Deduction under VI-A Section 80D, 80E, 80G

In this post, we will discuss the various deductions under VI-A. So, we will cover all these deductions under section 80TTA, 80EE, 80GG, 80CCG, 80D, 80DD, 80DDB, 80U, 80G, 80GGC, 80RRB in this post.

This is the part 2 of the deductions under VI-A. You can read about the part 1 of deductions under VI-A where we have discussed the section 80C, 80CCC, and 80CCD.

Various Deductions under Section 80TTA

This section allows the deduction from gross total income for Interest on Savings bank account. A deduction of maximum Rs. 10,000 can be claimed against interest income from a savings bank account.

Interest from a savings bank account should be first included in other source income and deduction can be claimed of the total interest earned or Rs. 10,000, whichever is less. This deduction is allowed to an individual or HUF and it can be claimed for interest either on deposits in the savings account with a bank, co-operative society or post office.

Section 80TTA deduction is not available on interest income from fixed deposits or recurring deposits or interest income from corporate bonds.

Various Deductions under Section 80GG

The deduction is allowed for House Rent Paid where HRA is not received as a salary head. Condition to claim this deduction are as below:

  • Taxpayer or his spouse or minor child should not own residential accommodation at the place of employment.
  • A taxpayer should not have self-occupied residential property in any other place.
  • Taxpayer must be living on rent and paying rent.

A deduction can be claimed a minimum of:

  • Rent paid minus 10% of total income
  • Rs. 2000/- per month
  • 25% of total income

Various Deduction under section 80EE

This Deduction is allowed on Home Loan Interest for First Time Home Owners. This section was revived in Budget 2016 and is applicable starting FY 2016-17.

The deduction under this section is available only to an Individual who is a first time home owner. The conditions to claim this deduction are as below:

  • The value of the property purchased must be less than Rs. 50 Lakhs and the home loan must be less than Rs. 35 lakhs.
  • The Loan must be taken from a financial institution and must be sanctioned between 01.04.2016 to 31.03.2017. Under this section, an additional deduction of Rs. 50,000 can be claimed on home loan interest.
  • This is in addition to deduction of Rs. 2,00,000 allowed under section 24 of the income tax act for self-occupied house property. There is no restriction on the number of years for which this deduction can be claimed.

Various Deductions under section 80CCG

This deduction is allowed for Rajiv Gandhi Equity Saving Scheme (RGESS) which was launched in the year 2012. Investors whose gross total income is less than Rs. 12 lakhs can invest in this scheme. Upon fulfillment of conditions laid down in the section, the deduction is allowed upto 50% of the amount invested in equity shares or Rs. 25,000, whichever is lower.

Various Deductions under section 80D

This deduction is allowed for a premium paid for Medical Insurance. This deduction is available up to Rs. 25,000/- to a taxpayer for insurance of self, spouse and dependent children. If individual or spouse is more than 60 years old the deduction available is Rs. 30,000.

An additional deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 25,000/- if less than 60 years old and Rs. 30,000 if parents are more than 60 years old. Therefore, the maximum deduction available under this section is to the extent of Rs. 60,000/-. Within the existing limit a deduction of up to Rs. 5,000 for preventive health check-up is also available.

For uninsured super senior citizens (more than 80 years old) medical expenditure incurred up to Rs. 30,000 shall be allowed as a deduction under section 80D. However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs. 30,000.

Various Deductions under section 80DD

This deduction is allowed for Rehabilitation of Handicapped Dependent Relative. Hence, the deduction is available on:

  • Expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative
  • Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
  • Where disability is 40% or more but less than 80% a fixed deduction of Rs. 75,000 is allowed.

Where there is a severe disability (disability is 80% or more) a fixed deduction of Rs. 1,25,000 is allowed. To claim the deduction a certificate of disability is required from prescribed medical authority.

Note: A person with ‘severe disability’ means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the ‘Persons with Disabilities (Equal opportunities, protection of rights and full participation)’ Act.

  • The Certificate can be taken from a Specialist as specified. Patients getting treated in a private hospital are not required to take the certificate from a government hospital.
  • Patients receiving treatment in a government hospital have to take the certificate from any specialist working full-time in that hospital. Such specialist must have a post-graduate degree in General or Internal Medicine or any equivalent degree, recognised by the Medical Council of India.
  • Certificate in Form 10I is no longer necessary. The certificate must have – name and age of the patient, name of the disease or ailment, name, address, registration number and the qualification of the specialist issuing the prescription. If the patient is receiving the treatment in a Government hospital, it should also have name and address of the Government hospital.

Various Deductions under section 80DDB

Under this section, there is an allowance of deduction for Medical Expenditure on Self or Dependent Relative.  A deduction of Rs. 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by a taxpayer on himself or dependent relative for medical treatment of specified disease or ailment can be claimed.

The diseases for the claim of expenditure have been specified in Rule 11DD. So, a certificate in form 10I is to be furnished by the taxpayer from any Registered Doctor.

In case of senior citizens, the deduction can be claimed up to Rs. 60,000 or amount actually paid, whichever is less. In case of very senior citizens Rs. 80,000 is the maximum deduction that can be claimed.

Various Deductions under section 80U

This deduction is allowed for Person suffering from Physical Disability. A deduction of Rs. 75,000 is allowed for an individual who suffers from a physical disability (including blindness) or mental retardation.

In case of severe disability, You can claim a deduction of Rs. 1,25,000. You need to obtain a certificate from a Govt. Doctor as specified in Rule 11D. As a result, this is a fixed deduction and not based on bills or expenses.

Various Deduction under section 80G

The deduction claimed for donations towards Social Causes is under this section. So, the various donations specified in Sec. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec. 80G. Sec. 80G deduction is not applicable in case donation paid in form of cash for the amount over Rs. 10,000.

  • Donations with 100% deduction without any qualifying limit:
  • National Defence Fund set up by the Central Government
  • Prime Minister’s National Relief Fund
  • National Foundation for Communal Harmony
  • An approved university/educational institution of National eminence
  • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a State Government for the medical relief to the poor
  • National Illness Assistance Fund
  • The National Blood Transfusion Council or to any State Blood Transfusion Council
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
  • Retardation and Multiple Disabilities
  • National Sports Fund
  • National Cultural Fund
  • Fund for Technology Development and Application
  • National Children’s Fund
  • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
  • The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
  • The Maharashtra Chief Minister’s Relief Fund during October 1, 1993, and October 6, 1993
  • Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
  • Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made during January 26, 2001, and September 30, 2001) or
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions — India) Fund
  • Swachh Bharat Kosh (applicable from the financial year 2014-15)
  • Clean Ganga Fund (applicable from the financial year 2014-15)
  • National Fund for Control of Drug Abuse (applicable from the financial year 2015-16)

Donations with 50% deduction without any qualifying limit:

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • Indira Gandhi Memorial Trust
  • The Rajiv Gandhi Foundation

Donations eligible for 100% deduction subject to 10% of adjusted gross total income

  • Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
  • Donation by a Company to the Indian Olympic Association either to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.

Donations eligible for 50% deduction subject to 10% of adjusted gross total income:

  • Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
  • Government or any local authority to be utilized for any charitable purpose other than the purpose of promoting family planning
  • Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
  • Any corporation referred in Section 10(26BB) for promoting the interest of minority community
  • For repairs or renovation of any notified temple, mosque, gurudwara, church or other places.

Various Deductions under section 80GGC

This Deduction is claimed on contributions given by any person to Political Parties. This is allowed to a taxpayer for any amount contributed to any political party or an electoral trust and allowed for contribution done by any way other than cash.

Political party means any political party registered under section 29A of the Representation of the People Act.

Various Deductions under section 80RRB

This deduction is with respect to any Income by way of Royalty of a Patent. Deduction on any income through royalty for a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available up to Rs. 3 lakhs or the income received, whichever is less. The taxpayer must be an individual resident of India who is a patentee. The taxpayer must furnish a certificate in the prescribed form duly signed by the prescribed authority.

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