2. Gross Total Income means the total income computed
in accordance with the provisions of Income Tax Act,
1961, before making any deduction under chapter VI,
i.e. u/s 80.
Thus, the aggregated income from all the heads of
income (after applying the provisions of clubbing of
income and set-off of losses) is known as Gross Total
Income.
3. Deduction u/s 80C
Deduction u/s 80C shall be allowed only to an
Individual and a Hindu Undivided Family (HUF).
2. Total amount deposited in various approved
saving schemes or 1,00,000 p.a. whichever is less
shall be allowed as deduction.
3. The limit of 1,00,000 also includes the amount
of deduction allowable to assessee u/s 80CCC and
80CCD.
1.
4. Following are the qualifying amount for deduction u/s 80C
:
1) Deposits made in Provident Funds
Deposits in Statutory Provident Fund – fully qualifies
Deposits in Recognised Provident Fund – fully
qualifies
Deposits in Public Provident Fund – fully qualifies
Deposits in Unrecognised Provident Fund – does not
qualify
2) Payment of Life Insurance Premium
Life insurance policies can be obtained in the name of
the assessee, spouse and children and in case of HUF in
the name of any or all the co-parceners of the HUF.
5. Limit on LIC Premium for deduction u/s 80c
For insurance Policy
issued before 1-4-2012
For Insurance Policy
issued on or after 1-42012
• Actual premium paid
or 20% of actual
capital sum assured
whichever is less
• Actual premium paid
or 10% of actual
capital sum assured
whichever is less
6. 3) Amount deducted out of Govt. Employee’s salary towards
4)
5)
6)
7)
8)
9)
10)
deferred annuity (subject to a maximum of 20% of salary)
Payment made towards Group Insurance
Deposits made in Approved Superannuation Fund
Deposits made in Unit Linked Insurance Plan (ULIP)
Amount invested in National Savings Certificates-VIII or IX
issues
Amount invested in National Saving Scheme (NSS)-1992
Amount paid to LIC under Jeevan Dhara, Jeevan Akshay,
etc.
Amount deposited with National Housing Bank
7. 11) Amount invested in notified Pension Fund set up by
12)
13)
14)
15)
Mutual Funds or UTI
Amount deposited or invested in Equity Linked Saving
Scheme (ELSS)
Term Deposits with certain banks (not less than 5
years duration and as per scheme framed by Central
Govt.)
Payment of Tuition Fees of Children to any school,
college, university or educational institutions situated
in India for full time education of any two children
Amount invested in Equity Shares or Debentures of a
public company or a public financial institution (issue
must be notified by CBDT)
8. 16) Amount invested in Units of Mutual Funds (unit scheme
must be notified by CBDT)
17) Subscription to Bonds of NABARD
18) Amount deposited with an authority engaged in Housing
Development or Town or Rural Development
19) Repayment of Housing Building loan
Any amount repaid under house building loan taken from
Govt., LIC, Bank, HDFC, HUDCO or other housing finance
institutions or employer
OR
Amount repaid as full price or instalment of price of a house
purchased from Govt. or an approved agency
(The amount repaid must not include interest on loan or ground
rent but shall include stamp duty and registration charges)
9. 20) Deposits in Post Office Time Deposit and Senior Citizen
Savings Scheme
i.
Five year time deposit in an account under Post Office
Time Deposit Rules 1981
ii. Deposit in an account under the Senior Citizen Savings
Scheme Rules 2004
These deposits are for 5 years and if withdrawn before the
expiry of the period of 5 years, the amount so withdrawn
shall be deemed to be income of the assessee of the year
in which withdrawn. Not taxable if withdrawn by legal
heir.
10. Deduction in respect of contribution to Pension
Fund [Section 80CCC]
If the following conditions are fulfilled an assessee
may claim deduction under this section:
The taxpayer is an individual
During the previous year, he had paid/deposited a
sum under an annuity plan of the Life Insurance
Corporation of India or any other insurer for
receiving pension
If deduction has not been claimed u/s 80C
11. Deduction in respect of contribution to pension
scheme of Central Government [Section 80CCD]
This section is for allowing deduction to new Central
Government employees, if the following conditions are
satisfied:
The taxpayer is an individual
He is employed by the Central Government or by any
other employer on or after January 1, 2004 or self occupied
individual
He has in the previous year paid or deposited any amount
in his account under a pension scheme notified by the
Central Government
12. The amount of deduction shall be as follows:
i.
For employees (Central Govt. Or Non-Govt.)
Contribution by employee or contribution by employer or
10% of salary*, whichever is less.
ii. For other individuals (Self employed)
Depositor’s own contribution or 10% of gross total income,
whichever is less.
*Salary means basic salary including dearness allowance if
under the terms of employment.
13. Restriction on total amount of deduction u/s
80C, 80CCC and 80CCD [Section 80CCE]
If an assessee is having/claiming deduction u/s 80C,
80CCC and 80CCD, then the provisions of Section
80CCE is to be applied. According to this section, the
deduction is least of the following two amounts:
i. Aggregates of the gross qualifying amount u/s 80C,
80CCC and 80CCD.
ii. ₹ 1,00,000
14. Deduction in respect of investment in Long-term
Infrastructure bonds [Section 80CCF]
Discontinued from Assessment Year 2013-14,
deduction in respect of investment in Long Term
Infrastructure Bonds u/s 80CCF of Income Tax Act
and maximum deduction under this section was
20,000.
15. Deduction in respect of investment made in any
notified equity saving scheme [Section 80CCG]
The deduction under this section is available if following
conditions are satisfied:
i.
The assessee is a resident individual (may be ordinarily
resident or N.O.R.)
ii. His gross total income does not exceed 10 lakhs.
iii. He has acquired listed shares in accordance with a notified
scheme.
iv. The assessee is a new retail investor as specified in the
above notified scheme.
v. The investment is locked-in for a period of 3 years from the
date of acquisition in accordance with the above scheme.
vi. The assessee satisfies any other condition as may be
prescribed.
Amount of deduction – 50% of the amount of investment or ₹
25,000, whichever is less.
16. Deduction in respect of medical Insurance Premium,
Preventive health check up and Contribution made to the
Central Govt. Health Scheme (CGHS) [Section 80D]
Tax Payer
Insured Person
Amount of deduction
Individual
On the health of the
taxpayer, spouse, parents
(whether dependent or
not) or dependent
children of the taxpayer
Actual amount paid or ₹
15000 (₹ 20,000 in case
of senior citizen)
whichever is less.
Hindu Undivided Family
(HUF)
On the health of any
member of the family
Actual amount paid or ₹
15,000 (₹ 20,000 in
case of senior citizen)
whichever is less.
Note – In case of health check-up, up to ₹ 5000 shall be allowed.
17. Deduction in respect of maintenance including
medical treatment of a dependent that is person
with disability [Section 80DD]
Following are the provisions under this section :
i.
This deduction is allowed to an individual who is resident of
India or HUF.
ii.
This deduction is given to the assesse if a person with disability
is dependent upon him.
iii. A person with disability means disabilities like autism, cerebral
palsy, mental retardation, etc. As specified in Persons with
Disabilities Act, 1995.
iv. The assesse has incurred expenditure by way of medical
treatment (including nursing), training and rehabilitation of a
disabled dependent.
18. He has paid or deposited any amount under any scheme
framed by LIC of India or any other insurer or the
Administrator or the specified and approved by the
Board in this behalf for the maintenance of a dependent,
being a person with disability.
vi. For claiming the deduction, the assesse shall have to
furnish a certificate by the prescribed medical authority
with the return of income.
If the above mentioned conditions are satisfied the amount of
deduction is fixed at
a. ₹ 50,000 irrespective of actual expenditure
b. ₹ 1,00,000 in case of a person with severe disability
(over 80%) irrespective of actual expenditure
v.
19. Deduction in respect of medical treatment, etc.
[Section 80DDB]
Deduction is available if following are satisfied :
i.
Assessee is an individual or HUF who is resident in India
only.
ii. The assessee has actually paid for the medical treatment
of specified disease or ailment, for himself or any
dependent or in case of HUF, any member of the family.
iii. The assessee furnishes a certificate, in the prescribed
form from prescribed authority along with the return of
income.
Amount of deduction
(a) Actual expenditure or
(b) ₹ 40,000 (₹ 60,000 in case of senior citizen)
Whichever is less.
20. Deduction in respect of interest on loan taken for
studies [Section 80E]
If the following conditions are fulfilled an assessee may
claim deduction under this section:
Assessee is an individual
Loan is taken for the purpose of pursuing his higher
education
Loan has been taken from any financial institution or an
approved charitable institution
Assessee has paid interest on such loan during the
previous year
Assessee has paid interest out of his taxable income of
that year
21. Deduction u/s 80E shall be allowed for the previous
year in which the assessee starts repaying the loan or
interest thereon and seven previous years
immediately succeeding it or until the loan together
with interest thereon is paid by the assessee in full,
whichever is earlier.
22. Deduction in respect of donations to certain
Funds, Charitable Institutions etc. [Section 80G]
Donation
Qualifying
Amount
Rate
A. No limit donations
100%
100%
1.
100%
100%
2. To Africa Fund
100%
100%
3. To Armenia Earthquake Relief Fund
100%
100%
4. To University or institution of National Eminence (so notified)
100%
100%
5. To National Foundation for communal harmony
100%
100%
6. To the Chief Minister’s Earthquake Relief Fund, Maharashtra
100%
100%
7. To Zila Saksharta Samiti
100%
100%
8. To National Blood Transfusion Council or State Blood Transfusion
Council
100%
100%
9. To any fund set up by the State Govt. To provide medical relief to poor
100%
100%
10. To Army Central Welfare Fund, Indian Naval Benovelont Fund or Air
Force Central Welfare Fund
100%
100%
11. To National Illness Assistance Fund
100%
100%
To P.M. National Relief Fund
23. Donation
Qualifying
Amount
Rate
12. To Chief Minister’s Relief Fund ;or
Lieutenant Governor’s Relief Fund
100%
100%
13. To Andhra Pradesh Chief Minister’s Cyclone Relief Fund
100%
100%
14. To National Sports Fund
100%
100%
15. To National Cultural Fund
100%
100%
16. To Technology Development and Application Fund
100%
100%
17. To National Defence Fund
100%
100%
18. Any fund set up by the State Government of Gujarat exclusively for
providing relief to the victims of Earthquake in Gujarat
100%
100%
19. Any sum paid by the assessee during the period beginning on the 26th
day of January 2001 and ending on 30th day of Sept. 2001 to any trust,
institution or fund to which this section applies for providing relief to the
victims of Earthquake in Gujarat
100%
100%
20. To the National Trust for Welfare of Persons with Autism, Cerebral
Palsy, Mental Retardation and Multiple Disabilities
100%
100%
21. To P.M. National Drought Relief Fund
100%
50%
22. To National Children’s Fund
100%
50%
23. To Jawaharlal Nehru Memorial Fund
100%
50%
24. To Indira Gandhi Memorial Trust
100%
50%
25. To Rajiv Gandhi Foundation
100%
50%
24. Donation
Qualifying
Amount
Rate
Actual total of 1
to 10 or 10% of
gross taxable
income
whichever is
less is Q.A.
Out of Q.A. :–
100% of donation
for Family
Planning + by a
company to
Indian Olympics
Association and
balance 50%
B. With limit donations
1. To State Govt.
2. To Local Authority
3. To Educational Institutions
4. To Charitable Institutions
5. To Sports Institutions
6. To a corporate set up to protect the interests of minorities
7. To an authority constituted for development of housing and planning of
cities and towns
8. To a place of art, public worship or historical importance (so notified)
9. To an institution or association engaged in promotion of family
planning in India
10. Any sum paid by a company to Indian Olympic Association for
development of infrastructure and sponsorship of sports and games in
India
Gross Taxable Income = Gross Total Income – [Long term capital gain + All
deductions u/s 80 except 80G + Rebateable Income, if any + Short term capital
gain on shares which are subject to STT ]
Rebateable Income = Share of income from AOP provided total income of such
AOP exceeds the exempted limit i.e. 2,00,000.
25. Deduction in respect of Expenditure Incurred on
Payment of House Rent [Section GG]
This deduction is allowed to individual only for rent paid
The assessee must be living in a rented house due to his
employment, business or profession
He does not have a self occupied house any where in India and in
that town on his own name or on the name of any member of his
family or HUF
He should not be getting any HRA
Rate of deduction
(a) Statutory limit 2,000 p.m.
(b) Rent paid – 10% of Adjusted G. T. I.*
(c) 25% of Adjusted G. T. I.*
*Adjusted Gross Total Income = Gross Total Income – [LTCG + STCG
on shares covered under Securities Transaction Tax + Income
referred to in Sec. 115A + All other deductions u/s 80 except 80 GG]
26. Deduction in respect of any payment made to certain scientific
institutions or an institution having rural development
programme as its object [Section 80GGA]
Applicable to all assessees except those who have any
income or loss under the head Profits and Gains of
Business or Profession.
Following are the qualifying amounts under this section :
i.
Donation given to institution or association engaged in
scientific research and approved for the purpose.
ii. Donation given to institution or association engaged in
approved rural development programme or
conservation of natural resources or afforestation.
iii. Donation given to institution engaged in training of
persons for rural development programme.
iv. Any amount given to a Rural Development Fund (from
1-4-83 onwards).
27. Any amount given to fund for afforestation.
vi. Any amount given by assessee to a University, College or other
institution (so notified) for research in social science or statistical
research.
vii. Any amount paid by assessee to a public sector company or a
local authority or to an institution or association approved by the
National Committee for carrying out any eligible project or
scheme.
viii. Fund set up for eradication of poverty.
Amount of deduction – 100% of the amount paid to the above
institutions/funds.
In case, the donation exceeds ₹ 10,000 then it must be given by
any mode other than cash otherwise deduction u/s 80GGA shall
not be allowed.
v.
28. Deduction in respect of Contributions given by Companies
to Political Parties and Electoral Trust [Section 80GGB]
In case a company is donating or contributing any
amount to any Political Party and Electoral Trust, a
deduction @ 100% of such donation shall be allowed.
29. Deduction in respect of Contributions given by any person
to Political Parties and Electoral Trust [Section 80GGC]
The assessee is any person except local authority and
every artificial juridical person.
If donation is given to registered political party in India
or donation to electoral trust , then 100 % deduction is
allowed.
30. Deduction for Infrastructure Projects [Section 80IA]
The deduction is allowed to undertakings engaged in
Category I
Carrying on the business of
a) Developing
b) Operating and maintaining, or
c) Developing, operating and maintaining any infrastructure facility
[Simply stated Infrastructure facility]
Category II
Providing telecommunication services
[Simply stated Telecommunication services]
Category III
Developing, operating or maintaining an industrial park or special
economic zone (SEZ) notified by the Central Govt.
[Simply stated Industrial park]
Category IV
a)
b)
c)
d)
Category V
Undertaking set up for reconstruction or revival of power generating
plant
Generation
Generation and Distribution of power
Laying of new transmission lines for power distribution
Undertakes substantial renovation and modernisation of the
existing transmission or distribution lines
[Simply stated Power Generation]
31. Nature of the
industries
Commencement
of business
Rate of deduction
Company
1. Infrastructure
facility
(a) In case of port,
airport, inland water
way or inland port
(b) In case of other
infrastructure
facilities
Others
3. Developing,
operating or
maintaining
(a) Industrial park
(b) Special Economic
Zone
1.4.95 onwards
100%
-
1.4.95 onwards
100%
-
1.4.95 to 31.3.05
100%
100%
30%
2. Telecommunication
services
30%
1.4.2006 to 31.3.11
1.4.97 to 31.3.05
100%
Period of
Deduction
100%
For 10 consecutive
years out of first 20
years.
For 10 consecutive
years out of first 15
years.
For first 5
consecutive years out
of first 15 years.
For next 5
consecutive years out
of first 5 years.
For 10 consecutive
years out of first 15
years.
32. 4. (a) Generation or
generation and
distribution of power
(b) Laying of new
transmission lines for
power distribution or
undertakes
substantial
renovation and
modernisation of the
existing transmission
or distribution lines
(c) Undertakes
substantial
renovation and
modernisation of
existing network of
transmission or
distribution lines
1.4.1993 to
31.3.2013
100%
-
For 10 consecutive years
out of first 15 years.
1.4.1999 to
31.3.13
100%
-
For 10 consecutive years
out of first 15 years.
1.4.2004 to
31.3.2013
100%
-
For 10 consecutive years
out of first 15 years.
5. An undertaking
1.4.2004 to
owned by an Indian
31.3.2011
Company and set up for
reconstruction or revival
of power generating plant
100%
-
For 10 consecutive years
out of first 15 years.
33. Deduction to developers of Special Economic
Zones [Section 80IAB]
Deduction under this section shall be allowed only if following
conditions are fulfilled :
i.
This deduction is available only to those undertaking who are
engaged in the business of developing Special Economic Zones
ii.
The Special Economic Zone is notified on or after 1.4.2005.
iii. The undertaking must have some income from Special
Economic Zones which is taxable under the head “Profits and
gains of Business or Profession”.
iv. The accounts of undertaking must be audited.
v.
It must fulfill any other condition which may be notified.
This deduction is allowed @ 100% of profits
The undertaking can claim this deduction for a total period of
10 previous years out of first 15 years previous years beginning
with the year in which such Special Economic Zone is notified.
34. Deduction for Setting up new Undertakings
[Section 80IB]
Deduction u/s 80IB is available to different industrial
undertaking as follows :
a) Operation of ship
b) Hotels
c) Industrial Research
d) Production of Mineral Oil
e) Developing and building housing projects
f) The business of processing, preservation and packing of
fruits or vegetables or integrated, handling, storage and
transportation of food grain units
g) Multiplex theater
h) Convention Centre
i) Hospitals
35. Industrial
Undertaking
(set up in a
backward
state)
Industrial
Undertaking
(set up in
Category A
notified
backward
state)
Industrial
Undertaking
(set up in
Category B
notified
backward
state )
Cold chain
facility for
agriculture
produce
Any other
undertaking
including
small scale
undertaking
1.4.1993 to
1.3.2004
1.10.1994 to
1.3.2004
1.10.1994 to
1.3.2004
1.4.1999 to
1.3.2004
1.4.1991 to
1.3.2005
Owned by a
company
100% for first 5
years and 30%
for next 5 years.
100% for first 5
years and 30%
for next 5 years.
100% for first 3
years and 30%
for next 5 years.
100% for first 5
years and 30%
for next 5 years.
30% for 10
years.
Owned by a
Co-operative
Society
100% for first 5
years and 25%
for next 7 years.
100%for first 5
years and 25%
for next 7 years.
100% for first 3
years and 25%
for next 9 years.
100% for first 5
years and 25%
for next 7 years.
25% for 12 years.
Owned by any
other person
100 % for first 5
years and 25%
for next 5 years.
100% for first 5
years and 25%
for next 5 years.
100% for first 3
years and 25%
for next 5 years.
100% for first 5
years and 25%
for next 5 years.
25% for 10 years.
Time Limit
Amount of
Deduction :
36. Deduction for setting up industries in backward states [Section
80IC]
State in which the
Industrial
undertaking is set up
Time Limit for
commencement of
production or
substantial expansion
Amount deductible
Sikkim
December 23, 2002 to
March 31, 2007
100% of profit and gain
for 10 years commencing
from initial assessment
year.
Himachal Pradesh and
Uttaranchal
January 7, 2003 to March 100% of profits and gains
31, 2012
for 5 years commencing
with the initial
assessment year and 25%
(30% in case of a
company) for the next 5
years.
North-Eastern State (i.e.
Arunachal Pradesh,
Assam, Manipur,
Meghalaya, Mizoram,
Nagaland and Tripura )
December 24, 1997 to
March 31,2007
100% of profit and gain of
industrial undertaking for
10 years commencing
from the initial
assessment year.
37. Deduction in respect of profit and gains from Business of hotels
in specified area/World Heritage Site and convention centres in
specified area [Section 80ID]
The deduction is allowed to undertakings engaged in the business of
i.
Hotels in the specified area
ii.
Owing and operating a convention centre in the specified area
iii. Hotel located in the specified district having a World Heritage Site
The deduction is available to all undertakings irrespective of any
specific form of business i.e. Sole proprietor, partnership firm etc.
Undertakings
Time limit for
construction/commencement of
hotel/convention centres
For Hotels
1.4.2007 to 31.7.2010
For Convention Centres
1.4.2007 to 31.7.2010
For hotel at World Heritage Site
1.4.2008 to 31.32013
38.
The amount of deduction is equal to 100% of profits and gains of such
business of operating and maintaining a hotel or a convention centre.
The deduction is available for a period of 5 consecutive assessment
years beginning the initial assessment year.
Specified area means the National Capital Territory of Delhi and
Districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad.
Hotel means a hotel of Two-star and Four-star category as classified
by the Central Govt.
Convention Center means a building of a prescribed area comprising
of convention halls to be used for the purpose of conference and
seminars being of such size and number and having such other facilities
and amenities, as may be prescribed.
39. Special provisions in respect of certain undertakings in
North-Eastern states [Section 80IE]
The object of this deduction is to promote socio-economic
development of North-eastern states i.e. Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland,
Sikkim and Tripura.
This deduction is allowed to undertaking manufacturing
or producing any eligible article or thing or undertake
substantial expansion or carry on any eligible business from
April 1, 2007 to March 31, 2017.
The amount of deduction is equal to 100% of profit and
gains derived from such business.
The deduction is available for 10 consecutive assessment
years beginning with the initial assessment year.
40. Deduction in respect of Profits and Gains from business of
collecting and processing of bio-degradable waste
[Section 80JJA]
This is available to all Industrial undertakings/
enterprises engaged in collection and processing or
treatment of bio-degradable waste for generating power or
producing bio-fertilisers, bio-pesticides or making pellets
or briquettes for full or organic manure.
Rate of deduction – 100% of profits and gains from such
business
Period of deduction – The deduction is available for a
period of 5 years beginning with assessment year relevant
to the previous year in which such business commences.
41. Deduction in respect of wages paid for additional
company jobs [Section 80JJAA]
This deduction is allowed to Indian company engaged
in the manufacture or production of article or thing.
No deduction shall be allowed :
i.
If the industrial undertaking is formed by splitting up
or reconstruction of an existing undertaking or
amalgamation with another industrial undertaking
ii. Unless the assessee furnishes along with the return of
income the report of the accountant to claim this
deduction
The amount of deduction is equal to 30% of
“Additional Wages” paid to the new “regular workman”
employed by the assessee in the previous year.
This deduction shall be allowed for a period of three
previous years in which employment is provided.
42.
“Additional wages” means the wages paid to the new
regular workmen in excess of one hundred employed
during the previous year.
“Regular workman” does not include a casual workman
or a workman employed through contract labour or
any other workman employed for a period of less than
300 days during the previous year.
43. Deduction in respect of certain Incomes of offshore banking
units and International Financial Services Centre
[Section 80LA]
Assessee entitled –
A scheduled bank or any bank incorporated by or under
the laws of a country outside India, having an offshore
banking unit in a special economic zone, or
b) A unit of an International financial services centre.
a)
Amount of deduction
Period of deduction
100% of profits
For 5 consecutive assessment years
relevant to the previous year in which the
permission for such business is obtained
from appropriate authority.
50% of profits
For next 5 consecutive assessment years .
44. Deduction in respect of income of Co-operative
Societies [Section 80P]
In the case of co-operative society engaged in following activities can apply for
deduction under this section :
i.
Carrying on the business of banking or providing credit facilities to its
members; or
ii.
A cottage industry; or
iii.
The marketing of agricultural produce grown by its members; or
iv.
The purchase of agricultural implements, seeds, livestock or other articles
intended for agriculture for the purpose of supplying them to its members;
or
v.
The processing, without the aid of power, of the agriculture produce of its
members; or
vi.
Fishing and allied activities.
The amount of deduction shall be 100% of the profits from these activities.
The amount of deduction shall not exceed –
(a) 1,00,000 in case of consumers’ co-operative society and
(b) 50,000 in any other case.
45. Deduction in respect of royalty income, etc., of
author of certain books [Section 80QQB]
This deduction is allowed to an individual resident in
India includes authors and co-authors only
His gross total income includes any income derived by
him in the exercise of his profession, in the copyright of
any book being a work of literary, artistic or scientific
nature, or of royalty or copyright fees (whether receivable
in lump sum or otherwise) in respect of such book
The amount of deduction shall be :
(a) Income from royalty from books or
(b) ₹ 3,00,000
Whichever is less.
46. Deduction in respect of royalty on patents
[Section 80RRB]
This deduction is allowed to an assessee :
who is an individual (whether resident or N.O.R.)
who is a patentee
who is in receipt of any income by way of royalty in
respect of a patent registered on or after April 1, 2003
under the Patents Act, 1970.
His gross total income of the previous year includes
royalty.
The amount of deduction shall be
(a) Income from royalty or
(b) ₹ 3,00,000
Whichever is less.
i.
ii.
iii.
47. Deduction in respect of interest on deposits in
saving account [Section 80TTA]
This deduction shall be allowed to an individual and a HUF
Eligible income - Interest on deposits (not being time
deposits) in a saving account with :
i.
A banking company to which the Banking Regulation Act,
1949, applies
ii. A co-operative society engaged in carrying on the business
of banking
iii. A post office as defined in Section 2(k) of the Indian Post
Office Act, 1898
Amount of deduction :
(a) Actual amount of interest or
(b) ₹ 10,000
Whichever is less.
48. Deduction in case of a person with disability
[Section 80U]
To help a disabled person by reducing his tax burden, this
section has been incorporated. Following are the provisions :
The assessee is an individual being a resident
He is a person with disability
He is certified by the medical authority to be a person with
disability, at any time during the previous year
He furnishes a certificate issued by the medical authority in
the prescribed form along the return of income
A fixed deduction of
₹ 50,000 in case of a person with disability
₹ 1,00,000 in case of a person with severe disability (having
any disability over 80%)
