Deductions

Income Tax Deductions Under Section 80

Section 80C Section 80RRB
Section 80CCC Section 80TTA
Section 80CCD Section 80TTB
Section 80D Section 80U
Section 80DD
Section 80DDB
Deductions
 Deductions u/s 80
Section 80C-80U

• General Principles for Deductions from Incomes :

Sec. 80A : Deduction cannot exceed Gross Total Income.

Sec. 80AB : Deductions to be made with reference to the income included

in the gross total income.

Sec. 80AC : Deduction not to be allowed unless return furnished.

 Deductions u/s 80
Section 80C-80U

• Important Points :
1. Deduction u/s 80C to 80U can never exceed Gross Total Income.

2. Deduction u/s 80C to 80U shall not be allowed from STCG u/s 111A.

3. Deduction u/s 80C to 80U shall not be allowed from LTCG u/s 112 or
112A.

4. Deduction u/s 80C to 80U shall not be allowed from Lottery Income.
 Deductions u/s 80
Section 80C-80U

• Important Points :
1. Deduction u/s 80C to 80U can never exceed Gross Total Income.

2. Deduction u/s 80C to 80U shall not be allowed from STCG u/s 111A.

3. Deduction u/s 80C to 80U shall not be allowed from LTCG u/s 112 or
112A.

4. Deduction u/s 80C to 80U shall not be allowed from Lottery Income.
Illustrations
Mr. A is a Govt. Employee.
• Annual basic salary: ₹6,00,000
• Dearness allowances: ₹2,00,000
• Taxable allowances: ₹1,20,000
• Other incomes: ₹1,00,000.
• Govt contributes 10% of his basic towards National Pension Fund while he contributes 10%.
He paid
1. ₹25000 as LIC premium
2. ₹ 55,000 as principal amount of Housing loan
He deposits ₹60,000 in PPF.
Compute his total income.
Particulars Amount Amount

Income from Salaries:

Basic 6,00,000
Dearness allowances 2,00,000
Taxable Allowances 1,20,000

Employer’s Contribution to pension scheme (10% of Basic + DA

80,000
i.e., 6,00,000+2,00,000) 8,00,000 × 10/100

Gross Salary 10,00,000

Less: Standard Deduction u/s 16(ia) + Entertainment Allowance 50,000 +5,000 9,45,000
Other incomes 1,00,000
Gross Total Income (GTI) 10,45,000
Less: Deduction u/s
80C - LIC 25,000
PPF 60,000 1,40,000
Housing Loan Principal 55,000

80CCD (1) NPS (10% of Basic + DA i.e., 6,00,000+2,00,000) 80,000

2,20,000

As per sec.80CCE, total deduction u/s 80C + 80CCC + 80CCD 1,50,000

(other than employer’s contribution) cannot exceed Rs. 1,50,000

80CCD(1B): Contribution to NPS (Amount not claimed above 50,000*

subject to max. of Rs. 50,000/-)

- Employer contribution 80,000 2,80,000

Total Income 7,65,000