"To avoid penalty file your income tax return for the A.Y. 2019-20 on or before the extended due date i.e. 31st August 2019"           "Great things never came from comfort zones"           "Wealthy people invest first and spend what’s left and broke people spend first and invest what’s left"           "Good, better, best. Never let it rest. Till your good is better and your better is best"           "Investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future"           "You cannot save time for future use, but you can invest it for the future you"           "The secret to getting ahead is getting started.................Start using your Savings to Earn Money"           "The best gift, and investment, you can give your child is your time"           "Investing in your child’s education is never a wasted effort"           "Do something today that your future self will thank you for"

deductions-under-chapter-via

 

Deductions under Chapter VIA

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As per Income tax act the following deductions are allowed under Chapter VI-A, which are as below for the A.Y. 2019-20-

Section Eligiblity Particulars Deduction Limit
80C Individual/HUF Any sum paid or deposited in the financial year as below- Employee Provident Fund, Public Provident Fund, Life insurance premium (upto 10% of sum assured and in case of severe disabilty upto 15% of sum assured), Tax Saving mutual fund (ELSS), Home loan principal repayment, Sukanya Samriddhi Account, Tuition fees of children, National Saving  Certificate, Tax-saving fixed Deposit with banks etc. Section 80C+80CCC+80CCD(1) up to maximum of Rs. 1,50,000
80CCC Individual Payment of premium for annuity plan of LIC or any other Insurer for receiving pension from the fund.
80CCD(1) Individual Deduction for contribution in pension scheme notified by the Government to the extent of 10% of salary in case of employees and 10% of total income in case of others.
80CCD(1B) Individual Contribution to National Pension Scheme. The deduction is an additional to the deductions under 80C, 80CCC and 80CCD(1). Up to Rs. 50,000
80CCD(2) Salaried Persons Contribution by employer in pension scheme notified by the Government Max 10% of salary.
80D Resident Individual/HUF Medical Insurance Premium for Self, Spouse and dependent children or Parents dependent or Not
For self, spouce and dependent children ( any one age < 60 yrs ) Rs. 25,000
For Parents - Father or mother or both (any one age < 60 yrs) Rs. 25,000
For self, spouce and dependent children ( any one age > 60 yrs ) Rs. 50,000 (w.e.f 01.04.2018)
For Parents  - Father or mother or both (any one age > 60 yrs) Rs. 50,000 (w.e.f 01.04.2018)
80DD Resident Individual/HUF Deduction in respect of maintenance including medical treatment of dependent who is a person with disability. Person suffering atleast 40% of Disability - Rs. 75,000
Person suffering atleast 80% of Disability - Rs. 1,25,000 (Severe Disability)
80DDB Resident Individual/HUF Medical treatment of specified disease or ailment for self or dependent relative. Person whose treatment below the age of 60 years, least of Actual Exp. or Rs. 40,000 or Senior Citizens and Super Senior Citizens Least of Actual Exp. Or Rs. 1,00,000 w.e.f. 2018-19 onwards
80E Individual Interest on loan taken for pursuing higher education of self, his spouse and children No limit. Deduction is allowed for maximum of 8 years or until the full amount of interest is repaid, whichever is earlier.
80G All Assessee Donation to certain funds, charitable institutions etc: Either or up to 100% or 50% with or without restriction
80GG Individual/ HUF House Rent ( for self employed and salaried person) Who have not recived HRA as a part of salary ) Least of the following - Rs. 5,000/- per month or 25% of Total Income* or Actual Rent paid -10% of Total Income* (*Total Income means Total Income for the year before claiming deduction under section 80GG
80GGA All Individuals (except those have income from business or profession, they can claim deduction under section 35) Donation for Scientific Research and Rural Development 100% of Amount donated (Cash not to be given in excess of Rs. 10,000)
80GGB All Companies (except Government Companies or companies with younger 3 years) Donation given to any Political Party registered under section 29A 100% of Amount donated (Cash not allowed)
80GGC All Individuals or Non companies Donation given to any Political Party registered under section 29A 100% of Amount donated (Cash not allowed)
80JJA All Assessee Profits and gains from businesses related to collection and processing of biodegradable wastes. Least of the following : 100% of Profit & Gains from such business or Rs. 5,00,000
80JJAA Indian companies having manufacturing of goods etc. Incentive for New employment 30% of additional wages paid to new employees in the previous year
80P Co-operative societies also includes farm producer companies having turnver up to 100 Crore Income of Farm Producer companies 100% of Profit & Gains carrying on farm produce as listed or for other incomes it is  Rs. 50,000 or 1,00,000 as the case may be
80QQB Resident Individual Author Royalty Income of Authors Least of Rs. 3,00,000 or Actual Royalty Received, But in case of foreign remittance the payment should be received within 6 months
80RRB Resident Individual Royalty Income on Patent Least of Rs. 3,00,000 or Actual Royalty Received, But in case of foreign remittance the payment should be received within 6 months
80TTA Individual/ HUF Interest on Saving accounts held with Banks, Post offices or Co-operative Socities Rs. 10,000
80TTB Only for Senior Citizens (w.e.f 01.04.2018) Interest on all kind of Deposits whether Saving/Fixed/Recurring/Term Deposits etc. Rs. 50,000
80U Resident Individual Deduction in respect of Person suffering from Physical  Disability Person suffering atleast 40% of Disability - Rs. 75,000
Person suffering atleast 80% of Disability - Rs. 1,25,000 (Severe Disability)
 



Comments

Vishu on 2/19/2019 7:12:54 PM says:
Good article

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