Deductions and Rebates

A. Important Deductions from Gross Total Income

80AC

Assessee

—

Following Deduction shall be allowed only if return is filed within the due date as per section 139(1) :

For assessment year commencing on or after 1^st April 2006 to 1^st April 2018 Deduction u/s. 80-IA/80-IAB/80-IB/80-IC /80-ID Or 80IE shall be allowed

For assessment year commencing on or after 1^st April 2018 any deduction under any provision of Chapter VI –C : Deductions in respect of certain income.

80C

Individual/HUF

1. LIC; (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 Sec. 80U; or (b) suffering from disease or ailment specified in the rules made u/s. 80DDB, the premium 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.

Sukanya Samriddhi Scheme has been notified, under this clause, w.e.f. AY 2015-16.

1. LIC/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.
   3. 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.;

       OR

    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.;
       OR
    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;
       then -
       (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 assesse 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.








 

80CCA

Individual 
HUF 
 

Withdrawal of principal and/or interest on NSS Account.

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

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

P.Y. in which withdrawn.

---- Do  ----

---- Do  ----

Whole of the amount withdrawn /received.

---- Do  ----

---- Do  ----

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

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

---- 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%.

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 assesses 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 on or after 1^st January 2004, or any other employer, or is 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.

In case of an assessee who is not employed,

 Lower of –

1. amounts paid or deposited in his account as mentioned in column (3);
   
   or
    
2. 10% of his GTI (upto AY 2017-18)
3. 20% of his GTI (w.e.f A.Y. 2018-19)

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 assesses own contribution. However, for the same contribution double deduction under sub-section (1) and sub-section (1B) is not available.

80CCF

Individual/HUF

(no deduction is available from AY 2013-14)

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)

as may be specified, under a scheme to be notifed by the Central Government. Equity Oriented Fund shall have the meaning assigned to it in Explanation to S. 10(38).

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.

Note : Up to AY 2013-14 where assessee has claimed and allowed a deduction under this section for any assessment year in respect of any amount, he shall not be allowed any deduction under this section for any subsequent assessment year. With effect from AY 2014-15, the deduction shall be allowed for 3 consecutive assessment years, beginning with the AY in which the equity shares or units referred to in column 3 were first acquired.

Deduction is allowed only upto AY 2017-18,

however, an assessee who has claimed deduction under this section for assessment year 2017-18 and earlier assessment years shall be allowed deduction under this section till the assessment year 2019-2020 if he is otherwise eligible to claim the deduction as per the provision of this section.

80D

Individual/HUF

In case of an Individual - 1 Aggregate of -

1. Premium 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 senior citizen (very senior citizen upto AY 2018-19); and
2. No amount has been paid to effect or keep in force an insurance on the health of such person.
6. Premia paid to insure health of the parents of the assessee.
7. 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 senior citizen (very senior citizen upto AY 2018-19); and
2. No amount has been paid to effect or keep in force an insurance on the health of such person.

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

In case of HUF – Premia paid out of taxable income to approved scheme of GIC (Mediclaim, Bhavishya Arogya) or any other approved insurer to insure the health of any member of the HUF.

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 ₹ 50,000 (Rs.30,000/- upto AY 2018-19)  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 senior citizen (very senior citizen upto AY 2018-19); and
2. No amount has been paid to effect or keep in force an insurance on the health of such person.
3. ‘Family’ means the spouse and dependant children of the assessee.
4. Senior Citizen means an Individual Resident in India of the age of 60 years or above ( 65 years upto AY 2013-14)
5. Very Senior Citizen means an Individual Resident in India of the age of 80 years or above ( w.e.f AY 2016-17)

Amounts paid for the purposes mentioned in column 3.

w.e.f. AY 2019-20

Individuals : Rs. 25,000/-

Senior citizen : Rs.50,000/- (Rs.30,000/- upto AY 2018-19)

Expenses incurred for preventive health check up : Rs.5,000/-

HUF : Amount paid for Member below the age of 60 years : 25,000/-

Amount paid for Member above the age of 60 years : 50,000/-

Note: w.e.f. AY 2019-20

6.  Maximum deduction, if individual or any member of his family or any of his parent is not senior or very senior citizen : ₹ 50,000.

7.  Maximum deduction if individual or any member of his family is not senior citizen but any of his parent is a senior citizen: ₹ 75,000.

Maximum deduction if individual or any member of his family and any of his parent is senior citizen: ₹ 1,00,000

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 
   ( ₹ 1,00,000 where amount paid is in respect of a senior citizen, Rs.60,000/- upto AY 2018-19 
   ₹ 80,000 where amount paid is in respect of a very senior citizen upto AY 2018-19).
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 recognized 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. Rs.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 2018-19, donations exceeding ₹ 2,000 shall qualify for deduction only if such sum is paid by any mode other than cash.(earlier it was ₹ 10,000)
4. Donations made to Clean Ganga Fund will qualify for deduction only if the assesse 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 Donations, 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,
   National children’s Fund, Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund

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. ₹ 2,000/- per month w.e.f. AY 2017-18 ( ₹ 5,000 per month for AY prior 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 program of rural development or implementing program 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.
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 ₹ 10,000 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.
3. 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.

80JJA

Any Assessee,

Profits and gains derived from business of collecting and processing or treating of bio-degradable waste for generating power or producing bio-fertilizers, bio-pesticides or other biological agents or for  producing bio-gas or making pellets or briquettes for fuel or organic manure

Whole of such profits and gains for 5 consecutive A.Ys. Beginning with the AY relevant to the PY in which such business commences

80JJAA

Any assessee who - (i) is engaged in carrying on a business; and (ii) whose accounts are subjected to audit under section 44AB

Additional emoluments paid for eligible employees

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

Note: The terms “Additional employee cost”; “additional employee” and “emoluments” have been defined in an Explanation to sub-section (2) of section 80JJAA.

30% of additional employee cost for 3 AYs including the AY relevant to the FY in which the employment was provided for a minimum period of 240days (150days in case of apparel, footwear and leather industry w.e.f. AY 2019-20)

80P

Co-operative Society

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

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.
2. Primary Co-operative Society engaged in supplying milk, oil seeds, fruits or vegetables grown by its member to specified bodies.
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 of the activities so specified) - (a) if such co-operative society is a Consumer Co-operative Society; 
   (b) in any other case.
4. Income by way of interest or dividends derived from investments with any other Co-operative Societies.
5. Income derived from letting godowns and warehouses for storage, processing or facilitating the marketing of commodities.

100% of profits attributable to such activities.

100% of profits and gains of such business.

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

Maximum ₹  50,000

100% of such income

100%of such income

80PA

w.e.f AY 2019-20

Producer Companies / Farm Producers Companies

Profits and gains attributable to eligible business of Producer Companies / Farm Producer Companies

1. Turnover less than 100 crores
2. Eligible Business :
1. the marketing of agricultural produce grown by the members; or
2. the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to the members; or
3. the processing of the agricultural produce of the members
3. No corresponding exemptions is provided in respect of MAT u/s 115JB

100% Profits and Gains from AY 2019-20 to AY 2024-25

80QQB (w.e.f. A.Y. 2004-05)

Resident Individual

a.  Lump sum consideration for assignment or grant of any interest in copyright of any book being a work of literary, artistic or scientific nature.

Royalty or copyright fees (whether receivable in lumpsum or otherwise) in respect of such book.

1. Income earned outside India should be brought into India within 6 months of the end of the P.Y or the time extended by RBI.
2. Certificate in Form 10CCD should be furnished.
3. In respect of income earned from source outside India, Certificate in Form No. 10H should be furnished.

Lump sum consideration in lieu of all rights.

Income from such Royalty or Copyright fees. (In case such royalty or the copyright fee is not a lump sum consideration in lieu of all the rights in the book, income by way of royalty or copyright fee, before allowing expenses attributable to such income, shall be restricted to 15% of the gross sale value of books sold in the previous year.)

1. Lower of –
1. Qualifying Amount; or
2. ₹ 3 lakhs.
2. Lower of –
1. Qualifying Amount; or
2. ₹ 3 lakhs.

80RRB

Resident 
Individual who is a patentee

Income by way of Royalty in respect of patents.

1. Patents should have been registered on or after 1.4.2003 under Patent’s Act, 1970.
2. Income earned outside India should be brought into India within 6 months of the end of the P.Y or the time extended by RBI.
3. Certificate in prescribed form should be furnished. Form 10CCE if in India, Form 10H outside India.
4. Various expressions /terms used have been defined in Explanation to Section 80RRB.
5. Amount shall not exceed the amount of royalty under terms and conditions of a license settled by controller under the Act.

Income by way of Royalty.

Whole of such income or ₹ 3 lakhs whichever is less.

80U

Resident Individual

Income of a person, with disability as defined.

Certificate from Medical Authority in the form and manner prescribed (refer section 80DD). Refer to Explanation to S. 80U for definition of the terms disability, medical authority, person with disability and person with severe disability.

Ordinary Disability
Rs. 75,000/- prior thereto Rs.50,000/-

Severe Disability

Rs.1,25,000/- prior thereto Rs.1,00,000/-

80TTA

Individual or HUF (other than assesee covered u/s 80TTB)

Interest on deposits (not being time deposits) in a savings account with –

a.  A banking company to which the Banking Regulation Act, 1949 applies (including a bank or banking institution refered to in S. 51 of that Act);

b.  A co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or

c.  A Post Office as defined in clause (k) of S. 2 of the Indian Post Office Act, 1898.

1. Where income referred to in col. 3 is derived from any deposit in a savings account held by, or on behalf of, a firm, an AOP or a BOI, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.
2. “time deposits” means the deposits repayable on expiry of fixed periods.

Whole of the amount mentioned in column 3

Lower of –

1. Qualifying amount ; OR
2. ₹ 10,000.

80TTB

(w.e.f AY 2019-20)

Individual being a senior citizen (above the age of 60years)

Interest on deposit in

(a) a banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act); (b) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or (c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898

Where income referred to in col. 3 is derived from any deposit in a savings account held by, or on behalf of, a firm, an AOP or a BOI, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body

Whole of the amount mentioned in column 3

Lower of –

1. Qualifying amount ; OR
2. ₹ 50,000.

REBATES:

87A

Resident Individual

Total Income does not exceed ₹ 3,50,000 (w.e.f. from A.Y. 2018-19)

(Prior to AY 2018-19, Total Income does not exceed ₹ 5,00,000)

Amount of Rebate LOWER OF –

1. 100% of the amount of income-tax on total income; OR
2. ₹ 2500 (prior to AY 2018-19, rebate was ₹ 5,000)

88E

All assessees

Business income arising from Taxable Securities Transaction.

Proof of payment of Securities Transaction Tax (STT) in the prescribed form to be furnished with return.

Amount of STT paid.

Amount of Rebate LOWER OF –

3. Amount of STT paid; OR
4. The income tax calculated at the average rate of tax.