Deductions U/S 80C under Schedule VI of Income Tax
Table of Contents
DEDUCTIONS UNDER SECTION 80C:
Under section 80C, every individual and HUF, is provided with a deduction of amount up to Rs.1,50,000. To avail such deductions, the prescribed taxpayers, need to invest in any of the following options –
- Life insurance premium payment
- Annuity plan of LIC or any other notified insurers.
- Unit Linked Insurance Plan (ULIP) of UTI or ULIP of LIC mutual fund u/s 10(23D) contribution
- PPF (Public Provident Fund) contribution
- Non-commuted deferred annuity plan payment
- Amount deducted from government employee salary for the purpose of securing him of deferred annuity
- SRF/RPF contribution
- Tuition fees payment
- Repayment of housing loan
- Superannuation Fund contribution
- Senior Citizen Scheme investment
- PPF investment
- 5-year FD investment
- Sukanya Samridhi Yojana investment
- Mutual Funds (Equity Linked Saving Scheme) investment
- Subscription to any deposit scheme/pension fund of National Housing Bank (NHB)
- Subscription to bonds issued under the scheme of National Bank for Agriculture and Rural Development (NABARD)
- Subscription to notified deposit scheme of Public Sector Housing Finance Company and Housing Development Authority of cities, towns and villages
- Subscription to equity shares or debentures of a Company or any Public financial institution, where the proceeds are utilized for infrastructure purpose.
- Stamp duty, registration fee incurred for the purpose of transfer of such house property to the assessee.
DEDUCTIONS UNDER SCHEDULE VI
SECTIONS | PARTICULARS | ELIGIBLE PERSONS | PRESCRIBED LIMIT OF DEDUCTION |
SECTION 80C | INVESTMENT IN LIC, PPF, SUKANYA SAMRIDDHI ACCOUNT, MUTUAL FUNDS, FD ETC | INDIVIDUAL AND HUF |
UPTO RS 1,50,000 |
SECTION 80CCC | INVESTMENT IN PENSION FUNDS | INDIVIDUALS | |
SECTION 80CCD (1) | ATAL PENSION YOJANA AND NATIONAL PENSION SCHEME CONTRIBUTION | INDIVIDUALS | |
SECTION 80CCD (IB) | ATAL PENSION YOJANA AND NATIONAL PENSION SCHEMECONTRIBUTION | INDIVIDUALS | UPTO RS 50,000 |
SECTION 80CCD (2) | NATIONAL PENSION SCHEME, UNDERTAKEN BY THE EMPLOYER | INDIVIDUALS | LOWER OF –
· AMOUNT CONTRIBUTED · 14% OF BASIC SALARY + DEARNESS ALLOWANCE, IN CASE OF GOVERNMENT EMPLOYEE. · 10% OF BASIC SALARY+ DEARNESS ALLOWANCE, IN CASE OF OTHER EMPLOYEES |
SECTION 80D | MEDICAL INSURANCE PREMIUM AND MEDICAL EXPENDITURE | INDIVIDUAL OR HUF |
UPTO RS 25,000 FOR SELF AND FAMILY. MAXIMUM UP TO RS 1,00,000 INCLUDING PARENTS |
SECTION 80DD | MEDICAL TREATMENT OF A DEPENDENT WITH DISABILITY | INDIVIDUAL OR HUF |
NORMAL DISABILITY: RS 75000/- SEVERE DISABILITY: RS 125000/- |
SECTION 80DDB | SPECIFIED DISEASES | INDIVIDUAL OR HUF |
SENIOR CITIZENS: UPTO RS 1,00,000 OTHERS: UPTO RS 40,000 |
SECTION 80E | INTEREST PAID ON LOAN TAKEN FOR HIGHER EDUCATION | INDIVIDUAL | 100% OF THE INTEREST PAID, ALLOWED UPTO 8 ASSESSMENT YEARS |
SECTION 80EE | INTEREST PAID ON HOUSING LOAN | INDIVIDUAL | UPTO RS 50,000 SUBJECT TO SOME CONDITIONS |
SECTION 80EEA | IINTEREST PAID ON HOUSING LOAN | INDIVIDUAL | UPTO RS 1,50,000/- EXTENDED FOR AY 2021-22 |
SECTION 80EEB | INTEREST PAID ON ELECTRIC VEHICLE LOAN | INDIVIDUAL | UPTO RS 1,50,000 SUBJECT TO SOME CONDITIONS |
SECTION 80G | DONATION TO CHARITABLE INSTITUTIONS | ALL ASSESSEE (INDIVIDUAL, HUF, COMPANY ETC) | 100% OR 50% OF THE DONATED AMOUNT OR QUALIFYING LIMIT, ALLOWED IN CASH UPTO RS.2000. |
SECTION 80GG | INCOME TAX DEDUCTION FOR HOUSE RENT PAID | INDIVIDUAL | LOWER OF –
· RS.60,000 · 25% OF TOTAL INCOME · RENT PAID – 10% OF TOTAL INCOME |
SECTION 80GGA | DONATION TO SCIENTIFIC RESEARCH & RURAL DEVELOPMENT | ALL ASSESSEES EXCEPT THOSE WHO HAVE AN INCOME (OR LOSS) FROM A BUSINESS AND/OR A PROFESSION | 100% OF THE DONATION, ALLOWED IN CASH UPTO RS.10,000. |
SECTION 80GGB | CONTRIBUTION TO POLITICAL PARTIES | COMPANIES | 100% OF THE DONATIO, HOWEVER, DONATION IN CASH IS NOT ALLOWED |
SECTION 80GGC | INDIVIDUALS CONTRIBUTION TO POLITICAL PARTIES | INDIVIDUAL HUF AOP BOI FIRM |
100% OF THE DONATIO, HOWEVER, DONATION IN CASH IS NOT ALLOWED |
SECTION 80IA | PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC. | INDUSTRIAL UNDERTAKINGS ENGAGED IN SPECIFIED BUSINESSES | 100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS FROM COMMENCEMENT |
SECTION 80IAB | PROFITS AND GAINS TO SEZ DEVELOPERS | SEZ DEVELOPERS | 100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS FROM COMMENCEMENT |
SECTION 80IAC | ELIGIBLE STARTUPS | COMPANY OR LLP ENGAGED IN ELIGIBLE BUSINESS SUBJECT TO SOME CONDITIONS | 100% OF THE PROFIT FOR 3 CONSECUTIVE YEARS OUT OF 7 YEARS FROM COMMENCEMENT. |
SECTION 80IB | PROFITS AND GAINS FROM CERTAIN INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKINGS | SPECIFIED INDUSTRIAL UNDERTAKINGS | 25%, 30% OR 100% OF THE PROFIT DEPENDING ON THE PERIOD. |
SECTION 80IBA | PROFITS FROM HOUSING PROJECTS | INDIVIDUAL HUF AOP BOI COMPANY FIRM ANY OTHER PERSON ENGAGED IN THE BUSINESS OF HOUSING PROJECTS AS MAY BE SPECIFIED |
100% OF THE PROFIT |
SECTION 80IC | CERTAIN UNDERTAKINGS IN SPECIAL CATEGORY STATES | CERTAIN INDUSTRIAL UNDERTAKINGS | FOR SIKKIM – 100% OF PROFIT FOR 10 YEARS.
FOR HIMACHAL PRADESH/ UTTARANCHAL FOR NORTHEASTERN STATES – 100% OF THE PROFIT FOR 10 YEARS |
SECTION 80ID | PROFITS AND GAINS OF HOTELS/CONVENTION CENTRES IN SPECIFIED AREA | HOTEL OR CONVENTION CENTRE | 100% OF THE PROFIT FOR 5 CONSECUTIVE YEARS FROM THE COMMENCEMENT. |
SECTION 80IE | CERTAIN UNDERTAKINGS IN NORTH EASTERN STATES | UNDERTAKINGS ENGAGED IN MANUFACTURE/ PROVISION OF SPECIFIED GOODS/ SERVICES OR UNDERTAKE SUBSTANTIAL EXPANSION, IN NORTH EASTERN STATES | 100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS FROM THE COMMENCEMENT. |
SECTION 80JJA | PROFITS AND GAINS OF SPECIFIED BUSINESS | SPECIFIED BUSINESS | 100% OF THE PROFIT FOR 5 CONSECUTIVES FROM THE COMMENCEMENT |
SECTION 80JJAA | EMPLOYMENT OF NEW EMPLOYEES | EMPLOYER WHO WAS SUBJECT TO TAX AUDIT U/S 44AB | 30% OF ADDITIONAL EMPLOYEE COST FOR 3 YEARS STARTING FROM THE DATE OF EMPLOYMENT. |
SECTION 80LA | CERTAIN INCOME OF OFFSHORE BANKING UNITS IN SEZ AND IFSC | OFFSHORE BANKING UNITS IN SEZ OR UNIT OF IFSC | FOR OFFSHORE BANKING UNIT – 100% OF THE INCOME FOR FIRST 5 YEARS AND 50% FORTHE NEXT 5 YEARS.FOR IFSC – 100% OF THE INCOME FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS FROM THE COMMENCEMENT. |
SECTION 80PA | CERTAIN INCOME OF PRODUCER COMPANIES | PRODUCER COMPANIES ENGAGED IN ELIGIBLE BUSINESS | 100% OF THE PROFIT |
SECTION 80RRB | ROYALTY ON PATENTS | INDIVIDUALS (INDIAN CITIZEN OR FOREIGN CITIZEN BEING RESIDENT IN INDIA) | LOWER OF –
· RS.3,00,000 · INCOME SPECIFIED |
SECTION 80QQB | ROYALTY INCOME OF AUTHORS | INDIVIDUALS (INDIAN CITIZEN OR FOREIGN CITIZEN BEING RESIDENT IN INDIA) | LOWER OF –
· RS.3,00,000 · INCOME SPECIFIED |
SECTION 80TTA | INTEREST EARNED ON SAVINGS ACCOUNTS | INDIVIDUAL BELOWTHE AGE OF 60 YEARS OR HUF |
UPTO RS 10,000 |
SECTION 80TTB | INTEREST INCOME EARNED ON DEPOSITS (SAVINGS/ FDS) | INDIVIDUAL OF 60 YEARS AND ABOVE OF AGE | UPTO RS 50,000 |
SECTION 80U | DISABLED INDIVIDUALS | INDIVIDUALS | NORMAL DISABILITY: RS. 75,000/- SEVERE DISABILITY: RS. 1,25,000/- |
DEDUCTIONS UNDER SCHEDULE VI- OTHER THAN SECTION 80C
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