DEDUCTION FROM GTI

Basic Point:-
1. Covered u/s 80C to 80U
2. These deduction are not available from Income covered u/s 115 BB (Lottery, crossword puzzles, card
game, betting etc.), Long Term Capital Gain and some Short Term Capital Gain (Covered u/s 111A)

1 Sec. 80C: Contribution to P.P.F., N.S.C., L.I.C. etc.

 Eligible Assesses: HUF & Individual, irrespective of residential status.
 The payment need not necessarily be made out of taxable income.
 Deduction Allowed: Actual or 1,50,000 whichever is lower.
 Conditions:
(1) Premium paid in respect of Life Insurance policy:
Policy issued before 1.4.2012 Premium paid to extent of 20% of actual sum
assured
Policy after 1.4.2012 Premium paid to extent of 10% of actual sum
assured
From 01.04.2013  For person with disability to extent of 15%
of actual sum assured.
 And otherwise 10% of actual sum assured.

(2) Contribution in unit linked Insurance Plan 1971 or mutual fund.(additional condition for claiming
exemption u/s 10(10D) exemption not available where aggregate premium exceeds 250000 on
or after 01.02.2021.)
(3) Premium paid in respect of a contract for deferred annuity.
(4) Any sum deducted from the salary payable of a Government employee for securing a deferred
annuity.
(5) Contribution to SPF/PPF/RPF
(6) Contribution to approved superannuation Fund.
(7) Any sum paid or deposited in Sukanya Samridhi Account.
(8) Subscription to National Savings Certificates VIII (including Interest accrued thereon.)
(9) Contribution to approved annuity plan of LIC
(10) Subscription towards notified units of mutual fund or UTI
(11) Contribution to notified pension fund set up by mutual fund or UTI
(12) Contribution to National Housing Bank (Tax Saving) Term Deposit Scheme, 2008
(13) Subscription to notified deposit scheme
(14) Payment of tuition fees to any university, college, school or other educational institutions within
India for full-time education for maximum 2 children
(15) Repayment of housing loan including stamp duty, registration fee and other expenses
(16) Subscription to certain equity shares or debentures
(17) Subscription to certain units of mutual fund
(18) Investment in five year Term Deposit (the maximum limit for investment in term deposit is Rs.
1,50,000)
(19) Subscription to notified bonds issued by NABARD
(20) Investment in five year Post Office time deposit
(21) Deposit in Senior Citizens Savings Scheme Rules, 2004
(22) Contribution to additional account under NPS
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2 Sec. 80CCC : Contribution to pension fund :

 Eligible Assessee : Individual irrespective of residential status.
 Deduction Allowed : Actual or 1,50,000 whichever is lower.
 Conditions :
(i) Contribution to Annuity plan of LIC approved by Govt.
(ii) If surrender by assessee or by nominee, or received as pension then taxable at the time of
receipt.

3 Sec. 80 CCD : Contribution to pension scheme of Central Govt. :

 Available to
(a) Individual employed by-
(1) Central Govt. on or after 01.01.2004 or
(2) Any other employer.
(b) Any other individual.(Other than employee)
(i) Amount of Deduction :
(ii) If contribution is made by-
(a) Employee: 10% of Salary or amount deposited by employee whichever is less.
(b) Employer(CG or any other employer): 10% of Salary or amount deposited by
employer whichever is less.
(c) Any other Individual: 20% of Gross Total Income or amount deposited whichever is
less.
When received by employee or nominee : Taxable
(iii) CG has notified Atal Pension Yojana as pension scheme, contribution for which qualify
for 80CCD
(iv) Sec 80 CCD(1B) provides for additional deduction of upto Rs. 50,000 in respect of whole
of amt paid or deposited by an individual assessee under NPS in the previous year,
whether or not any deduction is allowed u/s 80CCD(1).This limit is in addition to overall
limit of Rs. 1.50 lakhs provided u/s 80CCE.
(v) The entire employer’s contribution would be included in the salary of the employee.
However, deduction under section 80CCD(2) would be restricted to 14% of salary, in
case of contribution made by the Central Government, and to 10% of salary, in case of
contribution made by any other employer.

4 Sec. 80CCE : Maximum Limit for total amount of Sec. 80C, 80CCC & 80CCD is Rs 1,50,000.
5 Sec. 80 D :Medical Insurance premium :
 Eligible Assessee Individual (Parents, Spouse & Dependent Child) & HUF; Resident or Non-Resident.
 Deductions :
Particulars Amount(Rs.)
(a)In the name of Individual/Spouse/dependent Child Rs.25000
(b) name of the Parents Rs.25000
(c)HUF:-Policy in the name of any member Rs.25000

If paid for senior citizen/very senior citizen then Max. up to 50,000/-.

 Conditions: Expense on :
(a) Medical Insurance (cheque only)
(b) Central Govt. Health scheme / Approved scheme (cheque only)
(c) Expense on super senior citizen (cheque)
(d) Deduction to extent of Rs 5000 shall be allowed for amt paid on account of preventive health
check up for assesee/spouse/dependent children/parents (within the overall limit of Rs.
25,000/50,000). The said payment can also be made in cash.
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The following table summarizes the provisions of section 80D

Nature of Expenditure on behalf of Deduction

Payment/expenditure
(i) Any premium paid, In case of individual Self, spouse and Rs. 25,000
otherwise than by way dependent children
of cash, to keep in force
an insurance on the
health
In case of HUF Family member

(ii) Contribution to Central In case any of the above persons is of the age of 60 years
Government Health or more + resident in India
Scheme (CGHS)
(iii) Preventive health check Rs. 50,000
up expenditure
(i) Any premium paid, Parents Rs. 25000
otherwise than by way
of cash, to keep in force In case either or both the parents is of the age of 60
an insurance on the years or more + Resident in India
health
(ii) Preventive health check Rs. 50,000
up
Maximum Rs. 5,000 allowed as deduction for aggregate of preventive health check-up expenditure, by
any mode including cash, mentioned in I and II (Subject to overall limit of Rs. 25,000 Rs. 50,000, as the
case may be
(iii) Amount paid on account For self/spouse/parents + who is of the age of 60 years Rs. 50,000
of medical expenditure or more + Resident in India + no payment has been
made to keep in force an insurance on the health of
such person

6 Sec. 80D(4A) Deduction where premium for health insurance is paid in lump sum
(i) Appropriate fraction of lump sum premium allowable as deduction: In a case where medical
premium is paid in lumpsum for more than one year by:
(a) an individual, to effect or keep in force an insurance on his health or health of his spouse,
dependent children or parents; or
(b) a HUF, to effect or keep in force insurance on the health of any member of the family, then, the
deduction allowable under this section for each of the relevant previous year would be equal to
the appropriate fraction of such lump sum payment.

7 Sec. 80DD : Exp. for Handicapped Relative :

 Eligible Assessee: Individual (Parents , Bro/Sis, Spouse & Children) & HUF; Resident or Non-Resident.
 Deduction
Non-Severe (If nothing mentioned) Severe (80% or more)
75,000 1,25,000
Irrespective of Expenses.

 Conditions :
(i) Amt. should spend on treatment of Handicapped relative or family member or may be invested
in scheme approved by CBDT (Which are framed by LIC or UTI).
(ii) If dependent died before assessee then assessee is liable to pay tax on amount of withdrawal in
year of receipt.
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8 Sec. 80DDB: Exp. on Medical Treatment :

 Eligible Assessee : Individual (Parents, Spouse , Bro/Sis & Children) & HUF, resident in India.
 Deduction:
Dependent Maximum Limit (Rs.)
(1) A senior citizen, being a resident individual 1,00,000
(2) Other than a senior citizen (Normal) 40,000

 Conditions :
(i) Expenses must be on disease specified in Rules.
(ii) If any claim passed already then it should be reduced from deductable amount.

9 Sec. 80E : Repayment of interest on loan taken for higher studies :

 Eligible Assessee : Individual only; irrespective of residential status.
 Deduction : Any Interest on loan.
 Conditions :
(i) The loan must have been taken for the purpose of pursuing his higher education or for the
purpose of higher education of his or her relative.
(ii) Loan must be taken from Financial Institute or Approved Charitable Institute.
(iii) Deduction is available up to initial 8 year starting from year of payment of 1st installment.

10 Sec 80EE: Interest on loan borrowed for acquisition of self occupied house property by an individual:
 Eligible Assessee : Individuals; irrespective of residential status.
 Deduction: Rs. 50,000 Maximum (It is over and above deduction of upto Rs. 2,00,000 available
under section 24).
 Conditions :
 The assessee should not own any residential house o the date of sanction of loan.
 Value of house ≤ Rs. 50 lakhs
 Loan sanctioned ≤ Rs. 35 lakhs
 Loan should be sanctioned during the P.Y. 2016-17.

11 Sec. 80 U: Income of handicapped person

 Eligible Assessee: Individual ( who is blind or Physically Handicapped).
 Deduction:
Non-Severe (If nothing mentioned) Severe (80% or more)
75,000 1,25,000
Irrespective expenses :
 Conditions : Any person, who is certified by the medical authority to be a person with disability and
furnish a copy of certificate issued by the authority.
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12 Sec. 80EEA: Interest payable on loan taken for acquisition of residential house property
 Eligible Assessee: Individual
 Conditions:
(1) The individual should not own any residential house on the date of sanction of loan
(2) Stamp Duty Value of house < Rs. 45 lakhs.
(3) Loan should be sanctioned by a Financial Institution during the P.Y. 2019-20
(4) The individual should not be eligible to claim deduction u/s 80EE
 Period of benefit: Deduction will available from assessment year 2020-2021
 Deduction: Maximum of Rs. 1,50,000
 If interest payable u/s 24b in respect of acquisition of eligible house property is more than Rs.
2,00,000, the excess can be claimed as deduction under section 80EEA, subject to fulfillment of
conditions.
 No deduction under any other provision.

13 Sec. 80G Donation: Available to All assessee :

Without any restriction Restricted upto 10% of total Income

(Generally all Govt. Fund) (All other Donation)
100% 50% deductible 100% deductible 50% deductible
1.Rajiv Gandhi (Approx all except
deductible 1.Promotion of family
Foundation
(Approx. All 2)
2.Indira Gandhi planning
except 4)
Memorial Trust. 2.Given to Olympic
3.Jawahar Lal Nehru Memorial
Fund Association
4.Prime Ministers
Draught Relief Fund
POINTS TO BE REMEMBER
(i) Donation should give to approved trust of institute etc.
(ii) No deduction in cash should exceed Rs. 2,000.
(iii) Not eligible for deduction if donation in kind.
(iv) If given to promote any special community then not allowed.
(v) If paid out of exempted income then also deductable.
(vi) Total Income Means:
GTI - LTCG - Other deduction of Sec 80-STCG(111A)
(Income u/s 115 BB will not be deducted)
14 Sec. 80GG : House Rent Paid
 Eligible Assessee : Individual & HUF; irrespective of residential status.
 Deduction :
(a) Rent paid minus 10% of total Income.
(b) 25% of total Income
(c) Rs. 5,000/-per month
Whichever is lower is deductible.
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 Conditions :
(A) Assessee is a non -salaried person or a salaried person not receiving any RFH & HRA. If received
concessional R.F.H. then also available
(B) Assessee or his/her spouse/Minor children/HUF of which assessee is a member does not have
any residential house at the place of working.

15 Sec 80 GGA : Donation for scientific research and rural development

 Eligible Assessee : Individual (not engaged in PGBP).
 Deduction: 100% allowed .
 Conditions:
(i) Amount exceeding Rs. 10,000 should not be paid in cash.
(ii) Any sum paid by the assessee in the previous year to a research association which has as its
object the undertaking of scientific research or to a University, college or other institution
(approved) to be used for scientific research.
(iii) Any sum paid by the assessee in the previous year to an association or institution which has as
its object the undertaking of any programme of rural development (approved).

16 Sec 80 GGB: Contribution given by companies/to political parties :

 Eligible Assessee : Indian Company.
 Deduction : 100% (other than by way of cash) .
 Conditions : Donation and contribution to any political party or an electoral trust.

17 Sec 80 GGC: Contribution given by any person to political parties :

 Eligible Assessee : Other than Indian Company.
 Deduction : 100% (other than by way of cash) .
 Conditions : Donation and contribution to any political party or an electoral trust.

18 Sec 80JJAA: Employment of new employees

 Eligible Assessee : An assessee to whom section 44AB applies, whose Gross total income includes
profits and gains derived from business.
 Deduction : 30% of additional employee cost for 3 A.Y.
 Conditions :
 Total emolument to employee should not exceed Rs. 25,000 per month
 Should be employed for not less than 240 days during the previous year( for apparel business-
150 days )
 Employee should participate in R.P.F.
 Pension is given by Government.
19 Sec 80QQB :Deduction in respect of royalty income of authors other than text books
 Eligible Assessee : Resident Individual, being an Author (Joint Author is also included).
 Deduction:
 Income derived or Rs. 3,00,000 whichever is less.
 In respect of royalty or copyright fee received otherwise than by way of lumpsum, deduction to
be restricted to 15% of value of books sold during the relevant previous year.
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 Condition:
(i) Assessee shall have to furnish a certificate duly verified by the person responsible for making
such payment.
(ii) Income from any source outside India, should bring such income into India in convertible foreign
exchange within six months from the end of the P.Y. in which such income is earned.

20 Sec 80RRB: Deduction in respect of royalty income of patent

 Eligible Assessee : Residential individuals (being a patentee).
 Deduction: Income derived or Rs. 3,00,000 whichever is less.
 Conditions :
(i) Royalty on patents .
(ii) Any income by way of royalty on patents registered on or after 1.4.2003.

21 Sec 80TTA: Deduction in respect of interest on deposits in saving accounts:

 Eligible Assessee : Individual or a HUF other than a resident senior citizen.
Note: Deduction under this section would be however, not be available to a resident senior citizen
eligible for deduction under section 80 TTB.
 Deduction: Actual or 10,000 whichever is lower.
 Conditions : Interest on deposit in a saving account with a bank, a co-operative society or post office
(not being time deposit which is repayable on expiry of fixed period).
 Restriction: Non-availability of deduction to partner/member, where deposit held by firm/AOP/BOI.

22 Sec 80TTB: Deduction in respect of interest on deposits (Senior Citizen):

 Eligible Assessee : Resident senior citizen (age 60 year or more in P.Y.)
 Deduction: Actual or 50,000 whichever is lower.
 Conditions : Interest on deposit with banking company, a co-operative society engaged in the
business of banking or post office .
 Restriction: Non-availability of deduction to partner/member, where deposit held by firm/AOP/BOI.

23 Sec. 80EEB: Interest payable on loan taken for purchase of electric vehicle
 Eligible Assessee: Individual
 Conditions:
(1) Loan should be taken for purchase of an electric vehicle.
(2) Loan should be sanctioned during the period between 1.4.2019 and 31.3.2023.
(3) Loan should be sanctioned by a FI (bank or specified NBFCs).
 Deduction: Maximum of Rs. 1,50,000.
 No deduction under any other provision.