Topic : Direct Tax -

Deduction u/s 80
Group Presentation By :
Eram Arif Mansuri
Damania Ummy Salma ID : 3655213
ID : 3655264 Roll No :24
Roll No : 9
 what is a tax ?
If tax is levied directly on the income
or wealth of a person, then it is a • Tax is a fee
direct tax e.g. income-tax.
charged by a
product, income or
activity.
• There are two types
If tax is levied on the price of a good or of taxes - direct
service, then it is called an indirect tax.eg:
taxes and indirect
Custom duty,GST.
taxes
 • The reason for levy of
WH taxes is that they
AR AT constitute the basic
T E source of revenue to the
A
LE X government.
VIE • Revenue so raised is
D?
utilized for meeting the
expenses of government
like defence, provision of
education, health-care,
infrastructure facilities
like roads, dams etc.
A direct tax is a tax that a person or organization pays directly to
the entity that imposed it.
Examples include income tax, real property tax, personal property
tax, and taxes on assets, all of which are paid by an individual
taxpayer directly to the government.
 DEDUCTIO
Introduction:
N
Under section 80, deductions are available to certain categories of
tax payers. These deductions are made form the Gross Total
Income. Following points are relevant.

• Deduction are available under chapter VI-A [i.e. Section 80]

and on the basis of certain conditions.
• These deductions reduce the total income of an assessee and
thereby he gets some reduction in his tax liability.
• These deduction are made form Gross Total Income but it
cannot make the income negative.
• The assessee claiming such deduction has to produce proof
relating to such deductions.
 80-C: Deductions in respect of
certain saving / payments:

Life Insurance Premium: LIP Paid by the assessee for himself, his
spouse or any child is eligible for deduction.

Deferred Annuity: Payment made by a person in respect of non-commutable deferred annuity on the
life of assessee, his or her spouse and any child of such individual is eligible for deduction
Contribute to Superannuation Fund
Deposit or investment in Post Office CTD, National Saving Scheme [NSS] and National Saving Certificate
[NSC] including NSC interest :
Contribute to Unit Linked Insurance Plan [ULIP]:
Contribute to Dhanaraksha, Jeevan - Dhara and Jeevan - Akshay of LIC of India.
Contribute to Equity Linked Saving Scheme
Contribute to Pension Fund
Amount Of Deduction u/s 80-C is equal to - a) 100% of the qualifying investment or
b) Rs.1,50.000 whichever is less [ i.e maximum Rs 1,50,000]
 Deduction in respect of Sec.
contribution / payment to
pension fund or annuity plan 80 CCC
This deduction is available to an individual who
has paid or deposited amount in LIC pension
Fund or approved Annuity Plan of any other
insurer.

Amount of Deduction:
Actual Amount paid / deposited or Rs. 1,50,000/-
whichever is less.
(Further, the total deduction u/s 80-C + 80-CCC +
80-CCD cannot exceed Rs. 1,50,000.)
 Deduction in respect of
SE C Medical/Health
.
80- Insurance Premium: It is available to respect of
D the Medical Insurance
Premium paid by cheque
Amount of Deduction:
by the assessee during the
Amount of premium paid or Rs. 25,000/- whichever is less. [Rs. 50,000 in
case premium is paid for senior citizen i.e. age of 60 years or more],
previous year.
(TOTAL=75,000/-) a] In case of an individual,
Maximum Rs.5,000 Allowed as deduction for aggregate of preventive on his health of his spouse
check-up expenditure. or dependent parents or
dependent children.
b] In case of a Hindu
Family, on the health of
any member of the family.
Deduction in respect of
Deduction in respect of Sec.80-DD
maintenance including
maintenance including
medical treatment of a medical
treatment
dependent ofwho
a dependent
is a who is a
personperson with disability.
with disability.

This deduction is allowed to:

Amount Of deduction
Individual and HUF.
The assessee who has incurred an Is Rs 75,000/- p.a.
expenditure for the medical treatment
is fur th e r s tat e d tha t if su c h
It
including nursing, training and p e rs o n w ith s e ve re
individu a l is a
rehabilitation of a dependent being a disabil it y , th e a m o un to f d e d u c tio n is
. [A d -h o c ]. .
person of with disability. Rs. 1 2 5 ,0 0 0 /- p .a
 Deduction in respect of
interest on loan taken for the
higher education.
Deduction is available to an
individual assesse.

The loan is taken from the

Amount of Deduction:
financial institution for the
100% of interest purpose of his higher education
amount paid during
the year by individual
(i.e. Spouse/Children or the
student for whom the individual is
Sec.
assessee. the legal guardian)
80-E
 Deduction in case of permanent physical
Sec. disability including blindness:
80
This deduction is allowed to an
U individual who is :

a) Either totaily or partially blind; or

b) Permanent physically disabled; or

c) Mentally Retarded.

Amount of Deduction:

Amount of deduction is Rs. 75,000/- p.a.

(Ad-hoc).
 Deduction in respect
of interest on
Deposits in saving
accounts.
This deduction is allowed to: Individual and HUF.

Interest on deposits in saving accounts with a cooperative

society or a post office.(not being time deposits

Amount of Deduction: Upto Rs.10,000/

Thank you for
listening!