A) Deductions from Gross Total Income.
|
Section
|
Assessee
|
Qualifying Payments / Income
|
Conditions / Incidents
|
Qualifying Amount
|
Quantum
|
| 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 Pension received or amount withdrawn is taxable in the year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.40,000
|
| 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
(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. |
| 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 HPRA which ever 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. |
Profits or Gains |
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)) |
Export Profits computed
u/s.80HHE(3) |
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. |
Profits computed u/s. 80HHF(3) |
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. |
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|
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. 40,000 |
Rs. 40,000
|
|
Section
|
Type of Business
|
Date of Commencement
|
Amount of Deduction
|
Period
|
| 80IA |
1. Infrastructure enterprise : business
of (i) developing, (ii) maintaining and operating, or (iii)
developing, maintaining and operating new Infrastructure facility — i.e.
road, bridge, airport, port, waterways, rail systems, highway
project, water treatment / water supply / irrigation / sanitation
/ sewerage solid waste management systems. |
After 1.4.1995 |
100%
25%
(30% for Cos.)
|
First 5 A.Ys.
Next 5 A.Ys.
(any 10 consecutive A.Ys. out of first 15 A.Ys. In case of Highway
Project, 10 A.Ys. out of 20 A.Ys.) |
| |
2. Telecommunication undertakings : basic
or cellular, radio paging, domestic satellite service or network
of trunking & electronic data interchange services |
1.4.1995 to 31.3.2000 |
100%
25%
(30% for Cos.)
|
First 5 A.Ys.
Next 5 A.Ys.
(any 10 consecutive A.Ys. out of first 15 A.Ys.) |
| |
3. Industrial Parks : undertakings
that (a) develops; (b) develops & operates; or (c) maintains
and operates a notified Industrial Park |
1.4.1997 to 31.3.2002 |
100%
25%
(30% for Cos.)
|
First 5 A.Ys.
Next 5 A.Ys.
(any 10 consecutive A.Ys. out of first 15 A.Ys.) |
| |
4. Power undertakings : |
|
|
|
| |
- undertakings engaged in (a)
generation; (b) generation & distribution of power
- undertakings engaged in transmission or distribution |
1.4.1993 to 31.3.2003
1.4.1999 to 31.3.2003 |
100%
25%
(30% for Cos.) |
First
5 A.Ys.
Next 5 A.Ys.
(any 10 consecutive A.Ys. out of first 15 A.Ys.) |
| 80IB |
1. Industrial Undertakings:
| |
|
|
| |
a) Other than (b), (c) & (d) |
1.4.1991 to 31.3.1995 |
25%
(30% for Cos.)
|
First 10 A.Ys. |
| |
b) SSI U/Cold Storage other than
(c) & (d) below |
1.4.1995 to 31.3.2000 |
25%
(30% for Cos.)
|
First 10 A.Ys. |
| |
c) Backward State (Eighth Schedule) |
1.4.1993 to 31.3.2000 |
100%
25%
(30% for Cos.) |
First 5 A.Ys.
Next 5 A.Ys. |
| |
d) Backward District |
|
|
|
| |
- Category ‘A’ |
1.10.1994 to 31.3.2002 |
100%
25%
(30% for Cos.)
|
First 5 A.Ys.
Next 5 A.Ys. |
| |
- Category 'B' |
1.10.1994 to 31.3.2002 |
100%
25%
(30% for Cos.)
|
First 3 A.Ys.
Next 5 A.Ys. |
| |
2. Ships |
1.4.1991 to 31.3.1995 |
30%
|
First 10 A.Ys. |
| |
3. Hotels (approved by prescribed
authority) : |
|
|
|
| |
- Hilly Area/Rural Area/Place of
Pilgrimage/other notified areas |
1.4.1990 to 31.3.1994
& 1.4.1997 to 31.3.2001 |
50%
|
First 10 A.Ys. |
| |
- Other place |
1.4.1991 to 31.3.1995
& 1.4.1997 to 31.3.2001 |
30%
|
First 10 A.Ys. |
| |
4. Company carrying on Scientific
Research & Development |
a) If approved by prescribed authority
before 1.4.1999
b) If approved by prescribed authority after 31.3.2000 but before
1.4.2003 |
100%
100%
|
First 10 A.Ys.
First 10 A.Ys. |
| |
5. Undertaking engaged in commercial
production or refining of mineral oil |
|
|
|
| |
- North Eastern Region |
Before 1.4.1997 |
100%
|
First 7 A.Ys. |
| |
- Other Region |
On or after 1.4.1997 in other cases |
100% |
First 7 A.Ys. |
| |
6. Undertaking developing & building
housing projects approved (by local authority.) before 31.3.2001
Conditions :
i) minimum plot area : one acre
ii) residential unit has maximum built up area of 1000 sq. ft.
in Delhi/Mumbai, 1500 sq. ft in other areas |
1.10.1998 to 31.3.2003*
(* The project to be completed before 31.3.2003) |
100% |
(Projectwise) |
