Every assessee earning more than the basic exemption are eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilemt of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which are essential for Individuals, HUF and Firms for the purpose of claiming deductions against their total income.
3. Legends used in the Presentation
AOP Association of Persons
AY Assessment Year
BOI Body of Individuals
CBDT Central Board of Direct Taxes
GTI Gross Total Income
HUF Hindu Undivided Family
IRDA Insurance Regulatory and Development Authority of India
LTCG Long-term Capital Gains
NBFC Non Banking Financial Companies
PPF Public Provident Fund
PY Previous Year
RPF Recognized Provident Fund
SPF Statutory Provident Fund
STCG Short-term Capital Gains
4. Presentation Schema
Introduction
Deductions to be
made in
Computing Total
Income – Sec 80A
Deductions to be
based on Income
included in GTI –
Sec 80AB
Deduction not to
be allowed unless
Return Furnished –
Sec 80AC
Deduction in
respect of Certain
Amounts Paid or
Deposited – Sec
80C
Contribution to
Certain Pension
Funds – Sec 80CCC
Pension Scheme of
Central Govt. – Sec
80CCD
Medical Insurance
Premium – Sec
80D
Maintenance of a
Person with
Disability – Sec
80DD
Medical Treatment
– Sec 80DDB
Interest on Loan
taken for Higher
Education – 80E
Interest on Loan
taken for
Residential House
Property – Sec
80EE
Interest on Loan
taken for Certain
House Property –
Sec 80EEA
Purchase of
Electric Vehicle –
Sec 80EEB
Donations to
certain funds,
charitable
institutions etc. -
Sec 80G
Deduction in
respect of Rent
Paid – Sec 80GG
Donations for
Scientific Research
and Rural
Development –
Sec 80GGA
Contributions
given by any
Person to Political
Parties – Sec
80GGC
Royalty Income of
Authors – Sec
80QQB
Royalty on Patents
– Sec 80RRB
Interest on
Deposits in Savings
Account – Sec
80TTA
Interest on
Deposits in Case of
Senior Citizens –
Sec 80TTB
Deduction in the
Case of a Person
with Disability –
Sec 80U
5. Introduction
“Chapter VI-A - Deductions to be made in computing Total Income” provides various
deductions available from Gross Total Income in order reduce tax liability
A set of specific deductions considering various socio economic factors have been
provided under this chapter
Chapter VI-A deductions are important tools of effective tax planning
In this webinar, provisions related to deductions for assesses other than companies are discussed
6. Deductions to be made in Computing Total Income – Sec 80A
In computing the Gross Total Income* [GTI] of an assessee, deductions specified in Sec 80C to Sec 80U shall be allowed
In any case Total Deductions under Chapter VIA shall not exceed the GTI of the Assessee i.e there can be no loss due to deductions
If any deductions are allowed to an AOP/BOI, no deduction under the same Sec shall be allowed to a member in relation to their
share in the AOP/BOI
The profits and gains allowed as deduction under Sec 10AA or under any provision of Chapter VI-A under the heading "C.-
Deductions in respect of certain incomes" in any AY, shall not be allowed as deduction under any other provision of the Act for
such AY
Such deduction shall not exceed the profits and gains of the undertaking or unit or enterprise or eligible business
No deduction shall be allowed if the deduction has not been claimed in the return of income
The transfer price of goods and services between eligible business and other business of the assessee shall be determined at the
market value of such goods or services as on the date of transfer
Where a deduction has been allowed under this Chapter for a eligible business, no deduction under Sec 35AD is permissible in
relation to such business for the same or any other AY
*Gross total income - means the total income computed in accordance with the
provisions of Income-tax Act, before making any deduction under this Chapter VI-A
7. Contd.
Part C - Deductions in respect of certain incomes under Chapter VI-A
Section Deduction
80-IA Deductions in respect of profits and gains from undertakings or enterprises engaged in infrastructure
development/ operation/ maintenance, generation/ transmission/ distribution of power etc.
80-IAB Deduction in respect of profits and gains derived by an undertaking or enterprise engaged in development of SEZ
80-IAC Deduction in respect of profits and gains derived by an eligible start-up from an eligible business
80-IB Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure
development undertakings
80-IBA Deduction in respect of profits and gains from housing projects
80-IC Deduction in respect of profits and gains from certain undertakings or enterprises in certain special category States
[Himachal Pradesh and Uttaranchal]
80-IE Deduction in respect of profits and gains from manufacture or production of eligible article or thing, substantial
expansion to manufacture or produce any eligible article or thing or carrying on of eligible business in North-Eastern
States
8. Contd.
Section Deduction
80JJA Deduction in respect of profits and gains from business of collecting and processing of bio-
degradable waste
80JJAA Deduction in respect of employment of new employees
80LA Deduction in respect of certain income of Offshore Banking Units and International Financial
Services Centre
80P Deduction in respect of income of co-operative societies
80PA Deduction in respect of certain income of Producer Companies
80QQB Deduction in respect of royalty income, etc., of authors of certain books other than text books
80RRB Deduction in respect of royalty on patents
9. Deductions to be based on Income included in GTI – Sec 80AB
and not the actual income earned or received by the assessee
the income computed as per Income-tax provisions (except Chapter VI-A) shall alone
be regarded as income received by the assessee and which is included in his GTI
For the purpose of calculation of deductions specified in Chapter VI-A under the
heading “C - Deductions in respect of certain incomes”,
Deduction not to be allowed unless Return Furnished – Sec 80AC
Filing of return of income on or before the due date, is mandatory for availing benefit of deductions under
any provision of Chapter VI-A under the heading “C. – Deductions in respect of certain incomes”
In case of failure to file return of income on or before the stipulated due date, the undertakings would
lose the benefit of deduction
10. Deduction in respect of Certain Amounts Paid or Deposited
– Sec 80C
Eligible Assessee Individual or HUF
Maximum Deduction Rs. 150000
Eligible Payments
and Deposits
• Premium paid in respect of Life Insurance policy
• Premium paid in respect of a contract for deferred annuity
• Any sum deducted from the salary payable of a Government employee for
securing a deferred annuity
• Contribution to SPF/PPF/RPF
• Contribution to approved superannuation Fund
• Any sum paid or deposited in Sukanya Samridhi Account
• Subscription to National Savings Certificates VII
• Contribution in Unit-linked Insurance Plan, 1971
• Payment of tuition fees to any university, college, school or other educational
institutions within India for full-time education for maximum 2 children
Eligible Deduction Whole of the eligible amount paid or deposited
Subject to the limit of 1,50,000 along with
Sec 80CCC, 80CCD(1) as per Sec 80CCE
11. Contd.
Contribution in Unit-
linked Insurance Plan of
LIC Mutual Fund
Contribution to
approved annuity plan
of LIC
Subscription towards
notified units of mutual
fund or UTI
Contribution to notified
pension fund set up by
mutual fund or UTI
Contribution to National
Housing Bank (Tax
Saving) Term Deposit
Scheme, 2008
Subscription to notified
deposit scheme *
Repayment of housing loan
including stamp duty,
registration fee and other
expenses
Subscription to certain
equity shares or
debentures**
Subscription to certain
units of mutual fund***
Investment in five year
Term Deposit
Subscription to notified
bonds issued by
NABARD
Deposit in Senior
Citizens Savings Scheme
Rules, 2004
Investment in five year
Post Office time deposit
Contribution to
additional account
under NPS
Eligible Payments and Deposits (contd.)
** Subscription to an issue of capital by public infrastructure co. or a public financial institution lending to infrastructure co.s approved by CBDT
* Deposit scheme of public sector co. providing long term finance to housing sector and any other authority established for that purpose
*** Mutual funds which are exempt under Sec 10(23D)
12. Deduction in respect of Contribution to Certain Pension Funds
– Sec 80CCC
Eligible Assessee Individual
Maximum Deduction Rs. 150000
Deemed Income
• Where the balance in the fund on which deduction has been allowed is received by the
assessee or his nominee
• due to surrender of the plan or pension is received from the annuity plan,
• Such receipt of the assessee/nominee shall be deemed to be their income in the PY
Eligible Deduction 100% of Deposit/Payment made towards LIC or any other insurer in the approved annuity plan for
receiving pension from the fund referred to in Sec 10(23AAB) (Exempt pension funds approved by IRDA)
Subject to limit of 1,50,000 along with Sec
80C, 80CCD(1) as per Sec 80CCE
13. Contribution to Pension Scheme of CG – Sec 80CCD
Eligible Assessee Individual
Maximum Deduction
Sec 80CCD(1) – Assessee’s contribution
• 10% of salary in case of employees
• 20% of GTI in case of self employed assessee
Deemed Income
• Amount received by the assessee or his nominee from the balance in the fund
• on account of closure or opting out of scheme on receiving pension from the
annuity plan purchased on such opting or closure
• shall be deemed as income in the year of receipt
Eligible Deduction Contribution to Pension Scheme Specified by CG – Atal Pension Yojana & National Pension Scheme
Sec 80CCD(1A) – Additional Deduction
Contribution to NPS - Rs 50000
Sec 80CCD(2) - Contribution made by the Employer
• Govt. employees – upto 14% of salary
• Any other employers - 10% of salary
However, receipt by nominee on death of assessee shall not be taxed
Not restricted under Sec 80CCE limit
Deduction claimed here cannot be claimed elsewhere
Subject to limit of 1,50,000 along with
Sec 80C, 80CCC as per Sec 80CCE
Not restricted under Sec 80CCE limit
14. Deduction in Respect of Medical Insurance Premium – Sec 80D
Eligible Assessee Individual and HUF
Quantum of Deduction
Individual
A • Insurance on the health of the assessee or his family or
• Any contribution made to the Central Government Health Scheme (appropriate
fraction in case of multiple years)
Upto 25,000
B • Insurance on the health of the parent or parents of the assessee (appropriate fraction
in case of multiple years)
Upto 25,000
The limits are increased to 50,000 in case payment is for Senior citizens
Amount upto Rs 5000 spent on preventive health check-up can be claimed subject to the above limits
C Amount paid on account of medical expenditure incurred on the health of the assessee or
any member of his family
Upto 50,000
D Amount paid on account of medical expenditure incurred on the health of any parent of
the assessee
Upto 50,000
In C and D above the amount should be paid in respect of a senior citizen and no insurance premium has been paid
Deduction in respect of Individual & Family (A&C) and parents (B&D) shall not exceed 50,000 each
Family means the spouse and dependant children of the assessee
15. Contd.
HUF
A Insurance on the health of any member of HUF (appropriate fraction in case
of multiple years)
Upto 25,000
In case payment is in respect of senior citizen limit is enhanced to 50,000
B Medical expenditure incurred on the health of any member of HUF Upto 50,000
Payment must be in respect of a senior citizen and no insurance premium has been paid
Mode of Payment
The payment can be made:
(1) by any mode, including cash, in respect of any sum paid on account of preventive health check-up;
(2) by any mode other than cash, in all other cases
16. Deduction in Respect of Maintenance including Medical
Treatment of a Dependant who is a Person with Disability – Sec
80DD
Eligible assessee Individual and HUF
Maximum Deduction Rs. 75,000 and in case of severe disability (having disability over 80%) Rs.1,25,000
Eligible Deduction
Any amount incurred for the medical treatment (including nursing), training and rehabilitation of a
dependant, being a person with disability, or paid or deposited under a scheme framed in this behalf by
the Life Insurance Corporation or any other insurer or the Administrator
The scheme should provide for payment of annuity or a lump sum amount for the benefit of a dependant
Declaration in Form 10IA along with income tax return
Assessee Dependant
(1) Individual
the spouse, children, parents, brother or sister of the individual who is wholly or
mainly dependant on such individual and not claimed deduction under Sec 80U in the
computation of his income
(2) HUF a member of the HUF, wholly or mainly dependant on such HUF and not claimed
deduction under Sec 80U in the computation of his income
Dependent
17. Deduction in Respect of Medical Treatment – Sec 80DDB
Eligible Assessee Individual or HUF
Quantum of deduction • The amount actually paid or Rs. 40,000, whichever is lower
• In case of senior citizen amount actually paid or Rs. 1,00,000, whichever is lower
• Amount of deduction shall be reduced by amount received under any insurance or as a
reimbursement from employer
Condition No such deduction shall be allowed unless the assessee obtains the prescription for
such medical treatment from a neurologist, an oncologist, a urologist, a hematologist,
an immunologist
Eligible Deduction Medical expenditure incurred for eligible diseases on himself or a dependant.
HUF - expenditure incurred on any of its members
Expenditure medical treatment of persons suffering from autism,
cerebral palsy and multiple disabilities (specified in Rule 11DD)
18. Interest on Loan taken for Higher Education – 80E
Eligible Assessee Individual
Conditions
• Loan must be taken for the purpose of higher education of himself or his relative
• Loan must be from any financial institution (banking co.) or any charitable
institution (approved under Sec 80G or institutions under Sec 10(23C))
• Deduction would be allowed for Initial AY and 7 consecutive AYs or until interest
on loan is repaid in full whichever is earlier
Eligible Deduction Any amount of interest on loan paid by him in the previous year out of his income chargeable to tax
Relative means the spouse and children of that individual or the student for whom the individual is the legal guardian
Higher
Education
means any course of study pursued after passing the Senior Secondary Examination or its equivalent from
any recognised school, board or university
19. Interest on Loan taken for Residential House Property – Sec
80EE
Eligible Assessee Individual
Conditions • Value of House Property does not exceed Rs 50 lakhs
• Loan is sanctioned during PY 2016-17
• Assessee does not own any House Property on date on sanction of loan
• Loan amount does not exceed Rs 35 lakhs
Eligible Deduction
Interest payable on loan taken by him from any financial institution for
the purpose of acquisition of a residential house property
Financial Institution Banking company or an Housing Finance Company
Housing Finance Company means a public company formed or registered in India with the main object of carrying
on the business of providing long-term finance for construction or purchase of houses in
India for residential purposes
Maximum Deduction Rs 50,000 (this is over and above the 2,00,000 available under Sec 24 (IFHP))
AY17-18 onwards
20. Interest on Loan taken for Certain House Property – Sec 80EEA
Eligible Assessee Individual
Conditions
• Stamp Duty Value of House Property does not exceed Rs 45 lakhs
• Loan is sanctioned during PY 2019-20
• Assessee does not own any House Property on date on sanction of loan
Eligible Deduction
Interest payable on loan taken by him from any financial institution for
the purpose of acquisition of a residential house property
Maximum Deduction Rs 1,50,000 (this is over and above the 2,00,000 available under Sec 24 (IFHP))
AY20-21 onwards
Stamp Duty Value Value adopted or assessed or assessable by any authority of the Central Government or a State
Government for the purpose of payment of stamp duty in respect of an immovable property
Financial Institution Banking company or an Housing Finance Company
Housing Finance Company means a public company formed or registered in India with the main object of carrying on the
business of providing long-term finance for construction or purchase of houses in India for
residential purposes
Inserted by Finance Act (No.2), 2019
21. Purchase of Electric Vehicle – Sec 80EEB
Eligible Assessee Individual
Conditions • Loan is sanctioned during the period 1/4/2019 to 31/3/2023
Eligible Deduction
Interest payable on loan taken by him from any financial institution for
the purpose of purchase of an electric vehicle
Financial Institution Banking company or any bank or banking institution and includes deposit-taking NBFCs or a
systematically important non-deposit taking NBFC governed by the Banking Regulation Act
Electric vehicle means a vehicle which is powered exclusively by an electric motor whose traction energy is supplied
exclusively by traction battery installed in the vehicle and has such electric regenerative braking system,
which during braking provides for the conversion of vehicle kinetic energy into electrical energy
Maximum Deduction Rs 1,50,000
AY20-21 onwards
Inserted by Finance Act (No.2), 2019
22. Deduction in respect of donations to certain funds, charitable
institutions etc. - Sec 80G
Eligible Assessee Any Assessee
Eligible Deduction Payment of any sum as donation to eligible funds or institutions
Categories of
Eligible Donations
Donation qualifying for 100% deduction, without any qualifying limit
Donation qualifying for 50% deduction, without any qualifying limit
Donation qualifying for 100% deduction, subject to qualifying limit
Donation qualifying for 50% deduction, subject to qualifying limit
Qualifying limit
Payment of any sum as donation to eligible funds or institutions
Deduction under the categories subject to Qualifying limit aggregated should be
limited to 10% of the Adjusted Total Income
Adjusted Total Income
GTI of the assessee as reduced by Deductions (other than 80G), STCG, LTCG and
exempt income and incomes taxable at special rates for non-residents
Quantum of Deduction
Other conditions Donations in kind and in cash exceeding Rs 2000 shall not be allowed
Deductions claimed here cannot be claimed elsewhere
23. Eligible Donations
Donation qualifying for 100% deduction, without any qualifying limit
The National Defence Fund set up by the Central Government
Prime Minister’s National Relief Fund.
Prime Minister’s Armenia Earthquake Relief Fund
The Africa (Public Contributions-India) Fund
The National Children’s Fund
The National Foundation for Communal Harmony
Approved University or educational institution of national eminence
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 Gujarat earthquake
Any Zila Saksharta Samiti for primary education in villages and towns and for literacy and post-literacy activities
National Blood Transfusion Council or any State Blood Transfusion Council whose sole objective is the control, supervision,
regulation or encouragement of operation and requirements of blood banks
Any State Government Fund set up to provide medical relief to the poor
The Army Central Welfare Fund or Indian Naval Benevolent Fund or Air Force Central Welfare Fund established by the armed
forces of the Union for the welfare of past and present members of such forces or their dependants.
24. Eligible Donations
Donation qualifying for 100% deduction, without any qualifying limit
The Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
The National Illness Assistance Fund
The Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund in respect of any State or Union Territory
The National Sports Fund set up by the Central Government
The National Cultural Fund set up by the Central Government
The Fund for Technology Development and Application set up by the Central Government
National Trust for welfare of persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
The Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by the assessee in pursuance of CSR
The Clean Ganga Fund, set up by the Central Government, where such assessee is a resident, other than the sum spent in pursuance of CSR
The National Fund for Control of Drug Abuse constituted under Sec 7A of the Narcotic Drugs and Psychotroic Substances Act, 1985
Donation qualifying for 50% deduction, without any qualifying limit
The Jawaharlal Nehru Memorial Fund
Prime Minister’s Drought Relief Fund
Indira Gandhi Memorial Trust
Rajiv Gandhi Foundation
25. Eligible Donations
Donation qualifying for 100% deduction, subject to qualifying limit
The Government or to any such local authority, institution or association as may be approved for promotion of family planning
Sum paid by a company as donation to the Indian Olympic Association or any other association/institution established in India,
as may be notified by the Government established –
- for the development of infrastructure for sports or games, or
- the sponsorship of sports and games in India
Donation qualifying for 50% deduction, subject to qualifying limit
Any Institution or Fund established in India for charitable purposes approved under Sec 80G(5).
The Government or any local authority for utilisation for any charitable purpose other than the purpose of promoting
family planning.
An authority constituted in India by or under any other law enacted either for the purpose
- of dealing with and satisfying the need for housing accommodation or
- of planning, development or improvement of cities, towns and villages, or both.
Any Corporation established by the Central Government or any State Government for promoting the interests of the
members of a minority community as referred in Sec 10(26BB).
for renovation or repair of any such temple, mosque, gurdwara, church or other place as notified by the Central
Government to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout
any State or States.
26. Deduction in respect of Rent Paid – Sec 80GG
Eligible Assessee A person who is not in receipt of House Rent Allowance and who pays rent for accommodation
occupied by him for residential purposes
Quantum of
deduction
The deduction admissible will be the least of the following:
(1) Actual rent paid minus 10% of the total income of the assessee before allowing the deduction, or
(2) 25% of such total income (arrived at after making all deductions under Chapter VI A but before
making any deduction under this Sec), or
(3) Amount calculated at Rs 5,000 p.m
Conditions The expenditure incurred by him on rent of any furnished or unfurnished accommodation should exceed
10% of his total income arrived at after all deductions under Chapter VI-A except Sec 80GG.
The accommodation should be occupied by the assessee for the purposes of his own residence
The assessee or his spouse or his minor child or a HUF of which he is a member should not own any
accommodation at the place where he ordinarily resides or perform duties of his office or employment
or carries on his business or profession
Declaration in Form 10BA along with income tax return
27. Deduction in Respect of Donations for Scientific Research and
Rural Development – Sec 80GGA
Eligible Assessee Any assessee not having income chargeable under the head “Profits and gains of business or profession”
Eligible Deduction
To a research association which has, as its object, the undertaking of scientific research or to a University,
college or other institution to be used for scientific research
Any sum paid to a Research Association which has as its object the undertaking of research in social
science or statistical research, University, College or other institution to be used for research in social
science or statistical research
Any sum paid to a public sector company or a local authority or to an association or institution approved
by the National Committee for carrying out any eligible project or scheme
Any sum paid by the assessee in the previous year to National Urban Poverty Eradication Fund
Restrictions on deduction Where Deduction is claimed and allowed under this Sec, deduction cannot be claimed elsewhere
Deduction over and above Rs. 10000 in the form of cash shall not be allowed
28. Deduction in Respect of Contributions given by any Person to
Political Parties – Sec 80GGC
Eligible Assessee Any sum contributed in the PY by any person to a political party or an electoral trust
Ineligibility
This deduction will, not be available to a local authority and an artificial juridical person, wholly
or partly funded by the Government
No deduction shall be allowed in respect of any sum contributed by way of cash
Political
party
It means a political party registered under Representation of the People Act, 1951
Electoral
Trust
A non-profit company created in India for orderly receipt of the voluntary contributions from
any person and for distributing the same to the respective political parties
Deduction in respect of income of co-operative societies - Sec 80P has already been discussed in webinar
for Assessment of Co-operative Society
29. Deduction in Respect of Royalty Income, etc., of Authors of
Certain Books other than Text Books – Sec 80QQB
Eligible assessee Individual
Quantum of deduction Income derived as author or Rs. 3,00,000 whichever is less
Eligible income Income may be received either by way of a lumpsum consideration for the assignment or grant of any
of his interests in the copyright of any book
Such book should be a work of literary, artistic or scientific nature, or of royalties or copyright fees
Deduction shall not be allowed - Royalty income received from brochures, commentaries, diaries,
guides, journals, magazines, newspapers, pamphlets, textbook for schools, tracts and other publications
of similar nature
The amount of eligible income (royalty or copyright fee received otherwise than by way of lumpsum)
before allowing expenses to such income, shall not exceed 15% of the value of the books sold during the
relevant PY
Manner of Computation
Conditions
Furnishing of certificate in form 10CCD
Where the assessee earns any income from any source outside India, he should bring such income into
India in convertible foreign exchange within a period of six months from the end of the PY
30. Deduction in Respect of Royalty on Patents – Sec 80RRB
Eligible Assessee
Resident individual who is registered as the true and first inventor in respect of an invention under the
Patents Act, 1970
Quantum of deduction Rs. 3,00,000
Eligible income
This deduction shall be restricted to the royalty income including consideration for transfer of rights in
the patent or for providing information for working or use of a patent, use of a patent or the rendering of
any services in connection with these activities
Conditions
Any such income which is earned from sources outside India, the deduction shall be restricted to such sum as is brought to India
in convertible foreign exchange within a period of 6 months or extended period as is allowed by the RBI
Furnish a certificate in form 10CCE
Revocation of Patent Where the patent is subsequently revoked - deduction allowed during the period shall be deemed to
have been wrongly allowed – recomputing the total income of the assessee for the relevant PY
The period of 4 years available for rectification shall be reckoned from the end of the PY in which the
order of the revocation of the patent is passed
Royalty In respect of a patent, means consideration for the transfer of all or any rights, the imparting of any
information concerning the working of, or the use of, a patent, the use of any patent,
31. Interest on Deposits in Savings Account – Sec 80TTA
Eligible Assessee Individual or HUF (other than Senior Citizens covered under Sec 80TTB)
Other Provisions Where such income is derived from a deposit held on behalf to a
Firm/AOP/BOI, no deduction shall be allowed to any partner or member
Eligible Deduction Income by way of interest on deposits (not being time deposits) in a savings account with:
• Banking Company including any bank or banking institution under Banking Regulation Act,
1949
• 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)
• A Post Office
Maximum Deduction Aggregate of all such incomes subject to maximum of Rs 10,000
32. Interest on Deposits in Case of Senior Citizens – Sec 80TTB
Eligible Assessee Senior Citizens
Other Provisions Where such income is derived from a deposit held on behalf to a
Firm/AOP/BOI, no deduction shall be allowed to any partner or member
Eligible Deduction Any income by way of interest on deposits with:
• Banking Company including any bank or banking institution under Banking Regulation Act,
1949
• 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)
• A Post Office
Maximum Deduction Aggregate of all such incomes subject to maximum of Rs 50,000
33. Deduction in the Case of a Person with Disability – Sec 80U
Eligible assessee Resident individual, who, at any time during the PY, is certified by the medical
authority to be a person with disability
Quantum of deduction A deduction of Rs. 75,000 in respect of person with disability
Rs. 1,25,000 in case of severe disability (having disability over 80%)
Conditions
The assessee shall furnish a copy of the certificate issued by the medical authority in
the form 10IA
• Where the condition of disability requires reassessment,
• a fresh certificate from the medical authority shall have to be obtained after the
expiry of the period mentioned on the original certificate
• in order to continue to claim the deduction
