Top Banner
WELCOME WELCOME
62

WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Jan 12, 2016

Download

Documents

Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

WELCOMWELCOMEE

Page 2: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

PROJECT REPORTPROJECT REPORTENTITLEDENTITLED

DEDUCTIONS ON GROSS TOTAL INCOMEDEDUCTIONS ON GROSS TOTAL INCOME

Page 3: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

INTRODUCTIONINTRODUCTION Deductions available under section 80C to 80U are Deductions available under section 80C to 80U are

of special nature and are allowed to certain of special nature and are allowed to certain specified categories of taxpayers. Deductions specified categories of taxpayers. Deductions under section 80C to 80GGC are in relation to under section 80C to 80GGC are in relation to various investments and payments. various investments and payments. Purpose of deductions is to Purpose of deductions is to encourage savings, industrialization and to encourage savings, industrialization and to assist the taxpayers in meeting their essential assist the taxpayers in meeting their essential expendituresexpenditures. These deductions have to be made . These deductions have to be made from the gross total income in order to arrive at net from the gross total income in order to arrive at net income.income.

Page 4: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

GENERAL DEDUCTIONSGENERAL DEDUCTIONS These deductions are allowed from GTI(from sec These deductions are allowed from GTI(from sec

80C to 80U).80C to 80U). The total of these deductions cannot exceed GTI.The total of these deductions cannot exceed GTI. If any such deduction u/s 80G, 80GGA, 80GGC, If any such deduction u/s 80G, 80GGA, 80GGC,

80IA, 80IB 80JJ has been allowed to an AOP or 80IA, 80IB 80JJ has been allowed to an AOP or BOI, then the same shall not be allowed to the BOI, then the same shall not be allowed to the members. members.

These deductions are not allowed from LTCG, These deductions are not allowed from LTCG, STCG computed u/s 111-A and casual incomes.STCG computed u/s 111-A and casual incomes.

Assessee should claim these deductionsAssessee should claim these deductions

Page 5: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTIONSDEDUCTIONSEXPENDITURE

BASED DEUCTIONS

(80C TO 80GGC)

INCOME BASED

DEDUCTIONS(80IA TO 80U)

Page 6: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTIONS TO BE MADE IN COMPUTING

TOTAL INCOME FROM 80 C TO 80

GGC

Page 7: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S 80CDeduction in respect of life

insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

Page 8: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION DEDUCTION U/S.80CU/S.80C

Deduction is available for the amount paid or deposited towards:Deduction is available for the amount paid or deposited towards: Life Insurance Premium,Life Insurance Premium, PF, PPF, Superannuation fundPF, PPF, Superannuation fund Unit Linked Insurance Plan Contribution, Unit Linked Insurance Plan Contribution, NSC, NSS,, Subscription to Units of Mutual Fund referred NSC, NSS,, Subscription to Units of Mutual Fund referred

to u/s.10(23D), to u/s.10(23D), Contribution to any Pension Fund set up by Mutual Fund Contribution to any Pension Fund set up by Mutual Fund

referred to u/s.10(23D), referred to u/s.10(23D), Tuition Fees (excluding development fees, donation etc),Tuition Fees (excluding development fees, donation etc), Repayment towards Principal amount of Housing Loan,Repayment towards Principal amount of Housing Loan, Term Deposit for a fixed period of not less than five years Term Deposit for a fixed period of not less than five years

with a Scheduled Bank etc. to the extent of Rs.1,00,000 .with a Scheduled Bank etc. to the extent of Rs.1,00,000 . Home deposit scheme of national housing bank with Home deposit scheme of national housing bank with

Nationalized bankNationalized bank

Page 9: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S 80CCC

Deduction in respect of contribution to certain

pension funds.

Page 10: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S.80CCC

Any individual who makes a contribution for any annuity plan of the Life Insurance Corporation of India or any other insurer is eligible for a deduction of the amount paid or Rs. 1,00,000, whichever is less. When an individual or his nominee receives any amount under the following circumstances it will be taxed as the income of the individual or his nominee, in the year of withdrawal or the year in which the pension is received:

On the surrender of the annuity plan or As pension received from the annuity plan.

Page 11: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S 80CCD

Deduction in respect of contribution to pension scheme of Central Government.

Page 12: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S.80CCD The deduction for contributions to a pension scheme of the Central

Government is available only to those individual who have been employed by the central government on or after 1st January 2004, and will be allowed for any amount deposited in such a pension scheme. But, in this case, deduction of more than 10 per cent of the employee's salary shall not be allowed.

The contributions to the fund are also made by the Central Government. Deduction will be available for any contribution which is made by the Central Government or 10 per cent of the employee's salary, whichever is less.

When the individual or his nominee receives any amount out of the scheme which meets the following descriptions, it shall be taxed in the hands of the recipient.

On closure/ opting out of the pension scheme; or As pension received from the annuity plan. The term 'salary' here includes Dearness Allowance (if considered for

retirement benefits), but it excludes other allowances and perquisites.

The aggregate deduction under the Sections 80C, 80CCC and 80CCD cannot exceed Rs 1 lakh as whole.

Page 13: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S 80D

Deduction in respect of medical insurance premia

Page 14: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S.80DAny Premium which is paid for medical insurance

that has been taken on the health of the assessee, his spouse, dependent parents or dependent children, is allowed as a deduction, subject to a ceiling of Rs 15,000.

Where any premium is paid for medical insurance for a senior citizen, an enhanced deduction of Rs 20,000 is allowed. The deduction is available only if the premium is paid by cheque.

Page 15: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S 80DD

Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.

Page 16: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S.80DDDeduction under this section is available to an individual who: Incurs any expenditure for the medical treatment, training and rehabilitation of a

disabled dependant; or Deposits any amount in schemes like Life Insurance Corporation for the

maintenance of a disabled dependant. An annuity or a lump sum amount is paid to the dependant or to a nominee for the benefit of the dependant in the event of the death of the individual depositing the money, from the said scheme,

A deduction of Rs 50,000 is available. Where the dependant is with a severe disability, a deduction of Rs 75,000 is allowed.If the death of the dependant occurs before that of the assessee, the amount in the scheme is returned to the individual and is taxable in his hands in the year that it is received. An individual should furnish a copy of the issued certificate by the medical board constituted either by the Central government or a state government in the prescribed form, along with the return of income of the year for which the deduction is claimed. The term 'dependent' here refers to the spouse, children, parents and siblings of the assessee who are dependant on him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes.This deduction is also available to Hindu Undivided Families (HUF).

Page 17: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S.80DDB

DEDUCTION IN RESPECT OF

MEDICALTREATMENT ETC.

Page 18: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S.80DDB An individual, resident in India spending any amount for the

medical treatment of specified diseases affecting him or his spouse, children, parents, brothers and sisters and who are dependant on him, will be eligible for a deduction of the amount actually spent or Rs 40,000, whichever is less.

Note:- For the complete list of disease specified, refer to Rule 11DD of the Income Tax Rules.

For any amount spent on the treatment of a dependent senior citizen an individual is eligible for a deduction of the amount spent or Rs 60,000, whichever is less is available.

The individual should furnish a certificate in Form 10-I with the return of income issued by a specialist working in a government hospital.

If any amount of medical expenditure is borne by the employer or is reimbursed under an insurance scheme, the eligibility of the deduction is the reduction to that extent. This deduction is also available to Hindu Undivided Families (HUF).

Page 19: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S.80E•DEDUCTION IN RESPECT OF INTEREST ON LOAN TAKEN FOR HIGHER EDUCATION.

Page 20: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

DEDUCTION U/S.80EUnder this section, deduction is available for payment of interest on a loan taken for higher education from any financial institution or an

approved charitable institution. The loan should be taken for either pursuing a full-time graduate

or post-graduate course in engineering, medicine or management, or a post-graduate

course in applied science or pure science.The deduction is available for the first year

when the interest is paid and for the subsequent seven years. Up to March 2005, deduction was

available for the repayment of principal and interest aggregating to Rs 40,000 a year.

Page 21: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

ConclusionConclusionSectionSection

            

Product to InvestProduct to Invest Amount toAmount to

InvestInvest

Other DetailsOther Details

80C 80C     NSC, notified ban deposits NSC, notified ban deposits and post office time and post office time deposits,EPF and PPF, ELSS, deposits,EPF and PPF, ELSS, life insurance plans,deferred life insurance plans,deferred pension plans. pension plans.

Cannot exceed Cannot exceed  Rs.1lakh  Rs.1lakh

Mandatory requirementsMandatory requirements - Payment - Payment has to be made before 31 has to be made before 31 March2008.March2008.Who can avail the Who can avail the deductiondeduction -Individuals and HUF -Individuals and HUF (both resident and non-resident). (both resident and non-resident).

80CCC 80CCC Pension plans of life insurers. Pension plans of life insurers. Limit of Limit of Section80C(upto to Section80C(upto to Rs.1lakh) Rs.1lakh)

Mandatory requirementsMandatory requirements - Payment - Payment has to be made before 31 March has to be made before 31 March 2008.2008.Who can avail the deductionWho can avail the deduction - - Individuals Individuals

80D 80D Medical insurance policies Medical insurance policies taken for self, taken for self, spouse,dependent parents or spouse,dependent parents or ohildren,or any member of ohildren,or any member of HUF. HUF.

Upto Rs.15,000; Upto Rs.15,000; senior citizens senior citizens can claim up to can claim up to Rs.20,000 Rs.20,000

Mandatory requirements :-Mandatory requirements :-Premium Premium should be paid through a cheque should be paid through a cheque out of income chargeable to tax out of income chargeable to tax Who can avail the deductionWho can avail the deduction - - Individuals and HUF. Individuals and HUF.

80DD 80DD Expenses on the medical Expenses on the medical treatment of a dependent who treatment of a dependent who

is a person with a disability. is a person with a disability.

Upto Rs.50,000, Upto Rs.50,000, or uptoRs.75,000 if or uptoRs.75,000 if the dependent is the dependent is a person with a person with severe disability severe disability

Mandatory  requirementsMandatory  requirements - - Certification by a medical authorityCertification by a medical authority Who can avail Who can avail the deductionthe deduction - -  Resident individual or HUF.   Resident individual or HUF.

Page 22: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

SectionSection

            

Product to InvestProduct to Invest Amount toAmount to

InvestInvest

Other DetailsOther Details

80DDB 80DDB Expenses on the medical Expenses on the medical treatment of a specified disease treatment of a specified disease (cancer,AIDS,neurological (cancer,AIDS,neurological diseases,chronic renal failure diseases,chronic renal failure and more and more

Rs.40,000 (if the Rs.40,000 (if the person treated upon person treated upon is less than 65 years is less than 65 years of age),or Rs 60,000 of age),or Rs 60,000

(if the age of the (if the age of the person treated is 65 person treated is 65 years or more )years or more )

Mandatory requirementsMandatory requirements - - Certificate in Form No.10-l to be Certificate in Form No.10-l to be submitted along with the income tax submitted along with the income tax is available if the amount is actually is available if the amount is actually paid for treatment.paid for treatment.    Who can avail the deductionWho can avail the deduction - -  Resident individual or HUF   Resident individual or HUF

80E 80E Payment of interest on loan Payment of interest on loan taken for higher studies taken for higher studies

    Deduction Deduction available on the available on the  total interest  total interest portion of education portion of education loan the principal loan the principal repayment gets no repayment gets no tax advantagetax advantage

Mandatory requirementsMandatory requirements -Deduction -Deduction is available in the year in which is available in the year in which repayment starts and only for eight repayment starts and only for eight immediately succeeding assessment immediately succeeding assessment years. years.

Who can avail the deductionWho can avail the deduction - -  Individual.   Individual.

Page 23: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80GSection 80G

Deduction in respect Deduction in respect of donations to of donations to certain funds, certain funds, charitable charitable institutionsinstitutions etc. etc.

Page 24: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

8800GG

For all For all assessassesseesees

AAllll aasssseesssseeeess

A. No. limit donations:A. No. limit donations:

1. To PM National Relief1. To PM National Relief

Fund.Fund.

2. To Africa Fund.2. To Africa Fund.

3. To Armenia Earthquake Relief Fund.3. To Armenia Earthquake Relief Fund.

4. To University or institution of National 4. To University or institution of National Eminence( so notified).Eminence( so notified).

5. To National Foundation for communal 5. To National Foundation for communal harmony. harmony.

6. To the Chief Minister’s Earthquake Relief 6. To the Chief Minister’s Earthquake Relief Fund Maharashtra.Fund Maharashtra.

7. To Zila Saksharta Samiti.7. To Zila Saksharta Samiti.

8.8. To National Blood Transfusion Council or To National Blood Transfusion Council or State Blood Transfusion Council.State Blood Transfusion Council.

9.9. To any fund set up by the State Govt. to To any fund set up by the State Govt. to provide medical relief to poor.provide medical relief to poor.

Q.A.Q.A.

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

RATERATE

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

Section 80GSection 80G

Page 25: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

10.10. To Army Central welfare Fund , Indian To Army Central welfare Fund , Indian Naval Benevolent Fund or Air Force Naval Benevolent Fund or Air Force Central Welfare fund. Central Welfare fund.

11. To National Illness Assistance Fund.11. To National Illness Assistance Fund.

12. To Andhra Chief Minister Cyclone Relief 12. To Andhra Chief Minister Cyclone Relief Fund.Fund.

13. To Chief Minister’s Relief Fund or 13. To Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund.Lieutenant Governor’s Relief Fund.

14. National Sports Fund.,14. National Sports Fund.,

15. National Cultural Fund.15. National Cultural Fund.

16.16. Technology Development and Application Technology Development and Application Fund.Fund.

17. To National Defence Fund.17. To National Defence Fund.

18. Any fund set up by the State Govt. of 18. Any fund set up by the State Govt. of Gujarat. Exclusively for providing relief to Gujarat. Exclusively for providing relief to the victims the victims of of earthquake in Gujarat.earthquake in Gujarat.

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100100

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

Page 26: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

1919 Any sum paid by the assessee during Any sum paid by the assessee during the period beginning on 30 th day of the period beginning on 30 th day of Sep.2001 and ending on 30th day of Sep.2001 and ending on 30th day of Sep.2001 to any trust , institutions are Sep.2001 to any trust , institutions are fund to which these sections applies for fund to which these sections applies for providing relief to the vicitims of providing relief to the vicitims of earthquake in Gujarat.earthquake in Gujarat.

2020 To the National Trust for welfare of To the National Trust for welfare of persons with autism cerebral Palsy, persons with autism cerebral Palsy, Mental Retardation and multiple Mental Retardation and multiple disability.disability.

2121 To PM National Drought Relief FundTo PM National Drought Relief Fund

2222 To National Children’s FundTo National Children’s Fund

2323 To Jawahar Lal Nehru Memorial Fund.To Jawahar Lal Nehru Memorial Fund.

2424 To Indira Gandhi Memorial Trust.To Indira Gandhi Memorial Trust.

2525 To Rajiv Gandhi FoundationTo Rajiv Gandhi Foundation..

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

100%100%

50%50%

50%50%

50%50%

50%50%

50%50%

Page 27: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

B_ With Limit Donations.B_ With Limit Donations.

To State Govt.To State Govt.

To Local Authority.To Local Authority.

To educational institutionsTo educational institutions

To Charitable institutions.To Charitable institutions.

To Sports InstitutionsTo Sports Institutions

To a corporation set up to protect the To a corporation set up to protect the interest of minority.interest of minority.

To an authority constituted for To an authority constituted for development of housing and development of housing and planning of cities and towns.planning of cities and towns.

To a place of art , public worship or To a place of art , public worship or historical importance( so notified).historical importance( so notified).

To an institutions or association engaged To an institutions or association engaged in promotion of family planning in in promotion of family planning in India.,India.,

Actual of Actual of total of total of 11stst 8 or 8 or 10% of 10% of adj. adj. G.T.I G.T.I whichevwhichever is less er is less is Q.A.is Q.A.

Out of Out of Q.A. Q.A. 100% 100% of of donatidonation for on for F.P. F.P. +by a +by a Co. to Co. to I.O.A.I.O.A.

And And bal.bal.

Q.A. Q.A. 50%50%

Page 28: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

G. TAX. I = GTI ( long term capital gain plus all G. TAX. I = GTI ( long term capital gain plus all other deductions u/s 80 + rebatable income if any.)other deductions u/s 80 + rebatable income if any.)

Rebateable Income = Share of income from AOP Rebateable Income = Share of income from AOP provided total income of such AOP exceeds the provided total income of such AOP exceeds the exempted limit i.e. Rs 1,00,000/-.exempted limit i.e. Rs 1,00,000/-.

Any sum paid by t he assessee being a Any sum paid by t he assessee being a company, in the previous years as company, in the previous years as donation to the Indian Olympic Association donation to the Indian Olympic Association or any other association or institutions as or any other association or institutions as notified by the Central Govt.u/s 10( 23) for notified by the Central Govt.u/s 10( 23) for the development of infrastructure for the development of infrastructure for sports and gains in India orsports and gains in India or the the sponsorship of sports and games in Indiasponsorship of sports and games in India

Page 29: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80GG:Section 80GG:

Deduction Deduction in respect in respect of rent paidof rent paid

Page 30: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

This deduction is allowed to an individual Assessee only.This deduction is allowed to an individual Assessee only. If he stays in a rented house (furnished/ unfurnished) and If he stays in a rented house (furnished/ unfurnished) and

pays rent.pays rent. He should be a self-employed person or an employee who He should be a self-employed person or an employee who

has not received any HRA, from his employer and nor any has not received any HRA, from his employer and nor any rent free accommodation.rent free accommodation.

He or his spouse/children or the HUF of which he is the He or his spouse/children or the HUF of which he is the member must not own a residential house at that place, member must not own a residential house at that place, (let-out/self occupied) where he resides, performs the (let-out/self occupied) where he resides, performs the duties of his office/employment or carries on his business duties of his office/employment or carries on his business or profession.or profession.

He must not own a self-employed house any where in He must not own a self-employed house any where in India.India.

If the assessee is staying in a house given to him at If the assessee is staying in a house given to him at concessional rent, then he is eligible for this deduction.concessional rent, then he is eligible for this deduction.

Section 80GG:Section 80GG:

Page 31: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

The deduction is the least of the following amount:

1. Rs. 2000p.m. or2. 25% of adjusted GTI, or3. The excess of actual rent paid over 10%

of adjusted GTI.

•The assessee files a declaration in form no. 10BA regarding the expenditure incurred by him towards the payment of rent.

Page 32: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80 GGASection 80 GGA::Deduction in respect Deduction in respect of certain donations of certain donations for scientific research for scientific research or rural developmentor rural development..

Page 33: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

This deduction is to be allowed to such an assessee This deduction is to be allowed to such an assessee who’s GTI does not include any income chargeable under who’s GTI does not include any income chargeable under head “ Profits and gains of business/professions”.head “ Profits and gains of business/professions”.

He has paid or donated any amount to:-He has paid or donated any amount to:- Any approved scientific research association or to any Any approved scientific research association or to any

approved university / colleges or other institutions, for approved university / colleges or other institutions, for scientific research.scientific research.

PM’s National Rural Development Fund/ National Urban PM’s National Rural Development Fund/ National Urban Property Eradication Fund .Property Eradication Fund .

Any association/institutions for carrying out any Eligible Any association/institutions for carrying out any Eligible Project identified by the National CommitteeProject identified by the National Committee..

The deduction would be 100% of the amount The deduction would be 100% of the amount donateddonated..

Page 34: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80 GGB Section 80 GGB Deduction Deduction in respect of contributions in respect of contributions

given by an Indian Company to given by an Indian Company to political partiespolitical parties

In computing the total income of an In computing the total income of an Indian Company any sum contributed Indian Company any sum contributed by it in the P/Y to any registered by it in the P/Y to any registered political parties shall be allowed as political parties shall be allowed as deduction in full.deduction in full.

Page 35: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80 GGC : Deduction in respect of contributions given by any person to political parties.

In computing the total income of an assessee( except local authority and artificial judicial person wholly or partly funded by the Government) any amount contributed by him in the P/Y to an registered political party shall be allowed as deduction in full.

Page 36: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 801ASection 801A : : Deduction in respect of Deduction in respect of profits and gains from profits and gains from Industrial undertaking or Industrial undertaking or enterprises engaged in enterprises engaged in infrastructural infrastructural developmentdevelopment::

Page 37: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

The deduction under this section is available to any The deduction under this section is available to any assessee whose GTI includes any profits and gains derived assessee whose GTI includes any profits and gains derived by:-by:-

• Any enterprises carrying on the business of (a) developing Any enterprises carrying on the business of (a) developing or (b) maintaining an operating or (c) developing, or (b) maintaining an operating or (c) developing, maintaining and operating any infrastructure facility or maintaining and operating any infrastructure facility or

• Any undertaking which is engaged in the business of Any undertaking which is engaged in the business of providing telecommunication services or providing telecommunication services or

• Any undertaking which develops, maintains etc. an Any undertaking which develops, maintains etc. an industrial park.industrial park.

• Any industrial undertaking engaged in generation, Any industrial undertaking engaged in generation, transmission, distribution of powers etc.transmission, distribution of powers etc.

SectionSection 801A : 801A :

Page 38: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

A.Enterprises carrying on the business of Infrastructure Facility• Such enterprise is owned ny an Indian Company of by

‘consortium’ of such companies.• Such enterprise has entered into an agreement with (a)

Central or State Government or (b) a Local Authority, or (c) a Statutory Body for

• (1) developing or (2) maintaining and operating, or (3), developing, maintaining and operating a new infrastructure facility which will however ultimately be transferred to the Government or ‘Such Authority ‘as the case may be within the period stipulated in the agreement.

• The enterprise has started operating and maintaining the Infrastructure Facilities’ on or after 1.4.1995.

Page 39: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

•The income tax return must be filed by the assessee otherwise the deduction shall not be allowed The “Infrastructure Facility” means:1 A road, bridge, airport, port, inland waterways, inland ports , rail system or any other public facility notified for the purpose,2A highway project including housing and other activities being an integral part of the highway project and 3A water supply project, irrigation project, sanitation and sewerage system, water treatment system and solid waste management system.

Period of deduction: It would be allowed for 10 consecutive assessment year out of 15 years beginning with the year opted by the assessee during the period in which the undertaking begins to operate any infrastructure facility/. providing telecommunication services/developing

Page 40: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Rate of deductions: 100 % of profits for 10 consecutive A/Ys . The deduction commence from A/Y assessment year specified by the assessee at his option 10 years period must end within given time.

B. Essential conditions for Telecommunication Undertakings:• Any assessee who is engaged in providing Telecommunication services (basic/cellular) including ratio paging, domestic satellite service or internet services electronic date interchange service at any time between 1.4.95 to 31.3.2005.

industrial parks or generation and distribution of powers, but industrial parks or generation and distribution of powers, but not beyond not beyond

15 years. However, in case of high way project including 15 years. However, in case of high way project including housing or otherhousing or other

activities being integral part of high way project, it would be activities being integral part of high way project, it would be ten consecutive A/Ys out of 20 years.ten consecutive A/Ys out of 20 years.

Page 41: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Deductions would be for 10 consecutive Deductions would be for 10 consecutive assessment years( as opted by the assessment years( as opted by the assessee):assessee):

1.1. 100% of profit for first 5 years and100% of profit for first 5 years and

2.2. 30% of profits for next 5 years for all 30% of profits for next 5 years for all assessee.assessee.

Page 42: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

C: Any Assessee who is engaged in the business of developing and operating an industrial park or special economic Zone.: Notified by the Centre Govt. the industrial park must start operating during 1.4.97 to 31.3.2009 and special economic zone on or after 1.4.97 to 31.3.2005. The income tax return must be filed to claim the deduction.

The deduction would be 100% of profits for 10 consecutive A/ys beginning with the initial assessment year as opted by the assesssee within 15 years. If the assessee has transferred the industrial park or the special economic zone to some other assessee the deduction for the remaining period shall be allowed to the transferee

Page 43: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

D: New Industrial undertaking which is engaged in generation and distribution of power:- It begins to generate and distribute powers between 1.4.93 to 31.3.2010. Alternatively, it starts transmissions or distributions by laying a network of new transmission or distributions lying at any time between 1.4.99 and 31.3.2010. Or it undertakes substantial renovation and modernization of the existing transmission or distributions line at any time during the period 1.4.2004 to 31.3.2010(means an increase of P & M by atleast 50% of the book value of such P & M as on 1.4.2004).

Page 44: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

The other conditions are as follows:-1. The plant and machinery must be new however, if it is imported then it may be second-hand provided that it was not used in India in any earlier year and no deduction for depreciation has been claimed on such assets in any earlier year in India. 2. Such undertaking should not be formed by splitting up or reconstruction of a business already in existence, except u/s 33 B.3 20% P & M may be old but 80 % must be new.. 4. The income tax return must be filed by the assesssee to claim this deduction. 5. The deduction would be 100% of profits for 10 consecutive assessment years beginning with the initial assessment year ( as opted by the assessee within 15 years).

Page 45: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80I AB:Section 80I AB: Deduction in respect of profits and Deduction in respect of profits and

gains by an undertaking of gains by an undertaking of enterprise engaged in development enterprise engaged in development of special economic zone:of special economic zone:

Page 46: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

It is a deduction allowed to the developers of SEZ from A/Y 2006-07. The following conditions should be satisfied:

1. The tax payer is the developer of SEZ.2. The GTI of the tax payer includes profits and gains derived by an

undertaking from any business of developing a SEZ.3. Such SEZ is notified on or after 1.4.205.4. The books of accounts are properly audited.5. Income tax return must be filed on or before the due date to claim this

deduction.

6. If the developer of SEZ transfer the operation/ maintenance of such zone to another developer the deduction shall be allowed to the transferee for the remaining period. 7. The deduction would be 100% of profits for 10 consecutive assessment year out of 15 years beginning from the year in which the SEZ has been notified by the Centre Govt.8. Double deduction is not to be allowed .The AO has the power to recomputed the profits of such undertakings.

Section 80I AB:

Page 47: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section80IB:Section80IB:

Deduction for profits Deduction for profits from industrial from industrial undertakings, ship or undertakings, ship or hotelhotel

Page 48: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

For allFor all

AssesAssesseees:seees:

Only Only Indian Indian Co. :Co. :

A.A. Industrial undertaking set up after 1-4-91 but Industrial undertaking set up after 1-4-91 but

before 31-3-95before 31-3-95 Industrial undertaking set up in industrially Industrial undertaking set up in industrially

backward area during 1-10-94 to 31-3-2004backward area during 1-10-94 to 31-3-2004 Industrial undertaking set up in small scale Industrial undertaking set up in small scale

sector during 1-4-91 to 31-3-2002sector during 1-4-91 to 31-3-2002 Profits from an undertaking engaged in the Profits from an undertaking engaged in the

integrated business of handling storage and integrated business of handling storage and transportation of food grains [Section transportation of food grains [Section 80IB(11A)]80IB(11A)]

Hospital in a rural area of at least 100 beds Hospital in a rural area of at least 100 beds Oct.,2004 to 31st March 2008.Oct.,2004 to 31st March 2008.

B. Ship acquired after 1-4-91 but before 31-3-95.B. Ship acquired after 1-4-91 but before 31-3-95.

C. Business of Hotel set up in rural areas, hilly areas C. Business of Hotel set up in rural areas, hilly areas or place of pilgrime during 1-4-90 to 31-3-94 or or place of pilgrime during 1-4-90 to 31-3-94 or between 1-4-97 to 31-3-2001between 1-4-97 to 31-3-2001

D. Business of Hotel set up any where in India during D. Business of Hotel set up any where in India during 1-4-91 to 31-3-95.1-4-91 to 31-3-95.

25% (For 25% (For all)all)

30%(only 30%(only Co.) of Co.) of profits of profits of 10 years10 years

100%for 1100%for 1stst 5 years5 years

30% for 30% for next 5 yearnext 5 year

100% for 5 100% for 5 yrsyrs

30%30%

50%50%

30%30%

(in all 10 (in all 10 yrs of profit yrs of profit for 12 yrs)for 12 yrs)

Section80IB:Section80IB:

Page 49: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section80IC:Section80IC:

Deduction for setting Deduction for setting up industrial up industrial undertakings, in undertakings, in special statesspecial states

Page 50: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80ICSection 80ICFor all For all assessassesseesees

1)1) Producing any article not included in 13th Producing any article not included in 13th schedule, industry set up in the State of Sikkim schedule, industry set up in the State of Sikkim during 23-12-2003 to 31-3-2012during 23-12-2003 to 31-3-2012

2)2) Producing any article not included in 13th Producing any article not included in 13th schedule, industry set up in State of Himachal and schedule, industry set up in State of Himachal and Utttanchal during 7-1-2003 to 31-3-2012Utttanchal during 7-1-2003 to 31-3-2012

3)3) Producing any article not included in 13th Producing any article not included in 13th schedule, industry set up in State of the North-schedule, industry set up in State of the North-Eastern States during 24-12-1997 to 31-3-2007.Eastern States during 24-12-1997 to 31-3-2007.

4)4) Producing any article not included in 14th Producing any article not included in 14th schedule industry set up in State of Sikkim during schedule industry set up in State of Sikkim during 23-12-2002 to 31-3-201223-12-2002 to 31-3-2012

5)5) Producing any article not included in 13th Producing any article not included in 13th schedule industry set up in state of Himachal and schedule industry set up in state of Himachal and Utttanchal during 7-1-2003 to 31-3-2012Utttanchal during 7-1-2003 to 31-3-2012

6)6) Producing any article not included in 13th Producing any article not included in 13th schedule industry set up in state of North-Eastern schedule industry set up in state of North-Eastern during 24-12-1997 to 31-3-2007.during 24-12-1997 to 31-3-2007.

100%100%

(10 yrs)(10 yrs)

100%(5100%(5yrs)yrs)

100%100%

(10 yrs)(10 yrs)

100%100%

(5 yrs)(5 yrs)

100%100%

(5 yrs)(5 yrs)

100%100%

(10 yrs)(10 yrs)

Page 51: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80JJASection 80JJA

Deduction of Deduction of profits and gains profits and gains of biowaste.of biowaste.

Page 52: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Sec. 80JJA:Sec. 80JJA: Any Assessee engaged in the business of Any Assessee engaged in the business of

collecting and Processing of “Biodegradable collecting and Processing of “Biodegradable Waste” for generating power, producing Bio-Waste” for generating power, producing Bio-Gas or Bio-Fertilizers etc.:Gas or Bio-Fertilizers etc.: 100% profit and gains of such business would 100% profit and gains of such business would be allowed as deduction for first 5 years.be allowed as deduction for first 5 years.

Page 53: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section Section 80JJA: 80JJA: Deductions Deductions of any industrial of any industrial

undertaking which creates undertaking which creates new jobs.new jobs.

• All Co. assessees can claim All Co. assessees can claim for 3 yrs 30% of additional for 3 yrs 30% of additional wages as deduction.wages as deduction.

Page 54: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80LA:Section 80LA: Deduction for income of Deduction for income of

offshore fund:offshore fund:Indian scheduled bank can for any bankingIndian scheduled bank can for any banking

income from offshore banking unit inSEZ income from offshore banking unit inSEZ

claim 100% for 5 assessment yrs and 50% claim 100% for 5 assessment yrs and 50%

for next 5 assessment yrs deductions.for next 5 assessment yrs deductions.

Page 55: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80P:Section 80P:Deduction for income of Deduction for income of

Coop. societies:Coop. societies:A. Profits of Coop. societies fromA. Profits of Coop. societies from

1.1. Banking businessBanking business

2.2. Cottage industriesCottage industries

3.3. Marketing of Agri-productsMarketing of Agri-products

4.4. Agriculture implements, etc.Agriculture implements, etc.

5.5. Processing are 100% allowed as deductionProcessing are 100% allowed as deduction

B. For other activity Rs. 50000 is allowed as deduction.B. For other activity Rs. 50000 is allowed as deduction.

Page 56: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80 QQB:Section 80 QQB:

Deduction in Deduction in

respect of royalty respect of royalty

income of authorsincome of authors

Page 57: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80QQBSection 80QQB• The deduction is allowed to a resident individual. The deduction is allowed to a resident individual. • He is an author or a joint author. The book written by him He is an author or a joint author. The book written by him

is work of literary , artistic or scientific nature.is work of literary , artistic or scientific nature.• The taxpayer shall have to obtain a certificate in Form The taxpayer shall have to obtain a certificate in Form

No.10 CCD from the person responsible for paying such No.10 CCD from the person responsible for paying such income and furnish it alongwith the return.income and furnish it alongwith the return.

• The deduction is Rs 3,00,000/-or the actual royalty income The deduction is Rs 3,00,000/-or the actual royalty income which ever is less. which ever is less.

• If such income is to be received from outside India, then it If such income is to be received from outside India, then it must be brought in India within six months from the end must be brought in India within six months from the end of the p/y., or within such an extended time as allowed by of the p/y., or within such an extended time as allowed by the RBI.the RBI.

• Royalty income must not exceed 15% of the value of the Royalty income must not exceed 15% of the value of the book.book.

• Double deduction is not allowed Double deduction is not allowed

Page 58: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80 RRB:Section 80 RRB:

Deduction in Deduction in

respect of royalty respect of royalty

on on

patents:-patents:-

Page 59: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Section 80 RRB:Section 80 RRB: Deduction is to be allowed to a resident Indian Deduction is to be allowed to a resident Indian

assessee only.assessee only. He is owner or co-owner of the patent.He is owner or co-owner of the patent. He is in receipt of any income by way of royalty in He is in receipt of any income by way of royalty in

respect of the patent registered in his name after respect of the patent registered in his name after 31.3.2003. The assessee shall have to submit a 31.3.2003. The assessee shall have to submit a certificate in Form No.10 CCE duly signed by certificate in Form No.10 CCE duly signed by prescribed authority, along with the return of prescribed authority, along with the return of income.income.

The deduction is Rs 3,00,000 /- or the actual The deduction is Rs 3,00,000 /- or the actual amount of royalty whichever is less. amount of royalty whichever is less.

If it is received from outside India then the amount If it is received from outside India then the amount must be brought in India within six months from end must be brought in India within six months from end of the P/Y in convertible foreign exchange or within of the P/Y in convertible foreign exchange or within such an extended period as allowed by RBIsuch an extended period as allowed by RBI

Double deduction is not allowed.Double deduction is not allowed.

Page 60: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Sec.80 U:Sec.80 U:Deduction in case of Deduction in case of

totally blind or totally blind or

physically physically

handicapped handicapped

persons:-persons:-

Page 61: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Sec.80 U:Sec.80 U: The assessee is residential Indian.The assessee is residential Indian. Who suffers 40% or more physical disability Who suffers 40% or more physical disability

( including blindness) of the type prescribed under ( including blindness) of the type prescribed under this section.this section.

The t ax payer must have to a copy of the certificate The t ax payer must have to a copy of the certificate issued by the Notified Medical Authority along with issued by the Notified Medical Authority along with return of income where the condition of disability return of income where the condition of disability requires reassessment a fresh certificate must be requires reassessment a fresh certificate must be obtained from the medical authority after expiry of obtained from the medical authority after expiry of the period mentioned in the original certificate in the period mentioned in the original certificate in order to continue the claim of deduction..order to continue the claim of deduction..

A deduction of Rs 50,000/- (fixed amount) would be A deduction of Rs 50,000/- (fixed amount) would be allowed a deduction Rs 75,000/- (fixed amount) would allowed a deduction Rs 75,000/- (fixed amount) would be allowed in case of severe disability of 80 % or be allowed in case of severe disability of 80 % or more.more.

Page 62: WELCOME. PROJECT REPORT ENTITLED DEDUCTIONS ON GROSS TOTAL INCOME.

Thank Thank YouYou