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SECTION 80C 80U

Section 80 CDeduction for payment of premium, pension fund etc To whom allowed Individual and HUF For what allowed -: Life insurance premium, on life of self, spouse and children for individual and for HUF any member of family -: payment by individual for any annuity or deferred annuity -: employee contribution for statutory providend fund or recognized providend fund or approved superannuation fund -: by individual or HUF for public providend fund -: subscription by individual or HUF for NSS,1992, NSC VIIIth issue, ULIP, Mutual fund, notified pension fund, deposit scheme in a public sector company, eligible equity shares, notified bonds -: sum paid by individual for tuition fee, for a maximum of two child -: repayment of installments of housing loan by individual for residential house property -: stamp duty or registration fee for transfer of such property -: sum deposited in a scheduled bank or post office in term deposit not less than 5 years Amount paid or deposited in previous year for any annuity plan of LIC or other insurers Quantum of deduction Aggerate amount paid or Rs 1,00,000 which is less Special points LIFE INSURANCE PREMIUM -: premium for individuals, parents, brother, sister not covered, -: the child may be major, minor, married, unmarried, dependent or independent -: premium paid can not exceed 20% of policy value TUITION FEE -: May be paid either at the time of admission or at any time thereafter -: however does not include payment towards development fee or donation HOUSING LOAN -: premium shall be deducted here i.e. 80C and interest from income from house property

80 CCC Contributio n to pension scheme 80 CCD-: Contributio n to pension secheme of central governmen t or other employer 80 D-: Medical insurance premium, commonly known as mediclaim

Only to individual

Aggerate amount paid or Rs 1,00,000 which is less 10% of salary or gross total income

To employee of central Govt, other employers or self employed

-:Amount not exceeding 10% of salary (basic+DA) paid by employee in his account under notified pension scheme -: amount contributed by employer not exceeding 10% of salary (basic+DA) -: in case of self employed person amount not exceeding 10% of his gross total income -: Amount paid to GIC or other insurers in previous year towards medical insurance premium -: provided amount is paid by any mode other than in CASH

-: deduction also available to non residents -: if annuity surrendered or pension received, the amount will be fully taxable -: where deduction allowed under this section, no dedeuction shall be allowed under section 80 C -: where deduction allowed under this section, no dedeuction shall be allowed under section 80 C

Individual and HUF

80 DD Maintenanc e and medical treatment of a dependent who is a

-: allowed to resident in India who is either individual or HUF

-: incurred any expenditure for medical treatment, training and rehabilitation of dependent who is a person with disability -: amount deposited under scheme framed by LIC or other insurer or UTI

-: a) FOR INDIVIDUAL Amount paid or Rs 15000 which is less for self spouse or dependent child AND -: Amount paid or Rs 15000 which is less for parents (whether dependent or not) b) FOR HUF amount paid or Rs 15000 which is less for any member of family -: Rs 50,000 irrespective of expenditure Or Rs 1,00,000 where such dependent is a person with severe disability

Additional deduction of Rs 5,000 shall be allowed where amount paid is in respect of a senior citizen Child here means dependent child, whether major, minor, married or unmarried

-: dependent means for individual spouse, children, parent, brother and sisters of any of spouse AND in case of HUF any member of family -: the assessee shall furnish certificate of a medical authority with return of income -: where dependent predeceases the assessee, the whole of the amount deposited

person with disability 80 DDBDeduction for medical treatment in case of specified diseases 80E Interest paid on loan for pursuing higher education

INDIVIDUAL -:For himself or dependent HUF -: Any member of family Only to individual assessee

Deduction is available for amount actually incurred for medical treatment

Amount actually paid or Rs 40,000 which is less And where amount is paid for senior citizen Rs 60,000 -: Amount actually paid for interest on such loan -: shall be allowed for 8 assessment years at the most, beginning from the year when he starts paying interest on loan

shall be deemed to be income of assessee of the previous year in which received For individual spouse, children, parent, brother and sisters of any of spouse AND in case of HUF any member of family

Loan should be for assessee himself or any of his relative

Higher education means any course pursued after passing senior secondary examination (X+II)

PROBLEMS
1) Mrs S who is resident in India provides the following information. Compute her taxable income for the Aseessment year 2010-11 and tax thereon.

Gross salary Rent of house property Interest on bank deposits Deposited in PPF Tuition fee paid for three children @ Rs 15000 per child LIP on her life ( sum assured Rs 100000)

190,000 120,000 14,000 60,000 45,000 25,000

2) M has computed his gross total income for the Assessment year 2010-11 which amounted to
Rs 3,50,000. it includes Rs 3,00,000 on account of long term capital gain. He had deposited Rs 70,000 in a PPF account during the previous year. Compute the Tax payable by M assuming that (a) he is of 45 years (b) he is of 65 years 3) A sumits the following information regarding his income for the previous year 2009-10 salary Rent of house property Winning from lottery(gross) Deposited in PPF Contribution towards 200000 4000 per month 15,000 60,000 10,000

PPF Premium paid in cash on mediclaim policy for his dependent father

8,000

He has a son being a person with disability, dependent on him for whom he incurs Rs 40,000 for his training and rehabilitation. He also deposited Rs 25,000 for the benefit of his son in LIC. Compute his total income and tax liability. 4) Gross total income of A for the previous year 2009-10 is Rs 5,20,000. he had taken a loan of Rs 6,00,000 in 2008-09 from a Bank for pursuing his MBA by his son. During the previous year 2009-10, he repaid his first installment of Rs 55,000 and interest Rs 70,000. compute his total income

Section 80 GDeduction on account of donations made to specified funds or institutions

To whom allowed To all types of assesses

For what allowed National defence fund Prime ministers national relief fund Africa fund National foundation for communal harmony University of national eminence Maharatras chief minister earthquake relief fund Fund set up by Gujrat state Govt for earthquake Zila saksharta committee Fund set up by state Government for providing medical relief to poor National blood transfusion council Army welfare fund Andhrapradesh chief ministers cyclone relief fund Chief ministers relief fund National sports fund National cultural fund Fund for technology fund National trust for welfare of persons

Quantum of deduction 100% of donations made without any qualifying limit

Special points -: Donation in kind do not qualify -: proof of payment is necessary for claiming deduction under section 80G -: Adjusted gross total income means, gross toal income as reduced by 1) long term capital gain 2) short term capital gain on sale of equity shares or equity oriented fund, taxed at 15%(now 10%) 3) income referred to in section 115A, 115AB, 115AC, 115AD 4) All income on which income tax is not payable 5) all deductions under section 80C to 80U, Except 80G -: THUS, THERE IS NO LIMITATION OF QUANTUM OF DEDUCTION AS SUCH. TOTAL DEDUCTION SHALL BE AGGREGATE OF ALL FOUR

Donation to Govt or approved institution for promoting family planning Donation to Indian Olympic association or other association for promoting sports

100% deduction subject to 10% of adjusted gross total income

Jawaharlal Nehru memorial fund Prime ministers draught relief fund Indira Gandhi memorial trust Rajiv Gandhi foundation National children fund

50% of donations made without any qualifying limit 50% of donations made subject to 10% of adjusted gross total income

To Govt or local authority for charitable purposes To any authority for housing accommodation, development of city, town or villge To any corporation set up for promoting interests of minority community Any temple, mosque, gurudwara or church notified as historical, archeological or cultural importance, for repair etc Fund or institution satisfying the condition of section 80G(5) 80 GG -: Deduction for rent paid Only to individual Conditions to satisfy to claim deduction individual should pay rent he is not entitled to any house rent allowance or rent free accommodation, if he is employee the individual nor his spouse or minor child owns any accommodation at the place where he works, or if owned at any other place then such property should not be assessed as self occupied property

Lower of three a) excess of rent paid over 10% of adjusted total income b) 25% of adjusted total income c) Rs 2000 per month

Adjusted gross total income means, gross toal income as reduced by 1) long term capital gain 2) short term capital gain on sale of equity shares or equity oriented fund, taxed at 15%(now 10%) 3) income referred to in section 115A, 115AB, 115AC, 115AD 4) All income on which income tax is not payable 5) all deductions under section 80C to 80U, Except 80GG -:The Gross total income of assessee should not include any income under head profits and gains of business or profession -: the deduction granted to assessee shall not be denied if afterwards approval granted to above institution is withdrawn

80GGA-: Deduction for certain donations for scientific research or rural developme nt

Donation to approved scientific research association, school, colleges to be used for scientific research approved university, college or other institution for research in social sciences an association or institution engaged in approved programme for rural development any public sector company etc carrying out any eligible project Any sum contributed to any political party

100% of amount paid

80GGB-: Deduction for contribution given to political party 80GGC-: Deduction for contribution given by any person to any political party

Indian company only

100% of the amount paid

Any person except a) local authority b) artificial juridical person, partly or fully funded by Government

Any sum contributed to any political party

100% of the amount paid

PROBLEMS
5) A, whose gross total income for the assessment year 2010-11 is Rs 285,000(which includes long term capital gain of Rs 40,000 and short term capital gain of Rs 20,000 on sell of gold) submits the following information a) contribution towards PPF Rs 10,000

b) LIP paid on married son not dependent on him Rs 5,000 c) Mediclaim premium paid by cheque for himself Rs 2,000 and for married son not dependent on him Rs 3,000 d) He has made the following donations national defence fund Rs 5,000 national relief fund Rs 4,000 indira Gandhi memorial trust Rs 5,000 Delhi university ( declared as institution of national imminence) Rs 2,000 Zila sakchata committee Rs 4,000 Approved charitable institution Rs 15,000 Government for family planning Rs 10,000 Donation of blanket to orphans Rs 4,000 Donation to national blood transfusion council Rs 2,000

Compute total income and tax payable to A. for the assessment year 2010-2011. 6) R who is an advocate in Delhi, furnishes following particulars for the previousyear 2009-10 Income from profession Rs 172,000 Short term capital gain on sale of gold Rs 18,000 Long term capital gain on sale of land Rs 6,000 Interest on Government securities Rs 11,000 Repayment of interest on loan taken for higher education Rs 10,000 Payment of mediclaim policy through credit card Rs 4,000 Rent paid for house in Delhi Rs 36,000 Calculate his total income