deductions from total income

7/29/2019 Deductions From Total Income

1/13

80 C : Savings

80CCC : Contributions to Pension Funds

80D: Medical Insurance Premium

80DD : Maintenance of Handicapped Dependent

80E : Interest on Loan for Higher Education

80U : Deduction for Handicapped Resident Individual


2/13

80C: Savings

Eligible Assessee:(a) Individual : Self, Spouse, Children

(b) HUF : Any member of HUF

Amount of Deduction:

(a) Amount Invested or

(b) Rs.1,00,000

whichever is less.


3/13

Qualifying Investments Life Insurance Policy:

1. In case of Individual

Self, spouse, children (minoror major, dependent or independent, married or

unmarried)

2. In case of HUF Any member of HUF.

3. Amount of Deduction:

20% of sum assured or

premium paid, whichever is less.

(10% of sum assured, if policy is taken on or after 1.4.2012)

4. Premium due, but not paidNot eligible.


4/13

Qualifying Investments Provident Fund:

Statutory Provident Fund (SPF)Recognized Provident Fund (RPF)

Public Provident Fund (PPF)

Post office Cumulative Time Deposit (POCTD):5 years / 10 years / 15 years

National Saving Certificate (NSC) & Interest on NSC:

Interest is taxed under

Income from Other SourcesDeduction u/s 80C.

Fixed Deposit in Bank: 5 years (Scheduled Bank)


5/13

Qualifying Investments Senior Citizen Savings Scheme:

Tuition Fees:

a) Eligible Assessee only Individual

b) Only Tuition Fees not donation.

c) Paid to University, College, School / Educational Institution

d) Situated in Indiae) Only Full Time Education

f) For any TWO CHILDREN

g) Child may be major / minor, dependent/independent

New House:a) Principal Repayment of any Housing Loan from Bank or

Financial Institution.

b) Stamp duty, registration fees / other expenses


6/13

Other Qualifying Investments

Unit linked Insurance Plan of UTI (ULIP),

Unit Linked Insurance Plan of LIC

Dhanaraksha,

Notified Annuity Plan of LIC (Jeevan Dhara/ Jeevan Akshay),

Equity Linked Saving Scheme (ELSS) of Mutual Fund or LIC,

Pension Fund of Mutual Fund/Unit Trust of India,

Deferred Annuity Plan,

Home Loan Account of National Housing Bank & interest

accruedthereon.

Housing Finance Deposits,

Notified bonds of NABARD and

Investment in Infrastructure Shares/ Debentures / Units

Note: Kisan Vikas Patra Not Eligible


7/13

When Deduction is Disallowed?

1. Termination ofULIP before 5 years:

2. Discontinuation ofInsurance Policy before 2 years

3. Transfer of House Property before 5 years

4. Transfer ofInfrastructure Debentures/Shares/Unitsbefore 3 years

5. Withdrawal from SCSS / PO-CTDbefore 5 years


8/13

80CCC: Contribution to Pension Funds

1. Onlyto an individual(Indian Citizen/ foreign citizen).

2. paid or depositedany amount

3. To effect or keep in force a contract for any annuity

plan ofLIC of India/any other insurer.

4. For receiving pension from a fund.

5. Quantum of Deduction

actual deposit / paymentor

Rs.1,00,000whichever is less.

Total Deduction u/s 80C + 80CCCcan not exceed

Rs.1,00,000.


9/13

80D : Medi-Claim Insurance Premium1. Eligible Assessee:

Individual : Self, Spouse, Dependent Children and Parents

HUF : Any member of HUF.

2. Paid to:

GIC or CGHS or Any other insurer approved by IRDA.

3. Mode of Payment: Preventive Health Checkup Any mode including cash

Medi-Claim PremiumAny mode other than cash

4. Quantum of Deduction:

Rs.15,000

for self, spouse and dependent children

Rs.15,000 parents

Addition Rs. 5,000 if Senior Citizen.

Preventive health checkup can not exceed Rs.5,000


10/13

80DD: Maintenance of Handicapped Dependent

1. Eligible Assessee:

Resident Individual

Resident HUF

2. Deduction is available in respect of:

Any expenditure incurred for the medical treatment

(including nursing), training and rehabilitation of dependent

with disability

Any amount paid or deposited by the assessee under any

scheme of LIC or any other insurer or UTI for the maintenance

of a dependent with disability.


Rs.50,000 irrespective of actual expense / amt. deposited.

Rs.1,00,000 in case of severe disability.


11/13

80DD: Maintenance of Handicapped Dependent

4. Dependent:

In case of Individual

spouse, children, parents, brothers andsisters of the individual.

In case of HUF any member of HUF.

Points to Note:

Dependent should be wholly and mainly dependent on the

Assessee and has not claimed any deduction u/s 80 U in

computation of his income.

For claiming the deduction, the assessee shall have to furnish a

copy of the Certificate issued by the Medical Authority along

with the Return of Income.


12/13

80E: Interest on Loan for Higher Education

1. Eligible Assessee: only Individual

2. Loan from : Any Financial Institution or Approved CharitableInstitution.

3. Loan taken for : the purpose of pursuing

His own higher education

Higher education of spouse or any child.

4. Higher education means: any full time graduate or post

graduate course.

5. Amt is paid : by way of Interest on Loan

6. Amount of Deduction : Amount paid during the year by way

ofInterest on Loan.

7. Deduction is allowed for 8 Assessment Years starting from the

year in which assessee starts paying interest.


13/13

80U: Deduction for Handicapped Resident Individual

1. Eligible Assessee: Individual Resident in India.

2. Conditions :a) The assessee is permanently handicapped.

b) Handicapness reduces his working capacity.

c) Suffering from not less than 40% of prescribed disability.

d) Certificate from the doctor of Government Hospital to besubmitted.


Rs.50,00040% to 80% handicapped.

Rs.1,00,000

if severely handicapped (more than 80%handicapped or multiple handicapness) .

deductions from total income

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