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Deduction from Gross Total Income [Section 80A to 80U] (Chapter VIA)

These deductions are of two types:—

  1. Deductions on account of certain payments and investments covered under sections 80C to 80GGC.

  2. Deductions on account of certain incomes which are already included under Gross Total Income covered under sections 80-IA to 80U.

The income arrived at, after claiming the above deductions from Gross Total Income, is known as Total Income. It may also be called Taxable Income. The Total Income, thus calculated, should be rounded off to the nearest Rs. 10.

The aggregate of 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". In computing the total income of an assessee, certain deductions are permissible under sections 80C to 80U from Gross Total Income.

These deductions are however not allowed from the following incomes although these incomes are part of Gross Total Income:

  1. Long-term capital gains.

  2. Short-term capital gain on transfer of equity shares and units of equity oriented fund through a recognised stock exchange i.e. short-term capital gain covered under section 111A.

  3. Winnings of lotteries, races, etc.

  4. Incomes referred to in sections 115A, 115AB, 115AC, 115ACA, 115AD and 115D.

1. Deductions on account of certain Payments and Investments covered under sections 80C to 80GGC.

    1. Deduction in respect of Life Insurance Premium, Deferred Annuity, Contribution to PF, Subscription fo certain Equity Shares or Debentures etc. [Section 80C ]

    2. Deduction in respect of Contribution to certain Pension Funds [Section 80CCC]

    3. Deduction in respect of Contribution to National Pension Scheme (NPS) of Central Government by Central Government or any other Employer [ Section 80CCD]

    4. Deduction in respect of investment made under an equity savings scheme [Section 80CCG]

    5. Deduction in respect of Health or Medical Insurance Premia [ Section 80D]

    6. Deduction in respect of Maintenance Including Medical Treatment of a Dependent who is a person with Disability [Section 80DD]

    7. Deduction in respect of Medical Treatment , etc. [Section 80DDB]

    8. Deduction in respect of Interest of Loan taken for Higher Education [Section 80E]

    9. Deduction in respect of interest on loan taken for residential house property [Section 80EE] [W.e.f. A.Y. 2017-18]

    10. Deduction in respect of Donations to certain Funds, Charitable Institutions , etc. [Section 80G]

    11. Deduction in respect of Rents Paid [Section 80GG]

    12. Deduction in respect of certain Donations for Scientfic Research or Rural Development [Section 80GGA]

    13. Deduction in respect of contributions given by companies to political parties [Section 80GGB]

    14. Any sum contributed by an Indian company in the previous year to any political party or an electoral trust shall be allowed as deduction while computing its total income.

      No deduction shall be allowed under this section in respect of any sum contributed by way of cash.

    15. Deduction in respect of contribution given by any person to political parties [Section 80GGC]

      Any amount of contribution made in the previous year to a political party or an electoral trust by an assessee being any person, except local authority and every artificial juridical person wholly or partly funded by the Government shall be allowed as deduction which computing the total income of such person.

      No deduction shall be allowed under this section in respect of any sum contributed by way of cash.

2. Deductions on account of certain Incomes which are already included under Gross Total Income covered under sections 80-IA to 80U

    1. Deduction in respect of Profit and Gains from Industrial Undertaking or Enterprises engaged in infrastructure Development [Section 80-IA]

    2. Deduction in respect of Profit and Gains from Industrial Undertakings or enterprises engaged in development of Special Economic Zone (SEZ). [Section 80-IAB ]

    3. Deduction in respect of Eligible Business of Eligible Start Up [Section 80-IAC] [W.e.f. A.Y. 2017-18]

    4. Deduction in respect of Profit & Gain from certain Industrial Undertaking other than Infrastructure Development Undertaking [Section 80-IB]

    5. Deduction in respect of Profits and Gains from Housing Projects [Section 80-IBA]

    6. Deduction in respect of Profits and Gains of Certain Undertaking or Enterprises in certain Special Category States. [Section 80-IC]

    7. Deduction in respect of Profits and Gains from Business of Hotels and Convention center in NCR [Section 80-ID]

    8. Deduction in respect of certain undertaking in North-Eastern States [Section 80-IE].

    9. Deduction In Respect Of Profit And Gains From Business Of Collecting And Processing Of Bio-Degradable Waste. [Section 80-JJA]

    10. Deduction In Respect Of Employment Of New Employees [Section 80-JJAA]

    11. Deduction In Respect Of Certain Income Of Offshore Banking Units And International Financial Services Center. [Section 80-LA]

    12. Deduction In Respect Of Income Of Co-Operative Societies. [Section 80-P]

    13. Deduction in respect of Income of Farm Producer Companies [Section 80-PA] w.e.f. A.Y. 2019-20

    14. Deduction In respect of Royalty Income, Etc., of Authors of Certain Books other than Text-Books [Section 80-QQB]

    15. Deduction In Respect Of Royalty On Patents [Section 80-RRB]

    16. Deduction in respect of interest on deposits in Savings Accounts [Section 80-TTA]

    17. Senior Citizen to be allowed a Deduction of Rs. 50,000 on account of Interest on Deposits with Banks / Co-operative Bank / Post Office [Section 80-TTB]

3. Other Deductions

    1. Deduction In Case Of A Person With Disability [Section 80U]

Deductions to be made in Computing Total Income [Sections 80A to 80U (Chapter VIA)]

Related Topics...Deductions from Gross Total Income

  1. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "PAYMENT & INVESTMENT" ARE ALLOWED FROM SECTION 80C TO 80GGC

    Section 80C Section 80CCC Section 80CCD
    Section 80CCG Section 80D Section 80DD
    Section 80DDB Section 80E Section 80EE
    Section 80G Section 80GG Section 80GGA
  2. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "INCOMES" ARE ALLOWED FROM SECTION 80-IA TO 80U

    Section 80-IA Section 80-IAB Section 80-IAC
    Section 80-IB Section 80-IBA Section 80-IC
    Section 80-ID Section 80-IE Section 80-JJA
    Section 80-JJAA Section 80-LA Section 80-P
    Section 80-PA Section 80-QQB Section 80-RRB
    Section 80-TTA Section 80-TTB Section 80-U
 

 

 
 
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