Deduction of NPT

1. DEDUCTION UNDER SEC
80C TO 80U
Name :- Shubham saha
Class :- 4E
Enrollment no :- 0860501721
Subject :- Income Tax

2. INDEX
• Expenses that Qualify for Tax Deductions under Section 80C
• Tax Deductions under Section 80C
• Subsections under Section 80C
• Tax Deductions under Section 80D
• Tax Deductions under Section 80E
• Tax Deductions under Section 80G
• Tax Deductions under Section 80 IA
• Tax Deductions under Section 80J
• Tax Deduction under Section 80LA

3. • Tax Deduction under Section 80P
• Tax Deduction under Section 80RRB
• Tax Deduction under Section 80U
• FAQs on Deductions Under Section 80C to 80U

4. GLOSSARY
• Individuals can claim tax deduction benefits for payments made towards life insurance
policies, fixed deposits, superannuation/provident funds, tuition fees, and
construction/purchase of residential properties under Section 80C of the Income Tax Act.
• Taxes are an integral component in our country, with them accounting for a major portion of
the income earned by the government, income which is utilized to provide certain basic
provisions to citizens. Individuals who earn more than a certain amount are expected to pay
taxes, as per the existing tax slabs. While these taxes can be harsh on the bank balance of a
taxpayer, the government also provides certain provisions wherein one can save tax. Tax
deductions can help one reduce the taxable income, lowering their overall tax liability and
thereby helping them save on taxes. The deduction one is eligible for depends on many
factors, with different limits set for different purposes.

5. EXPENSES THAT QUALIFY FOR TAX DEDUCTIONS
UNDER SECTION 80C
• The following are the expenses that qualify for tax deductions under
Section 80C of the Income Tax Act:
• Premium payments made towards Life insurance policies
• Tuition fees for children's education
• Repayment of principal amount on home loan
• Registration fees and stamp duty for house property

6. TAX DEDUCTIONS UNDER SECTION 80C
• Section 80C of the Income Tax Act provides provisions for tax deductions on a number of
payments, with both individuals and Hindu Undivided Families eligible for these deductions.
Eligible taxpayers can claim deductions to the tune of Rs 1.5 lakh per year under Section 80C,
with this amount being a combination of deductions available under Sections 80 C, 80 CCC and
80 CCD.
• income tax deductions under Section 80C to 80U
• Payments made towards construction or purchase of a residential property
• Payments issued towards a fixed deposit with a minimum tenure of 5 years
• This section provides for a number of additional deductions like
investment in mutual funds, senior citizens saving schemes, purchase
of NABARD bonds, etc.

7. SUBSECTIONS UNDER SECTION 80C
• Section 80C has an exhaustive list of deductions an individual is eligible for, which have led to the
creation of suitable sub-sections to provide clarity to taxpayers.
• Section 80CCC: Section 80CCC of the Income Tax Act provides scope for tax deductions on investment in
pension funds. These pension funds could be from any insurer and a maximum deduction of Rs 1.5 lakh
can be claimed under it. This deduction can be claimed only by individual taxpayers.
• Section 80CCD: Section 80CCD aims to encourage the habit of savings among individuals, providing
them an incentive for investing in pension schemes which are notified by the Central Government.
Contributions made by an individual and his/her employer, both are eligible for tax deduction, subject
to the deduction being less than 10% of the salary of the person. Only individual taxpayers are eligible
for this deduction.

8. TAX DEDUCTIONS UNDER SECTION 80D
• Section 80D of the Income Tax Act permits deductions on amounts spent by an individual towards the premium of
a health insurance policy. This includes payment made on behalf of a spouse, children, parents, or self to a Central
Government health plan.
• An amount of Rs 15,000 can be claimed as a deduction when paid towards the insurance for spouse, dependent
children, or self, while this amount is Rs 30,000 (Union Budget 2017) if the person is over the age of 60 years.
• On February 1, 2018, Finance Minister Arun Jaitley presented the Union Budget 2018 with a few changes in the
tax deductions applicable for senior citizens. Under Section 80D, the income tax deduction limit for senior citizens
has been increased to Rs.50,000 for medical expenditure.

9. TAX DEDUCTIONS UNDER SECTION 80G
• Section 80G encourages taxpayers to donate to funds and charitable institutions, offering tax benefits on
monetary donations. All assessees are eligible for this deduction, subject to them providing proof of payment,
with the limit of deductions decided based on a few factors.
• 100% deductions without any limit: Donations to funds like National Defence Fund, Prime Minister’s Relief Fund,
National Illness Assistance Fund, etc. qualify for 100% deduction on the amount donated.
• 100% deduction with qualifying limits: Donations to local authorities, associations or institutes to promote family
planning and development of sports qualify for 100% deduction, subject to certain qualifying limits.
• 50% deduction without qualifying limits: Donations to funds like the PMs Drought Relief fund, Rajiv Gandhi
Foundation, etc. are eligible for 50% deduction.

10. TAX DEDUCTIONS UNDER SECTION 80 IA
• Section 80 IA provides an avenue for all taxpaying assessees to claim tax deductions on the profits generated
through industrial activities. These industrial undertakings can be related to telecommunication, power
generation, industrial parks, SEZs, etc.
• The following subsections are related to Section 80-IA
• Section 80-IAB: Section 80 IAB can be used by SEZ developers, who can claim tax deductions on their profits
through development of Special Economic Zones. These SEZs need to be notified after 1/4/2005 in order for them
to be eligible for tax deductions.
• Section 80-IB: Provisions of section 80-IB can be used by all assessees who have profits from hotels, ships,
multiplex theatres, cold storage plants, housing projects, scientific research and development, convention
centres, etc.
• Section 80-IC: Section 80 IC can be used by all assessees who have profits from states categorised as special.
These include Assam, Manipur, Meghalaya, Himachal Pradesh, Uttaranchal, Arunachal Pradesh, Mizoram, Tripura
and Nagaland.

11. TAX DEDUCTIONS UNDER SECTION 80J
• Section 80J of the Income Tax Act was amended to include two subsections, 80JJA and 80 JJAA
• Section 80 JJA: Section 80 JJA relates to deductions permitted on profits and gains from assessees who are in the
business of processing/treating and collecting bio-degradable waste to produce biological products like bio-
fertilizers, bio-pesticides, bio-gas, etc.All assessees who deal with this are eligible for deductions under this
section. Such assessees can claim deduction equivalent to 100% of their profits for 5 successive assessment years
since the time their business started.
• Section 80 JJAA: Deductions under Section 80 JJAA can be claimed by Indian companies which have profits from
the manufacture of goods in factories. Deductions equivalent to 30% of the salary of new full time employees for
a period of 3 assessment years can be claimed. A chartered accountant should audit the accounts of such
companies and submit a report showing the returns. Employees who are taken on a contract basis for a period
less than 300 days in the preceding year or those who work in managerial or administrative posts do not qualify
for deductions.

12. TAX DEDUCTION UNDER SECTION 80LA
• Deductions under Section 80LA can be availed by Scheduled Banks which have
offshore banking units in Special Economic Zones, entities of International
Financial Services Centres and banks which have been established outside India,
in accordance to the laws of a foreign nation.
• These assessees are eligible for deductions equivalent to 100% of the income for
the first 5 years, and 50% of income generated through such transactions for the
next 5 years, subject to the rules of the land.
• Such entities should have relevant permission, either under the SEBI Act, Banking
Regulation Act or registration under any other relevant law.

13. TAX DEDUCTION UNDER SECTION 80P
• Section 80P caters to cooperative societies, offering tax deductions on their income, subject to
certain conditions. 100% deduction is permitted to cooperative societies which have incomes
through cottage industries, fishing, banking, sale of agricultural harvest grown by members and
milk supplied by members to milk cooperative societies.
• Cooperative societies which are involved in other forms of business are eligible for deductions
ranging between Rs 50,000 and Rs 1 lakh, depending on the type of work they are involved in.
• Deductions which can be claimed by all cooperative societies are listed below.
• Income which a cooperative society makes by renting out warehouses
• Income derived through interest on money lent to other societies
• Income earned through interest from securities or properties

14. TAX DEDUCTION UNDER SECTION 80RRB
• Patent owners are given tax breaks under Section 80RRB, which also
grants tax relief to residents who receive royalties from their patent as
income. If the patent is registered after March 31, 2003, royalty
payments up to Rs 3 lakh can be deducted. Those who get royalties
from overseas must bring those funds into the nation within a certain
time frame in order to be qualified for tax deductions on those
royalties.

15. TAX DEDUCTION UNDER SECTION 80U
• Only resident individual taxpayers with disabilities are eligible to claim tax
deductions under Section 80U. A maximum deduction of Rs.75,000 per year is
available to anyone who have been declared Persons With At Least 40% Disability
by the pertinent medical authorities. If they meet certain requirements, those
with severe disabilities are eligible for a maximum deduction of Rs.1.25 lakh.
Autism, mental retardation, cerebral palsy, and other conditions are among the
disabilities that qualify for tax advantages.

16. FAQS ON DEDUCTIONS UNDER SECTION 80C TO 80U
1. Who is eligible to claim deductions under Section 80C of the Income Tax Act?Any individual or Hindu Undivided
Family can claim deductions under Section 80C of the Income Tax Act.
2. Who is not eligible to claim deductions under Section 80C of the Income Tax Act?Any partnership firm and company
will not be able to claim deductions under Section 80C of the Income Tax Act.
3. What is the maximum amount of deduction I can claim under Section 80C of the Income Tax Act?The maximum
amount of deduction that can be claimed under Section 80C of the Income Tax Act is Rs.1.5 lakh.
4. Can I claim a deduction on my children's school fees under Section 80C of the Income Tax Act?Yes, as long as you
are paying tuition fees to educational institutions such as schools, colleges or university in India, and your children
are pursuing their studies full-time in such institutions, you can avail tax benefits under Section 80C of the Income
Tax Act. However, taxpayers are allowed to claim deductions for a maximum of two children.
5. Are patent holders eligible to claim any deductions under Section 80?Yes, patent holders are eligible to claim any
deductions under Section 80RRB.

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