Section 80G allows tax deductions for donations made to certain funds and charitable institutions. It allows deductions without any limit (no limit donations) as well as deductions with certain limits (with limit donations). No limit donations include donations to various government funds and select charitable institutions, and are eligible for a 100% or 50% tax deduction depending on the fund/institution. With limit donations include other charitable donations and are eligible for a 100% or 50% tax deduction subject to a limit of 10% of gross total income.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
The document provides an overview of key concepts in India's Income Tax Act of 1961, including that it extends to all of India and sets tax rates annually. It defines income broadly to include various sources like salary, business profits, capital gains, and more. An assessee is anyone liable to pay tax, including individuals, HUFs, companies, and firms. The previous year refers to the year income is earned and taxed the following assessment year. Exceptions apply for some incomes taxed in the year before the normal assessment year. Returns must be filed by certain categories and assessments include reassessments.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It explains that these deductions are intended to incentivize taxpayers to engage in socially desirable activities and investments. The key deductions covered include those for life insurance premiums (Section 80C), pension contributions (Section 80CCC), medical insurance (Section 80D), treatment of disabled dependents (Section 80DD), tuition fees (Section 80E), interest on education loans (Section 80E), rent payments (Section 80GG), among others. Eligibility conditions and calculation of allowable deductions for each section are described.
Types of Assessment in GST-
Self Assessment
Provisional Assessment
Scrutiny of Returns
Assessment of Non-filers
Assessment of Unregistered persons
Summary Assessment
This document discusses various tax deductions provided under sections 80C to 80U of the Indian Income Tax Act of 1961. It provides an overview of the basic rules for deductions, categories of deductions including those for savings, personal expenditures, socially desirable activities and disabled persons. It then examines several specific deductions in more detail, including those for life insurance premiums (80C), pension contributions (80CCC, 80CCD), medical insurance/expenses (80D, 80DD, 80DDB), education loans (80E), rent paid (80GG), and disability (80U). Deductions aim to incentivize certain economic activities and are subtracted from gross total income to arrive at total taxable income. The total deductions
The document discusses provident funds in India, including statutory provident funds for government employees, recognized provident funds for large private organizations, unrecognized funds, and public provident funds. It notes that employer contributions are fully exempt for statutory and public funds. Employee contributions are deductible under section 80C for all funds. Interest is fully exempt for statutory, recognized up to 9.5%, and public funds, but taxable for unrecognized funds. At retirement, payouts are fully exempt for all except unrecognized funds, which are fully taxable. It also provides an example calculation for taxable recognized provident fund of an employee.
The document discusses key aspects of income from business and profession under the Income Tax Act of 1961 in India. It defines business and profession, outlines the basis of charge for income from business/profession, and describes various deductions that are allowed under sections 30-37 of the Act such as rent, repairs, insurance, depreciation, bad debts, and more. It provides explanations and conditions for claiming many of these deductions.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
The document provides an overview of key concepts in India's Income Tax Act of 1961, including that it extends to all of India and sets tax rates annually. It defines income broadly to include various sources like salary, business profits, capital gains, and more. An assessee is anyone liable to pay tax, including individuals, HUFs, companies, and firms. The previous year refers to the year income is earned and taxed the following assessment year. Exceptions apply for some incomes taxed in the year before the normal assessment year. Returns must be filed by certain categories and assessments include reassessments.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It explains that these deductions are intended to incentivize taxpayers to engage in socially desirable activities and investments. The key deductions covered include those for life insurance premiums (Section 80C), pension contributions (Section 80CCC), medical insurance (Section 80D), treatment of disabled dependents (Section 80DD), tuition fees (Section 80E), interest on education loans (Section 80E), rent payments (Section 80GG), among others. Eligibility conditions and calculation of allowable deductions for each section are described.
Types of Assessment in GST-
Self Assessment
Provisional Assessment
Scrutiny of Returns
Assessment of Non-filers
Assessment of Unregistered persons
Summary Assessment
This document discusses various tax deductions provided under sections 80C to 80U of the Indian Income Tax Act of 1961. It provides an overview of the basic rules for deductions, categories of deductions including those for savings, personal expenditures, socially desirable activities and disabled persons. It then examines several specific deductions in more detail, including those for life insurance premiums (80C), pension contributions (80CCC, 80CCD), medical insurance/expenses (80D, 80DD, 80DDB), education loans (80E), rent paid (80GG), and disability (80U). Deductions aim to incentivize certain economic activities and are subtracted from gross total income to arrive at total taxable income. The total deductions
The document discusses provident funds in India, including statutory provident funds for government employees, recognized provident funds for large private organizations, unrecognized funds, and public provident funds. It notes that employer contributions are fully exempt for statutory and public funds. Employee contributions are deductible under section 80C for all funds. Interest is fully exempt for statutory, recognized up to 9.5%, and public funds, but taxable for unrecognized funds. At retirement, payouts are fully exempt for all except unrecognized funds, which are fully taxable. It also provides an example calculation for taxable recognized provident fund of an employee.
The document discusses key aspects of income from business and profession under the Income Tax Act of 1961 in India. It defines business and profession, outlines the basis of charge for income from business/profession, and describes various deductions that are allowed under sections 30-37 of the Act such as rent, repairs, insurance, depreciation, bad debts, and more. It provides explanations and conditions for claiming many of these deductions.
This document discusses the different types of assessments under the Goods and Services Tax (GST) in India. It defines assessment and describes the key types as self-assessment, provisional assessment, re-assessment, best judgment assessment, and summary assessment. For each type, it provides details on the procedures involved, including applicable forms, timelines for orders, and treatment of interest in case of underpayment or overpayment of taxes. The document summarizes the different assessment scenarios and procedures to help taxpayers and officers understand their obligations and processes under GST.
This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
The document defines key terms related to profits and gains from business and profession under the Income Tax Act. It discusses the charging provisions for income from business and profession and outlines the methods for computing income from business and allowable deductions. It also discusses the provisions for maintenance of accounts, audit requirements, and presumptive taxation schemes for certain businesses where accounts are not maintained.
The document discusses the five heads of income under the Indian Income Tax Act of 1961: (1) income from salary, (2) income from house property, (3) income from business and profession, (4) income from capital gains, and (5) income from other sources. It provides details on what types of income fall under each head and the basic rules for taxing each type of income.
The document discusses income from house property under the Indian Income Tax Act. It defines income from house property as the annual value of any buildings or lands owned by an assessee. It provides details on computation of gross annual value, deductions allowed, treatment of self-occupied properties, and exempted incomes from house property. The key steps involved in computing income from house property are determining the annual value, calculating the net annual value, and claiming allowed deductions.
This document appears to contain a single number - 3,00,000/-. It is unclear without more context what this number represents, but it seems to indicate an amount of money in Indian rupees. The document itself provides very little information to summarize in only 3 sentences.
Deductions to be made under Income Tax Act, 1961Amandeepbal60
This document discusses various deductions that can be made under Chapter VI of the Income Tax Act of 1961 when computing total income in India. It explains the meaning of gross total income and how deductions are allowed from it. It then provides details on deductions that can be claimed under sections 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGA, 80GGB for investments made in specified savings instruments, insurance premiums paid, contributions to pension funds, medical expenditures, education loans, donations to charitable funds, house rent paid and contributions to political parties respectively. It discusses the eligibility criteria and limits or amounts that can be claimed as deductions under these
The document provides an overview of basic concepts related to income tax in India, including definitions of key terms like tax, direct tax, indirect tax, income, assessee, capital/revenue receipts and expenditures. It explains that the Income Tax Act of 1961 governs income tax and its provisions for determining taxable income and tax liability. Income includes various sources like profits, dividends, capital gains, interest etc. Computation of taxable income involves calculating income under different heads, applying deductions and exemptions, and determining the final tax liability.
The document discusses the rules for setting off and carrying forward of business losses under the Income Tax Act. It explains that losses can be set off against profits of the same source (section 70) or different heads of income (section 71) subject to certain restrictions. Unabsorbed losses can be carried forward for a maximum of 8 years for business losses and 4 years for speculation business losses to be set off against future profits.
Chapter VI A - Deductions while Computing Total Income - Part IIDVSResearchFoundatio
OBJECTIVE
Every assessee earning more than the basic exemption limit is eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilment of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which relate to Corporate Assessees.
This document provides information about income from other sources under the Indian Income Tax Act, including:
- Income from other sources is the residual head of income for any income not covered under other heads.
- Section 56(2) lists specific incomes chargeable under this head, such as dividends, lottery winnings, interest, renting of machinery.
- Other incomes chargeable include various types of interest, director's fees, agricultural income from foreign land, and undisclosed income under sections 68-69C.
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
The document outlines the five heads of income that are specified under section 11 of the Pakistan Income Tax Ordinance of 2001. These five heads are: 1) salary, 2) income from house property, 3) income from business or profession, 4) capital gains, and 5) income from other sources. Any income earned by a person during the tax year must be classified under one of these five heads to determine tax liability and calculate tax payable.
This document defines key terms related to companies under the Income Tax Act such as company, Indian company, company in which public are substantially interested, domestic company, foreign company, industrial company, and investment company.
It also summarizes provisions related to Minimum Alternative Tax (MAT) under section 115JB, which specifies that the tax payable for any assessment year cannot be less than 18.5% of the company's book profit. It provides details on how book profit is computed for MAT purposes.
Finally, it outlines rules around carrying forward and set off of losses for closely held companies under section 79 when there is a change in shareholding.
This document provides an overview of income from business and profession under the Indian Income Tax Act with three key points:
1. It defines what constitutes a business or profession according to Section 2(13) of the Act and lists the essential features of a business as regularity of transactions, objective of earning profits, and application of labour and skill.
2. It outlines the various incomes that are chargeable to tax under the head "profits and gains from business or profession" according to Section 28 of the Act, including profits from any business/profession, income from professional associations, sale of import entitlements, and perquisites from business/profession.
3. It discusses the scheme of allowable
This document discusses various tax saving instruments available to individuals in India under the Income Tax Act. It provides details on deductions that can be claimed under sections 80C, 80CCC, 80CCD, 80CCG, 80D, 80DD, 80E, 80EE, 80G, 80TTA, and 80U for investments/payments made towards life insurance, pension funds, equity savings schemes, health insurance, education loans, home loans, donations, interest on savings accounts, and disability. The conclusion states that while tax saving instruments help reduce tax liability, it is not possible for high income individuals to bring their taxable income down to zero even with maximum deductions.
This document provides guidelines for submitting income tax proof documents for the 2022-2023 financial year. Key points include:
- Employers report the PAN of landlords and loan lenders to the income tax department, so additional caution is needed when providing this information.
- HRA can only be claimed for the period of employment at the current company.
- A single self-declaration form can be used to claim multiple tax components instead of multiple forms.
- NPS contributions deducted from salary do not require proof submission as the payroll will consider it directly for exemption.
This document discusses the different types of assessments under the Goods and Services Tax (GST) in India. It defines assessment and describes the key types as self-assessment, provisional assessment, re-assessment, best judgment assessment, and summary assessment. For each type, it provides details on the procedures involved, including applicable forms, timelines for orders, and treatment of interest in case of underpayment or overpayment of taxes. The document summarizes the different assessment scenarios and procedures to help taxpayers and officers understand their obligations and processes under GST.
This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
The document defines key terms related to profits and gains from business and profession under the Income Tax Act. It discusses the charging provisions for income from business and profession and outlines the methods for computing income from business and allowable deductions. It also discusses the provisions for maintenance of accounts, audit requirements, and presumptive taxation schemes for certain businesses where accounts are not maintained.
The document discusses the five heads of income under the Indian Income Tax Act of 1961: (1) income from salary, (2) income from house property, (3) income from business and profession, (4) income from capital gains, and (5) income from other sources. It provides details on what types of income fall under each head and the basic rules for taxing each type of income.
The document discusses income from house property under the Indian Income Tax Act. It defines income from house property as the annual value of any buildings or lands owned by an assessee. It provides details on computation of gross annual value, deductions allowed, treatment of self-occupied properties, and exempted incomes from house property. The key steps involved in computing income from house property are determining the annual value, calculating the net annual value, and claiming allowed deductions.
This document appears to contain a single number - 3,00,000/-. It is unclear without more context what this number represents, but it seems to indicate an amount of money in Indian rupees. The document itself provides very little information to summarize in only 3 sentences.
Deductions to be made under Income Tax Act, 1961Amandeepbal60
This document discusses various deductions that can be made under Chapter VI of the Income Tax Act of 1961 when computing total income in India. It explains the meaning of gross total income and how deductions are allowed from it. It then provides details on deductions that can be claimed under sections 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGA, 80GGB for investments made in specified savings instruments, insurance premiums paid, contributions to pension funds, medical expenditures, education loans, donations to charitable funds, house rent paid and contributions to political parties respectively. It discusses the eligibility criteria and limits or amounts that can be claimed as deductions under these
The document provides an overview of basic concepts related to income tax in India, including definitions of key terms like tax, direct tax, indirect tax, income, assessee, capital/revenue receipts and expenditures. It explains that the Income Tax Act of 1961 governs income tax and its provisions for determining taxable income and tax liability. Income includes various sources like profits, dividends, capital gains, interest etc. Computation of taxable income involves calculating income under different heads, applying deductions and exemptions, and determining the final tax liability.
The document discusses the rules for setting off and carrying forward of business losses under the Income Tax Act. It explains that losses can be set off against profits of the same source (section 70) or different heads of income (section 71) subject to certain restrictions. Unabsorbed losses can be carried forward for a maximum of 8 years for business losses and 4 years for speculation business losses to be set off against future profits.
Chapter VI A - Deductions while Computing Total Income - Part IIDVSResearchFoundatio
OBJECTIVE
Every assessee earning more than the basic exemption limit is eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilment of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which relate to Corporate Assessees.
This document provides information about income from other sources under the Indian Income Tax Act, including:
- Income from other sources is the residual head of income for any income not covered under other heads.
- Section 56(2) lists specific incomes chargeable under this head, such as dividends, lottery winnings, interest, renting of machinery.
- Other incomes chargeable include various types of interest, director's fees, agricultural income from foreign land, and undisclosed income under sections 68-69C.
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
The document outlines the five heads of income that are specified under section 11 of the Pakistan Income Tax Ordinance of 2001. These five heads are: 1) salary, 2) income from house property, 3) income from business or profession, 4) capital gains, and 5) income from other sources. Any income earned by a person during the tax year must be classified under one of these five heads to determine tax liability and calculate tax payable.
This document defines key terms related to companies under the Income Tax Act such as company, Indian company, company in which public are substantially interested, domestic company, foreign company, industrial company, and investment company.
It also summarizes provisions related to Minimum Alternative Tax (MAT) under section 115JB, which specifies that the tax payable for any assessment year cannot be less than 18.5% of the company's book profit. It provides details on how book profit is computed for MAT purposes.
Finally, it outlines rules around carrying forward and set off of losses for closely held companies under section 79 when there is a change in shareholding.
This document provides an overview of income from business and profession under the Indian Income Tax Act with three key points:
1. It defines what constitutes a business or profession according to Section 2(13) of the Act and lists the essential features of a business as regularity of transactions, objective of earning profits, and application of labour and skill.
2. It outlines the various incomes that are chargeable to tax under the head "profits and gains from business or profession" according to Section 28 of the Act, including profits from any business/profession, income from professional associations, sale of import entitlements, and perquisites from business/profession.
3. It discusses the scheme of allowable
This document discusses various tax saving instruments available to individuals in India under the Income Tax Act. It provides details on deductions that can be claimed under sections 80C, 80CCC, 80CCD, 80CCG, 80D, 80DD, 80E, 80EE, 80G, 80TTA, and 80U for investments/payments made towards life insurance, pension funds, equity savings schemes, health insurance, education loans, home loans, donations, interest on savings accounts, and disability. The conclusion states that while tax saving instruments help reduce tax liability, it is not possible for high income individuals to bring their taxable income down to zero even with maximum deductions.
This document provides guidelines for submitting income tax proof documents for the 2022-2023 financial year. Key points include:
- Employers report the PAN of landlords and loan lenders to the income tax department, so additional caution is needed when providing this information.
- HRA can only be claimed for the period of employment at the current company.
- A single self-declaration form can be used to claim multiple tax components instead of multiple forms.
- NPS contributions deducted from salary do not require proof submission as the payroll will consider it directly for exemption.
Session IV- Deduction Sec 80C to 80U.pptxsgtuniversity
This document discusses various tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. Key deductions include:
- Investments in retirement funds, life insurance, tuition fees, home loans (Section 80C, up to Rs. 150,000)
- Contributions to pension funds (Section 80CCC, up to Rs. 150,000)
- Medical insurance premiums for self, spouse, dependents and parents (Section 80D, up to Rs. 50-75,000)
- Interest on education loans and home loans (Section 80E and 80EE, up to Rs. 50,000 each)
- Donations to charitable organizations (Section 80G, tax deductible
This document discusses various tax deductions that can be claimed under Sections 80C, 80CCC, 80CCD, and 80D of the Indian Income Tax Act. Some key deductions include:
1. Section 80C allows deduction of up to Rs. 1.5 lakh for investments/payments such as life insurance premium, PPF, NSC, ELSS, home loan principal, tuition fees, etc.
2. Section 80CCC provides deduction for premium paid for annuity plans of LIC or other insurers.
3. Section 80CCD allows deduction of up to Rs. 1.5 lakh for contribution to pension schemes like NPS. Employer's contribution of up to 10%
Deductions on section 80 c, 80ccc, 80ccd UGC -NET COMMERCE DIwakar Rajput
This document discusses various tax deductions that can be claimed under Sections 80C, 80CCC, 80CCD, and 80D of the Indian Income Tax Act. Some key deductions include:
1. Section 80C allows deduction of up to Rs. 1.5 lakh for investments/payments such as life insurance premium, PPF, NSC, etc.
2. Section 80CCC provides deduction for annuity premium paid to LIC or other insurers for receiving pension.
3. Section 80CCD allows deduction of up to 10% of salary for employee pension contributions and up to Rs. 1.5 lakh for self-employed individuals.
4. Section 80D allows deduction of
This document summarizes various income tax deductions available in India. It outlines the slab rates and exemptions under section 10. It details the deductions available for house rent allowance, leave travel concession, life insurance premiums, tuition fees, interest on educational loans, housing loan repayments, national pension scheme contributions, medical insurance premiums, medical expenditures, interest on savings accounts, and contributions to specified pension funds. It provides the eligibility criteria and limits for each deduction.
A list of provisions provided for planning savings and investments as part of your Income Tax planning. This is a beginner's guide to introduce yourself to several possible provisions.
The document discusses various tax deductions available under the Indian Income Tax Act of 1961 to promote savings, investment, donations, research, and support for older/disabled individuals. Key deductions include:
1) Section 80C allows deduction up to Rs. 1.5 lakhs for investments and insurance premiums.
2) Section 80CCC allows deduction up to Rs. 100,000 for annuity premiums paid to LIC or other insurers.
3) Sections 80CCD and 80CCD(1B) allow deductions up to Rs. 150,000 or 10% of income for contributions to pension schemes like NPS.
Deduction under Section 80 (income tax act )Narender777
Under Section 80C, individuals can claim a tax deduction of up to Rs. 1,50,000 for amounts paid towards life insurance premiums, provident funds, eligible investments and more. Section 80CCC provides an additional deduction of up to Rs. 1,50,000 for contributions to certain pension plans. Section 80CCD allows deductions of up to Rs. 1,50,000 for contributions to Central Government pension schemes.
This section provides a summary of deductions available under Section 80 of the Income Tax Act. Some key deductions include:
- Section 80C allows deduction up to Rs. 1.5 lakh for life insurance premiums, PPF contributions, tuition fees, housing loan repayments, and others.
- Section 80D allows deduction up to Rs. 25,000/year for medical insurance premiums.
- Section 80G allows a 50% deduction for donations to certain funds and institutions.
The document outlines various other deductions available under Section 80 related to pension funds, employment of new workers, offshore banking income, and more.
This document outlines various tax deductions available under Section 80 of the Indian Income Tax Act. It lists the codes for different tax deductions (e.g. 80C, 80D, 80DD, etc.) and provides a brief description of eligibility requirements and calculation of deduction amounts for key deductions related to investments, medical expenses, disability, education loans, donations, business profits and income from patents/royalties.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It discusses various deductions aimed at encouraging savings (Section 80C), payments towards pension funds (Section 80CCC), contribution to new pension schemes (Section 80CCD), and limits on aggregate deductions (Section 80CCE). It also covers deductions for certain personal expenditures like medical insurance premiums (Section 80D), medical expenditures for disabled dependents (Section 80DD), repayment of education loans (Section 80E), and rent paid (Section 80GG). The document explains eligibility criteria and computation of allowable deductions for each section.
The document discusses various aspects of tax planning in India including:
- Tax slabs and rates for different types of taxpayers.
- Common tax deductions available under Sections 80C, 80D, 80E, and 80CCC of the Income Tax Act up to a total limit of Rs. 1 lakh.
- Tax treatment of various financial instruments like insurance, PPF, ELSS, housing loans, etc.
- Examples are provided to illustrate how tax liability can be reduced through proper tax planning and use of deductions.
Deductions from Gross Total Income under sections 80C to 80U are intended to incentivize taxpayers and encourage certain economic activities. They reduce gross total income to arrive at total taxable income. Key deductions include those for investments/payments toward life insurance, retirement funds, tuition loans, medical expenditures, housing rent, and disability. The total deductions cannot exceed gross total income. Deductions require proof of qualifying expenditures/investments and are subject to specific limits and conditions in each section.
The document summarizes key income tax proposals in India's Union Budget for the assessment year 2021-22. It outlines that income tax rates remain unchanged, with rates of 5%, 20%, and 30% applied to income slabs. It also introduces a new, optional tax regime with lower rates and removal of exemptions/deductions. Key benefits of the new regime include lower taxes but loss of deductions like HRA and standard deduction. The document also discusses changes to residential status rules and removal of dividend distribution tax.
This document outlines income tax rates for various types of individuals and entities in India. It provides income tax slabs and rates for:
1) Resident individual/HUF/AOP/BOI between the ages of 60-79 years and 80+ years. Tax rates range from nil for income up to Rs. 30,000-50,000 to 30% for income over Rs. 10,00,000.
2) Firms, LLPs, and local authorities which are all taxed at a flat rate of 30% on total income.
3) Domestic and foreign companies which are taxed at 30% and 40% respectively.
It also defines key tax terms
Deductions available under sections 80C to 80U of the Income Tax Act are summarized. Key deductions include:
1) Section 80C allows deduction of amounts paid towards life insurance, provident funds, tuition fees, home loans, and other investments up to Rs. 1.5 lakhs.
2) Section 80CCC provides deduction up to Rs. 150,000 for annuity premiums paid to LIC or other insurers.
3) Section 80CCD allows deduction up to Rs. 50,000 for contributions to pension schemes notified by the government.
Deduction under chapter VI-A (section 80C- 80U) income tax, 1961Shubham Verma
The document outlines key aspects of India's Income Tax Act of 1961, as amended in 2015, including:
1) It describes the different chapters and sections covering definitions, residential status, exemptions, heads of income, clubbing provisions, setoff provisions, and deductions.
2) It provides details on the residential status criteria for being a non-resident, non-ordinary resident, or ordinary resident.
3) It summarizes various deductions that can be claimed under sections 80C to 80U, including for provident funds, life insurance, tuition fees, health insurance, disability, and donations. The maximum aggregate deduction is Rs. 1,50,000.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Assessment and Planning in Educational technology.pptxKavitha Krishnan
In an education system, it is understood that assessment is only for the students, but on the other hand, the Assessment of teachers is also an important aspect of the education system that ensures teachers are providing high-quality instruction to students. The assessment process can be used to provide feedback and support for professional development, to inform decisions about teacher retention or promotion, or to evaluate teacher effectiveness for accountability purposes.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
Thinking of getting a dog? Be aware that breeds like Pit Bulls, Rottweilers, and German Shepherds can be loyal and dangerous. Proper training and socialization are crucial to preventing aggressive behaviors. Ensure safety by understanding their needs and always supervising interactions. Stay safe, and enjoy your furry friends!
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
2. •Section 80 C allows to reduce taxable income by making tax
saving investments or incurring eligible expenses. It allows a
maximum deduction of Rs 1.5 lakh every year from the
taxpayers total income.
The benefit of this deduction can be availed by Individuals and
HUFs.
Companies, partnership firms, LLPs cannot avail the benefit of this
deduction.
Section 80C includes sub sections , 80CCC, 80CCD (1) , 80CCD
(1b) and 80CCD (2).
3.
4. Sec 80 C: Deductions in respect of LIC premium,
Contribution to PF, Repayment of housing loan, Term
deposit, Tution fee
1. Any sum paid as LIC Premium on the life of Self, Spouse and Children
Actual premium subject to 20% of sum assued is allowed if policy is
taken before 1.4.2012. Otherwise only 10% of sum assured.
2. Any sum paid as Tuition fees for not more than 2 children.
3. Any sum paid as repayment of housing loan (Principal only, not interest)
4. Any sum deposited in a term deposit for a period of not less than 5
years with a scheduled bank.
5. PROBLEM NO: 1
• Mr. Monish has provided the following information for the previous year 2020-21.
Compute his total income.
• i. Gross Salary 6,00, 000
• ii. Rent from House Property 3,00,000
• iil. STCG on transfer of Residential House 1,00,000
• iv. LIC Premium for his own life taken in 2017 Rs. 90,000 (Sum assured Rs.
8,00,000, Policy taken in 2018)
• Tuition fees for his three children (each 35,000) 1,05, 000
• vi. Repayment of housing loan -Principal 35,000
6. SOLUTION
TAXABLE INCOME OF MR. MONISH
• Gross Salary 6,00,000
Less: Standard Deduction 50,000
--------------- 5,50,000
Income from House Property 3,00,000
Less: Standard Deduction 30% 90,000
------------- 2,10,000
STCG on Residential House 1,00,000
-----------------
Gross Total Income 8,60,000
Less: 80C Deduction 1,50,000
-------------------
Taxable Income 7,10,000
-------------------
7. WORKING NOTE FOR PROBLEM NO: 1
LIC Premium restricted to 10% (policy taken after 2012)
(10% on 800000) 80000
Tuition Fees for 2 children (2*35000) 70000
Repayment of Housing loan (Principal amt only) 35000
-----------------
185000
-----------
Deductions u/s 80 C restricted upto Rs. 150000
8. PROBLEM NO: 2
• Mr. Sudhir’s gross total income during the previous vear 2020-21 was Rs.
18,00,000 the following payment during 2020-21. Compute his total income.
• i. LIC Premium for his own life Rs. 75, 000 (Sum assured Rs. 3,00, 000) Policy
taken on 1.1.2011
• ii. LIC Premium for his son (not dependent on Mr. A) 15,000
• iii. LIC Premium for a dependent brother 5,000
• iv. Repayment of housing loan from SBI (Principal FRs.50,000, Interest Rs.
35,000) 85,000
• V. Tuition fees for his children 40,000 (First child 10,000; second child 12,
000; third child - 18,000)
9. Eligible investments for tax deductions
80 C 80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount
payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana
(SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years,
Infrastructure bonds etc
80CCC Deduction for
life insurance annuity
plan.
80CCC allows deduction for payment towards annuity pension plans Pension received from the annuity or amount
received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of
receipt.
80CCD (1) Deduction
for NPS
Employee’s contribution under section 80CCD (1) Maximum deduction allowed is least of the following
10% of salary (in case taxpayer is employee)
20% of gross total income (in case of self employed)
Rs 1.5 Lakh ( limit allowed u/s 80C)
(Salary = Basic + D.A (if enters into retirement benefits) + Commission (if it is percentage of turnover)
80CCD (1b) Deduction
for NPS
The deduction under Section 80 CCD is Rs. 2 Lakhs with the Additional deduction of Rs 50,000 is allowed for amount
deposited to NPS account
Contributions to Atal Pension Yojana is also eligible for deduction.
80CCD (2) Deduction
for NPS
Employers contribution is allowed for deduction upto 10% of basic salary plus dearness allowance under this section.
Benefit in this section is allowed only to salaried individuals and not self employed.
10. SEC 80 CCC: Deductions in respect
of Pension Fund
An individual who has paid a sum under a annuity plan of LIC or
any other insurance can claim this deduction.
He/She can claim upto Rs. 1,50,000 as deduction under this
section
11. SECTION 80 CCC UNDER THE INCOME
TAX ACT
section 80ccc of the income act provides a ground for a tax
deduction in which one can make an investment in pension
funds. It relates to the deduction for premium paid for any
annuity plan of LIC or pension fund or another insurer. In these
pension funds, a taxpayer can claim a maximum amount of
deduction of Rs 1.5 lakhs. It could be from any insurer in the
pension funds and an individual is only eligible to claim this
deduction as a taxpayer.
12. SECTION 80CCD UNDER INCOME TAX ACT
• Section 80CCD relates to the deductions that are available to individuals
against the contributions made to the Atal Pension Yojana (APY) and the
National Pension Scheme (NPS).
• The deduction under Section 80 CCD is Rs. 2 Lakhs which is the maximum limit
available and this shall include Rs. 50,000/- which is the additional deduction
available under sub-section 1B.
13. PROBLEM NO: 3
•Mr. Chandhru has furnished the following particulars.
Compute his total income for the previous year 2020-21.
•i. Gross salary 7,50,000
•Ii. Income from other sources 5,00,000
• üi. LIC Annuity Plan Premium paid Rs. 50,000
14. SOLUTION:
TOTAL INCOME OF MR. CHANDRU FOR THE PREVIOUS
YEAR 2020-21
Gross salary 750000
Less Std Deduction (sec 16) 50000
--------------------- 700000
Income from other sources 500000
-------------
Gross total income 120000
Less dedu u/s 80CCC 50000
-----------
Taxable income 115000
15. SEC. 80D: DEDUCTION IN RESPECT OF MEDICAL
INSURANCE PREMIUM
•This deduction is allowed to an Individual or a HUF in respect of medical
insurance premium. The payment should be any mode other than cash. An
assessee can claim deduction subject the following limits.
•i. In case of an individual assessee any amount paid as medi claim
insurance premium contribution to CGHS, preventive health check-up on
his own life or spouse, dependent children can claim up to 25,000.
•ii. In the above case, if there is medi claim insurance of any senior citizen
(at least 60 years of age at any time during the previous year) an
additional deduction ot Rs. 25,000 can be claimed.
16. contd……
• iii. In case of an individual assessee any amount paid as medi claim insurance
premum. contribution to CGHS, preventive health check-up on his parents
(whether dependent or otherwise) can claim up to 25,000.
• iv. In the above case, if there is medi claim insurance of any senior citizen (at
least 60 years of age at any time during the previous year) an additional
deduction of Rs.25,000 can be claimed.
• v. The aggregate payment on account of preventive health check-up of self,
spouse, dependent children, father or mother cannot exceed Rs. 5,000.
• vi. Payments for medi claim should be made by any mode other than cash.
However payment for preventive health check-up can be made by any mode
including cash
17. PROBLEM NO: 4
From the following payments (made by cheque), compute the
amount allowable as deducton u/s 80D for the previous year
2020-21.
i. Medical insurance premium on Self and Spouse 22,000
ii. Medical insurance premium on Mother aged 65 years
42,000
iii. Preventive health checkup for Self and Spouse Rs. 3000
iv. Preventive health checkup for Mother 7,000
18. SOLUTION:
• Medical insurance premium on self & spouse 22000
• Medical insurance premium on mother 42000
• Preventive health check up
self & spouse 3000
mother 7000
--------
10000
eligible deduction 5000
--------- 5000
-----------
Total deduction 69000
-------------
19. Deduction is allowed to an individual and a HUF, This is allowed
when an assessee incurred an expenditure because of medical
treatment for a person with disability or amount paid under any
scheme any person with framed by the LIC or any other insurer for the
benefit or a deduction disability Rs. 75,000 from the assessee's gross
total income can be claimed as irrespective of the actual expenditure.
If there is severe disability up Rs. 125000 can be claimed as
deduction.
SEC. 80DD: Deduction in respect of maintenance including
medical treatment of a dependent who is a person with
disability
20. PROBLEM 8
•Mr. Ragul has furnished the following particulars for the previous year
2020-21. Compute his taxable income.
i. Income from salary 3,00,000
ii. Income from house property (Gross) 90,000
iii. Income from interest on securities 80,000
He made the following payments:
i. Contribution to RPF Rs.10,000
ii. Medical insurance premium on self 32,000 .
iii. Amount spent for medical treatment of his disabled son Rs. 30,000
21. COMPUTATION OF TOTAL INCOME OF MR. RAHUL
Income from Salary 300000
Less Std Deduction (sec 16) 50000
-------------------250000
Income from HP 90000
Less SD 30% 27000
---------------------------- 63000
Income from OS 80000
-----------
Gross Total Income 393000
Less Deduction 80C Contribution to RPF 10000
80 D Mediclaim upto 25000
80DD disabled person 75000
----------- 110000
--------------
Taxable income of Mr. Rahul 283000
-----------------
Income from Salary 300000
Less Std Deduction (sec 16) 50000
-------------------250000
Income from HP 90000
Less SD 30% 27000
---------------------------- 63000
Income from OS 80000
-----------
Gross Total Income 393000
Less Deduction 80C Contribution to RPF 10000
80 D Mediclaim upto 25000
80DD disabled person 75000
----------- 110000
--------------
Taxable income of Mr. Rahul 283000
-----------------
22. SEC. 8ODDB: DEDUCTION IN RESPECT OF MEDICAL
TREATMENT ON SPECIFIED DISEASE
• This deduction is allowed to an individual for himself or his dependent
relatives like spouse, children, parents, brothers and sisters and a HUF for
its members. Deduction is allowed in respect of any medical expenditure
actually incurred for the treatment of diseases like cancer, AIDS and
chronic renal failure provided the medical certificate in that regard is
produced. Actual amount paid subject to the maximum of Rs. 40,000 can
be claimed as deduction. In case such expenditure is incurred for a senior
citizen, up to Rs. 1,00,000 instead of Rs. 40,000 can be claimed as
deduction.
23. PROBLEM
Mr. Sunil, an individual assessee, has furnished the following
particulars for the 2020-21. Ascertain his previous year total
income.
(i) Gross Total Income 12,00,000
(ii)Contribution to PPF 30,000
(iii)Expenditure regarding the treatment of his dependent
brother is suffering from cancer (medical certificate
produced) 75,000
24. COMPUTATION OF TAXABLE INCOME OF MR. SUNIL
Gross total income 1200000
Less Deductions u/s 80
80 C contribution to PPF (Restricted upto 150000) 30000
80 DDB Expenditure for specified disease 40000
-------- 70000
--------------
Taxable income 1130000
-------------
25. SEC. 80E DEDUCTION FOR INTEREST PAID ON
LOAN TAKEN FOR HIGHER EDUCATION
This deduction is available only to an individual assessee. If
an assessee avails higher education loan for self or for spouse or
for children (whether dependent or not) and pays interest on that
allowed for the initial loan, it can be claimed as deduction under
section 80E. This deduction is allowed for the initial assessment year
and seven assessment years immediately succeeding the first
assessment year or until the interest is paid in full, whichever is
earlier.
26. PROBLEM
•Mr. Abraham has borrowed Rs. 7,00,000 for his
son's MBA program at a Mumbai college from the
SBI in 2016. It is repayable in 10 installments of Rs.
1,00,000 starting from the 2017-18 (Rs. 70,000 as
principal and 30,000 as interest). Find out how
much and how can claim deduction?
27. SOLUTION
As per the above problem, Abraham is
paying Rs. 30000 as interest on higher
education loan. So Abraham can claim Rs.
30000 as deduction u/s 80 E from the year
2017-18 to 2024-25.
28. SEC. 80G: DEDUCTION IN RESPECT OF DONATIONS TO CERTAIN
FUNDS, CHARITABLE INSTITUTIONS, ETC.,
•This deduction is allowed to all assessees for donation made to the
specified funds or institutions. It is allowed in respect of amount given to
charitable donations and it is allowed to all types of assesses. For some
of the donations, deductions are allowed without any limit (No Limit
Donations) and in some other donations, deductions are allowed with
certain limits (With Limit donations) For With Limit donations, the limit is
10% of the Gross total income reduced by the following: i. Long term
capital gains ii. Short term capital gain on transfer of Shares through
recognized stock exchange (i.e. STCG if STT paid) . All deductions u/s
80C to 80U except this deduction.
29. CLAIMING DEDUCTIONS UNDER SECTION 80G
•For the purpose of all donations can be classified into four
category as follows.
•1. No Limit Donations with 100% deduction eligibility
• 2. No Limit Donations with 50% deduction eligibility
•3. With Limit Donations with 100% deduction eligibility
•4. With Limit Donations with 50% deduction eligibility
30. I. NO LIMIT [NL] DONATIONS WITH 100% DEDUCTION ELIGIBILITY
DONATIONS TO THE FOLLOWING CATEGORIES ARE 100% ELIGIBLE FOR DEDUCTION UNDER SEC. 80G
• 1. National Defense Fund
• 2. Prime Minister's National Relief Fund
• 3. Prime Minister's Earthquake Relief Fund
• 4. Africa Fund
• 5. National Foundation for Communal Harmony
• 6. National Blood Transfusion Council
7. Andhra Pradesh Chief Minister's Cyclone Relief Fund
• 8. National Illness Assistance Fund
• 9 Chief Minister's Relief Fund
• 10. National Sports Fund
• 11. National Children's Fund
• 12. Educational institution on National eminence by approved authority
• 13. National Fund for control of drug abuse
31. II. NO LIMIT [NL] DONATIONS WITH 50%
DEDUCTION ELIGIBILITY
• Donations to the following categories are 50% eligible for deduction under
Sec. 80G
• 1. Jawaharlal Nehru Memorial Fund
• 2. Prime Minister's Drought Relief Fund
• 3. Indira Gandhi Memorial Trust
• 4. Rajiv Gandhi Foundation
32. III. WITH LIMIT [WL] DONATIONS WITH 100%
DEDUCTION ELIGIBILITY
• 1. Donations to local authority, institutions or association for promoting family
planning
• 2. Donations to Indian Olympic Association or any Institutions for development
infrastructure for sports and games or for sponsorship of sports and games in
India.
33. IV. WITH LIMIT [WL] DONATIONS WITH 50%
DEDUCTION ELIGIBILITY
• 1.Donations to Local authority for any charitable purpose other than family
planning
• 2. Donations for the purpose of planning development
• 3 Donations to promote the interest of the member of a minority community
• 4 Donations to educational institutions, Donations to the place of worship.
34. PROBLEM
Mr. Priyan's G.T.I for the Previous Year is Rs. 600000. He
made the following donations. Compute his total income
for the previous year 2020-21.
i. National Defense Fund Rs. 20000
ii. National Sports Fund 15,000
iii. National Children's Fund 10000
iv. Prime Minister's Drought Relief Fund Rs. 25000
35. Mr. Anil's gross total income is Rs. 7,50, 000. He has made
taxable income the following donations. Compute his
Taxable income for the previous year 2020-21.
i. National Defense Fund 20,000
ii. Prime Minister 's National Relief Fund 15,000
ii. Prime Minister's Drought Relief Fund 18,000
iv. Prime Minister 's Earthquake Relief Fund in kind Rs. 1000
V. Donation to a poor farmer 8,000
36. PROBLEM
•Mr. Basu's Gross Total Income is 6,00,000
Including LTCG of Rs. 60000 he has made the following
payments. Compute his total income for the previous year
2020-21.
•His contribution to PPF 16,000
•Medi claim insurance for his wife 14,000
•Expenditure on medical treatment for a disabled brother
30,000
• Donation to the repair work of a temple 40,000
•Donation for promoting a minor community 60,000
37. SOLUTION
• Computation of total Income of Mr. Basu
Gross Total Income 600000
Less: LTCG 60000
Contribution to PPF (80 C) 16000
Medi claim insurance for wife (80D) 14,000
Expenditure on medical treatment
for a disabled brother (80 DD) 75,000
--------------------165000
-------------
435000
(10% of 435000 is Rs. 43500)
Donation 80 G 50% on 43500 21750
-----------
Taxable Income of Mr. Basu 413250
38. • Mr. Sekar's Gross Total Income for the previous year ending on
31.03.21 is Rs. 30,00,000. He has donated the following amounts:
• National Defence Fund 1,00,000
• P.M's Drought Relief Fund 2,00,000
• To an approved college for constructing a class room 2,00,000
• To a temple for its repairs 1,50,000
• For the development of sports and games 2,00,000
• He has deposited 1,00, 000 in Public Provident Fund.
Determine his total income.
39. Mr. Chezhiyan's G.T.I. is Rs. 5,00,000 and he has made the
following donations. Compute his total income for the previous
year 2020-21.
i. Africa fund 10,000
ii. National Sports Fund 30,000
iii. Donation to approved educational institutions 25000
vi. Donation to temples for repairs 35,000
V. Donation to the municipal corporation for family planning
28000
40. Mr. Arumugam's G.T.I is Rs. 4,00,000 during the P.Y.
2018-19 and he has made the following donations. Determine
his total income:
i. Rs. 20,000 to Andhra Pradesh Chief Minister's Earthquake
Relief Fund
ii. 10,000 to National Cultural Fund
iii. 6,000 to Rajiv Gandhi Foundation
iv. 25,000 to Municipal corporation for the promotion of family
planning.
V. Rs. 28000 to approved educational institutions
41. SEC. 80GG: DEDUCTION IN RESPECT OF RENT PAID
• When an individual pays rent for his residential accommodation, he can claim
it for deduction. He may be either self- employed or an employee without
receiving H.R.A. He should not own any residential place where he is working.
If he is having residential accommodation in some other place, it should not
be assessed as self-occupied property. He can claim, the least of the
following three as deduction: i. 10% of Rent ii. 25% of Adjusted Total Income
iii. 5,000 p.m.
• Note: Adjusted Total Income means Gross Total Income reduced by the
following: i. LTCG, if any ii. STCG on transfer of shares through a recognized
stock exchange ii. All deductions under Sections 80C to 80U except 80GG
42. •From the particulars, compute the total income of Mr.
Siva, for the previous year 2020-21
• i. Income from Business Rs.300000
• i. Income from other sources Rs 200000.
• ii. L.I.C premium paid Rs. 20000
• iii. Rent paid for residential accommodation Rs. 72000
43. SEC. 80GGA: DEDUCTION IN RESPECT OF DONATIONS
FOR SCIENTIFIC RESEARCH OR RURAL DEVELOPMENT
• An assessee who is not having any income under business or
profession can claim this deduction.. Donation may be provided to
an association, a university or college, a public company or any
other approved institution. 100% of donations can be claimed as
deduction. No deduction is allowed under this section in respect of
any sum exceeding 10,000 is paid by any mode other than cash.
44. SEC. 80GGB: DEDUCTION IN RESPECT OF
CONTRIBUTIONS GIVEN TO POLITICAL PARTIES
This deduction is allowed to an assessee (including an
Indian company) who has contributed any amount of money
to a political party during the previous year. When the
assessee bears advertisement expenses in a souvenir /
brochure owned by a political party he can claim this.
However, this deduction is not available
i) to a local authority or company funded by Government.
ii) if donation is paid by cash.
45. SEC. 80QQB: DEDUCTION IN RESPECT OF ROYALTY
INCOME OF AUTHORS OF TEXT BOOKS
This deduction is allowed to an individual who
has received royalty for his work on literacy, artistic
or scientific nature. He can claim deduction@ 15% of
the value of such books less expenses subject to the
maximum of Rs. 3,00,000 as deduction.
46. PROBLEM
Mr. Hari submit the following information. Compute his total
income for the previous year 2020-21.
Royalty on a book for college students on Rs. 6,00, 000 @
20% Rs. 1,20,000
Expenses incurred to earn the royalty 20,000
Other income Rs. 5,00, 000
47. SEC 80RRB: DEDUCTION IN RESPECT OF ROYALTY
ON PATENTS
This deduction is allowed to an individual who is
respect and patent and if his gross total income
includes royalty in respect of such patent. The patent
should be registered on or before 1.4.2003. under
the Patents Act 1970. He can claim the actual royalty
subject to the maximum of Rs. 3,00,000 as deduction.
48. SEC. 80U: DEDUCTION IN RESPECT OF PERSON
WITH DISABILITY
If the assessee is a person with disability, he can claim deduction
under this section. He must be certified by the medical authority
as a person with disability. An assessee who is suffering from
severe disability can claim up to Rs. 1,25,000. An assessee who
is suffering from disability but not severe disability can claim up
to 75,000. This deduction is allowed irrespective of actual
expenditure.
49. SEC 80 EE: DEDUCTIONS IN RESPECT OF INTEREST
ON HOME LOAN
The first time home buyers can claim an additional tax deductions upto Rs. 50000 on
home loan interest payments u/s 80 EE. This criteria given below have to be met the
following deductions:
a. The home loan should have been sanctioned in or after 2016 – 17.
b. Loan amount should be less than 35 lakh.
c. the value of house should not be more than Rs. 50 Lakhs.
d. the home buyer should not have any other existing residential house in his name.
e. If deduction of interest is claimed u/s 80 EE, no other deductions will be allowed in
respect of such interest.