DEDUCTIONS As per Income Tax Ruls amended by the the Income Tax DepartmentAY 2017-18]
Section
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Nature of deduction
|
Who can claim shWho can claim
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(1)
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(2)
|
(3) (3)
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Against 'salaries'
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Entertainment allowance [actual or at the rate of 1/5th of salary, whichever is less] [limited to Rs. 5,000]
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Government
employees
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Employment tax
|
Salaried assessees
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Against 'income from house properties'
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23(1), first
proviso
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Taxes levied by local authority and borne by owner if paid in relevant previous year
|
All assessees
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Standard deduction [30% of the annual value (gross annual value less municipal taxes)]
|
All assessees
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Interest on borrowed capital (Rs. 30,000/Rs. 2,00,000, subject to specified conditions)
|
All assessees
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Standard deduction of 30 per cent of arrears of rent or unrealised rent received
|
All assessees
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Against 'profits and gains of business or profession'
A. Deductible items
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Rent, rates, taxes, repairs (excluding capital expenditure) and insurance for premises
|
All assessees
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Repairs (excluding capital expenditure) and insurance of machinery, plant and furniture
|
All assessees
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Depreciation1 in respect of following assets shall be allowed at prescribed percentage on actual cost of an asset (i.e., Straight Line Method):
i. Tangible Assets (buildings, machinery, plant or furniture);
ii. Intangible Assets (know-how, patents, copyrights, trademarks, licenses, franchises, or any other business or commercial rights of similar nature).
However, if asset is acquired and put to use for less than 180 days during the previous year, the deduction shall be restricted to 50% of depreciation computed above.
Note:
Taxpayers engaged in business of generation or generation and distribution of power have the option to claim depreciation on written down value basis also
|
Taxpayer engaged in
business
of generation or
generation
and distribution
of power.
| |||||
Depreciation1 in respect of following assets shall be allowed at prescribed percentage on written down value of each block of asset (as per WDV method):
i. Tangible Assets (buildings, machinery, plant or furniture);
ii. Intangible Assets (know-how, patents, copyrights, trademarks, licenses, franchises, or any other business or commercial rights of similar nature).
However, if asset is acquired and put to use for less than 180 days during the previous year, the deduction shall be restricted to 50% of depreciation computed above.
|
All assessees
engaged in
business or
profession
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Additional depreciation shall be allowed at 20% of actual cost of new plant and machinery [other than ships, aircraft, office appliances, second hand plant or machinery, etc.] (Subject to certain conditions).
However, if an asset is acquired and put to use for less than 180 days during the previous year, 50% of additional depreciation shall be allowed in year of acquisition and balance 50% would be allowed in the next year.
|
All taxpayers
engaged in:
a) manufacture or
production of
any article or thing;
or
b) generation, transmission
or
distribution of power
(if taxpayer is not claiming
depreciation on straight
line basis ).
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Proviso to
|
Additional depreciation shall be allowed at 35% of actual cost of new plant and machinery [other than ships, aircraft, office appliances, second hand plant or machinery, etc.] (Subject to certain conditions).
However, if an asset is acquired and put to use for less than 180 days during the previous year, 50% of additional depreciation shall be allowed in year of acquisition and balance 50% would be allowed in the next year.
Note:
1. Manufacturing unit should be set-up on or after April 1, 2015.
2. New plant and machinery should be acquired and installed on or after April 1, 2015 but before April 1, 2020.
|
All taxpayers setting-up
an undertaking or
enterprise for production or
manufacture of
any article or thing in any
notified
backward area in the
state of
Andhra Pradesh,
Bihar,
Telangana or
West Bengal.
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Investment allowance shall be allowed at 15% of actual cost of new asset acquired and installed by a company engaged in business or manufacturing or production of any article or thing (Subject to certain conditions)
Note:
Deduction shall be available if actual cost of new plant and machinery acquired and installed by the company during the previous year exceeds Rs. 25/100 Crores, as the case may be
|
Company engaged in
business
of manufacturing or
production
of any article or thing.
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Investment allowance shall be allowed at 15% of actual cost of investment made in new plant and machinery (other than ships, aircraft, vehicle, office appliances, second hand plant or machinery, etc.) if manufacturing unit is set-up in notified backward area in the State of Andhra Pradesh, Bihar, Telangana or West Bengal (subject to certain conditions).
Note:
1. New asset should be acquired and installed on or after April 1, 2015 but before April 1, 2020.
2. Manufacturing unit should be set-up on or after April 1, 2015.
3. Deduction shall be allowed under Section 32AD in addition to deduction under Section 32AC if assessee fulfils the specified conditions.
|
All taxpayers who acquire
new
plant and machinery
for
purpose of setting-up
manufacturing unit in
notified backward areas
in the
State of Andhra Pradesh,
Bihar,
Telangana or
West Bengal
| |||||
Development allowance - 50 per cent of actual cost of planting (subject to certain conditions and limits) (planting should have been completed before 1-4-1990)
|
Assessee engaged in
business
of growing and
manufacturing
tea in India
| |||||
Tea/Coffee/Rubber Development Account - Amount deposited in account with National Bank (Special Account) or in Deposit Account of Tea Board, Coffee Board or Rubber Board in accordance with approved scheme or 40% of profits of business, whichever is less (subject to certain conditions)
|
Assessees engaged in
business
of growing and
manufacturing
tea/Coffee/
Rubber in India
| |||||
Amount deposited in Special Account with SBI/Site Restoration Account or 20 per cent of profits, whichever is less (subject to certain conditions)
|
Assessee carrying on
business
of prospecting for,
or
extraction or
production of,
petroleum or natural
gas or
both in India
| |||||
Revenue expenditure on scientific research pertaining to business of assessee is allowed as deduction (Subject to certain conditions).
Note:
Expenditure on scientific research incurred within 3 years before commencement of business (in the nature of purchase of materials and salary of employees other than perquisite) is allowed as deduction in the year of commencement of business to the extent certified by prescribed authority.
|
All assessee
| |||||
175% of contribution made to approved research association, university, college or other institution to be used for scientific research shall be allowed as deduction (Subject to certain conditions)
150% of sum paid to such association, university, college or other institution is allowed as deduction (applicable from AY 2018-19)
|
All assessee
| |||||
125% of contribution made to an approved company registered in India to be used for the purpose of scientific research is allowed as deduction (Subject to certain conditions)
Entire sum paid to the company is allowed as deduction (applicable from AY 2018-19)
|
All assessee
| |||||
125% of contribution made to approved research association, university, college or other institution with objects of undertaking statistical research or research in social sciences shall be allowed as deduction (Subject to certain conditions)
Entire sum paid to such association, university, college or other institution is allowed as deduction (applicable from AY 2018-19)
|
All assessee
| |||||
Capital expenditure incurred during the year on scientific research relating to the business carried on by the assessee is allowed as deduction (Subject to certain conditions)
Capital expenditure incurred within 3 years before commencement of business is allowed as deduction in the year of commencement of business.
Note:
i. Capital expenditure excludes land and any interest in land;
ii. No depreciation shall be allowed on such assets.
|
All assessee
| |||||
200% of payment made to a National Laboratory or University or an Indian Institute of Technology or a specified person is allowed as deduction (Subject to certain conditions).
150% of payment is allowed as deduction (applicable from AY 2018-19)
The payment should be made with the specified direction that the sum shall be used in a scientific research undertaken under an approved programme.
|
All assessee
| |||||
200% of any expenditure incurred by a company on scientific research (including capital expenditure other than on land and building) on in-house scientific research and development facilities as approved by the prescribed authorities shall be allowed as deduction (Subject to certain conditions).
150% of expenditure so incurred shall be allowed as deduction (applicable from AY 2018-19)
Note:
Company should enter into an agreement with the prescribed authority for co-operation in such research and development and fulfils such conditions with regard to maintenance of accounts and audit thereof and furnishing of reports in such manner as may be prescribed;
|
Company engaged in
business
of bio-technology or
in any
business of
manufacturing or
production of eligible
articles
or things
| |||||
Expenditure incurred before 1-4-1998 on acquisition of patent rights or copyrights [equal to appropriate fraction of expenditure on acquisition to be deducted in fourteen equal annual instalments beginning with previous year in which such expenditure has been incurred] (subject to certain conditions)
|
All assessees
| |||||
Lump sum payment made in any previous year relevant to assessment year commencing on or before 1-4-1998, for acquisition of technical know-how [consideration for acquisition to be deducted in six equal annual instalments (3 equal annual instalments where know-how is developed in certain laboratories, universities and institutions)] (subject to certain conditions)
|
All assessees
| |||||
Capital expenditure incurred and actually paid for acquiring any right to use spectrum for telecommunication services shall be allowed as deduction over the useful life of the spectrum in equal instalments
|
All Assessee engaged
in
telecommunication
services
| |||||
Expe nditure incurred for obtaining licence to operate telecommunication services either before commencement of such business or thereafter at any time during any previous year
|
All assessees
| |||||
Expenditure by way of payment of any sum to a public sector company/local authority/approved association or institution for carrying out any eligible scheme or project (subject to certain conditions)
Deduction under this section is available only A.Y. 2017-2018
|
All assessees
| |||||
Capital expenditure incurred, wholly and exclusively, for the purpose of any specified business [setting up and operating a cold chain facility; setting up and operating a warehousing facility for storage of agricultural produce; laying and operating a cross-country natural gas or crude or petroleum oil pipeline network for distribution, including storage facilities being an integral part of such network; building and operating, anywhere in India, a hotel of two-star or above category as classified by the Central Government; building and operating, anywhere in India, a hospital with at least one hundred beds for patients; developing and building a notified housing project under a scheme for slum redevelopment or rehabilitation framed by the Government, as the case may be, in accordance with prescribed guidelines; developing and building a notified housing project under a scheme for affordable housing framed by the Government, as the case may be, in accordance with prescribed guidelines; production of fertilizer in India; setting up and operating an inland container depot or a container freight station which is approved/notified under the Customs Act, 1962; bee-keeping and production of honey and beeswax; and setting up and operating a warehousing facility for storage of sugar. Lying and operating a slurry pipeline for the transportation of iron ore; setting-up and operating a notified semi-conductor wafer fabrication manufacturing unit; developing or maintaining and operating or developing, maintaining and operating a new infrastructure facility4, carried on by the assessee during the previous year in which such expenditure is incurred (subject to certain conditions)
|
All assessees
Note: Such deduction is
available to
Indian company in
case of
following business, namely;-
i) Business of laying
and
operating a cross-country
natural
gas or crude or petroleum
oil
pipeline network.
ii) Developing or
maintaining
and operating or
developing,
maintaining and operating
a new
infrastructure facility.
| |||||
Payment to associations/institutions for carrying out rural development programmes (subject to certain conditions)
|
All assessees
| |||||
Expenditure incurred before 1-4-2002 by way of payment to approved associations/institutions for carrying out approved programmes of conservation of natural resources or afforestation (subject to certain conditions)
|
All assessees
| |||||
One and a half times of expenditure on notified agricultural extension project (subject to certain conditions)
|
All assessees
| |||||
From the Assessment Year 2021-22, the deductionshall be restricted to 100% of the expenditure incurred.
| ||||||
One and a half times of expenditure on notified skill development project (subject to certain conditions)
|
A company
| |||||
Note: From the Assessment Year 2021-22, the deduction shall be restricted to 100% of the expenditure incurred.
| ||||||
Amortisation of certain preliminary expenses [deductible in 5 equal annual instalments] (subject to certain conditions)
|
Indian companies and
resident
non-corporate
assessees
| |||||
Amortisation of expenditure incurred after 31-3-1999 in case of amalgamation or demerger in the hands of an Indian company (one-fifth of such expenditure for 5 successive previous years) (subject to certain conditions)
|
Indian Company
| |||||
Amortisation of expenditure incurred under voluntary retirement scheme in 5 equal annual instalments starting with the year when the expenditure is incurred
|
All assessees
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Expenditure on prospecting, etc., for certain minerals [deductible in ten equal annual instalments] (subject to certain conditions)
|
Indian companies and
resident
non-corporate
assessees
engaged in prospecting,
etc., for minerals
| |||||
Insurance premium covering risk of damage or destruction of stocks/stores
|
All assessees
| |||||
Insurance premium covering life of cattle owned by a member of co-operative society engaged in supplying milk to federal milk co-operative society
|
Federal milk
co-operative
societies
| |||||
Medical insurance premium paid by any mode other than cash, to insure employee's health under (a) scheme framed by GIC of India and approved by Central Government; or (b) scheme framed by any other insurer and approved by IRDA
|
All assessees as
employers
| |||||
Bonus or commission paid to employees
|
All assessees
| |||||
Interest on borrowed capital2
|
All assessees
| |||||
Pro rata amount of discount on a zero coupon bond based on life of such bond and calculated in prescribed manner
|
All assessees
| |||||
Contributions to recognised provident fund and approved superannuation fund [subject to certain limits and conditions]
|
All assessees as
employers
| |||||
Any sum paid by assessee-employer by way of contribution towards a pension scheme, as referred to in section 80CCD, on account of an employee to the extent it does not exceed 10 per cent of the employee's salary in the previous year.
|
All assessees as
emloyers
| |||||
Contributions to approved gratuity fund [subject to certain limits and conditions]
|
All assessees as
employers
| |||||
Contributions to any provident fund or superannuation fund or any fund set up under Employees' State Insurance Act, 1948 or any other fund for welfare of such employees, received from employees if the same are credited to the employee's account in relevant fund or funds before due date
|
All assessees as
employers
| |||||
Allowance in respect of animals which have died or become permanently useless [subject to certain conditions]
|
All assessees
| |||||
Bad debts which have been written off as irrecoverable [subject to limitation in the case of banks and financial institutions]
|
All assessees
| |||||
Provision for bad and doubtful debts
| ||||||
■ up to 7½ per cent of total income before making any deduction under this clause and Chapter VI-A, and up to 10 per cent of aggregate average advances made by its rural branches
|
Certain
Scheduled
banks,
non-scheduled
banks
(but other than
foreign banks)
and co-operative
bank
(other than primary
agricultural credit
society or
primary
co-operative
agricultural
and rural
development
bank)
| |||||
■ up to 5 per cent (10% in case of Public Financial Institutions, State Financial Corporations and State Industrial Investment Corporations in any of the two consecutive assessment years 2003-04 and 2004-05 - subject to certain conditions) of total income before making any deduction under this clause and Chapter VI-A
|
Foreign banks/
Public
financial institutions/
State
financial corporations/
State
industrial investment
corporations.
Non-Banking
Financial
Company
| |||||
Amounts transferred to special reserve [subject to certain conditions and maxi-mum of 20 per cent of profits derived from eligible business]
|
Specified entities,
namely,
financial corporations/
financial
corporation which is
a public
sector company/
banking
company/co-operative
bank
other than a primary
agricultural credit
society or a
primary co-operative
agricultural and
rural
development bank/
housing
finance company/
any other
financial
corporation
including
a public company
| |||||
Expenditure for promoting family planning amongst employees (deductible in 5 equal annual instalments in case of capital expenditure)
|
Companies
| |||||
Expenditure incurred wholly and exclusively by the assessee on or after the 1st April, 1999 but before the 1st April, 2000 in respect of a non-Y2K compliant system, owned by the assessee and used for the purposes of his business or profession, so as to make such system Y2K compliant computer system
|
All assessees
| |||||
Any expenditure (not being in the nature of capital expenditure) incurred by a notified corporation or body corporate, by whatever name called, constituted or established by a Central, State or Provincial Act, for the objects and purposes authorised by the Act under which such corporation or body corporate was constituted or established
|
Notified corporation
or body
corporate, by
whatever
name
called, constituted
orestablished by a
Central,State or
Provincial Act
| |||||
Any banking cash transaction tax paid during the previous year on taxable banking transaction entered into by the assessee
|
All assessees
| |||||
Contribution to notified credit guarantee trust fund for small industries
|
Public financial
institution
| |||||
Securities Transaction Tax paid if corresponding income is included as income under the head 'Profits and gains of business or profession'
|
All assessees
| |||||
Amount equal to commodities transaction tax paid by an assessee in respect of taxable commodities transactions entered into in the course of his business during the previous year, if the income arising from such transactions is included in the income computed under the head "Profits and gains of business or profession"
|
All assessees
| |||||
Amount of expenditure incurred by a co-operative society for purchase of sugarcane shall be allowed as deduction to the extent of lower of following:
a) Actual purchase price of sugarcane; or
b) Price of sugarcane fixed or approved by the Government
|
Co-operative
society
engaged
in business of
manufacturing
sugar
| |||||
Any other expenditure [not being personal or capital expenditure and expenditure mentioned in sections 30 to 36] laid out wholly and exclusively for purposes of business or profession5
|
All assessees
| |||||
B. Non-deductible items
| ||||||
Advertisement in souvenir, brochure, tract, pamphlet, etc., of political party
|
All assessees
| |||||
Interest, royalty, fees for technical services or other chargeable sum payable outside India, or in India to a non-resident or foreign company, on which tax has not been paid/deducted during the previous year or in the subsequent year within time prescribed under section 200(1). Where in respect of any such sum, tax has been deducted in any subsequent year or, has been deducted in the previous year but paid in any subsequent year after the expiry of the time prescribed under sub-section (1) of section 200, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid6
|
All assessees
| |||||
Any interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work)7, on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in sub-section (1) of section 139.
|
All assessees
| |||||
However, where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.
| ||||||
Any sum paid or payable to a non-resident which is subject to a deduction of Equalisation levy would attract disallowance if such sum was paid without deduction of such levy or if it was deducted but not deposited with the Central Government till the due date of filing of return.
|
All assessees
| |||||
However, where in respect of any such sum, Equalisation levy is deducted or deposited in subsequent year, as the case may be, the expenditure so disallowed shall be allowed as deduction in that year.
| ||||||
Note: This provision has been inserted by the Finance Act, 2016, w.e.f. 1-6-2016
| ||||||
Rate or tax levied on the profits or gains of any business or profession
|
All
assessees
| |||||
Wealth-tax paid
|
All
assessees
| |||||
Amount paid by way of royalty, licence fee, service fee, privilege fee, service charge or any other fee or charge, by whatever name called, which is levied exclusively on, or any amount which is appropriated, whether directly or indirectly, from a State Government undertaking by the State Government
|
State Govt.
undertakings
| |||||
Salaries payable outside India, or in India to a non-resident, on which tax has not been paid/deducted at source
|
All assessees
as employers
| |||||
Payments to provident fund/other funds for employees' benefit for which no effective arrangements are made to secure that tax is deducted at source on payments made from such funds which are chargeable to tax as 'salaries'
|
All assessees
as employers
| |||||
Tax actually paid by an employer referred to in section 10(10CC)
|
All assessees
as employers
| |||||
Interest, salary, bonus, commission or remuneration paid to partners (subject to certain conditions and limits)
|
Firms
| |||||
Interest, salary, bonus, commission or remuneration paid to members (subject to certain conditions and limits)
|
Association of
persons
or body of
individuals
(except a company
or a co-operative
society,
society registered
under
Societies
Registration
Act, etc.)
| |||||
Expenditure involving payment to relative/director/partner/substantially interested person, etc., which, in the opinion of the Assessing Officer, is excessive or unreasonable
|
All
assessees
| |||||
100% of payments exceeding Rs. 20,000 (Rs. 35,000 in case of payment made for plying, hiring or leasing goods carriages) made to a person in a day otherwise than by account payee cheque/bank draft (subject to certain conditions)
|
All
assessees
| |||||
Any provision for payment of gratuity to employees, other than a provision made for purposes of contribution to approved gratuity fund or for payment of gratuity that has become payable during the year (subject to specified conditions)
|
All
assessees as
employers
| |||||
Any sum paid for setting up or formation of, or as contribution to, any fund, trust, company, AOP, BOI, Society or other institution, other than recognised provident fund/approved superannuation fund/pension scheme referred to insection 80CCD/approved gratuity fund
|
All
assessees as
employers
| |||||
C. Other deductible items
| ||||||
In case of mineral oil concerns allowances specified in agreement entered into by Central Government with any person (subject to certain conditions and terms of agreement)
|
Assessees
engaged in
prospecting
for or
extraction
or production
of mineral oils
| |||||
In case of mineral oil concerns expenditure incurred remaining unallowed as reduced by proceeds of transfer
|
Assessee whose
business
consists of
prospecting
for or extraction or
production
of petroleum and
natural gas
and who transfers
any interest in such
business
| |||||
Any sum which is actually paid, relating to (i) tax/duty/cess/fee levied under any law, (ii) contribution to provident fund/superannuation fund/gratuity fund/any fund for employees' welfare, (iii) bonus/commission to employees, (iv) interest on loan/borrowing from any public financial institution, State Financial Corporation or State Industrial Investment Corporation/interest payments to scheduled banks/Co-operative banks on loans or advances, and (v) sum payable by employers by way of leave encashment to employees. (vi) sum payable to the Indian Railways for the use of railway assets. Deduction will not be allowed in year in which liability to pay is incurred unless actual payment is made in that year or before the due date of furnishing of return of income for that year
|
All assessees
| |||||
Expenditure in excess of subscription, etc., received from members (subject to certain conditions and limits)
|
Trade,
professional or
similar association
| |||||
Head office expenditure (subject to certain conditions and limits)
|
Non-resident
| |||||
Against 'capital gains'
| ||||||
Expenditure incurred wholly and exclusively in connection with transfer of capital asset
|
All assessees
| |||||
Cost of acquisition of capital asset and of any improvement thereto (indexed cost of acquisition and indexed cost of improvement, in case of long-term capital assets)
|
All assessees
| |||||
Long-term capital gains on sale of residential house and land appurtenant thereto invested in purchase/construction of another residential house8 (subject to certain conditions and limits)
|
Individual
/HUF
| |||||
Capital gains on transfer of land used for agricultural purposes, by an individual or his parents or a HUF, invested in other land for agricultural purposes (subject to certain conditions and limits)
|
Individual
/HUF
| |||||
Capital gains on compulsory acquisition of land or building forming part of an industrial undertaking invested in purchase/construction of other land/building for shifting/re-establishing said undertaking or setting up new industrial undertaking (subject to certain conditions and limits)
|
Any
assessee
| |||||
Net consideration on transfer of long-term capital asset made before 1-4-2000 invested in specified bonds, debentures, shares of a public comp-any or units of notified mutual funds (subject to certain conditions and limits)
|
Any
assessee
| |||||
Long-term capital gains on transfer of any long-term capital asset made be-fore 1-4-2000 invested in specified long-term assets (subject to certain conditions and limits)
|
Any
assessee
| |||||
Long-term capital gains invested in long-term specified asset (bond redeemable after 3 years) (maximum investment in a financial year is Rs. 50 lakhs)9 issued by National Highways Authority of India; or by the Rural Electrification Corporation Limited (subject to certain conditions and limits)
|
Any
assessee
| |||||
Long-term capital gains on transfer before 1-4-2006 of certain listed securities or units invested in equity shares forming part of an eligible issue of capital (subject to certain conditions and limits)
|
Any
assessee
| |||||
Long-term capital gain invested in long-term specified assets being units of such fund as may be notified by Central Government to finance start-ups
|
All
assesses
| |||||
Net consideration on transfer of long-term capital asset other than residential house invested in residential house10(subject to certain conditions and limits)
|
Individual/
HUF
| |||||
Capital gain on transfer of machinery, plant, land or building used for the purposes of the business of an industrial undertaking situate in an urban area (transfer being effected for shifting the undertaking to a non-urban area) invested in new machinery, plant, building or land, in the said non-urban area, expenses on shifting, etc. (subject to certain conditions and limits)
|
Any
assessee
| |||||
Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone (subject to certain conditions and limits)
|
All
assessees
| |||||
Exemption in respect of capital gain arising from the transfer of a long-term capital asset, being a residential property (a house or a plot of land), owned by the eligible assessee, and such assessee before the due date of furnishing of return of income under sub-section (1) of section 139 utilises the net consideration for subscription in the equity shares of an eligible company and such company has, within one year from the date of subscription in equity shares by the assessee, utilised this amount for purchase of specified new asset (subject to certain conditions and limits).
|
Individual/
HUF
| |||||
W.e.f. April 1, 2017, eligible start-up is also included in definition of eligible company.
| ||||||
Against 'income from other sources'
A. Deductible items
| ||||||
Any reasonable sum paid by way of commission or remuneration for purpose of realising dividend (other than dividends referred to in section 115-O)
|
All
assessees
| |||||
Any reasonable sum paid by way of commission or remuneration for the purpose of realising interest on securities
|
All
assessees
| |||||
Contributions to any provident fund or superannuation fund or any fund set up under Employees' State Insurance Act, 1948 or any other fund for welfare of employees, if the same are credited to employees' accounts in relevant funds before due date
|
All
assessees
| |||||
Repairs, insurance, and depreciation of building, plant and machinery and furniture
|
Assessees engaged
in business
of letting out of
machinery,
plant and furniture
and buildings
on hire
| |||||
In case of family pension, 331/3 per cent of such pension or Rs. 15,000, whichever is less
|
Assessees in receipt of
family
pension on death
of employee
being member
of assessee's
family
| |||||
Any other expenditure (not being capital expenditure) expended wholly and exclusively for earning such income
|
All
assessees
| |||||
In case of interest received on compensation or on enhanced compensation referred to in section 145A(2), a deduction of 50 per cent of such income (subject to certain conditions)
|
All
assessees
| |||||
B. Non-deductible items
| ||||||
Personal expenses
|
All
assessees
| |||||
Interest chargeable to tax which is payable outside India on which tax has not been paid or deducted at source
|
All
assessees
| |||||
'Salaries' payable outside India on which no tax is paid or deducted at source
|
All
assessees
| |||||
Wealth-tax
|
All
assessees
| |||||
Expenditure of the nature specified in section 40A
|
All
assessees
| |||||
Expenditure in connection with winnings from lotteries, crossword puzzles, races, games, gambling or betting
|
All
assessees
| |||||
For certain payments
| ||||||
■ Life insurance premium for policy :
- in case of individual, on life of assessee, assessee's spouse and any child of assessee
- in case of HUF, on life of any member of the HUF
■ Sum paid under a contract for a deferred annuity :
- in case of individual, on life of the individual, individual's spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)
- in case of HUF, on life of any member of the HUF
■ Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]
■ Contributions by an individual made under Employees' Provident Fund Scheme
■ Contribution to Public Provident Fund Account in the name of:
- in case of individual, such individual or his spouse or any child of such individual
- in case of HUF, any member of HUF
■ Contribution by an employee to a recognised provident fund
■ Contribution by an employee to an approved superannuation fund
■ Subscription to any notified security or notified deposit scheme of the Central Government. For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21.01.2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction.
■ Amount can be deposited by an individual or in the name of girl child of an individual or in the name of the girl child for whom such an individual is the legal guardian.
■ Subscription to notified savings certificates [National Savings Certificates (VIII Issue)]
■ Contribution for participation in unit-linked Insurance Plan of UTI :
- in case of an individual, in the name of the individual, his spouse or any child of such individual
- in case of a HUF, in the name of any member thereof
■ Contribution to notified unit-linked insurance plan of LIC Mutual Fund [Dhanaraksha 1989]
- in the case of an individual, in the name of the individual, his spouse or any child of such individual
- in the case of a HUF, in the name of any member thereof
■ Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]
■ Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children
■ Certain payments for purchase/construction of residential house property
■ Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both
■ Sum paid towards notified annuity plan of LIC (New Jeevan Dhara/New Jeevan Dhara-I/New Jeevan Akshay/New Jeevan Akshay-I/New Jeevan Akshay-II/Jeewan Akshay-III plan of LIC) or other insurer
■ Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)
■ Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)
■ Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions
■ Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in 'eligible issue of capital' referred to above.
■ Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme11 framed and notified.
■ Subscription to notified bonds issued by the NABARD.
■ Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
■ 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)
|
Individual/
HUF
| |||||
Notes:
1. Deduction is limited to whole of the amount paid or deposited subject to a maximum of Rs. 1,50,00012. This maximum limit of Rs. 1,50,00012 is the aggregate of
the deduction that may be claimed under sections 80C, 80CCC and 80CCD.
2. The sums paid or deposited need not be out of income chargeable to tax of
the previous year. Amount may be paid or deposited any time during the previous
year, but the deduction shall be available on so much of the aggregate of sums as
do not exceed the total income chargeable to tax during the previous year.
3. Life Insurance premium is part of gross qualifying amount for the
purpose of deduction under section 80C. Payment of premium which is in excess
of 10 per cent (if policy is issued on or after 1-4-2013, 15% in case of insurance
on life of person with disability referred to in section 80U or suffering from
disease or ailment specified in section 80DDB/rule 11DD) of actual capital sum
assured shall not be included in gross qualifying amount. The value of any
premiums agreed to be returned or of any benefit by way of bonus or otherwise,
over and above the sum actually assured, which is to be or may be received under
the policy by any person, shall not be taken into account for the purpose of
calculating the actual capital sum assured.
The limit of 10 per cent will be applicable only in the case of policies
issued on or after 1-4-2012. In respect of policies issued prior to 1-4-2012,
the old limit of 20 per cent of actual sum assured will be applicable.
With effect from 1-4-2013, 'actual capital sum assured' in relation to a
life insurance policy shall mean the minimum amount assured under the
policy on happening of the insured event at any time during the term of
the policy, not taking into account—
(i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the
sum actually assured, which is to be or may be received under the
policy by any person.
4. Where, in any previous year, an assessee—
(i) terminates his contract of insurance, by notice to that effect or
where the contract ceases to be in force by reason of failure to pay any
premium, by not reviving contract of insurance,—
(a) in case of any single premium policy, within two years after the
date of commencement of insurance; or
(b) in any other case, before premiums have been paid for two years; or
(ii) terminates his participation in any unit-linked insurance plan (ULIP),
by notice to that effect or where he ceases to participate by reason of failure
to pay any contribution, by not reviving his participation, before
contributions in respect of such participation have been paid for five
years; or
(iii) transfers the house property before the expiry of five years from the
end of the financial year in which possession of such property is obtained
by him, or receives back, whether by way of refund or otherwise,
any sum specified in that clause,
then,—
(a) no deduction shall be allowed to the assessee with reference to any
of such sums, paid in such previous year; and
(b) the aggregate amount of the deductions of income so allowed in respect
of the previous year or years preceding such previous year, shall be deemed
to be the income of the assessee of such previous year and shall be liable to
tax in the assessment year relevant to such previous year.
If any equity shares or debentures, with reference to the cost of which a
deduction is allowed, are sold or otherwise transferred by the assessee to
any person at any time within a period of three years from the date
of their acquisition, the aggregate amount of the deductions of income so
allowed in respect of such equity shares or debentures in the previous year
or years preceding the previous year in which such sale or transfer has
taken place shall be deemed to be the income of the assessee of such
previous year and shall be liable to tax in the assessment year relevant
to such previous year.
A person shall be treated as having acquired any shares or debentures on the
date on which his name is entered in relation to those shares or debentures
in the register of members or of debenture-holders, as the case may be, of
the public company.
5. If any amount, including interest accrued thereon, is withdrawn by the assessee
from his deposit account made under (a) Senior Citizen Saving Scheme or
(b) Post Office Time Deposit Rules, before the expiry of the period of five
years from the date of its deposit, the amount so withdrawn shall be deemed
to be the income of the assessee of the previous year in which the amount is
withdrawn and shall be liable to tax in the assessment year relevant to
such previous year.
The amount liable to tax shall not include the following amounts, namely:—
(i) any amount of interest, relating to deposits referred to above, which
has been included in the total income of the assessee of the previous year
or years preceding such previous year; and
(ii) any amount received by the nominee or legal heir of the assessee, on
the death of such assessee, other than interest, if any, accrued thereon,
which was not included in the total income of the assessee for the previous
year or years preceding such previous year.
Section
|
Nature of deduction
|
Who can calim Who can claim
|
(1)
|
(2)
|
(3)
|
Contributions to certain pension funds of LIC or any other insurer (up to Rs. 1,50,000) (subject to certain conditions)14
|
Individual
| |
Contribution to pension scheme notified by Central Government up to 10% of salary (subject to certain conditions and limits)15
Contribution made by employer shall also be allowed as deduction under section 80CCD(2) while computing total income of the employee. However, amount of deduction could not exceed 10% of salary of the employee
|
Individual
| |
50 per cent of amount invested by specified resident individuals in notified equity savings scheme16(subject to certain conditions and limits) (maximum deduction : Rs. 25,000)
|
Specified resident
individuals
(new retail investors)
| |
Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person. An individual can also make payment to the Central Government health scheme and/or on account of preventive health check-up (subject to limit)
|
Individual/HUF
| |
■ specified person means:
- In case of Individual - self, spouse, dependent children or parents
- In case of HUF - Any member thereof
■ Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000.
■ Payment on account of preventive health check-up may be made in cash.
| ||
Deduction of Rs. 75,000 (Rs. 1,25,000 in case of severe disability) to a resident individual/HUF where (a) any expenditure has been incurred for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995] (w.e.f. assessment year 2005-06 including autism, cerebral palsy and multiple disability as referred to in National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities Act, 1999), or (b) any amount is paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability (subject to certain conditions)
|
Resident
Individual/HUF
| |
Expenses actually paid for medical treatment of specified diseases and ailments subject to certain conditions18
|
Resident
Individual/HUF
| |
Amount paid out of income chargeable to tax by way of payment of interest on loan taken from financial institution/approved charitable institution for pursuing higher education19 (subject to certain conditions) (maximum period : 8 years)
|
Individual
| |
Interest payable on loan taken by an individual from any financial institution for the purpose of acquisition of a residential house property subject to certain condition. (Maximum deduction 50,000)
|
Individual
| |
Donations to certain approved funds, trusts, charitable institutions/donations for renovation or repairs of notified temples, etc. [amount of deduction is 50 per cent of net qualifying amount]. 100 per cent of qualifying donations to National Defence Fund, Prime Minister's National Relief Fund, Prime Minister's Armenia Earthquake Relief Fund, Africa (Public Contributions - India) Fund, National Children's Fund (from 1-4-2014), Government or approved association for promoting family planning, universities and approved educational institutions of national eminence, National Foundation for Communal Harmony, Chief Minister's Earthquake Relief Fund (Maharashtra), Zila Saksharta Samitis, National or State Blood Transfusion Council, Fund set up by State Government to provide medical relief to the poor, Army Central Welfare Fund, Indian Naval Benevolent Fund and Air Force Central Welfare Fund, Andhra Pradesh Chief Minister's Cyclone Relief Fund, National Illness Assistance Fund, Chief Minister's Relief Fund or the Lt. Governor's Relief Fund in respect of any State or Union Territory, National Sports Fund, National Cultural Fund, Fund for Technology Development and Application, Indian Olympic Association, etc.20, fund set up by State Government of Gujarat exclusively for providing relief to victims of earthquake in Gujarat, National Trust for Welfare of Persons with Autism, Cerebral palsy, Mental retardation and Multiple Disabilities, and sums paid between 26-1-2001 and 30-9-2001 to any eligible trust, institution or fund for providing relief to Gujarat earthquake victims21, the Swachh Bharat Kosh and the Clean Ganga Fund (from assessment year 2015-16) and National Fund for Control of Drug Abuse (from assessment year 2016-17) [subject to certain conditions and limits]22
|
All assessees
| |
Rent paid in excess of 10% of total income for furnished/unfurnished resi-dential accommodation (subject to maximum of Rs. 5,000 p.m. or 25% of total income, whichever is less) (subject to certain conditions)
|
Individuals not
receiving any house
rent allowance
| |
Certain donations for scientific, social or statistical research or rural development programme or for carrying out an eligible project or scheme or National Urban Poverty Eradication Fund (subject to certain conditions)
|
All assessees not
having any
income
chargeable under t
he head
'Profits
and gains of
business or
profession'
| |
Sum contributed to any political party/electoral trust24
|
Indian company
| |
Sum contributed to any political party/electoral trust24
|
All assessees, other
than local
authority and artificial
juridical
person wholly or partly
funded
by Government
| |
For certain incomes
| ||
Profits and gains from industrial undertakings engaged in infrastructure facility, telecommunication services, industrial park, development of Special Economic Zone, power undertakings, etc. (subject to certain conditions and limits)25
|
All assessees
| |
No deduction under this section shall be available to an enterprise which starts the development or operation and maintenance of the infrastructure facility on or after the 1st day of April, 2017.
| ||
Profits and gains derived by undertaking/enterprise from business of developing a Special Economic Zone notified on or after 1-4-2005 (subject to certain conditions and limits)
|
Assessee being Developer
of SEZ
| |
No deduction under this section shall be available to an assessee, being a developer, where the development of Special Economic Zone begins on or after the 1st day of April, 2017.
| ||
Profit and gains derived by an eligible start-up from specified business on or after 1-4-2017(subject to certain conditions)
|
Company and LLP
| |
Profits and gains from industrial undertakings, cold storage plant, hotel, scientific research & development, mineral oil concern, housing projects, cold chain facility, multiplex theatres, convention centres, ships, etc. (subject to certain conditions and limits)
|
All assessees
No deduction shall be
available to
an enterprise which
commence the
business activity on or
after 1-4-2017.
| |
Profits and gains derived by an undertaking or an enterprise in special category States (Himachal Pradesh, Uttaranchal, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura) (subject to certain limits, time limits and conditions),
(a) which has begun or begins to manufacture or produce any article or thing, not being any article or thing specified in the Thirteenth Schedule, or which manufactures or produces any article or thing, not being any article or thing specified in the Thirteenth Schedule and undertakes substantial expansion during the specified period.
(b) which has begun or begins to manufacture or produce any article or thing specified in the Fourteenth Schedule or commences any operation specified in that Schedule, or which manufactures or produces any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule and undertakes substantial expansion during the specified period
|
All assessees
| |
Profits and gains from business of hotels and convention centres in specified areas (subject to certain conditions).
|
All assessees
| |
Deduction in respect of certain undertakings in North Eastern States.
|
All assessees
| |
Entire income from business of collecting and processing or treating of bio-degradable waste for generating power, or producing bio-fertilizers, bio-pesticides or other biological agents or for producing bio-gas, making pellets or briquettes for fuel or organic manure (for 5 consecutive assessment years)
|
All assessees
| |
Deduction of 30% of additional employee cost in respect of employment of new employees.
|
Assessee to whom
section 44AB
applies
| |
Additional employee cost means total emoluments paid or payable to additional employees employed during the previous year.
| ||
Deduction shall be allowed for first three Assessment Years including the Assessment Year relevant to previous year in which such employment is provided.
| ||
(Subject to certain other condition)
| ||
Certain incomes of Scheduled banks/banks incorporated outside India having Offshore Banking Units in a Special Economic Zone/Units of International Financial Services Centre (subject to certain conditions and limits)
|
Scheduled Banks/banks
incorporated
outside India/
Units of International
Financial Services Centre
| |
Specified incomes [subject to varying limits specified in sub-section (2)]
|
Co-operative societies
| |
Royalty income of author of certain specified category of books (up to Rs. 3,00,000) (subject to certain conditions)
|
Resident Individual
- Author
| |
Royalty on patents up to Rs. 3,00,000 in the case of a resident individual who is a patentee and is in receipt of income by way of royalty in respect of a patent registered on or after 1-4-2003 (subject to certain conditions).
|
Resident
individuals
| |
Interest on deposits in savings bank accounts (up to Rs. 10,000 per year)
|
Individuals/HUFs
| |
Deduction of Rs. 75,000 to a resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995] [w.e.f. assessment year 2005-06 including autism, cerebral palsy, and multiple disabilities as defined under National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities Act, 1999] [in the case of a person with severe disability, allowable deduction is Rs. 1,25,000] (subject to certain conditions).
|
Resident individuals
| |
Rebates
| ||
Tax rebate in case of individual resident in India, whose total income does not exceed five hundred thousand rupees; quantum of rebate shall be an amount equal to hundred per cent of such income-tax or an amount of five thousand rupees, whichever is less.
|
Individual
|
1. Provisions of section 32 shall apply whether or not the assessee has claimed depreciation.
2. If sum is borrowed for acquiring a capital asset, interest thereon pertaining to the period
before asset is first put to use shall not be allowed as deduction.
3. W.e.f. assessment year 2016-17, bad-debts shall be allowed as deduction even if they
are not written-off from books of accounts. Such deduction shall be allowed if amount of
debt or part thereof has been taken into account in computing income on the basis of
Income Computation and Disclosure Standards notified under section 145(2) without
recording the same in the accounts.
4. With effect from assessment year 2018-19 business of developing or maintaining and
operating or developing, maintaining and operating a new infrastructure facility, has been
included.
♦ Section 35AD was amended by Finance (No. 2) Act, 2014 with effect from
assessment year 2015-16 :
With a view to ensure that the capital asset on which investment linked deduction
has been claimed is used for the purposes of the specified business, sub-section
(7A) has been inserted in section 35AD to provide that any asset in respect of
which a deduction is claimed and allowed under section 35AD, shall be used
only for the specified business for a period of 8 years beginning with the previous
year in which such asset is acquired or constructed. Moreover, if such asset is
used for any purpose other than the specified business, the total amount of
deduction so claimed and allowed in any previous year in respect of such
asset (as reduced by the amount of depreciation allowable in accordance
with the provisions of section 32 as if no deduction had been allowed under
section 35AD), shall be deemed to be income of the assessee chargeable under
the head "Profits and gains of business or profession" of the previous year in
which the asset is so used. However, this provision will not apply to a company
which has become a sick industrial company under section 17(1) of the
Sick Industrial Companies (Special Provisions) Act within the time period
of 8 years as stated above.
♦ Where any deduction under section 35AD has been availed of by the assessee
on account of capital expenditure incurred for the purposes of specified business
in any assessment year, no deduction under section 10AA shall be available to
the assessee in the same or any other assessment year in respect of such specified
business.
in section 37(1) to clarify that expenditure incurred by the assessee on Corporate
Social Responsibility activities in accordance with section 135 of the Companies
Act, 2013 will not be considered as expenditure incurred by the assessee for the
purposes of the business or profession.
6. Following chart explains amendments made in section 40(a)(i) with effect from the
assessment year 2015-16 :
TDS default pertaining to any sum (other than salary) payable outside India or payable to a non-resident which is taxable in the hands of recipient in India
|
Law applicable up to the
assessment
year 2014-15
|
Law applicable from the assessment year 2015-16
| |
1. Tax is deductible but it is not deducted
|
Expenditure is not
deductible. If,
however, TDS is deposited
in a subsequent
year, it will be deducted
in that year
|
No amendment. The law which is applicable for the assessment year 2014-15 will apply for assessment year 2015-16 onwards
| |
2. Tax is deductible (and it is so deducted during April 1 and February 28/29 of the financial year) but it is not deposited up to March 31 of the financial year
|
Expenditure is not deductible.
If, however,
TDS is deposited in a
subsequent year,
it will be deducted in
that year
|
Disallowance provisions will not be applicable if TDS is deposited up to the due date of submission of return of income under section 139(1). If TDS is deposited after this date, expenditure will be deductible in the year in which TDS is deposited.
| |
3. Tax is deductible (and it is so deducted during the month of March) but it is not deposited up to April 30 falling immediately after the end of the financial year
|
Expenditure is not deductible. If,
however,
TDS is deposited in a
subsequent year,
it will be deducted in
that year
|
Disallowance provisions will not be applicable if TDS is deposited up to the due date of submission of return of income under section 139(1). If TDS is deposited after this date, expenditure will be deductible in the year in which TDS is deposited.
|
7. Following amendments have been made in section 40(a)(ia) with effect from the
assessment year 2015-16 :
• Coverage of disallowance extended - Before amendment, disallowance
provisions of section 40(a)(ia), covered TDS default under sections
193, 194A, 194C, 194D, 194H, 194-I and 194J. After amendment,
disallowance under section 40(a)(ia), will cover any amount payable to a
resident which is subject to TDS.
• Only 30 per cent expenditure to be disallowed - In case of TDS default,
30 per cent of expenditure (not 100 per cent) will be disallowed.
8. One residential house in India with effect from assessment year 2015-16.
9. With effect from assessment year 2015-16 limit of Rs. 50 lakhs applies to total
amount invested during financial year in which original asset is transferred and in
subsequent financial year.
10. One residential house in India with effect from assessment year 2015-16.
11. See Bank Term Deposits Scheme, 2006.
12. with effect from assessment year 2015-16.
13. Where deduction is claimed under this section, deduction in relation to same amount
cannot be claimed under section 80C.
14. Section 80CCE provides that the aggregate amount of deductions under section 80C,
section 80CCC and section 80CCD shall not, in any case, exceed Rs. 1,50,000
With effect from assessment year 2015-16, amended sub-section (1) has clarified
that a non-government employee can claim deduction under section 80CCD even
if his date of joining is prior to January 1, 2004.
15. With effect from the assessment year 2012-13 section 80CCE is amended so as to
provide that contribution made by the Central Government or any other employer to
a pension scheme under sub-section (2) of section 80CCD shall not be included
in the limit of deduction of Rs. 1,50,000 provided under section 80CCE.
With effect from assessment year 2016-17, sub-section (1A) of Section
80CCD which laid down maximum deduction limit of Rs. 1,00,000
(under sub-section (1)) has been deleted.
Further, a new sub-section (1B) is inserted to provide for additional deduction to
the extent of Rs. 50,000. The additional deduction is not subject to ceiling limit
of Rs. 1,50,000 as provided under Section 80CCE.
However, it is to be noted that addition deduction of Rs. 50,000 shall not be allowed
in respect of contribution which is considered for deduction under
Section 80CCD(1), i.e., within limit of 10% of salary/gross total income
Any payment from NPS to an employee because of closure or his opting out
of the pension scheme is chargeable to tax. However, with effect from the
assessment year 2017-18, the whole amount received by the nominee
from NPS on death of the assessee shall be exempt from tax.
16. Rajiv Gandhi Equity Savings Scheme, 2012/2013.
With effect from assessment year 2014-15 (a) investment in listed units of an equity
oriented fund is also permitted; (b) deduction shall be allowed for three consecutive
assessment years, beginning with the assessment year relevant to previous year in
which the listed equity shares or listed units of equity oriented fund were first acquired
and (c) gross total income of the assessee for relevant assessment year shall not exceed
twelve lakh rupees.
17. Section 80D is amended by the Finance Act, 2015. From assessment year 2016-17
onwards the deduction under Section 80D will be available as per the limit specified below:
Individual
|
HUF
| |
For self, spouse and dependent children : Rs. 25,000 (Rs. 30,000 if person insured is a senior citizen* or very senior citizen**);
|
Premium up to
Rs. 25,000 (Rs. 30,000 if
member insured is
a senior citizen or
very senior citizen)
paid to insure any
member of the family.
| |
For parents of the assessee : (Additional) Rs. 25,000 (Rs. 30,000 if person insured is a senior citizen or very senior citizen)
|
NA
| |
Medical expenditure if no amount is paid in respect of health insurance-Rs.30,000 (only in case of very senior citizen)
|
Medical expenditure if no
amount is paid
in respect of
health insurance-
Rs.30,000
(only in case of very
senior citizen)
| |
Aggregate amount of deduction cannot exceed Rs.60,000 in any case
|
Aggregate amount of
deduction cannot
exceed Rs.30,000
in any case.
|
*‘Senior citizen’ means an individual resident in India who is of the age of sixty
years or more at any time during the relevant previous year.
**‘Very senior citizen’ means an individual resident in India who is of the age
of eighty years or more at any time during the relevant previous year.
18. Maximum deduction is Rs. 40,000 (Rs. 60,000 where expenditure is incurred
for a senior citizen and Rs. 80,000 in case of very senior citizen[w.e.f assessment
year 2016-17])
With effect from assessment year 2016-17, the taxpayer shall be required
to obtain a prescription from a specialist doctor (not necessarily from a doctor
working in a Government hospital) for availing this deduction.
19. Scope of 'higher education' is enlarged with effect from assessment year 2010-11 to
cover any course of study pursued after passing the Senior Secondary Examination
or its equivalent from any school, Board or university recognised by the Central
Government or State Government or local authority or by any other authority
authorized by the Central Government or State Government or local authority to do so.
With effect from 1-4-2010 the scope of expression 'relative' has also been enlarged to cover the student for whom the taxpayer is the legal guardian.
20. Donation of any sums paid by the assessee, being a company, in the previous year as
donations to the Indian Olympic Association or to any other association or institution
established in India, as the Central Government may, having regard to the prescribed
guidelines, by notification in the Official Gazette, specify in this behalf for—
(i) the development of infrastructure for sports and games; or
(ii) the sponsorship of sports and games,
in India;
is eligible for the purpose of deduction under section 80G [this is in consequence of
omission of section 10(23)].
21. Donation made to an authority constituted in India by or under any law enacted either
for the purpose of dealing with and satisfying the need for housing accommodation or
for the purpose of planning, development or improvement of cities, towns and villages,
or for both is also eligible for the purpose of deduction under section 80G from the
assessment year 2003-04 [this is in consequence of omission of section 10(20A)].
22. With effect from 1-4-2013 no deduction shall be allowed in respect of donation
of any sum exceeding ten thousand rupees unless such sum is paid by any mode other
than cash.
23. With effect from 1-4-2013 no deduction shall be allowed under this section in
respect of any sum exceeding ten thousand rupees unless such sum is paid by any mode
other than cash.
24. With effect from 1-4-2014 deduction will not be allowed if sum is contributed in cash.
25. Time limits stated under section 80-IA(4)(iv) have been extended
from 31-3-2014 to 31-3-2017.
26. 100% deduction shall be allowed from the AY beginning on or after the
1st day of April, 2021.
[As amended by Finance Act, 2016
Source from Income Tax Department of India.
