This section is applicable from the assessment year 2006-2007.Under this section 100%deduction would be available from Gross Total Income subject to maximum ceiling given u/s 80CCE.Following investments are included in this section:
Contribution towards premium on life insurance ( 20% of the sum insured )
Contribution towards Public Provident Fund .( Max.70,000 a year )
Contribution towards Employee Provident Fund/General Provident Fund
Unit Linked Insurance Plan (ULIP).
NSC VIII Issue
Interest accrued in respect of NSC VIII Issue
Equity Linked Savings Schemes ( ELSS ).
Repayment of housing Loan (Principal).
Tuition fees for child education. (No Limit)
Investment in companies engaged in infrastructural facilities.
Deduction in respect of pension Fund
Deduction is allowed for the amount Deduction in respect of contribution to certain Pension Funds :paid or deposited by the assessee during the previous year out of his taxable income to the annuity plan (Jeevan Suraksha) of Life Insurance Corporation of India or annuity plan of other insurance companies for receiving pension from the fund referred to in section 10(23AAB)
Amount of Deduction: Maximum Rs. 10,000 /-
Deduction in respect of contribution to a notified pension scheme of central Government or any other employer
Deduction is available if:
The taxpayer is an individual
He is employed by the Central Government or by any other employer on or after January 1,2004
He has in the previous year paid or deposited any amount in his account under a pension scheme notified by Central Government
Deduction in respect of Medical Insurance Premia
Deduction is allowed for any medical insurance premium under an approved scheme of General Insurance Corporation of India popularly known as MEDICLAIM) or of any other insurance company, paid by cheque, out of assessee’s taxable income during the previous year, in respect of the following
In case of an individual – insurance on the health of the assessee, or wife or husband, or dependent parents or dependent children. In case of an HUF – insurance on the health of any member of the family Amount of deduction : Maximum Rs. 15,000, in case the person insured is a senior citizen (exceeding 65 years of age) the maximum deduction allowable shall be Rs. 20,000
Deduction in respect of maintenance including medical treatment of handicapped dependent : Deduction is allowed in respect of – any expenditure incurred by an assessee, during the previous year, for the medical treatment training and rehabilitation of one or more dependent persons with disability; and Amount deposited, under an approved scheme of the Life Insurance Corpn. Or other insurance company or the Unit Trust of India, for the benefit of a dependent person with disability. Amount of deduction : the deduction allowable is Rs. 50,000 (Rs. 40,000 for A.Y. 2003-2004) in aggregate for any of or both the purposes specified above, irrespective of the actual amount of expenditure incurred. Thus, if the the total of expenditure incurred and the deposit made in approved scheme is Rs. 45,000, the deduction allowable for A.Y. 2004-2005, is Rs. 50,000
Deduction in respect of medical treatment
A resident individual or Hindu Undivided family deduction is allowed in respect of during a year for the medical treatment of specified disease or ailment for himself or a dependent or a member of a Hindu Undivided Family.
Amount of Deduction Amount actually paid or Rs. 40,000 which ever is less (for A.Y. 2003-2004, a deduction of Rs. 40,000 is allowable In case of amount is paid in respect of the assessee, or a person dependent on him, who is a senior citizen the deduction allowable shall be Rs. 60,000.
Deduction in respect of Repayment of Loan taken for Higher Education
An individual assessee who has taken a loan from any financial institution or any approved charitable institution for the purpose of pursuing his higher education i.e full time studies for any graduate or post graduate course in engineering medicine, management or for post graduate course in applied sciences or pure sciences including mathematics and statistics.
Amount of Deduction : any amount paid by the assessee in the previous year, out of his taxable income, by way of repayment of loan or interest thereon, subject to a maximum of no limit
Deduction in respect of donations to certain funds, charitable institutions, etc.
100 % deduction is allowed in respect of donations to : National Defence Fund, Prime Minister’s National Relief Fund, Armenia Earthquake Relief Fund, Africa Fund, National Foundation of Communal Harmony, an approved University or educational institution of national eminence, Chief Minister’s earthquake Relief Fund etc.In all other cases donations made qualifies for the 50% of the donated amount for deductions.
Deduction in respect of Rent Paid :
Any assessee including an employee who is not in receipt of H.R.A. u/s 10(13A) Amount of Deduction : Least of the following amounts is allowable : i. Rent paid minus 10% of assessee’s total income ; or ii. Rs. 2,000 p.m. ; iii. 25% of total income.
Donations for Scientific Research or Rural Development :
In respect of institution or fund referred to in clause (e) or (f) donations made upto 31.3.2002 shall only be deductible.
This deduction is not applicable where the gross total income of the assessee includes the income chargeable under the head Profits and gains of business or profession. In those cases, the deduction is allowable under the respective sections specified above
Deduction in respect of profit and gains from industrial undertaking or enterprises engaged in infrastructure development .
If some conditions are satisfied which is describe in this section than 100 per cent of the profit is deductible for 10 year. The deduction commences from the initial assessment year.
Deduction in respect of profits and gains by an undertaking or enterprises engaged in development of Special Economic Zone
The taxpayer is a developer of a SEZ
The GTI of the taxpayer undertaking from any business of developing a SEZ
The SEZ in notified after 1 st April 05 and books of accounts are audited
If the above conditions are satisfied, the taxpayer can claim 100 per cent deduction in respect of aforesaid profit.
Deduction in respect of profits and gains from certain industrial undertakings other than indrastructure development undertaking
It should be a new undertaking
It should not be formed by transfer or old plant and machinery
Manufacture or production should be started within a stipulated time limit.
It should employ 10/20 Workers.
Return of Income should be submitted on or before due date
Deduction in respect of profits and gains of certain undertaking in certain special category of states
Not Formed by splitting up or reconstruction of existing business
Not formed by transfer of old plant and machinery
Setup in Certain Special Category of States
Manufacture/Production of Specified Goods
If the aforesaid conditions are satisfied, then deduction is available in Himachal Pradesh or Uttaranchal 100% Deduction of the Profit and Gains
Deduction in the case of hotels and convention centre in NCR
This section 80ID has been inserted with effect from the assessment year 2008-09
If some conditions are satisfied, 100 per cent of the profit and gains derived from the aforesaid business is deductible for five consecutive assessment year beginning from the initial assessment year. Initial assessment year for this purpose means the assessment year relevant to the previous year
Deduction in Respect of certain Undertaking in North-Eastern States
The taxpayer begins manufacture or production of goods
The aforesaid activity takes place in any North-Eastern States
The Business is not formed by the splitting up, or the reconstruction, of a business already in existence
If the aforesaid conditions are satisfied 100 per cent of profit from the aforesaid business/services shall be deductible for 10 years.
Deduction in respect of profits from the business of processing of bio-degradable waste
This Section is applicable where gross total income of an assessee includes ant profits and gains derived from the business of collection, processing or treating of bio-degradable waste for generating power or producing bio-fertilizers
The Whole of the Profits and gains of the above activities shall be deductible for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which such business commences.
Deduction in respect of employment of new workmen
The taxpayer is an indian company
Income of the taxpayer includes any profit and gains derived from any industrial undertaking
Industrial undertaking is not formed by splitting up or reconstruction of another indl. Undertaking
The amount of deduction is equal to 30 per cent of additional wages paid to new regular workmen employed by the assessee in the previous year.
Deduction in respect of certain income of offshore Banking Units and International Financial Service Centre
The assessee is a Scheduled Bank, A foreign Bank or a unit of International Financial Services Centre.
The Gross total income of the assessee includes income from the offshore banking unit in SEZ
The report from a CA in form no.10CCF certifying that the deduction has been correctly claimed
If the above conditions are satisfied, then 100 per cent of the aforesaid income is deductible for 5 consecutive assessment year
Deduction in respect of income of a co-operative Society
Carrying on the business of banking or providing credit facilities to its members
A cottage industry
Marketing of the agriculture produce grown by its members
Collective disposal of the labour of its members
Deduction under section 80P in respect of business income of a co-operative shall be available with reference to income after claiming deduction under section 80HH, 80HHA, 80HHB, 80HHC, 80 HHD, 80-I, and 80-IA.
Deduction in respect of royality income of authors
Author or Joint author
Income Include royalty
Finishing of form No.10CCD
If the aforesaid Conditions are satisfied, then the amount of deduction is|:--- Rs. 3,00,000.00 or Income from royalty as stated above.
Deduction is respect of remuneration from certain foreign sources in the case of professors, teachers, ect…
No deduction under section 80R is available from the assessment year 2005-06 onwards
Deduction in respect of royalty on patents
The taxpayer is an individual
He is residend in india
He is Owner/co-owner of patent
He is receipt of any income by way of royalty in respect of patent
The assessee Should furnish a Certificate in form no 10CCE
If the aforesaid conditions are satisfied, then the amount of deduction is Rs.3,00,000.00 or income from “Royalty” as stated above.
Deduction in the case of a person with disability
The taxpayer is an individual
He is resident in india
The taxpayer suffers 40% of more bye Blindness, Low Vision, Leprosy-cured, hearing impairment, mental illness
This is certified by medical authority
If the aforesaid conditions are satisfied then a fixed deduction of Rs.50,000 is available. A higher Deduction of Rs.75,000 is allowed in respect of a person with severe disability