Budget Amendments on deduction of chapter VI-A

Budget Amendments on deduction of chapter VI-A

Section 80C:

• All investments in ‘Sukanya Samridhi Scheme’ were already eligible for deduction under Section 80C.
• Now all the withdrawals and interest accrued on such Scheme will also be exempted from tax with retrospective effect from April 1, 2015
• Additional deduction under Section 80CCD: Additional deduction of Rs. 50,000 is provided for contribution to pension Scheme under Sec. 80CCD

Section 80D :

• Health Insurance and Medical Expenditure: limit of deduction under Sec. 80D increased from Rs 15000 to Rs 25000
• Limit of deduction for senior citizen or very super senior citizen from Rs 20000 to Rs 30000/-
• A deduction is also proposed for payment made on account of medical expenditure of a very senior citizen which does not exceed Rs 30000.

Section 80DD :

• Additional deduction for medical treatment of differently-abled persons
• Finance Bill, 2015 proposes to amend section 80DD to give additional deduction of Rs 25,000 to differently-abled persons.
• As per the proposed amendment additional deduction would be available for medical treatment of dependent persons with disability or severe disability

Section 80DDB :

• Additional deduction for medical treatment of Super Senior Citizens
• Finance Bill proposes additional deduction of Rs. 20,000 under Section 80DDB to Super Senior Citizens (80 years or above), for sum incurred on medical treatment of prescribed disease or ailment.
• New deduction for a super senior citizen shall be Rs. 80,000 under this provision.
• Benefit of section 80DDB shall be allowed to assessee if he obtains prescription for such medical treatment from a neurologist, an oncologist, an urologist, a haematologist, an immunologist or such other prescribed specialist (not necessarily a Government Doctor).

Section 80U :

• Deduction under Section 80U raised limit of deduction raised to Rs. 75,000 in case of person suffering with disability and to Rs. 1,25,000 in case of person suffering with severe disability.

Section 80JJAA :

• Employment of new workmen. It is proposed that the benefit shall be extended to all assessees with manufacturing units rather than restricting it to corporate assessees only.
• Further in order to enable the smaller units to claim the incentive, the threshold limit on new regular workmen has been reduced from 100 to 50.

Deduction U/s 80G :

• An amendment is proposed to section 80G which will provide deduction for donations made to ‘Swachh Bharat Kosh’ and ‘Clean Ganga Fund’ as set up by Central Government.

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