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  Tax Planning

 
home > Tax Planning > Nuts & Bolts of IT > Deductions
logo   IMPORTANT DEDUCTIONS
   
bullet Deductions u/s 80 of the IT Act
 
Section 80C - Deduction in respect of the following:
  • Life insurance policy payments
  • Payments made towards deferred annuity. (not exceeding 20% of the sum assured in the above cases)
  • Contribution to PF., Super annuation funds, P.O Savings bank
  • Payments to NSC, notified saving certificates, unit linked insurance plans, MF
  • Payment made as tuition fees, to any school, college or university in India for full time education in respect of 2 children of the assesse
  • Bank deposits for a 5 year period
  • Principal repayment of housing loans
  • Investments in infrastructure bonds
The aggregate amount of all the above investments shall be allowed a deduction to the extent of Rs. 1.00 lac.
Section 80D - Contribution towards mediclaim insurance policy. Available up to Rs.10,000
Section 80DD - scheme for the maintenance of handicapped dependants. Limit up to Rs.40,000
Section 80DDB - expenditure incurred towards medical treatment for some specified disease or ailment. Limit up to Rs.40, 000. For persons above 65 years of age the limit is enhanced to Rs.60,000
Section 80E - In respect of interest on loan payments taken for higher studies. Amount of deduction is actual amount paid. Deduction available only for 8 A.Y or period of payment which ever is earlier. (this facility is not available for repayment of principal amount)
Section 80G - deduction in respect of certain funds, charitable institutions etc. The amount deductible varies from 50% to 100% depending upon the contribution.
Section 80GG - Deduction in respect of least of the following:
  • Excess of rent paid over 10% of total income
  • 25% of total income
  • Rs. 2,000 p.m.
Section 80GGC - Deduction for donations made to any political party.
Section 80O - Deduction in respect of royalties in respect of certain foreign enterprises
Section 80R - Deduction in respect of certain foreign sources in the case of professors, teachers etc
Section 80RR - Deduction in respect of professional income
Section 80RRA - Deduction in respect of all remuneration received for services rendered outside India
Section 80RRB - Deduction in respect of royalty on patents
Section 80U - Deduction in respect of totally blind and physically handicapped resident persons
 
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bullet Rebate for STT:
 
Section 88E is another new section that has been inserted by the Finance Bill.
Section 88E pertaining to STT will be applicable of the following conditions are fulfilled:
  • The tax payer is an individual, HUF or any other person
  • Income includes “Income from Business or Profession” arising from taxable securities transaction
  • Along with the return the assessee furnishes evidence of paying securities transaction tax
  • In case actual tax paid on business income is lesser than STT then the assessee will get a refund of the excess tax that has been paid.
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