1440000*10%)
 36000 TO BE CLAIM U/s.80 CCD (1B)

Rs.144000

144000

180000

e claimed u.s.80CCD(1B)
Rs.125000

and resident
(max u.s.80EEA)

age 63 years assuming that: insurance premium was

paid by cheque

assuming that father is a resident

note: expenditure on preventive health check up

Rs.4400 (1400 + 3000)

Rs.75000
cannot be in cash

can be in cash

preventive health check up cannot exceed Rs.5000

63000

mother; senior citizen

75000

31.03.2023
 WORKING NOTE:
CALCULATION OF DEDUCTION IRO OF HOUSE RENT

25/100* Rs.6,07,000 151750

Rs.5000 * 12 60000
Rent paid - 10 % AGTI
80000 - 10/100*Rs.607000 19300

WHICHEVER IS LESS IS ALLOWED AS DEDUCTION ie Rs.19300

Note: AGTI = GTI - Income taxed at special rate - all deduction u/s.80 except 80 GG

904000-4000-10000-50000-70000-13000-150000
= Rs.607000

a) 25% of AGTI 137000

b) Rs.5000 p.m. 60000
c) 72000 - 54800 17200
whichever is less is allowed as deduction u.s.80GG

Section 80 G
Donation to Clean Ganga Fund 20000
Donation to Swach Bharat 20000

Donation to PM Drought Relief fund 10000 20000*50%

Donation to Charitable Trust (See Note) 25000

Donation to Notified temple in cash 0 > 2000

75000
GTI 800000
Less: Sec 80 C 150000
Section 80 EEB 150000
Income spl rate 0
AGTI 500000
Qualifying Amount

Actutal Donation 60000

(OR)
10% OF AGTI 50000

Whichever is less will qualify 50% deduction

Qualifying Amount is Rs.50000

Deduction @ 50% of Rs.50000 Rs.25000

note: Section 80G

Clean Ganga Fund 100% 4000
Swachh 100% 3000
Rajiv GF 50% 500
PM Drought RF 50% 2500
Poor boy 0
 Approved charitable istn 5000 Note
Clothes 0 Kind
Cash > 2000 0
Particular religious community 0
15000

AGTI: GTI 745000

Less: Special rates 430000
Less: Section 80C 40000
Less: Section 80D 25000
Less: Section 80EEB 150000
AGTI 100000

Qualifying Amount
Actual Donation 11000
(OR) 10000
10% of AGTI 10000

whichever is less will qualify for 50% deduction

Qualifying amount is Rs.10000

deduction @ 50% of Rs.10000 Rs.5000

Section 80C
policy issued after 01.04.2012
10% of sum assured or actual premium wel
10% of 180000 or 20000 (wel)
18000 or 20000 (wel) 18000

PPF investment: 100000

Section 80C: Rs.118000

LIC pension fund u.s.80CCC

(60000 or 150000) wel 60000

Section 80C 118000

Section 80CCC 60000
178000
but restricted to Rs.150000 u.s.80CCE
 Self 12000
Spouse 14000
dep children 0
26000

Section 80D (max) 25000

(assumption: employees participate in PF)

they are not additional employees

they are not additional employees

21 exceeds Rs.1 crore

 21600000
0 (they are not additional employees)
0 (they do not participate in PF)
0 (they are not additional employees)
21600000

6480000

ss of manufacture of footwear

21600000
0
0
16800000 (24000 x 100 x 7)
38400000

of 38400000 11520000

if 18% is 90000
what is 15% ?
 (balance loss of Rs.50000 shall be carried forward)

special rate @ 10% u.s.112A

(actual interest on loan Rs.250000 or 20% of dividend income)

(250000 or 240000)

(11000 or limit 10000)

der chapter VIA is not available

mes taxed at special rates
duction is restricted to Rs.165000

whichever is less
end or Rs.250000)

ffice savings a/c)