Hi, this post is the continuation (part 2) of Chapter VI-A deductions in ITR-1 & 2 which covers the entry of the remaining sections such as 80E, 80G, 80TT and 80E along with their sub-sections.
In the previous post, we covered:
To begin with,
When you pay interest for a higher education loan of self of dependent children, you can claim it under 80E. To claim extra deduction on Housing loan interest, you can enter it under 80EE section.
Enter the details in 80G section to claim any deduction on the donation made to Government/ Government approved funds. Select the fund details to form the list provided and the percentage of deduction applicable will be auto taken. You can view the list by clicking List. Provide the required details for the claim
If the individual does not have HRA component in salary but wants to claim HRA deduction, then the deduction can be claimed under 80GG section. Enter the relevant details in the 80GG window it will auto calculate the deduction amount as applicable provided all conditions set for the claim are fulfilled.
The deduction will be the lowest of:
- Rs 5,000 per month
- 25% of the total Income (excluding long-term capital gains, short-term capital gains under section 111A and Income under Section 115A or 115D and deductions under 80C to 80U. Also, income is before making a deduction under section 80GG).
- Actual rent less 10% of Income
Any donation made by the individual towards Scientific or Rural development institutions or related funds as approved by Central government can claim deduction under 80GGA section. Enter the relevant details in 80GGA Deduction window and the qualifying amount will be auto computed.
If you make any donation to a political party, then you can enter the claim of deduction under 80GGC. 80GGC is completely exempt so, the gross amount is considered as the qualifying amount.
If an author of books ( literary/artistic/scientific field) and receives a royalty then the deduction can be claimed on royalty amount if the author fulfils applicable conditions.
The deduction will be lower of:
- Rs 3 lakhs or
- The amount of royalty income received
Similar to 80QQB, 80RRB section provides a deduction on royalty income received by an individual. It is against any of their work including work on books, art, music, inventions etc. One has to make sure that they satisfy the criteria to claim deductions.
If the individual is having interest income from their Savings Bank Account. When individual declare in other sources of income, then 80TTA field is populated by default. The auto-calculation of income amount and a deduction up to Rs. 10,000 happens.
If its a senior citizen, then the income from interest on any savings/deposit is considered under 80TTB. A deduction up to Rs. 50,000 will be also auto computed.
You can not edit these fields as the value is taken from Other Source of Income Screen.
If it is a disabled person then they can claim tax benefit under Section 80U. This applies to a person with at least 40% disability and certified by the medical authorities. In case of severe disability, the person has to enable the option to claim higher benefit.
After entering the relevant details, then the total gross entered and the total qualifying amount will be displayed. This will be considered for IT computation.
This completes the process of entering Chapter VI-A Deduction details of ITR-1 in Saral Income Tax.