Income Tax Amendments

Income Tax Chapter VI-A Deductions for AY 2018-19 and FY 2017-18 (with 80C Deduction) are updated here. The list Chapter VI-A (Income Tax) Deductions starts with Section 80C and ends with Section 80U. This complete list of Chapter VI-A (Income Tax) Deductions for AY 2018-19 and FY 2017-18 are provided based on Union Budget 2017 introduced by the Central Government. In our previous posts, we have already provided Income Tax Slabs for AY 2018-19 and also TDS Rate chart for AY 2018-19. The deductions are available only to the assessees where the gross total income is positive. If however, the gross total income is nil or negative, the question of any deduction from the gross total income does not arise. For this purpose, the expression ‘gross total income’ means the total income of the assessee computed in accordance with the provisions of the Income-Tax Act, before making any deduction under Chapter VI-A (Income Tax), i.e., the aggregate income computed under each head, after giving effect to the provisions for clubbing of income and set off of losses, is known as “Gross Total Income”. Sections 80A to 80U of the Income tax Act lay down the provisions relating to the deductions allowable to assessees from their gross total income. The income arising after deduction under section 80A to 80U is called Total Income. IT Deductions for FY 2017-18 (AY 2018-19) 80C Deduction for 2017-18 [Contribution to PPF, LIC etc] and 80CCC [Pension Funds] and 80CCD(1): Maximum of Rs.1,50,000 Deduction for the above two. 80CCG [Investment in Equity Savings] 50% of amount invested Or Rs.25,000 Whichever is lower 80DD [Maintenance and Medical Treatment of Disabled dependent]: Flat Deduction of Rs.75,000 (In case of severe disability i.e., 80%, Deduction is Rs.1,25,000] 80D [Medical Insurance Premium]: Rs.25,000 allowed (Rs.30,000 in case of senior citizen) 80DDB [Medical treatment for specified diseases]: Rs.40,000 for Normal Individuals Rs.60,000 for Senior Citizens Rs.80,000 for Super Senior Citizens 80E [Interest on Educational Loan]: Deduction allowed in Initial Assessment Year and 7 preceeding years. 80G [Donations]: 50% and 100% in different cases. 80GG [Rent]: Least of the following is allowed as deduction- 25% of total income Rent paid (-) 10% of Adjusted Income Rs.2,000 per month 80GGB [Contribution to Political Parties]: Actual contribution is allowed as deduction. 80QQB [Royalty Income] and 80RRB[Royalty on Patents]: Least of Amount received or Rs.3,00,000 is allowed as deduction. 80TTA [Interest from Savings Account]: Actual interst subject to a maximum of Rs.10,000 80U [Person with disability]: Rs.75,000 for normal disability and Rs.1,25,000 for severe disability. New Expected IT Deductions Section 80C : Income Tax Deductions AY 2018-19 Deduction on life insurance premia, contribution to provident fund, etc – Available to individual/HUF for a maximum amount of Rs.1,50,000. This is the current deduction limit. This limit is likely to be increased to Rs.2,00,000 for AY 2018-19. Section 80CCD : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of contribution to pension scheme of Central Government available to individual. Section 80CCG : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of investment made under any equity saving scheme : Available to resident individual subject to maximum of Rs.25,000. This limit is likely to remain the same for the upcoming AY 2018-19. Section 80D : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of medical insurance premia – Available to individual/HUF. Explanation: family means the spouse and dependent children of the assessee. Payment shall be made by any mode, including cash, in respect of any sum paid on account of preventive health check-up and by any mode other than cash in all cases other than preventive health check up Section 80DD : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability or severe disability. The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under Section 139, in respect of the assessment year for which the deduction is claimed Section 80DDB read with Rule 11DD : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of medical treatment, etc.: Available to Resident individual/resident HUF. Section 80E : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of repayment of loan taken for higher education: Available to individual. The deduction of an amount actually paid by an individual during the previous year out of his income chargeable to tax by way of an interest on loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education. The deduction under Section 80E will be available in computing the total income in respect of initial assessment years and the seven assessment years immediately succeeding the initial assessment year or until the interest thereon is paid by such individual in full, whichever is earlier Section 80G : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of donations to certain funds, charitable institutions, etc. Available to all assessees subject to maximum of 50% of qualifying amount, 100% as the case may be. Section 80GG : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of rent paid Available to individual for a maximum of Rs.60,000. This limit is likely to be increased to Rs.75,000 for AY 2018-19. Section 80GGA : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of certain donations for scientific research or rural development. The information about this deduction is provided in detail in our other article – Section 80GGA Deduction. Section 80GGB : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of contributions given by companies to political parties. Section 80GGC : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of contributions given by any person to political parties. Section 80-IA : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of profits and gains from industrial undertakings or enterprise engaged in infrastructure development. Section 80-IAB : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of profit and gains by an undertaking a enterprise engaged in development of Special Economic Zone. Section 80-IB : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings. Section 80-IC : Chapter VI-A (Income Tax) Deductions AY 2018-19 Special provisions in respect of certain undertakings or enterprises in certain special category States. Section 80-JJA : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of profits and gains from the business of collecting and processing bio-degradable waste – Available to all assessees carrying on the business of collecting and processing bio-degradable waste. Section 80-JJAA : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of employment of new workmen – Available to Indian company of 30% of additional wages paid to new regular workmen. Section 80LA : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of certain incomes of Offshore Banking Units – 100% of certain income for 5 years, 50% of such income for 5 years. Section 80P : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of income of co-operative societies – Specified incomes subject to amount specified in sub section (2) Section 80QQB : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of royalty income, etc., of authors of certain books other than text books – Available to resident individual, for a maximum deduction of Rs.3,00,000. This Maximum deduction limit is likely to be increased to Rs.5,00,000 for AY 2018-19. Section 80RRB : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of royalty on patents – Available to Resident Individual, maximum of Rs.3,00,000. Section 80TTA : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of interest on deposits in savings account – Available to Individual/ HUF upto Rs.10,000. This Deduction limit is likely to be increased to Rs.20,000 from AY 2018-19. Section 80U : Chapter VI-A (Income Tax) Deductions AY 2018-19 no Deduction in case of a person with disability – Available to Resident individual subject to maximum of Rs.100,000. Fca Manish Gupta Chatered accountants Jheel gandhi nagar delhi 9312382449,8447567689Income Tax Chapter VI-A Deductions for AY 2018-19 and FY 2017-18 (with 80C Deduction) are updated here. The list Chapter VI-A (Income Tax) Deductions starts with Section 80C and ends with Section 80U. This complete list of Chapter VI-A (Income Tax) Deductions for AY 2018-19 and FY 2017-18 are provided based on Union Budget 2017 introduced by the Central Government. In our previous posts, we have already provided Income Tax Slabs for AY 2018-19 and also TDS Rate chart for AY 2018-19. The deductions are available only to the assessees where the gross total income is positive. If however, the gross total income is nil or negative, the question of any deduction from the gross total income does not arise. For this purpose, the expression ‘gross total income’ means the total income of the assessee computed in accordance with the provisions of the Income-Tax Act, before making any deduction under Chapter VI-A (Income Tax), i.e., the aggregate income computed under each head, after giving effect to the provisions for clubbing of income and set off of losses, is known as “Gross Total Income”. Sections 80A to 80U of the Income tax Act lay down the provisions relating to the deductions allowable to assessees from their gross total income. The income arising after deduction under section 80A to 80U is called Total Income. IT Deductions for FY 2017-18 (AY 2018-19) 80C Deduction for 2017-18 [Contribution to PPF, LIC etc] and 80CCC [Pension Funds] and 80CCD(1): Maximum of Rs.1,50,000 Deduction for the above two. 80CCG [Investment in Equity Savings] 50% of amount invested Or Rs.25,000 Whichever is lower 80DD [Maintenance and Medical Treatment of Disabled dependent]: Flat Deduction of Rs.75,000 (In case of severe disability i.e., 80%, Deduction is Rs.1,25,000] 80D [Medical Insurance Premium]: Rs.25,000 allowed (Rs.30,000 in case of senior citizen) 80DDB [Medical treatment for specified diseases]: Rs.40,000 for Normal Individuals Rs.60,000 for Senior Citizens Rs.80,000 for Super Senior Citizens 80E [Interest on Educational Loan]: Deduction allowed in Initial Assessment Year and 7 preceeding years. 80G [Donations]: 50% and 100% in different cases. 80GG [Rent]: Least of the following is allowed as deduction- 25% of total income Rent paid (-) 10% of Adjusted Income Rs.2,000 per month 80GGB [Contribution to Political Parties]: Actual contribution is allowed as deduction. 80QQB [Royalty Income] and 80RRB[Royalty on Patents]: Least of Amount received or Rs.3,00,000 is allowed as deduction. 80TTA [Interest from Savings Account]: Actual interst subject to a maximum of Rs.10,000 80U [Person with disability]: Rs.75,000 for normal disability and Rs.1,25,000 for severe disability. New Expected IT Deductions Section 80C : Income Tax Deductions AY 2018-19 Deduction on life insurance premia, contribution to provident fund, etc – Available to individual/HUF for a maximum amount of Rs.1,50,000. This is the current deduction limit. This limit is likely to be increased to Rs.2,00,000 for AY 2018-19. Section 80CCD : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of contribution to pension scheme of Central Government available to individual. Section 80CCG : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of investment made under any equity saving scheme : Available to resident individual subject to maximum of Rs.25,000. This limit is likely to remain the same for the upcoming AY 2018-19. Section 80D : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of medical insurance premia – Available to individual/HUF. Explanation: family means the spouse and dependent children of the assessee. Payment shall be made by any mode, including cash, in respect of any sum paid on account of preventive health check-up and by any mode other than cash in all cases other than preventive health check up Section 80DD : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability or severe disability. The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under Section 139, in respect of the assessment year for which the deduction is claimed Section 80DDB read with Rule 11DD : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of medical treatment, etc.: Available to Resident individual/resident HUF. Section 80E : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of repayment of loan taken for higher education: Available to individual. The deduction of an amount actually paid by an individual during the previous year out of his income chargeable to tax by way of an interest on loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education. The deduction under Section 80E will be available in computing the total income in respect of initial assessment years and the seven assessment years immediately succeeding the initial assessment year or until the interest thereon is paid by such individual in full, whichever is earlier Section 80G : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of donations to certain funds, charitable institutions, etc. Available to all assessees subject to maximum of 50% of qualifying amount, 100% as the case may be. Section 80GG : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of rent paid Available to individual for a maximum of Rs.60,000. This limit is likely to be increased to Rs.75,000 for AY 2018-19. Section 80GGA : Chapter VI-A (Income Tax) Deductions AY 2018-19 Deduction in respect of certain donations for scientific research or rural development. The information about this deduction is provided in detail in our other article – Section 80GGA Deduction.