Overview of Deductions under Chapter VI A of Income Tax Act

SECTIONS

PARTICULARS

ELIGIBLE PERSONS

PRESCRIBED LIMIT OF DEDUCTION

SECTION 80C

INVESTMENT IN LIC, PPF, SUKANYA SAMRIDDHI ACCOUNT, MUTUAL FUNDS, FD ETC

INDIVIDUAL
AND
HUF

UPTO RS 1,50,000

SECTION 80CCC

INVESTMENT IN PENSION FUNDS

INDIVIDUALS

SECTION 80CCD (1)

ATAL PENSION YOJANA AND NATIONAL PENSION SCHEME CONTRIBUTION

INDIVIDUALS

SECTION 80CCD (IB)

ATAL PENSION YOJANA AND NATIONAL PENSION SCHEMECONTRIBUTION

INDIVIDUALS

UPTO RS 50,000

SECTION 80CCD (2)

NATIONAL PENSION SCHEME, UNDERTAKEN BY THE EMPLOYER

INDIVIDUALS

LOWER OF –

·         AMOUNT CONTRIBUTED
 

·         14% OF BASIC SALARY + DEARNESS ALLOWANCE, IN CASE OF GOVERNMENT EMPLOYEE.

·         10% OF BASIC SALARY+ DEARNESS ALLOWANCE, IN CASE OF OTHER EMPLOYEES

SECTION 80D

PAYMENT OF MEDICAL INSURANCE PREMIUM AND EXPENDITURE

INDIVIDUAL
AND
HUF

UPTO RS 25,000 FOR SELF AND FAMILY. MAXIMUM UP TO RS 1,00,000 INCLUDING PARENTS

SECTION 80DD

PAYMENT FOR MEDICAL TREATMENT OF A DEPENDENT WITH DISABILITY

INDIVIDUAL
AND
HUF

NORMAL DISABILITY: RS 75000/-
SEVERE DISABILITY: RS 125000/-

SECTION 80DDB

SPECIFIED DISEASES

INDIVIDUAL
OR
HUF

SENIOR CITIZENS: UPTO RS 1,00,000
OTHERS: UPTO RS 40,000

SECTION 80E

INTEREST PAID ON LOAN TAKEN FOR HIGHER EDUCATION

INDIVIDUAL

100% OF THE INTEREST PAID, ALLOWED UPTO 8 ASSESSMENT YEARS

SECTION 80EE

INTEREST PAID ON HOUSING LOAN

INDIVIDUAL

UPTO RS 50,000 SUBJECT TO SOME CONDITIONS

SECTION 80EEA

IINTEREST PAID ON HOUSING LOAN

INDIVIDUAL

UPTO RS 1,50,000/- EXTENDED FOR AY 2021-22

SECTION 80EEB

INTEREST PAID ON ELECTRIC VEHICLE LOAN

INDIVIDUAL

UPTO RS 1,50,000 SUBJECT TO SOME CONDITIONS

SECTION 80G

DONATION TO CHARITABLE INSTITUTIONS

ALL ASSESSEE (INDIVIDUAL, HUF, COMPANY ETC)

100% OR 50% OF THE DONATED AMOUNT OR QUALIFYING LIMIT,
ALLOWED IN CASH UPTO RS.2000.

SECTION 80GG

INCOME TAX DEDUCTION FOR HOUSE RENT PAID

INDIVIDUAL

LOWER OF -

·         RS.60,000

·         25% OF TOTAL INCOME

·         RENT PAID - 10% OF TOTAL INCOME

SECTION 80GGA

DONATION TO SCIENTIFIC RESEARCH & RURAL DEVELOPMENT

ALL ASSESSEES EXCEPT THOSE WHO HAVE AN INCOME (OR LOSS) FROM A BUSINESS AND/OR A PROFESSION

100% OF THE DONATION,
ALLOWED IN CASH UPTO RS.10,000.

SECTION 80GGB

CONTRIBUTION TO POLITICAL PARTIES

COMPANIES

100% OF THE DONATIO, HOWEVER, DONATION IN CASH IS NOT ALLOWED

SECTION 80GGC

INDIVIDUALS CONTRIBUTION TO POLITICAL PARTIES

INDIVIDUAL
HUF
AOP
BOI
FIRM

100% OF THE DONATIO, HOWEVER, DONATION IN CASH IS NOT ALLOWED

SECTION 80IA

PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC.

INDUSTRIAL UNDERTAKINGS ENGAGED IN SPECIFIED BUSINESSES

100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS FROM COMMENCEMENT

SECTION 80IAB

PROFITS AND GAINS TO SEZ DEVELOPERS

SEZ DEVELOPERS

100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS FROM COMMENCEMENT

SECTION 80IAC

ELIGIBLE STARTUPS

COMPANY OR LLP ENGAGED IN ELIGIBLE BUSINESS SUBJECT TO SOME CONDITIONS

100% OF THE PROFIT FOR 3 CONSECUTIVE YEARS OUT OF 7 YEARS FROM COMMENCEMENT.

SECTION 80IB

PROFITS AND GAINS FROM CERTAIN INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKINGS

SPECIFIED INDUSTRIAL UNDERTAKINGS

25%, 30% OR 100% OF THE PROFIT DEPENDING ON THE PERIOD.

SECTION 80IBA

PROFITS FROM HOUSING PROJECTS

INDIVIDUAL
HUF
AOP
BOI
COMPANY
FIRM
ANY OTHER PERSON ENGAGED IN THE BUSINESS OF HOUSING PROJECTS AS MAY BE SPECIFIED

100% OF THE PROFIT

SECTION 80IC

CERTAIN UNDERTAKINGS IN SPECIAL CATEGORY STATES

CERTAIN INDUSTRIAL UNDERTAKINGS

FOR SIKKIM - 100% OF PROFIT FOR 10 YEARS.
 

FOR HIMACHAL PRADESH/ UTTARANCHAL
100% OF THE PROFIT FOR FIRST 5 YEARS AND THEN 25%FOR NEXT 5 YEARS.

FOR NORTH EASTERN STATES - 100% OF THE PROFIT FOR 10 YEARS

SECTION 80ID

PROFITS AND GAINS OF HOTELS/CONVENTION CENTRES IN SPECIFIED AREA

HOTEL OR CONVENTION CENTRE

100% OF THE PROFIT FOR 5 CONSECUTIVE YEARS FROM THE COMMENCEMENT.

SECTION 80IE

CERTAIN UNDERTAKINGS IN NORTH EASTERN STATES

UNDERTAKINGS ENGAGED IN MANUFACTURE/ PROVISION OF SPECIFIED GOODS/ SERVICES OR UNDERTAKE SUBSTANTIAL EXPANSION, IN NORTH EASTERN STATES

100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS FROM THE COMMENCEMENT.

SECTION 80JJA

PROFITS AND GAINS OF SPECIFIED BUSINESS

SPECIFIED BUSINESS

100% OF THE PROFIT FOR 5 CONSECUTIVES FROM THE COMMENCEMENT

SECTION 80JJAA

EMPLOYMENT OF NEW EMPLOYEES

EMPLOYER WHO WAS SUBJECT TO TAX AUDIT U/S 44AB

30% OF ADDITIONAL EMPLOYEE COST FOR 3 YEARS STARTING FROM THE DATE OF EMPLOYMENT.

SECTION 80LA

CERTAIN INCOME OF OFFSHORE BANKING UNITS IN SEZ AND IFSC

OFFSHORE BANKING UNITS IN SEZ OR UNIT OF IFSC

FOR OFFSHORE BANKING UNIT -
100% OF THE INCOME FOR FIRST 5 YEARS AND 50% FORTHE NEXT 5 YEARS.

FOR IFSC - 100% OF THE INCOME FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS
FROM THE COMMENCEMENT.

SECTION 80PA

CERTAIN INCOME OF PRODUCER COMPANIES

PRODUCER COMPANIES ENGAGED IN ELIGIBLE BUSINESS

100% OF THE PROFIT

SECTION 80RRB

ROYALTY ON PATENTS

INDIVIDUALS (INDIAN CITIZEN OR FOREIGN CITIZEN BEING RESIDENT IN INDIA)

LOWER OF –

·         RS.3,00,000

·         INCOME SPECIFIED
 

SECTION 80QQB

ROYALTY INCOME OF AUTHORS

INDIVIDUALS (INDIAN CITIZEN OR FOREIGN CITIZEN BEING RESIDENT IN INDIA)

LOWER OF –

·         RS.3,00,000

·         INCOME SPECIFIED

SECTION 80TTA

INTEREST EARNED ON SAVINGS ACCOUNTS

INDIVIDUAL BELOWTHE AGE OF 60 YEARS
OR
HUF

UPTO RS 10,000

SECTION 80TTB

INTEREST INCOME EARNED ON DEPOSITS (SAVINGS/ FDS)

INDIVIDUAL OF 60 YEARS AND ABOVE OF AGE

UPTO RS 50,000

SECTION 80U

DISABLED INDIVIDUALS

INDIVIDUALS

NORMAL DISABILITY: RS. 75,000/-
SEVERE DISABILITY: RS. 1,25,000/-