Deductions and Rebates

80AC

Assessee

—

Deduction u/ss. 80-IA/80-IAB/80-IB/80-IC or 80-ID or 80IE shall be allowed only if returns are furnished within the time limit u/s. 139(1) . [W.e.f. 1.4.2008 for sections 80-D/80-E and w.e.f. 1.4.2006 for other sections.]

80C

Individual/HUF

1. LIP; (restricted to 20% of actual capital
   sum assured for policies taken before 1.4.2012 and for policies taken on or after 1.4.2012 restricted to 10% of actual capital sum assured. However, in case of policy issued on or after 1.4.2013 for insuring the life of any person who is – (a) a person with disability or a person with severe disability as referred to in S. 80U; or (b) suffering from disease or ailment specified in the rules made u/s. 80DDB, the premia can be up to 15% of the sum assured instead of 10%).
2. Assessee’s own contribution to - (a) PF, (b) Superannuation Fund, (c) PPF; (d) RPF.
3. Contribution by a Government employee for securing deferred annuity or making provision for his spouse and children.
4. Contribution to ULIP of UTI or LIC Mutual
   Fund’s Dhanraksha 1989.
5. Subscription to NSC VIII Issue.
6. Deposits under notified deposit scheme or notified pension fund set up by National Housing
   Bank.
7. Housing Loan repayments and certain payments for purchase / construction of a residential house property.
8. Subscription to notified schemes of- (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes;

(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both.

9. Payment to effect or keep in force a contract for notified annuity plan of LIC or of any other approved insurer.
10. Units of Mutual Fund or UTI.
11. Contribution to notified Pension Fund set up by Mutual Fund.
12. Tuition Fees (not donation or
    development fees) towards full time education of any 2 Children of an individual paid to university, college, school or other educational institution situated in India.
13. Investments in shares or debentures of approved public company
    exclusively engaged in infrastructure
    facility or power sector.
14. Investments in units of notified
    mutual fund investing in approved public cos. as in 13 above.
15. Term Deposit with scheduled bank.
16. Deposit in Senior Citizen Savings  Scheme 2004.
17. Five year time deposit in an account under Post Office Time Deposit Rules, 1981.
18. Subscription to notified bonds issued by NABARD.
19. Subscription to any notified security or notified deposit scheme of the Central Government.

1. LIP/PPF/ULIP of self, spouse, children (including minors) or members of HUF.
2. In calculating the actual capital sum assured the following shall not be considered-

1. Value of any premiums agreed to be returned;
2. Bonus or otherwise which is to be or may be received under the policy by any person.

PF contribution not to exceed 1/5th of salary.

3. Land cost for residential house also qualifies.
4. Stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee qualify for deduction under this section.
5. House should not be transferred for 5 years.
6. Term Deposit mentioned at Point 15 would be for a fixed period of not less than five years and as per scheme to be notified by Central Government.
7. Shares and Debentures mentioned at Point No. 13 in previous column will have lock-in-period of three years.
8. No exemption should be claimed in respect of same investment u/ss. 54EA/54EB/54EC.
9. Sum paid/invested need not be out of current year's chargeable income.
10. Payments referred to in Clauses (i) to (vii), Clauses (xii) to (xiii), Clauses (xiiic) to (xiva) & Clause (xv) of sub-section (2) of section 88 shall be eligible for deduction under corresponding provision of this section.
11. Where in any previous year an assessee -

1. Terminates insurance contract by notice to this effect or where contract ceases due to failure to pay premium by not reviving insurance contract -
   1. in case of single premium policy within 2 yrs. after the date of commencement of insurance;
   2. in any other case before premium has been paid for 2 yrs.;

2. Terminates his participation in any ULIP referred in Clauses (x) & (xi) of sub-section (2), by notice to that effect or where he ceases to participate by reason of failure to pay any contribution, by not reviving his participation, before contribution in respect of such participation have been paid for 5 yrs.;

3. Transfers the house referred to in Clause (xviii) of sub-section (2) before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him or receives back, whether by way of refund or otherwise, any sum specified in that Clause;

(I) No deduction shall be allowed to the assessee - (1) with reference to any sum referred in Clauses (i), (x), (xi) & (xviii) of sub-section (2), paid in such P.Y. (II) the aggregate amt. of the deduction of the income so allowed in respect of P.Y. or yrs. preceding such P.Y. shall be deemed to be the income of the assessee in the P.Y. and shall be liable to tax in the A.Y. relevant to such P.Y.

12. If any equity shares, or debenture with reference to the cost of which deduction under this section has been allowed are sold or transferred by the assessee to any person at any time within 3 yrs. from date of acquisition the amount of deduction in respect of income so allowed shall be deemed to be income of assessee in P.Y. in which such sale or transfer has taken place and he shall be liable to pay tax in A.Y. relevant to such P.Y.
13. If the assessee withdraws any amount including interest accrued thereon from an account under Senior Citizen’s Savings Scheme or under Post Office Time Deposit Rules within expiry of 5 years from the date of its deposit, the amount withdrawn shall be deemed to be the income of the assessee in the previous year in which the amount is withdrawn except in the case of death when the said amount is received by the nominee or the legal heirs.

Effective from A.Y. 2008-09 the amount of interest withdrawn will not be taxable in the year of withdrawal if the same has been included in the total income of the assessee of an earlier year.

14. Subscription to any notified scheme or notified deposit of Central Government can be in the name of individual, or any girl child of that individual or any girl child for whom such person is the legal guardian.
    

Payments mentioned in column 3 subject to limits and conditions mentioned in columns 3 and 4.

100% of the amount invested / paid or ₹ 1,50,000  whichever is less (prior to AY 2015-16 it was ₹ 1,00,000)Note : The total deduction that an assessee can claim under sections 80C, 80CCC and 80CCD(1) would be restricted to
₹ 150,000 per annum (prior to AY 2015-16 it was ₹ 1,00,000) as per the provisions of section 80CCE. W.e.f. 1.4.2012 contribution made by Central Government or any other employer to a pension scheme u/s 80CCD(2) shall not be included in the limit of deduction of ₹ 1,00,000.








 

80CCC

Individual

Payment made out of taxable income to LIC or to any other approved insurer under approved Pension Plan.

1. Where amount paid or deposited has been taken into account for the purposes of this section then with reference to such amount –

1. Rebate shall not be allowed u/s. 88 up to A.Y. 2005-06; and
2. Deduction shall not be allowed u/s 80C w.e.f. AY 2006-07.

2. Pension received or amount withdrawn by the assessee or his nominee is taxable in the year of receipt.
3. The plan should be for receiving pension from a fund referred to in S. 10(23AAB).
4. The amount of interest or bonus accrued or credited to the assessee’s account is not to be regarded as amount paid.

Amount paid for the purpose mentioned in column 3.

Lower of -

1. Amount paid; or
2. ₹ 1,50,000 (w.e.f. AY 2016-17)
   ₹ 1,00,000 (AY 2007-08 to AY 2015-16).
   (Refer note in 80C above)

80CCD

Individual who is an employee employed by the Central Government or any other employer on or after 1.1.2004, / any other individual (self-employed) w.e.f. A.Y. 2009-10
 

Amount paid or deposited in his account under a pension scheme notified by the Government.

1. Rebate is allowable u/s. 88 up to A.Y. 2005-06.
2. Deduction is allowable u/s. 80C w.e.f. A.Y. 2006-07.
3. Pension received or amount withdrawn by the assessee or his nominee is taxable in the year of receipt except when the nominee receives money upon death of the assessee who has either closed his account or opted out of the pension scheme.
4. Contribution by the employer to the notified pension scheme is deductible in the hands of the concerned employee in the year in which contribution is made. However, no deduction is available in respect of employer’s contribution which is in excess of 10% of the salary.
5. If deduction is claimed u/s. 80C, in respect of the same investment deduction is not available u/s. 80CCD.
6. For the purpose of point 4 mentioned above, salary includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.

In case of an assessee who is employed Lower of –

1. amounts paid or deposited in his account as mentioned in column (3); or
2. 10% of salary.

1. amounts paid or deposited in his account as mentioned in column (3); or
2. 10% of his GTI.

100% of the qualifying amount; subject to overall limit of ₹ 1,50,000 mentioned in note under section 80C.

In addition, a deduction of ₹ 50,000 will be available, under sub-section (1B), in respect of assessee’s own contribution. However, for the same contribution double deduction under sub-section (1) and sub-section (1B) is not available.

80CCF

Individual/HUF

Amount paid or deposited, during the previous year, as subscription to notified long term infrastructure bonds.

Deduction under this section is available w.e.f. AY 2011-12.

Amount paid or deposited, during the previous year, as subscription to notified long term infrastructure bonds.

Lower of –

1. Amount paid or deposited, during the previous year, for the purpose mentioned in column 3; OR
2. ₹ 20,000.

80CCG

Resident Individual

Amount invested in

1. acquiring listed equity shares, or
2. acquiring listed units of an equity oriented fund (w.e.f. 1.4.2013)

1. GTI of the assessee for the relevant asst year shall not exceed ₹ 12 lakhs (upto AY 2013-14 it is ₹ 10 lakhs);
2. Assessee is a new retail investor as may be specified under the scheme referred to in sub-section (1);
3. Investment is made in such equity shares or such units (w.e.f. 1.4.20-13) as may be specified under the scheme;
4. Investment is locked-in for a period of 3 years from the date of acquisition in accordance with the scheme;
5. Such other conditions as may be prescribed.

Amount invested, during the previous year, in acquiring shares or units mentioned in column (3).

LOWER OF :

1. 50% of the amount invested in acquiring shares or units mentioned in column (3); OR
2. ₹ 25,000.

80D

Individual/HUF

In case of an Individual - 1 Aggregate of -

1. Premia paid out of taxable income to
   approved scheme of GIC (Mediclaim, Bhavishya Arogya) or any other approved insurer to insure the health of assessee or his family; and
2. Contribution made to Central Government Health Scheme (w.e.f. AY 2011-12);
3. Contribution to made to such other notified scheme (w.e.f. AY 2014-15);
4. Payments made (subject to a maximum of ₹ 5000) on account of preventive health check up of the assessee or his family (w.e.f. AY 2013-14)
5. Amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family if the following two conditions are satisfied –

1. The expenditure has been paid in respect of a very senior citizen; and
2. No amount has been paid to effect or keep in force an insurance on the health of such person.

2. Premia paid to insure health of the parent or parents of the assessee.

3. Amount paid on account of medical expenditure incurred on the health of any parent of the assessee if the following two conditions are satisfied –

1. The expenditure has been paid in respect of a very senior citizen; and
2. No amount has been paid to effect or keep in force an insurance on the health of such person.

4. Payments made (subject to a maximum of ₹ 5000) on account of preventive health check up of the parent or parents of the assessee.

1. Any sum paid on account of preventive health check-up may be paid by any mode including cash. However, sums paid as premia to insure health or contribution to CGHS can be made by any mode other than cash.
2. Medical expenditure upto ₹ 30,000 incurred on the health of the assessee or any member of his family or any parent of the assessee shall qualify for deduction if both the following conditions are satisfied –

1. The expenditure has been paid in respect of a very senior citizen; and
2. No amount has been paid to effect or keep in force an insurance on the health of such person.

2. W.e.f. AY 2016-17 in case premia is paid for senior citizen the maximum deduction of ₹ 20,000 stands increased to ₹ 30,000. For AY 2009-10 to AY 2015-16 this limit was ₹ 20,000.
3. `Family’ means the spouse and dependant children of the assessee.
4.  W.e.f. AY 2013-14, `Senior citizen’ means an individual resident in India who is the age of sixty years or more at any time during the relevant previous year. For earlier assessment years the age limit was sixty five years instead of sixty years.
5. w.e.f. AY 2016-17 `very senior citizen’ means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.

Amounts paid for the purposes mentioned in column 3.

W.e.f AY 2016-17 In case of Individuals - Qualifying amount being aggregate of amounts mentioned in column 3 subject to a maximum of ₹ 25,000 (if any of the persons for whom premia is paid is a senior citizen the maximum amount is ₹ 30,000). Additional Deduction equivalent to amount paid as premia to insure health of the parent or parents of the assessee or payment made (subject to a maximum of ₹ 5000) for preventive health check up of the parent subject to a maximum of ₹ 25,000 (if either parent or parents for whom premia is paid is a senior citizen the maximum amount of deduction is ₹ 30,000 instead of ₹ 25,000). In case of HUF : Premia paid to insure health of any member of HUF subject to a maximum of ₹ 25,000 (in case premia is paid for any member of the HUF who is a senior citizen then the maximum amount stands increased from 25,000 to ₹ 30,000). Upto AY 2015-16 the amount of deduction was ₹ 15,000 instead of ₹ 25,000 stated above and ₹ 20,000 instead of ₹ 30,000 stated above.

1. Maximum deduction, if individual or any member of his family or any of his parent is not senior or very senior citizen : ₹ 50,000.
2. Maximum deduction if individual or any member of his family is not senior citizen but any of his parent is a senior citizen or very senior citizen : ₹ 55,000.
3. Maximum deduction if individual or any member of his family and any of his parent is senior citizen or very senior citizen: ₹ 60,000.

80DD

Individual/HUF (Resident

1. Expenses incurred for Medical
   Treatment (including Nursing),
   Training & Rehabilitation of a dependent with
   disability).
2. Amount paid/deposited under any scheme framed by LIC/UTI / approved insurer/administ-rator (now known as Specified Company),
   for payment of annuity or lump sum amount for the benefit of dependent being a
   person with disability.
    

1. For meaning of the word ‘disability’ reference is to be made to Sec 2(i) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (PDEOPRFP), and sections 2(a), (c) and (h) of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities Act, 1999 (NTWPACPMR MD Act).

Disabilities covered are blindness, low vision, leprosy-cured, hearing impairment, locomotor disability, autism, cerebral palsy, multiple disability, mental retardation and mental illness. (Defined in Expln. (f) to sec. 80DD).

2. Under PDEOPRFP Act, a person with disability means a person suffering from not less than 40% of any disability and severe disability means 80% of one or more of such disability.
3. A certificate in prescribed form and manner from medical authority as defined in Expln. (e) to sec. 80DD, stating the extent of disability and the validity of period, is required to be submitted with the Return of Income. On expiry of the certificate a reassessment of the condition of disability is required to be done.
4. Nomination can be either in favour of disabled dependent or any other person or a trust in case of investment in scheme.
5. If the disabled dependent predeceases the individual or the member of HUF in whose name subscription is made then the entire amount paid/deposited in scheme will be treated as taxable income in the year of receipt.
6. Handicapped dependent has been defined in Expln. (b) to sec. 80DD.
7. “Person with disability” is defined in Expln. (f) and “Person with severe disability” is defined in Expln. (g) to sec. 80DD.
8. Medical authority is defined in Expln. (c) to section 80DD.
9. The dependent should not have claimed deduction u/s. 80U.

- ₹ 75,000 for ordinary disability w.e.f. AY 2016-17 (prior thereto it was ₹ 50,000) - ₹ 1,25,000 for severe disability w.e.f. AY 2016-17 (w.e.f. AY 2010-11 to 2015-16 it was ₹ 1,00,000 and prior to AY 2010—11 it was ₹ 75,000).

80DDB

Individual/HUF (Resident)

Amount actually paid for medical
treatment of such disease or ailments as may be specified.

1. In case of an individual deduction is available for expenses on self or dependent. In case of HUF deduction is available for expenses on a member of HUF.
2. With effect from AY 2016-17 the assessee is required to obtain a prescription for such medical treatment from a neurologist, an oncologist, a haematologist, an immunololgist or such other specialist as may be prescribed.
3. For assessment years prior to AY 2016-17, assessee was required to furnish along with the return of income a certificate in prescribed form from a neurologist, an oncologist, a urologist, a hematologist, an immunologist or such other specialist as may be prescribed, working in a Government Hospital.
4. Refer to Explanation to Section 80DDB for definitions of relevant terms.
5. W.e.f. AY 2013-14, `Senior citizen’ means an individual resident in India who is the age of sixty years or more at any time during the relevant previous year. For earlier assessment years the age limit was sixty five years instead of sixty years.
6. w.e.f. AY 2016-17, `very senior citizen’ means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.

Amount actually paid for medical
treatment of specified disease or ailments on assessee or dependent or member of HUF.

1. Lower of amount paid or
   ₹ 40,000
   (₹ 60,000 where amount paid is in respect of a senior citizen and w.e.f. AY 2016-17
   ₹ 80,000 where amount paid is in respect of a very senior citizen).
2. The amount of deduction is to be reduced by the amount received from an insurer of reimbursed by
   employer for the medical
   treatment.

80E

Individual

Payment (out of taxable income) of interest on loan taken for pursuing his own higher education or higher education of his relative (w.e.f. A.Y. 2008-09).

1. The loan should be from an approved charitable institution notified u/s. 10(23C)/referred to in S. 80G(2)(a)/a banking co./notified financial institution.
2. Higher education includes any course pursued after passing Senior Secondary Examination or recognised equivalent examination.
3. Deduction is available in the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest is paid in full whichever is earlier.
4. Initial assessment year is the assessment year relevant to the previous year in which the assessee starts paying interest on the loan.
5. Relative in relation to an individual means the spouse and children of that individual.

Payment of interest on loan taken for pursuing higher education.

The entire amount of interest is deductible without any limit.

80EE

An Individual

Interest payable on loan taken by the assessee from any financial institution for residential house property.

1. The loan should be taken for the purpose of acquisition of a residential property.
2. The loan should be sanctioned by the financial institution during the financial year 2016-17.
3. The sanctioned amount of such loan is up to ₹ 35 lakhs.
4. The value of the residential house property is up to ₹ 50 lakhs.
5. The assessee does not own any residential house property on the date of sanction of the loan.

Lower of –

1. Amount of interest referred to in column 3; or

2. #8377; 50,000.

₹ 50,000 for AY 2017-18 and subsequent years.

Note : Interest allowed as a deduction under this section will not be allowed under any other provisions of the Act for the same or any other assessment year. The terms “financial institution” and “housing finance company” are defined in sub-section (5) of section 80EE.

80G

Any Assessee
[except u/s.
80G (2)(c)].

Donations for charitable purposes
specified in S. 80G(2).

1. Donations should not be in kind.
2. If paid out of another year’s income or out of income not includible in the assessment of the current year the deduction still available [Lt. F. No. 45/313/66-ITJ(61) dt. 2-12-1966].
3. W.e.f. AY 2013-14, donations exceeding ₹ 10,000 shall qualify for deduction only if such sum is paid by any mode other than cash.
4. Donations made to Clean Ganga Fund will qualify for deduction only if the assessee is a resident.
5. Donations made by companies to Swachh Bharat Kosh and Clean Ganga Fund in pursuance of Corporate Social Responsibility will not qualify for deduction under this section.

Amount of Dona-tions, not exceeding 10% of GTI (As reduced by other deductions). In certain cases this limit does not apply. Please see S. 80G(4).

1. 50% generally; and
2. 100% in cases of PM’s
   Relief Funds, Gujarat
   Earthquake Relief Funds,
   etc. [Ref. S. 80G(1)(i)] {w.e.f. AY 2014-15, donations to National children’s Fund qualify for 100% deduction}

80GG

Any Assessee [other than having
any income falling u/s. 10(13A);
i.e., House Rent Allowance].

Expenditure incurred towards payment  of rent in respect of furnished or unfurnished accommodation occupied for his own residence.
 

1. This section does not apply where residential accommodation is owned by assessee, his spouse, minor child or by HUF at a place where assessee ordinarily resides or performs the duties of his office or employment or carries on his business or profession.
2. This section does not apply where the assessee owns residential accommodation at any other place, annual value of which has been computed u/s 23(2)(a) or 23(4)(a).
3. Assessee to submit a declaration in Form No. 10BA with the Return of Income.
4. Total income means Gross Total Income as reduced by (a) Long Term Capital Gains; (b) Short Term Capital Gain taxable u/s 111A @ 15%; (c) income referred to in S. 115A; and (d) Amount deductible under S. 80C to 80U (except 80GG).

Expenditure in excess of 10% of his total income incurred for the purpose mentioned in column 3.

Least of –

1. ₹ 5,000/- per month w.e.f. AY 2017-18 (₹ 2,000 per month for AY prior to AY 2017-18); or
2. 25% of the total income whichever is less; or
3. Excess of actual rent paid over 10% of total income.

80GGA

Any Assessee other than an assessee whose Gross Total Income includes income chargeable under the head `Profits and Gains of Business or Profession’.

Payments made for scientific research or research in social science or statistical research or for carrying out any programme of rural development or implementing programme of rural development or for eligible project / scheme. Payment should be made to scientific research association, university, college or other institution or to Rural Development Fund or to National Urban Poverty Eradication Fund or to public sector company, or to local authority or to an association or institution for carrying out eligible scheme or project referred in sec 35AC.

1. Donee should be approved u/s. 35 or 35CCA or 35AC.
   The deduction to which the assessee is entitled in respect of research association, university, college or other institution shall not be denied merely on the ground that after payment of such sum the approval granted to the association has been withdrawn. w.e.f. 1-4-2007.

The deduction to which the assessee is entitled in respect of programme of rural development shall not be denied merely on the ground that after payment of such sum the approval to the programme has been withdrawn. w.e.f. 1-4-2007. The deduction to which the assessee is entitled in respect of programme of rural development shall not be denied merely on the ground that after payment of such sum the eligibility has been withdrawn. w.e.f. 1-4-2007.

2. Payments in respect of which deduction has been claimed under this section do not qualify for deduction under any other provision of the Act for the same or any other assessment year.

3. W.e.f. AY 2013-14, donations exceeding ₹ 10000 shall qualify for deduction only if such sum is paid by any mode other than cash.

Aggregate of amounts paid for the purposes and to the persons mentioned in column 3.
 

100% of the Qualifying Amount mentioned in column 5.

80GGB

Indian Company

Any sum contributed, in the previous year, to any political party or an electoral trust.

1. For the meaning of term ‘contribute’, refer to Explanation to section 80GGB.
2. For the meaning of term ‘political party’, refer to Explanation to section 80GGC.
3. Contributions to an electoral trust qualify for deduction w.e.f. A.Y. 2010-11.
4. w.e.f. AY 2014-15 the contributions made in cash will not qualify for deduction.

Amount of
Contribution

100% of the qualifying amount mentioned in column 5.

80GGC
(w.e.f. 22-9-2003)

Any Assessee
[Except local authority and artificial juridical person wholly or partly funded by the Government]

— do — 

1. For the meaning of term 'political party', refer to Explanation to section 80GGC.
2. Contributions to an electoral trust qualify for deduction w.e.f. A.Y. 2010-11.

W.e.f. AY 2014-15 the contributions made in cash will not qualify for deduction.

Amount of
Contribution.

100% of the qualifying amount mentioned in column 5.

80-IA

1 Infrastructure enterprise : business of (i) developing, (ii) operating and maintaining
, or (iii) developing, operating and maintaining any -infrastructure facility — i.e., road including toll road, bridge, airport, port, inland waterway, inland port or navigational channel in the sea, rail systems, highway project including housing or other activities being an integral part of the highway project, water treatment/water supply/irrigation/sanitation/sewerage/solid waste management systems.

After 1.4.1995 upto 31.3.2017

Infrastructure facility, starts providing
Telecommunication Service or Developing an Industrial Park or Developing a Special
Economic Zone or Generates Power or
commences Transmission or Distribution of Power or undertakes substantial renovation
and modernisation of the existing trans-
mission or distribution lines, now it will also be available to an undertaking which lays and begins to operate cross country natural gas distribution network w.e.f. from 1-4-2008; i.e., A.Y. 2008-09.

100% for 10 consecutive A.Ys. out of 15 A.Ys. In case of road, highway project water supply project, port, etc. 100% for consecutive A.Ys. out of 20 A.Ys.

2 Telecommunication undertakings : basic or cellular, radio paging,  domestic satellite service or network of trunking and electronic data
interchange services, broadband network & internet services.

1-4-1995 to 31-3-2005

The benefit of section 80-IA shall not be available to an amalgamated or demerged entity after 1-4-2007.

100% for first 5 A.Ys., 30% for next 5 years. Any 10 consecutive A.Ys.
out of first 15 years.

3 Industrial parks including Special Economic Zone : undertaking that

1. develops;
2. develops and operates; or
3. maintains and operates a notified industrial park or a notified SEZ.

In case of an industrial park 1/4/1997 to 31/3/2011. In case of a SEZ 1.4.1997 to 31.3.2006.

80-IA benefit will not be available to a person who executes a works contract w.e.f. 1-4-2000.

100% for 10 consecutive A.Ys. out of 15 years.

4 Power undertakings :
– undertakings engaged in

1. Generation; or
2. Generation and distribution of power.

1.4.1993 to 31.3.2017

 In case there is a transfer of goods or services from eligible business to any other business or vice versa and in either case the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value of such goods or services as on the date of transfer then for the purposes of the deduction under this section, the profits and gains of eligible business shall be computed as if the transfer, in either case, had been made at the market value of such goods or services as on that date. “market value” in relation to any goods or services, means –

1. The price that such goods or services would ordinarily fetch in the open market; or
2. The arm’s length price as defined in clause (ii) of S. 92F, where the transfer of such goods or services is a specified domestic transaction referred to in S. 92BA.

100% for 10 consecutive A.Ys. out of 15 years.

– undertakings engaged in transmission or distribution (only profits derived from laying of such network of new lines) – undertakes substantial renovation and modernization (i.e., increase in book value of plant & machinery by 50% as  compared to book value as on 1-4-2004) of existing transmission or distribution lines as defined in Explanation to sec. 80-1A(4)(iv)(c)

1/4./999 to
31/3/2017 1.4.2004 to
31/3/2017

 Where it appears to the AO that, owing to the close connection beween the assessee carrying on the eligible business to which this section applies and any other person, or for any other reason, the course of business between them is so arranged that the business transacted between them produces to the assessee more than ordinary profits which might be expected to arise in such eligible business, the AO shall, in computing the profits and gains of such eligible business for the purposes of deduction under this section, take the amount of profits as may be reasonably deemed to have been derived therefrom. Provided that in case the aforesaid arrangement involves a specified domestic transaction referred to in S. 92BA, the amount of profits from such transaction shall be determined having regard to arm’s length price as defined in S. 92F(ii).

5 Undertaking owned by an Indian company and set up for reconstruction or  revival of a power generating plant:

1. Indian company should be formed before
   30-11-2005 and notified by Cent. Govt. before 31-12-2005;
2. Undertaking should begin to generate or transmit or distribute power before
   31-3-2007.

2. The assessee needs to comply with the conditions stipulated in sub-sections
   (3), (4) and (7) of section 80-1A.
3. Explanation below sub-section (13) is substituted retrospectively with effect from 1-4-2000 to clarify that the section shall not apply to business in the nature of works contract awarded by any person including the Central & State Governments executed by the undertaking or enterprises.

Up to 31.3.2011

Up to A.Y. 2009-10

6. Any undertaking carrying on the business of laying and operating a cross  country natural gas distribution network, including pipelines and storage facilities being an integral past of such net work which has started or starts operation on or after 1-4-2007.

Note : 1) All the assessees claiming benefit under 80-IA is required (including companies and co-operative societies) to furnish separate Audit Report in Form No. 10CCB u/s. 80-IA w.e.f. A.Y. 2003-04.

2) The assessee needs to comply with the conditions stipulated in sub-sections (3), (4) and (7) of section 80-1A. 3) Explanation below sub-section (13) is substituted retrospectively with effect from 1-4-2000 to clarify that the section shall not apply to business in the nature of works contract awarded by any person including the Central & State Governments executed by the undertaking or enterprises.

Up to A.Y. 2009-10

80-IAC

Eligible start-up engaged in eligible business: Company engaged in a business which involves innovation, development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property. Conditions:

1. The company is incorporated on or after 1.4.2016 but prior to 1.4.2019
2. The total turnover of its business does not exceed ₹ 25 crores in any financial year from 1.4.2016 to 31.3.2021
3. It holds a certificate of eligible business from Inter-Ministerial Board of Certification

The assessee should not be formed by splitting up or reconstruction of a business already in existence or by transfer of machinery or plant previously used for any purpose subject to certain exceptions.

100% for any 3 consecutive A.Ys. out of 5 year starting from the year in which the eligible start-up is incorporated.

1. Other than clause (b), (c) & (d)

1.4.1991 to 31.3.1995

2. SSI U/Cold Storage other than (c) & (d) below

1-4-1995 to
31-3-2002

25% (30% for Cos.)

First 10 A.Ys.

[12 A.Ys. if assessee is
a co-op. society]

3. i. Backward State (Eighth Schedule) (In the case  of State of Jammu & Kashmir, the date of commencement has been extended to 31-3-2007)
    

1.4.1993 to 31.3.2004

100%


25% (30% for Cos.)

First 5 A.Ys.
Next 5 A.Ys.

[12 A.Ys. if assessee is a
 co-op. society]

ii. Notified Industries in N.E. Region

1.4.1993 to 31.3.2004

100%

First 10 A.Ys.

4. Backward District — Category ‘A’

1.10.1994 to 31.3.2004

100%


25%
(30% for Cos.)

First 5 A.Ys.
Next 5 A.Ys.

[12 A.Ys. if assessee is a
co-op. society]

— Category ‘B’

1.10.1994 to 31.3.2004

100%


25%
(30% for Cos.

First 3 A.Ys.
Next 5 A.Ys.

[12 A.Ys. if assessee is a
co-op. society]

2 Hotels (approved by prescribed authority) :

— Hilly Area/Rural Area/Place of Pilgrimage/other notified areas

1.4.1990 to 31.3.1994
or 1.4.1997 to 31.3.2001

50%

First 10 A.Ys.

— Other places

1.4.1991 to 31.3.1995
or 1.4.1997 to 31.3.2001

30%

First 10 A.Ys.

3 Undertaking developing & building housing projects Conditions :

1. Minimum plot area : one acre;
2. Where the buyer of the residential unit is not an individual, not more than one unit in the project shall be allotted to such buyer and
   where the buyer is an individual, no unit in the project shall be allotted to the spouse, minor children or (Applicable from A.Y. 2010-11;
3. Residential unit has maximum built up area of 1,000  sq. ft. in Delhi/Mumbai; 1,500 sq. ft. in other areas. Built up area of shops/other commercial establishments not to exceed 3% (w.e.f. AY 2010-11) (prior thereto it was 5%) of aggregate ; built up area or 5,000 sq. ft. (w.e.f. A.Y. 2010-11 prior thereto it was 2,000 sq. ft.), whichever is higher (w.e.f. A.Y. 2010-11 prior thereto it was whichever is less).
4. Construction should be completed –Where project is approved before 1.4.2004 : on or before 31.3.2008 Where project is approved between 1.4.2004 and 31.3.2005 : within 4 years from the end of the F.Y. in which the project is approved by the local authority. Where housing project is approved on or after 1.4.2005 : within 5 years from the end of the F.Y. in which the project is approved by the local authority.

100%

Project
wise

1. The assessee has to comply with the conditions stipulated
   in sub-section (10).
2. Also refer to the
   definitions of relevant terms given in sub-section (10).

4 Undertaking engaged in integrated business of handling, storage and transportation of foodgrains or the business of processing, preservation
of packaging of fruits and vegetables,

On or after
1.4.2001
 

100%


25%
(30% for Cos.)

First 5. A.Ys.
 Next 5 A.Ys.

5 Business of building, owning and operating a multiplex theatre other than in Mumbai, Delhi, Kolkata or Chennai.

01.04.2002 to
31.03.2005

50%

First 5 A.Ys.

6 Business of building owning and operating a convention centre.

01.04.2002 to
31.03.2005

50%

First 5 A.Ys.

7 Undertaking engaged in setting up and operating a cold  storage facility for agricultural produce,

01.04.1999 to
31.03.2004

100%

25%
(30% for Cos.)

First 5 A.Ys. Next 5 A.Ys.

[12 A.Ys. in case of co-op. society].

8 Undertaking engaged in operating and maintaining a hospital with at least 100 beds in a rural area.

Hospital constructed between 1.10.2004 and 31.3.2008

100%

First 5 A.Ys.

The assessee has to comply with conditions stipulated in sub-section (11B).

Note 1 : Deduction u/s 80-IB shall not be allowed w.e.f. A.Y. 2004-05 to those undertaking covered u/s. 80-IC,

Note 2 : No deduction u/s. 80-IB (4) will be available to an industrial undertaking set up in the State of Jammu & Kashmir, which is engaged in the manufacture or production of any item listed in Part C of the Thirteenth Schedule (“the Negative List”),

9 An Industrial undertaking engaged in refining of oil.

Starts refining before 1.4.2009.

100% Effective
from A.Y. 2008-09.

7 consecu-tive A.Y.s including the initial A.Y.

10 Hospitals located in any place outside the urban agglomerations
[80-IB(11C)].

Constructed & started between 1.4.2008 and 31.3.2013.

100% Effective from A.Y. 2009-10.

5 year tax holiday.

To new Hospitals constructed and has started/starts functioning between 1-4-2008 and 31-3-2013, especially in tier-2 and tier-3.

Industrial undertaking other than infrastructure & development undertaking.

In case of industrial undertaking in State of J & K, the provision of the 1st provision shall have effect as if for the figures, letters & words 31/3/07 has been substituted by the figures, letters & words 31/3/2012.

80-IBA

Any assessee who is engaged in business of developing and building housing projects subject to fulfillment of all the following conditions:

1. The project is completed within a period of 3 years from date of approval by the competent authority;
2. Tuilt up area of shops and other commercial establishments included in the housing project does not exceed 3% of the aggregate built up area;
3. The project is on a plot of land which measures:

1. Not less than 1000 square mts. where the project is located in cities of Chennai, Delhi, Kolkata or Mumbai or within 25 kms from Municipal limits of these cities; or
2. Not less than 2000 square mts. where the project is located within jurisdiction of any other municipality or cantonment board;

4. The residential units comprised in the project do not exceed:

1. 30 square mts. where the project is located in cities of Chennai, Delhi, Kolkata or Mumbai or within 25 kms. from Municipal limits of these cities; or
2. 60 square mts. where the project is located within jurisdiction of any other municipality or cantonment board;

5. Where a residential unit has been allotted to an individual no other unit in the same project can be allotted to -

1. The individual; or
2. Spouse of the individual; or
3. Minor children of such individual;

6. The project uses permissible floor area ratio in respect of plot of land which is not less than:

1. 90% where the project is located in cities of Chennai, Delhi, Kolkata or Mumbai or within 25 kms from Municipal limits of these cities; or
2. 80% where the project is located within jurisdiction of any other municipality or cantonment board

7. Separate books of accounts are maintained in respect of such project.

Approved by competent authority after 01.06.2016 but on or before 31.3.2019

1. Not applicable to an assessee who executes housing project as a works contract awarded by any person.
2. Where a deduction has been claimed and allowed under this section and subsequently the project is not completed in the stipulated time, then the deduction so allowed shall be deemed to be the income of the year in which the stipulated time expires.
3. Any profits claimed and allowed under this section will not be eligible for deduction under any other provisions of the Act.

100% of the profits derived from such business.

80-IAB

Undertaking or an enterprise which is engaged in development of Special Economic
Zones (SEZ).

1. Where a Developer transfers the operation and maintenance of such SEZ to another Developer, the deduction under sub-section (1) shall be allowed to the latter for the remaining period in the ten consecutive
   assessment years;
2. Where an undertaking, being a developer, had claimed deduction u/s. 80IA(13) it shall be entitled to claim deduction under this section only for the unexpired period of ten consecutive assessment years and thereafter it shall be eligible for deduction from income as provided in sub-section (1) or (2) as the case may be.
3. Provisions of sub-sections (5), (7) to (12) of section 80-IA shall apply to the SEZ.
4. “Developer” and “Special Economic Zone” shall have meanings assigned to them in clauses (g) and (za) of section 2 of SEZ Act, 2005.

SEZ notified on or after 1-4-2005 under the SEZ Act, 2005.

100% for 10 Consecutive A.Ys. out of 15 years beginning from the year in which a SEZ has been notified.

80-IC

1 Undertaking or an enterprise which has begun or begins to manufacture or produce or which manufactures or produces any article or thing not being article or thing specified in Thirteenth Schedule and undertakes substantial expansion during the period mentioned in column 3 in Export Processing Zone or Integrated Infrastructure Development Centre or Industrial Growth
Centre or Industrial Park or Software Technology Park, or Industrial Area or Theme Park as notified
by board and Central Government in :

a) State of Sikkim;

23.12.2002 - 1.4.2007

 100%

First 10 A.Ys.

b) States of Himachal Pradesh & Uttaranchal;

7.1.2003 - 1.4.2012

100%


25%
(30% for Cos.)

First 5 A.Ys.


Next 5 A.Ys.

c) North-Eastern States.

24.12.1997 - 1.4.2007

100%

First 10 A.Ys.

2 Undertaking or an enterprise which has begun or begins to manufacture or produce any article or thing specified in the Fourteenth Schedule or commences any operation specified in that Schedule or which manufactures or produces any article or thing specified in the Fourteenth Schedule or commences any operation specified in that Schedule and undertakes substantial expansion during the period mentioned in column 3:

a) State of Sikkim;

23.12.2002 - 1.4.2007

First 10 A.Ys.

b) States of Himachal Pradesh & Uttaranchal;

7.1.2003 - 1.4.2012

100%


25%
(30% for Cos.)

First 5 A.Ys.


Next 5 A.Ys.

c) North-Eastern States

24.12.1997 - 1.4.2007

100%

First 10 A.Ys.

Note :
i) Deduction under sub-section (1) shall be available only if -

1. The eligible business is not formed by splitting up or reconstruction of business already in existence except in respect of an undertaking which is formed as a result of the re-establishment, re-construction or revival of the assessee of the business of any such undertaking referred to in S. 33B in the circumstances and within the period specified in that section.
2. Not formed by transfer to a new business of machinery or plant previously used for any purpose;

For this purpose provisions of Explanations 1 & 2 to S. 80IA(3) shall apply as they apply for the purposes of S. 80IA(3)(ii);

3. Report of audit in such form and containing such particulars as may be prescribed is furnished alongwith the return of income.

80 ID

New hotels & convention centre Profits derived by an undertaking engaged in the business of –

1. Hotel of two-star, three-star or four-star category located in the specified area;

2. Building, owning and operating a convention centre located in the specified area;

3. Hotel of two-star, three-star or four-star category located in the specified district having a World Heritage Site.

1. The terms “convention centre”, “specified area”, “specified district having a world heritage site”, “hotel” and “initial assessment year” shall have the meanings assigned to them in S. 80ID(6).
2. Provisions of S. 80IA(5) and S. 80IA(8) to 80IA(11), so far as may be, apply to the eligible business under this section.

Functioning should commence between 1.4.2007 and 31.7.2010.

Convention Centre should be constructed between 1.4.2007 and 31.7.2010.

Constructed and has started or starts functioning between 1.4.2008 and 31.3.2013.

Deduction under sub-section (1) shall be available only if

1. The eligible business is not formed by splitting up or reconstruction of business already in existence
2. Not formed by transfer to new business of building previously used as hotel or convention centre
3. Not formed by transfer to a new business of machinery or plant previously used for any purpose
4. Report of audit in such form and containing such particulars as may be prescribed is furnished alongwith the return of income.

100%

100%

100%

For First 5 years

For first 5 years

For first 5 years

80JJAA

Any assessee who - (i) is engaged in carrying on a business; and (ii) whose accounts are subjected to audit under section 44AB; and (iii) who satisfies all the following conditions. Conditions:

1. The assessee incurs additional employee cost in course of such business;
2. The business is not formed by splitting up or reconstruction of an existing business except in the circumstances and period specified under section 33B;
3. The business has not been acquired by way of transfer from any person or as a result of any business reorganization;
4. In case of an existing business -

1. There should be an increase in the total number of employees employed as compared to the last day of the preceding year; and
2. Emoluments should have been paid through normal banking channels

5. Assessee has furnishes a report from an Accountant along with return of income

30% of additional employee cost for 3 AYs including the AY relevant to the FY in which the employment was provided

80P Co-operative Society*

1. Profits arising to a co-op society engaged in the business of - banking or providing credit facilities to its members; cottage industry; marketing of agricultural produce grown by its members; purchase of agricultural implements seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members; processing, without the aid of power, of the agricultural produce of its members; collective disposal of the labour of its members; fishing or allied activities, purchase of materials and equipment in connection with fishing or allied activities for the purposes of supplying them to its members. .

100% of profits attributable to such activities.

2. Primary Co-operative Society engaged in supplying milk, oil seeds, fruits or vegetables grown by its member to specified bodies.

100% of profits and gains of such business.

3. Co-operative Society engaged in activities other than those specified in (1) and (2) above (either independent of or in addition to all or any o f the activities so specified) - (a) if such co-operative society is a Consumer Co-operative Society;
   (b) in any other case.

profits and gains attributable to such activities subject to a – Maximum ₹ 1,00,000




Maximum ₹ 50,000

4. Income by way of interest or dividends derived from investments with any other Co-operative Societies.

100% of such income

5. Income derived from letting godowns and warehouses for storage, processing or facilitating the marketing of commodities.

100%of such income

* Excluding all co-operative banks other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank.

80CCA

Individual
HUF
 

– Withdrawal of principal and/or interest on NSS Account.

P.Y. in which withdrawn.

Whole of the amount withdrawn /received.

1. Amount paid after the death of an individual to the legal heirs is not taxable. (Cir. No. 532 - dt. 17.3.1989).

– Bonus received on annuity plans of LIC notified u/s. 80CCA.

P.Y. in which  received.

— do —

2. Repayment of NSS is subject to TDS u/s. 194EE except when made to the heirs of the assessee.

– Annuity or surrender value received in respect of such notified annuities.

— do —

— do —

—

80CCB

Individual
HUF

– Receipt of whole or part of amount invested either on repurchase of notified units or on termination of the plan.

P.Y. in which amount is so received.

To the extent of original investment.

1 Deduction amount not exceeding 
₹ 10,000/-. Amount received in excess of original investment is taxable as capital gains u/s. 45(6). 2 Amount is subject to TDS u/s. 194F @ 20%.

80CCG

Individual

Assessee fails to comply with any condition specified in 80CCG(3) {see column 4 against the deduction 80CCG under the heading Important deductions under Chapter VI-A}

Amount of deduction originally allowed.

It appears that the deduction can be withdrawn if the assessee divests the said equity shares within a lock-in period of 3 years or fails to comply with such other condition as may be specified in the Scheme to be notified.