Thursday, May 09, 2013

For June 2013 ICWAI Stage I Examination (Paper 7): Master Chart for Deduction under section 80C to 80U

Chart for deduction u/s80C to 80U  Rebate u/s 87A
Details of deductions
80C (Individual
& HUF)
A. LIP of Spouse and Children and any member in case of HUF
B. Deferred annuity, SPF, RPF, PPF, Superannuation Fund, NSC(8TH),5 years   PO Time deposit, Senior citizen Saving Scheme, Term deposit of 5 years, Deposit for 10 or 15 years in Post office saving bank.
C. Bonds of NABARD, Deposit scheme of NHB, Notified deposit scheme,.
D. MF referred u/s 10(23D), Pension fund of MF[10(23D)], Eligible issue of securities.
E. Cost of purchase or construction of residential house including repayment of loan and expenses on transfer of property, tution fees to any educational institutions for full time eduction of 2 childrens.
Maximum Rs 1 ,00,000 is allowed(For 80c, 80ccc, 80ccd). Investment need not be from taxable income.
No Dedcution Allowed:
Terminates the insurance policy within 2 years, Terminate ULIP within 5 years, transfer house within 5 years
Limit of eligible premium in case of insurance policy on life of disable person has been increased to 15 % instead of 10 % from FY 13-14.
Max. 10% of the minimum amt assured under Life policies
Deduction in case of contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income.
Maximum is Rs 1,00,000
Aggregate of 80C  80CCC  80CCD is Rs 1,00,000
Deduction in respect to contribution to new pension scheme. Employees of central and others are eligible.
Maximum is sum of employer’s and employee’s contribution to the scheme limited upto 10 % of salary.
Aggregate of 80C  80CCC  80CCD is Rs 1,00,000
It should be noted that employer contribution is allowable as extra u/s 80CCD(2) of the Income Tax Act from Asst Yr 2012-13 and only employee's contribution is within limit of Rs 1 Lakh as stated in 80CCE
It should be noted that as per section 80CCE , the maximum amount of deduction which can be claimed in aggregate of 80C ,80CCC  80CCD(1) is Rs 1,00,0000
Individual having gross total income upto Rs 12 Lakh can claim this deduction for inveting in IPOs of share or mututal fund units.
50 % 0f the invested amount . Limit is Rs 25,000 max.
The deduction is allowed for three years only.
(Individual &HUF)
Medical insurance on self, spouse , children or parents. The deuction is also allowable for CGHS contribution to Cenral and State scheme. It is also for conducting health check up to Rs 6000.
Age Below 60 years: Rs 15,000 including Rs. 5000 on preventive checkup for self , spouse  children + Rs 15,000 for insurance on parents.
Age above 60 years: Replace Rs 15,000 with 20,000.
Cash payment not allowed. But for Preventive Checkup it is allowed.
80DD (Individual &HUF)
For maintenance including treatment or insurancing the lives of physical disable dependent relatives
Rs 50,000 . In case disability is severe , the amount is Rs 1,00,000.
dependent relatives includes spouse, child, parents, brother sister
80DDB (Individual &HUF)
For medical treatment of self or relatives suffering from specified disease
Acutal amount paid to the extent of Rs 40,000. In case of patient being Sr Citizen , amount is Rs 60,000.
Deduction reduced by the amount received under insurance from an insurer or reimbursed by an employer.
For interest payment on loan taken for higher studies(after 12)  for self or education of spouse or children
Actual amount paid as interest and start from the financial year in which he /she starts paying interest and upto maximum of 8 years.
loan from any financial institution banking or approved charitable institution
interest on home loan sanctioned during Fy 2013-14. However, value of the property should be below Rs 50 Lakh and max loan sanctioned should be Rs 25 lakh. Further assessee should not have any other residential house.
RS 1 lakh
(All Assessee)
Donations to charitable institution
(Max. 10,000 if paid in cash from A/Y 13-14)
100% of amount of donation made to 19 entities (National defense fund , Prime minister relief fund etc. ).  50%  (Gandhi/ Drouhgt/ charitable purpose/infrastructural development fund). For Asst Yr 2014-15, Natital Children Fund will also get 100% deduction.
Where the aggregate
of sums exceed 10% of adjusted gross total income, then such excess amount is ignored for computing such aggregate.
For rent paid
This is only for people not getting any House Rent Allowance. Maximum is Rs 2000 per month. Rule 11B is method of computation.
For donation to entities in scientific research or rural development (Max. 10,000 if paid in cash from A/Y 13-14)
Only those tax payers who have no business income can claim this deduction .Maximum is equivalent to 100 % of donation.
Cash payment not allowed
80GGB  80GGC
For contribution to political parties
100 % of donations
Cash payment not allowed
Allowed only to resident authors for royalty income for books other than text book
Royalty income or Rs 3,00,000 whichever is less.
For income receipt as royalty on patents of resident individuals
Actual royalty or Rs 3,00,000 whichever is less.
Deduction in respect of permanent physical disability including blindness to taxpayer
RS 50,000 which goes to Rs 1,00,000 in case taxpayer is suffering from severe disability.
Rebate to individual having low taxable income
Amount of tax or Rs 2,000 which ever is less
Only resident individual gets this rebate.