|
Section |
Assessee |
Qualifying Payments / Income |
Conditions / Incidents |
Qualifying Amount |
Quantum |
| 80C |
Individual & HUF |
Payment made towards life insurance permia,
deferred Annunity, Contributions to PF, subscription to certain
equity shares or debentures etc. |
Premium or other payment should be made
on an insurance policy other than a contract fro a deferred
annunity as is not in excess of 20% of sum of the actual some
assured |
Aggregate should not exceed
1,00,000/- |
1,00,000 |
| 80CCC |
Individual |
Payment made out of taxable
income to LIC under approved Pension Plan (Jeevan Suraksha). |
1. Rebate is not allowable u/s.88.
2. Pension received or amount withdrawn is taxable in the
year of receipt. |
Rs.10,000
|
Amount paid subject to limit
of Rs.10,000. |
| 80D |
Individual HUF |
Premia paid out of taxable income
to approved scheme of GIC (Mediclaim, Bhavishya Arogya). |
1. Insurance on the health of
the assessee, spouse, dependent parents / children, members
of HUF.
2. Payment should by made by cheque.
|
Rs.10,000
Rs.15,000
(w.e.f. 1.4.2000 for senior citizen) |
100% of the premia paid or Rs.10,000
(Rs.15000 for Senior citizen)
whichever is less. |
| 80DD |
Individual HUF
(Resident) |
1. Expenses for Medical Treatment
(including Nursing), Training & Rehabilitation of handicapped
dependent
2. Amount paid/deposited to any scheme framed by LIC/UTI for
payment of annuity or lump sum amount for the maintenance
of a handicapped dependent. |
1. Such handicapped is suffering
from Permanent Physical Disability including Blindness, or
is subject to Mental Retardation which reduces considerable
capacity for normal work or engagement to a gainful employment
or occupation. Certificate of Specialist Doctor working in
a Govt. Hospital required. (see rule 11A).
2. Nomination can be either in favour of handicapped dependent
or any other person or a trust in case of investment in scheme.
3. If the handicapped dependant predeceases the individual
or a member of HUF in whose name subscription is made then
entire amount paid/deposit in scheme will be treated as taxable
income in the year of receipt.
4. Such scheme provides for payment of annuity or lumpsum
amt. for the benefit of handicapped dependent in the event
of death of such individual or member of HUF.
5. Handicapped dependent is defined u/s 80DD(4)(b). (see rule
11A) |
- |
Rs.50,000( A higher deduction of Rs. 75,000 shall be allowed,
where such dependant is a person with severe disability
having any disability over 80 per cent) |
| 80DDB |
Individual HUF
(Resident) |
Amount actually incurred for
medical treatment of such disease or ailment as may be specified
|
1. Deduction available for expenses
on self, dependent relative or a member of a HUF.
2. Assessee will be required to furnish a certificate in form
10-I from any Doctor registered with Indian Medical Association
with Post Graduate qualification. |
Rs.40,000 or expenditure actually incured whichever is
lower
(Rs.60,000 for senior citizen) |
Amount received from an insurer
for the medical treatment is to be reduced. |
| 80E |
Individual |
Repayment (out of taxable income)
of loan taken for pursuing higher education and interest on
such loan. |
1. The loan should be from an
approved charitable institution notified u/s.10(23C) / referred
to in S. 80G(2)(a) / a banking co. / notified financial institution.
2. Higher education means full time studies for any graduate/post-graduate
course in engg., medicine, management, architecture or for
post-graduate course in applied sciences or pure sciences
including mathematics and statistics.
3. Available for a maximum of 7 A.Ys after initial assessment
year in which the loan repayment / interest payment starts |
- |
Aggregate of instalment and
interest subject to a maximum of Rs.40,000 p.a.
(The deduction is available for a maximum period of 8 years
or till the principal amount of such loan together with interest
is liquidated, whichever is earlier) |
| 80G |
Any Assessee (except u/s.80G(2)(c)) |
Donations for charitable purposes. |
1. Donations should not be in
kind.
2. If paid out of another year’s income or out of income
not includible in the assessment of the current year the rebate
still available (Lt.F.No.45/313/66-ITJ(61) dt. 2.12.1966).
3. An institution, trust or fund is allowed to incur
expenditure of a religious nature not exceeding 5% of its
total income. |
Amt of Donations, not exceeding
10% of GTI (as reduced by other deductions).
In certain cases this limit does not apply. Please see S.80G(4). |
1. 50% Generally and
2. 100% in cases of —
a) PM's Relief Funds
b) Assoc. for promoting family planning.
c) Approved universities etc.
d) National Foundation for communal harmony
e) Zilla Saksharta Samitis
f) National or State Blood Transfusion Councils
g) Funds set up by State Govt. for medical relief to poor.
h) Army Central Welfare Fund; Indian Naval Benevolent Fund;
or Air Force Central Welfare Fund.
i) National Sports Fund set up by Central Govt.
j) Fund for Technology Development and Application set up
by the Central Govt. (w.e.f. 1.4.2000)
k) Indian Olympic Association for specified purposes (w.e.f.
1.4.2000)
[Note: Donor should be a company]
3. Excess of Actual rent paid over 10% of total income which
ever is less. |
| 80GG |
Any Assessee (other than having any income falling u/s.10(13A))
|
Expenditure incurred towards
payment of rent in respect of furnished or unfurnished accommodation
occupied for his own residence. |
1. This section does not apply
where residential accommodation owned by assessee, his spouse,
minor child or by HUF at a place where assessee ordinarily
resides or carries on business or profession etc.
2. This section does not apply where the assessee owns residential
accommodation at any other place which is in occupation of
assessee. (self occupied u/s.23) |
Expenditure in excess of 10%
of his total income. |
Not more than
i) Rs. 2,000/- per month or
ii) 25% of the total income.
iii)Excess of actual rent paid over 10% of total income,
whichever is less.
|
| 80GGA |
Any Assessee |
Donations for Scientific Research
or Reseach in Social Sciences or Rural Development or Conservation
of Natural Resources or to National Urban Poverty Eradication
Fund or for eligible project / scheme. |
1. Assessee should not have
income under the head 'Profits and Gains of Business or Profession'.
2. Donee should be approved u/s.35 or 35CCA or 35AC or 35CCB.
|
Amount of Donations. |
100% |
| 80HHB |
Resident Person/Indian Company |
Profits from projects outside
India. |
1. Received in Convertible Foreign
Exchange.
2. Creation of Foreign Project Reserve Account.
3. Such percentage of the profits as is allowable as deduction
is brought in India within 6 months from the end of the year
or within the time extended by RBI.
4. Separate accounts to be maintained.
5. Audit report in F. 10CCA to be furnished in case of assessees
other than a Co. or Co-op. Soc.
6. A certificate regarding correctness of claim from an accountant
(as defined in the explanation to S. 228(2)) to be furnished
with the return of income in form 10CCAH. |
Profits or gains derived from
the project. |
1. A.Y. 2002-2003: 30%
A.Y. 2003-2004: 20%
A.Y. 2004-2005: 10%
A.Y. 2005-2006 and thereafter : NIL
2. Amount credited to FPRA
3. Amount brought into India in CFE, within the time limit
or extended time limit which ever is less. |
| 80HHBA |
Resident Person/Indian Company |
Profits and gains derived from
execution of a housing project. |
1. Housing project awarded to
assessee on the basis of global tender
2. Project is to be aided by the World Bank.
3. Assessee maintains separate accounts.
4. Auditors' report to be furnished in form 10CCAA.
5. Such percentage of the profits as is allowable as a deduction
is transferred to Housing Projects Reserve Account, to be
utilise by assessee during next 5 years for purpose of business
other than distribution by way of dividends or profits.
6. If before expiry of 5 yrs., the reserved account utilised
for distribution or purposes other than business, the total
income of the A.Y. in which deduction was allowed to be recomputed.
7. No part of the income payable to the assessee shall qualify
for deduction for any A.Y. under any other provision. |
Profits or gains derived from
the project |
1. As above
2. Amount credited to Housing Project Reserve Account whichever
is less. |
| 80HHC |
Resident person /Indian Company |
Profits on exports of goods
directly or through Export House or Trading House. |
1. Sale proceeds brought in
India in convertible foreign exchange within a period of 6
months from the end of the year or within the time extended
by RBI or any authority as is authorised under any law
regarding foreign exchange.
2. Not on exports of mineral oil, minerals and ores other
than certain processed minerals excepting export of granite
dimensional blocks.
3. Auditors' Report be furnished in form 10CCAC |
Export Profits computed
u/s.80HHC(3) |
A.Y. 2002-2003: 70%
A.Y. 2003-2004: 50%
A.Y. 2004-2005: 30%
A.Y. 2005-2006 and thereafter : NIL |
| 80HHD |
Resident Person/Indian Company |
Profits from services provided
to foreign tourists in case of assessee engaged in following
businesses:
- Business of an approved Hotel;
- Business of an approved Tour Operator;
- Travel Agent licensed by RBI. |
1. Earnings to be in Convertible
Foreign Exchange.
2. Reserve utilised for specified purposes within 5 years.
3. Earnings in rupees for services to foreign tourists travelling
under a package tour will be deemed to be in convertible Foreign
Exchange.
4. From payment received in convertible foreign exchange,
any payment made to another hotelier, tour operator or travel
agent is to be reduced.
5. Auditors' report to be furnished in F. 10CCAD.
6. Such part of deduction of profits derived from hotel business
shall not qualify for deduction under any other provisions
for any A.Y.
7. Deduction in respect of profits from business of hotel
not to exceed profits and gains of such hotel.
8. Receipts in relation to services provided to foreign tourists
are brought in to India in convertible foreign exchange within
a period of 6 months from the end of year or within the time
extended by RBI or any authority as is authorised under
any law regarding foreign exchange.
9. The specified purposes for the utilisation of reserves
within 5 years, now include subscription to equity shares
of any eligible issue of capital (as defined by expln. e)
by a public company. If any equity shares are transferred
or converted within 3 years, then the amount utilised above
shall be deemed to be the profits of the year of transfer
or conversion. |
Eligeble Profit
=
Income under the head "Profit and gains of business
or profession"
X
Net foreign exchange receipt from services provided to
foreign tourists [as computed in example given in para 250.1-4a]
_____________
Total receipt of the business |
In A.Y. 2002-2003 : 30% plus
amount of reserve created not exceeding 30% of profit
In A.Y. 2003-2004 : 25% plus amount of reserve created not
exceeding 20% of profit
In A.Y. 2004-2005 : 15% plus amount of reserve created not
exceeding 10% of profit
In A.Y. 2005-2006 & thereafter : NIL |
| 80HHE |
Resident Person/Indian Company |
Profits derived from export
outside India of
1. Computer software or
2. Its transmission from India or
3. Providing technical services for development or production
of software |
1. As per (1) of S. 80HHC given
above.
2. Auditors' Report to be furnished in Form 10CCAF.
3. Deduction also available to Supporting Software Developer
(see S. 80HHE(1A)) |
[Profit of business X Export
turnover
_____________
Total turnover] |
A.Y. 2002-2003: 70%
A.Y. 2003-2004: 50%
A.Y. 2004-2005: 30%
A.Y. 2005-2006 and thereafter : NIL |
| 80HHF |
Resident person / Indian Company |
Profits from business of export
or transfer out of India of any software (film, television,
music, television news) including telecast rights. |
1. Consideration received in
or brought into India in convertible foreign exchange, within
a period of 6 months from the end of the year or within the
time extended by RBI or any authority as is authorised under
any law regarding foreign exchange
2. Accountants’ report regarding correctness of the
claim shall be submitted with the return of income, in Form
10CCAI.
3. Once deduction is claimed & allowed under this section
it will not be allowed under any other provision of the Act.
4. No deduction shall be allowed if such business is prohibited
by any law.
5. For the definition of software (film, music, television
etc.) or telecast rights etc. see explanation to the section.
|
[Profit of business X Export
turnover
_____________
Total turnover] |
A.Y. 2002-2003: 70%
A.Y. 2003-2004: 50%
A.Y. 2004-2005: 30%
A.Y. 2005-2006 and thereafter : NIL |
| 80JJA |
Any Assessee |
Income from business of collecting
& processing or treating of bio-degradable waste for generating
power or producing bio-fertilizers, bio-pesticides or other
biological agents (w.e..f 1.4.2000) or for producing bio-gas
making pellets or briquettes for fuel or organic manure. |
- |
Such income |
Whole of such income for first
5 consecutive A.Ys. |
| 80JJAA |
Indian Company |
Additional wages paid to new
regular workmen employed during the previous year. |
1. Total income includes profits
& gains derived from any industrial undertaking engaged
in production of article or thing.
2. The industrial undertaking is not formed by reconstruction
or splitting up of existing one or amalgamation with another
industrial undertaking.
3. Auditors' report to be furnished.
4. See definition of additional wages, regular workman, workman. |
Such additional wages |
1st A.Y - 30%
of Additional Wages. Next 2nd A.Y - if the increase in number
of regular workmen during the year is not less than 10%
w.r.t P.Y |
| 80L |
Individual HUF |
1. Interest on Central/State
Govt. Securities;
2. Income on units of UTI/specified mutual funds; (only
upto A.Y. 1999-2000)
3. Interest on Bank Deposits;
4. Interest on notified PSU Debentures.
5. Interest on P.O. (monthly income) Deposits;
6. Interest on Co-op. Soc. Deposits.
7. Interest on NSC VIII Issue.
8. Interest on deposits with eligible Financial Institutions.
9. Interest on deposits with eligible Housing Finance Companies.
|
If the income derived from asset
held by or on behalf of a firm, AOP/BOI, no deduction is allowed
in the hands of members or partners. |
Eligible income |
Rs.12,000 (additional deduction
upto Rs.3,000 is allowable in respect of interest on any security
of the Central or State Govt.) |
| 80O |
Indian Company & any Resident
person |
Income received from a Foreign
Govt./Enterprise for use outside India if any, of patent,
invention design or Regd. Trade mark. |
1. Income brought in India within
6 months from the end of the year or within the time extended
by RBI or any authority as is authorised under any law
regarding foreign exchange.
2. Assessee has to furnish a certificate alongwith the return,
certifying the correctness of the claim in form 10HA. |
Such Income |
A.Y. 2000-2001: 50%
A.Y. 2001-2002: 40%
A.Y. 2002-2003: 30%
A.Y. 2003-2004: 20%
A.Y. 2004-2005: 10%
A.Y. 2005-2006 and thereafter : NIL |
| 80RRA |
Individual citizen of India
and Technician. |
Remuneration in Foreign Currency
for services rendered outside India. |
1. Terms and conditions of service
of a technician should be approved.
2. A non-technician should be/have been in Central and/or
State Government employment and service is sponsored by Central
Government.
3. Income should be brought in India within 6 months from
the end of the previous year or within the time extended by
RBI or any authority as is authorised under any law regarding
foreign exchange.
4. Assessee to furnish certificate in prescribed form certifying
correctness of the claim. |
Amount of Remuneration brought
into India, within 6 months or extended time. |
A.Y. 2000-2001: 75%
A.Y. 2001-2002: 60%
A.Y. 2002-2003: 45%
A.Y. 2003-2004: 30%
A.Y. 2004-2005: 15%
A.Y. 2005-2006 and thereafter : NIL |
| 80U |
Resident Individual. |
Income of a person, who is
a) totally or partially blind; or
b) suffers from physical disability; or
c) is subject to Mental Retardation
|
In the first year of claim assessee
to produce medical certificate from a doctor working in Government
Hospital. (Refer Rule 11D) |
Rs. 50,000 |
Rs. 50,000
A higher deduction of Rs. 75.000 is allowed in respect of
a person with seveere disability (i.e. having any disability
over 80 per cent) |
