Aspects and Types of Tax Planning

“The tax money you save today can be worth many

times that amount decades from now.”
- Harry S. Dent, Jr.
80G
Donations to certain funds, charitable
institutions, etc.
50% or 100% of the eligible amount paid.
Donations to specified funds or institutions.
Only 10% deductions is permissible on the profits of
the organization.

80GG

Rents paid
Excess of rent over 10% of adjusted gross income or INR
2000 per month or 25% of total income, whichever is
less

 Any expenditure incurred in excess of 10% of total

income towards payment of rent
80GGA

Certain donation for scientific research and rural

development
Any sum paid

 Scientific, social science, or statistical research to a

scientific research association, a university, college or
other institution
 An institution, public sector undertaking, or local
authority undertaking a rural development program, or
a rural development fund
 Assessee should not have income chargeable under
the head “Profits and Gains of business or profession”
80GGB

Contributions by companies to political parties

100% of sums donated

Contributions to political parties

80HHA- Deduction in respect of profits and
gains from newly established small-scale
industrial undertakings in certain areas.

80HHB- Deduction in respect of profits and

gains from projects outside India.

80HHC- Deduction in respect of profits

retained for export business.
 80 IA -Profits and gains from industrial
undertakings or enterprises engaged in
infrastructure development, etc.
100% deduction on the profits and gains from
eligible businesses for a period of 10 years

 Infrastructure facility
 Telecommunication services
 Industrial Park or Special Economic Zone (SEZ)
 Generation and distribution of power
 Transmission and distribution network
 Substantial renovation and modernization of a
network
 Reconstruction of a power plant
 Laying and operating a cross-country natural
gas distribution network.

Key Conditions
 Should not be formed by reconstruction or
splitting up
 Should not be formed by transfer of plant and
machinery
 Should have begun to operate between 1st April
1993 and 31st March 2010, depending on the
eligible business
80IAB - Profits and gains by an undertaking or
enterprise engaged in development of Special
Economic Zone
100% deduction on income for developers of Special
Economic Zones (SEZ)

 Developers of SEZs after 1st April 2005

 100% for 10 consecutive years out of 15 years from
the year in which notified by the central government
 In case transfer of operating and maintenance of SEZ,
then deduction shall be allowed to transferee
developer for unexpired period
80 IB -Profits and gains from certain industrial
undertakings other than infrastructure development
undertakings
Deductions on income from certain industrial undertakings

 Deduction on profits from an industrial undertaking in the

− States of Jammu & Kashmir
− Preservation and packaging of fruits and vegetables
− Handling, storage and transportation of food grains
100% for the first five years, and 25% (30% in case of
companies) for the next five years (7 years in case of co-
operative societies)
 Deduction on profits from the operation of a hospital in India
of 100% for 5 years
Key Conditions
 Should not be formed by reconstruction or splitting
up
 Should not be formed by transfer of plant and
machinery
80IC
Undertakings or enterprises in certain special
category States
Deductions on income from certain industrial
undertakings in certain states

 Deduction on profits from an industrial undertaking in

the specified areas in states of Himachal Pradesh and
Uttaranchal of 100% for the first five years, and 25%
for the next five years (30% in case of companies)-
until April 1, 2012
 Same conditions as above
80ID

Profits and gains from business of hotels and

convention centers in specified area
100% deduction on income from hotels and convention
centers

 Deduction on profits from the business of hotels and

convention centers and hotels in World Heritage
sites of 100% for 5 consecutive years
 Same conditions as above
80IE
Certain undertakings in North-Eastern states
100% on income from certain industrial undertakings in
North Eastern States

 Deduction on profits from an undertaking eligible

manufacturing or other eligible business in the states of
Arunachal Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim and Tripura-upto April 1,
2017
 100% of income for 10 consecutive assessment years.
 Eligible business- hotel, old age home, adventure and
leisure sports etc.
80JJA

Profits and gains from business of collecting and

processing of bio-degradable waste
100% on income

Deduction of 100% for 5 years on any profits from the

business of collecting and processing or treating of
bio-degradable waste for generating power,
producing bio-fertilizers, bio-pesticides or other
biological agents, producing bio-gas, making pellets
or briquettes for fuel or organic manure
80JJAA

Employment of new workmen

30% of additional wages of new workmen

 Industrial undertaking (by an Indian company)

engaged in manufacturing of any article or thing
 Deduction of 30% of additional wages to new regular
workmen for a period of 3 years
 Undertaking should not be formed by reconstruction
or splitting up
80LA

Certain incomes of Offshore Banking Units (OBU)

and International Financial Services Center (IFSC)

 A bank with income from an OBU in an SEZ or

income of a unit of an IFSC
 Deduction of 100% for the first 5 years, and 50% for
the next 5 years
Managerial Decisions

Lease v/s Purchase

Purchase by instalment v/s Hire

-Depreciation under section 32 | In respect of hire charges

-Interest payable on unpaid
purchase price
Thank You
Presented By
Sailesh
Sethupathy
Pulkit
Ravi
Shabab