Section |
Nature of Deduction |
Who can Claim |
UNDER THE HEAD ‘SALARIES” |
16(ia) |
Standard deduction (maximum Rs. 40,000) (applicable from the assessment year 2019-20) |
Salaried employees |
16(ii) |
Entertainment allowance [subject to maximum of Rs. 5,000] |
Government employees |
16(iii) |
Tax on employment within the meaning of article 276(2) of the Constitution, leviable by or under any law |
Salaried employees |
UNDER THE HEAD “INCOME FROM HOUSE PROPERTY” |
23(1), proviso |
Taxes levied by local authority and paid by the owner |
All assessees |
24(a) |
Standard deduction [30 per cent of net annual value] |
All assessees |
24(b) |
Interest on borrowed capital |
All assessees |
UNDER THE HEAD “PROFITS AND GAINS OF BUSINESS OR PROFESSION” |
30 |
Rent, rates, taxes, repairs and insurance for buildings |
All assessees |
31 |
Repairs and insurance of machinery, plant and furniture |
All assessees |
32 |
Depreciation [subject to certain conditions] |
All assessees |
32AC |
Investment allowance |
Companies |
32AD |
Additional investment allowance for setting up industrial undertakings in Andhra Pradesh, Bihar, Telangana and West Bengal |
All assessees |
33AB |
Tea/Coffee/rubber development account |
All assessees carrying on the business of growing and manufacturing tea or coffee or rubber in India |
33ABA |
Site restoration fund |
All assessees engaged in the business of the prospecting for, or extraction or production of, petroleum or natural gas or both in India |
35 |
Expenditure on scientific research [subject to certain conditions] |
All assessees |
35ABA |
Expenditure for obtaining right to use spectrum for telecommunication services |
Any assessee |
35ABB |
Expenditure for obtaining licence to operate telecommunication services |
All assessees |
35AC |
Expenditure on eligible projects/schemes |
All assessees |
35AD |
Expenditure on specified business |
All assesses (only Indian companies in some cases) |
35CCA |
Expenditure by way of payment to associations and institutions for carrying out rural development programmes and contribution towards notified Rural Development Funds [subject to certain conditions] |
All assessees |
35CCC |
Weighted deduction for expenditure incurred on agricultural extension project |
All assesses |
35CCD |
Weighted deduction for expenditure for skill development |
Companies |
35D |
Amortisation of preliminary expenses [deductible in five equal instalments] |
Indian companies and resident non-corporate assessees |
35DD |
Amortisation of expenditure in case of amalgamation or demerger |
Indian company |
35DDA |
Amortisation of expenditure incurred under voluntary retirement scheme |
All assessees |
35E |
Expenditure on prospecting, etc., for certain minerals [deductible in ten equal instalments] |
Indian companies and resident non-
corporate assessees engaged in prospecting etc., of any minerals |
36(1)(i) |
Premium paid in respect of insurance against risk of damage or destruction of stocks/stores |
All assessees |
36(1)(ia) |
Premium paid for insurance on life of cattle owned by a member of a society engaged in supplying milk to the federal milk co-operative society |
Federal milk co-operative societies |
|
Medical insurance paid by employers |
All assessees |
36(1)(ii) |
Bonus or commission paid to employees |
All assessees |
36(1)(iii) |
Interest on borrowed capital |
All assesses |
36(1)(iiia) |
Discount on zero coupon bond |
Infrastructure capital companies/ infrastructure capital funds/public sector funds/public
sector banks |
36(1)(iv) |
Contributions to recognised provident fund and approved superannuation fund |
All assessees |
36(1)(v) |
Contributions to approved gratuity fund |
All assessees |
36(1)(va) |
Employees’ contributions to staff welfare schemes |
All assessees |
36(1)(vi) |
Write off allowance in respect of animals [subject to certain conditions] |
All assessees |
36(1)(vii) |
Bad debts |
All assessees |
36(1)(viia) |
Provisions for bad and doubtful debts in respect of advances made by rural branches of banks |
Scheduled banks and non-scheduled banks |
36(1)(viii) / (viiia) |
Amount transferred to special reserve |
Approved Financial Corporations and public companies of specified nature/scheduled banks/National Housing Bank |
36(1)(ix) |
Expenditure for promoting family planning amongst employees [deductible in 5 equal annual instalments in the case of capital expenditure] |
Companies |
36(1)(x) |
Contribution towards notified Exchange Risk Administration Fund |
Public financial institutions |
36(1)(xii) |
Expenditure incurred by statutory entities |
Statutory entities |
36(1)(xiii) |
Banking cash transaction tax |
Any assessee |
36(1)(xv) |
Securities transaction tax |
All assessees |
36(1)(xvi) |
Commodities transactions tax |
All assessees |
36(1)(xvii) |
Expenditure incurred for purchase of sugarcane |
Co-operative societies |
36(1)(xviii) |
Marked to market loss |
All assessees |
37(1) |
Any other expenditure [ not being personal or capital expenditure and expenditure mentioned in sections 30 to 36 ] laid out wholly and exclusively for business |
All assessees |
37(2B) |
Expenditure on advertisement |
All assessees |
UNDER THE HEAD ‘CAPITAL GAINS” |
48 |
Expenditure incurred wholly and exclusively in connection with transfer of capital asset |
All assessees |
48 |
Cost of acquisition of capital asset and of any improvement thereto |
All assessees |
|
UNDER THE HEAD ‘INCOME FROM OTHER SOURCES” |
|
57(i) |
Any reasonable sum paid by way of commission or remuneration for the purpose of realizing dividend/interest on securities |
All assessees |
57(ii) |
Repairs, insurance and depreciation of buildings, plant and machinery and furniture |
Assessees engaged in the business of letting out of machinery, plant and furniture on
hire |
57(iii) |
Any other expenditure (not being capital expenditure) expended wholly and exclusively for earning such income |
All assessees |
DEDUCTION UNDER CHAPTER VI-A IN RESPECT OF PAYMENTS |
80C |
Life insurance premia, provident fund contribution (maximum Rs. 1,50,000) |
Individuals and HUFs |
80CCC |
Pension fund [maximum Rs. 1,50,000] |
Individuals |
80CCD(1) |
Contribution by an employee or any other individual towards National Pension System (NPS) (up to 10% of the salary of the employee or up to 20% of gross total income in the case of any other individual) |
Individuals |
80CCD(1B) |
Contribution by an individual towards NPS (maximum; Rs. 50,000) |
Individuals |
80CCD(2) |
Contribution by the employer towards NPS (up to 10% of salary of the employee) |
Employees |
80D |
Medical insurance premia [subject to maximum of Rs.1,00,000] |
Individuals and HUFs |
80DD |
Maintenance including medical treatment of a handicapped dependent who is a person with disability [maxi mum : Rs. 1,25,000) |
Resident individuals or resident HUFs |
80DDB |
Medical treatment expenses [maximum Rs. 1,00,000] |
Resident individuals or resident HUFs |
80E |
Payment of interest of loan taken for higher studies |
Individuals |
80EE |
Interest on loan taken for residential property |
Individuals |
80G |
Donations to certain funds, charitable institutions [subject to maximum of 50 per cent of qualifying donation (100 per cent in some eases)] |
All assessees |
80GG |
Rent paid for furnished/unfurnished accommodation [subject to maximum of Rs. 24,000] |
Individuals |
80GGA |
Certain donations for scientific research or rural development |
All assessees not having any income chargeable under the head “Profits and gains of busi-. ness or profession” |
80GGB/80GGC |
Contribution to political parties |
|
|
DEDUCTION UNDER CHAPTER VI-A IN RESPECT OF CERTAIN INCOMES |
|
80-IA |
Profits and gains from enterprises engaged in infrastructure development |
All assessees |
80-IAB |
Profits and gains by an undertaking engaged in development of SEZ |
Developers |
80-IAC |
Profits and gains from eligible start-up |
Companies/LLPs |
80-IB |
Profits and gains from industrial undertakings |
All assessees |
80-IBA |
Profits and gains from housing projects |
All assessees |
80-IC |
Profits of certain undertakings or enterprises in certain special category States |
All assessees |
80-ID |
Profits and gains from business of hotels/convention centres |
All assessees |
80-IE |
Understandings in North Eastern States |
All assessees |
80-JJA |
Profits and gains from the business of collecting and processing of bio-degradable waste |
All assessees |
80-JJAA |
Employment of new workmen/employee |
All assessees |
80LA |
Income of offshore Banking Units |
Scheduled banks |
80P |
Specified incomes [subject to amount specified in subsection (2)] |
Co-operative societies |
80PA |
Profits and gains derived from eligible business (applicable from assessment year 2019-20) |
Producer companies |
80QQB |
Royalty income of authors (maximum Rs. 3 lakh) |
Resident individuals |
80RRB |
Royalty on patents (maximum Rs. 3 lath) |
Resident individuals |
80TTA |
Interest on deposits in savings account |
Individuals/HUFs |
80TTB |
Interest on deposits with bank/co-operative bank/post office (maximum : Rs. 50,000) (applicable from the assessment year 2019-20) |
Senior citizens |
80U |
Income of a person with disability [maximum Rs. 1,25,000] |
Resident individuals |
