Some popular deductions as under:

Note:  limit of individual item also mentioned in each item. This deduction is available to person who has paid or deposited so this deduction need payment outgo either during PY or extended time period.

Note: The aggregate amount of deductions under section 80C, section 80CCC and of section 80CCD (1)] shall not, in any case, exceed ₹ 1.50 lakh.

specified persons:

i.     in the case of  individual- spouse, child of such individual.

ii.     Hindu undivided family- any member thereof;

Note: no termination of contract of insurance within two years , otherwise no deduction shall be allowed to the assessee .

15% of capital sum assured, for policy issued on or after 1.4.2013, if  insurance on life of any person, who is—

(a)   a person with disability or a person with severe disability as referred to in section 80U, or

(b)   suffering from disease or ailment as specified in the rules made under section 80DDB,  ;

§  10% of capital sum assured, if policy issued on or after 1.4.2012;

§  20% of capital sum assured, if policy issued  upto 31.3.2012;

Note: specified persons  for individual, the individual, the wife or husband and any child of such individual;

specified persons:

i.     in the case of  individual- spouse, child of such individual.

ii.     Hindu undivided family- any member thereof;

Note: while an HUF cannot open a Public Provident Fund (PPF) in its name, it can claim tax deductions for the amount deposited by the HUF in respective PPF accounts of its members.

Note: specified person, in the case of an individual, the individual or any girl child of that individual, or any girl child(Deposit to ‘Sukanya Samriddhi Account’) for whom such person is the legal guardian, if the scheme so specifies

specified persons:

i.          in the case of  individual- spouse, child of such individual.

ii.     Hindu undivided family- any member thereof;

specified persons:

i.          in the case of  individual- spouse, child of such individual.

ii.     Hindu undivided family- any member thereof;

(a)   a public sector company which is engaged in providing long-term finance for construction or purchase of residential houses in India; or

(b)   any authority constituted in India by or under any law enacted either 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 and villages, or for both,

(a)   to any university, college, school or other educational institution situated within India;

(b)   for the purpose of full-time education of any of the specified  persons

Note: in the case of an individual, any two children of such individual.

payments are made towards or by way of—

(a)   any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or

(b)   any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or

(c)   repayment of the amount borrowed by the assessee  from CG/SG, bank, LIC, National Housing Bank, public company formed and registered in India for  long term finance for construction or purchase of houses in India for residential purposes/ company in which the public are substantially interested or any co-operative society, engaged in the business of financing the construction of houses/ employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act/ public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society;

(d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee,

Exclusion/ deduction not available in respect of following payments such as :

§  admission fee, cost of share and initial deposit for becoming such shareholder or member

§  cost of any addition or alteration to, or renovation or repair of, the house property which is carried out after the issue of the completion certificate/ house property or any part thereof has either been occupied by the assessee or any other person on his behalf / let out

§  expenditure in respect of which deduction is allowable under the provisions of section 24; [note: under section 24 deduction for repair and collection  charge and interest.

Note: no transfers of the house property before the expiry of 5 years from the end of the financial year in which possession of such property is obtained otherwise shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.

Lock in period  for sale /transfer such share  is  of 3 years from the date of their acquisition, otherwise  the aggregate amount of the deductions of income so allowed in respect of such equity shares or debentures in the previous year or years preceding the previous year in which such sale or transfer has taken place shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.

section 80-IA (4) enterprise for infrastructure project.

Lock in period of deposit is 5 years: If any amount, including interest accrued thereon, is withdrawn by the assessee from his account referred to in clause (xxiii) or clause (xxiv) of sub-section (2), before the expiry of the period of 5 years from the date of its deposit [except amount received by the nominee or legal heir of the assessee, on the death of such assessee, other than interest, if any, accrued thereon, which was not included in the total income of the assessee for the previous year or years preceding such previous year] the amount so withdrawn shall be deemed to be the income of the assessee of the previous year in which the amount is withdrawn and shall be liable to tax in the assessment year relevant to such previous year:

Note: Lock in period of deposit is 5 years same as above.

(a)   for a fixed period of not less than 3 years; and

(b)   Which is in accordance with the scheme as may be notified by the Central Government in the Official Gazette for the purposes of this clause.

No deduction from AY 1992-93

No deduction from AY 1992-93,because covered in section 80C itself

Note: The aggregate amount of deductions under section 80C, section 80CCC and of section 80CCD (1)] shall not, in any case, exceed ₹ 1.50 lakh.

If deduction in this section for amount paid or deposited by the assessee, no deduction u/s 80C

Meaning of salary : salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites

Note: The aggregate amount of deductions under section 80C, section 80CCC and of section 80CCD (1)] shall not, in any case, exceed ₹ 1.50 lakh.

Others- 20% of his gross total income in the previous year.

Maximum: ₹ 25000/-

10% of salary –contribution is made by any other employer,

Note: family” means the spouse and dependent children of the assessee.

1.Insurance premium for self and family member- ₹ 25000/- and additional ₹ 25000/- for  parents( for senior citizen limit is ₹ 50,000/- )

2. For medical expenditure of self and family member ₹ 50000/- and additional ₹ 50000/- for parents.

3. preventive health check – in aggregate limit of ₹ 5000/- for self , family and parents

80DDB

Note: assessee must have disability certificate from medical authority in the form and manner, as may be prescribed.

Section 80DDB: Deduction in respect of medical treatment, etc. of such disease or ailment as may be specified in the rules 11 DD made in this behalf by the Board. Prescription for medical treatment from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist.

For severe disability ₹ 1.25 lakh.

Note: above limit is irrespective of actual expenditure.

Note: if assessee himself is disable, deduction under section 80U.

Deduction under section 80DDB:

Deduction upto ₹ 40000/- based on actual expenditure. For expenditure on senior citizen deduction upto ₹ 1 lakh.

(1) for individual- expense on treatment of himself or dependent

(2) for HUF- any dependent member.

Note: higher education” means any course of study pursued after passing the Senior Secondary Examination or its equivalent

Note: “relative”, in relation to an individual, means the spouse and children of that individual or the student for whom the individual is the legal guardian

Deduction for interest paid without any limit.

Deduction allowed upto  8 AY i.e in initial AY and 7 AY  immediately succeeding the initial AY or until the interest is paid by the assessee in full, whichever is earlier.

Note: deduction u/s 80EE is in addition to deduction of interest u/s 24(b) so an individual can claim deduction of ₹ 2 lakh in section 24(b) and ₹ 50000/- under section 80 EE.

Conditions:

i.     loan has been sanctioned during FY 2016-17 by the financial institution

ii.     amount of loan sanctioned upto ₹ 35 lakh

iii.     value of residential house property does not exceed  ₹ 50 lakh

iv.     Assessee does not own any residential house property on the date of sanction of loan.

Note: Deduction from AY 2020-21 onwards but loan must be sanctioned upto 31-03-2021.

Note: this deduction is also in addition to deduction of interest u/s 24(b)

Conditions:

i.     loan has been sanctioned by the financial institution  during FY 2019-20 & 2020-21

ii.     stamp duty value of residential house property does not exceed

iii.     Assessee does not own any residential house property on the date of sanction of loan.

Applicable from AY 2020-21 onwards.

Conditions:

Loan has been sanctioned during 1st day of April, 2019 and ending on the 31st day of March, 2023.

Note: No deduction shall be allowed under this section in respect of donation of any sum exceeding ₹ 2000/- unless such sum is paid by any mode other than cash.

Illustration: if ₹ 10000/- paid in cash deduction shall be limited to ₹ 2000/-

(A)   Deduction -100% without limit

(B)   Deduction -50% without limit

(C)   Deduction -100% with limit of 10% of adjusted gross total income. i. e adjusted gross total income means all the deductions  from gross total income except deduction u/s 80G.

 Deduction not allowed in following cases:

(I)                 Individual is claiming HRA exemption u/ s 10(13A)

(II)               where any residential accommodation is—

lower of the followings: (1) ₹ 5000/- per month or part of month (2) 25% of total income for the year(3) rent paid -10 % of total income for the year.

Meaning of total income: total income before allowing deduction for any expenditure under this section

Note: assessee having income under head business can claim deduction under business head u/s 35

Note: no deduction shall be allowed under this section in respect of any sum contributed by way of cash.

Note: no deduction shall be allowed under this section in respect of any sum contributed by way of cash.

 Note: eligible business” means a business carried out by an eligible start-up engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment generation or wealth creation;

eligible start-up” means a company or LLP engaged in eligible business which fulfils the following conditions, namely:—

(a)    it is incorporated on or after the 1st day of April, 2016 but before the 1st day of April, 2022;

(b)    the total turnover of its business does not exceed ₹ 100 crore in the previous year relevant to the AY for which deduction under sub-section (1) is claimed]; and

(c)    it holds a certificate of eligible business from the Inter-Ministerial Board of Certification as notified in the Official Gazette by the Central Government;

Conditions:

1.    not formed by splitting up, or the reconstruction, of a business already in existence

2.    Not formed by the transfer to a new business of machinery or plant previously used for any purpose in India, however upto 20% of old plant and machinery permissible.

Note:

1.”carpet area” shall have the same meaning as assigned to it in section 2(k) of  the RERA 2016.

2. competent authority” means the authority empowered to approve the building plan by or under any law.

3. floor area ratio” means the quotient obtained by dividing the total covered area of plinth area on all the floors by the area of the plot of land.

4. rental housing project” means a project which is notified by the Central Government in the Official Gazette under this clause on or before the 31st day of March, 2022 and fulfils such conditions as may be specified in the said notification;

5. housing project” means a project consisting predominantly of residential units with such other facilities and amenities as the competent authority may approve

Major Conditions:

1.     project is approved by the competent authority on or before the 31st day of March, 2021;

2.     project is completed within a period of 5 years from the date of approval,

3.     carpet area of the shops and other commercial establishments included in the housing project does not exceed 3% of the aggregate carpet area;

4.     project is on a plot of land measuring not less than 1000sq mtr and floor area ratio not less than 90% for Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata and Mumbai/ for other area 2000sq mtr and minimum floor area ratio 80%.

5.     stamp duty value of a residential unit in the housing project does not exceed ₹ 45 lakh,

6.     residential unit in the housing project is allotted to an individual

7.     Separate books of account in respect of the housing project.

Note: Additional employee cost” means the total emoluments paid or payable to additional employees employed during the previous year.

Additional employee” means an employee who has been employed during the previous year and whose employment has the effect of increasing the total number of employees employed by the employer as on the last day of the preceding year. but does not include—

a)    an employee whose total emoluments are more than ₹25000/- per month; or

(b)    an employee for whom the entire contribution is paid by the Government under the Employees’ Pension Scheme notified in accordance with the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 or

(c)    an employee employed for a period of less than 240 days/150 days for apparel, footwear, leather products during the previous year; or

(d)    an employee who does not participate in the recognized provident fund.

Conditions: no deduction, if

a)    if the business is formed by splitting up, or the reconstruction, of an existing business except 33B situation.

b)    business is acquired by the assessee by way of transfer from any other person or as a result of any business reorganisation

c)      report of CA in Form No. 10DA

emoluments” means any sum paid or payable to an employee in lieu of his employment by whatever name called, but does not include

a)   any  employer contribution paid or payable by the employer to any pension fund or provident fund or any other fund for the benefit of the employee under any law for the time being in force; and

b)   any lump sum payment paid or payable to an employee at the time of termination of his service or superannuation or voluntary retirement, such as gratuity, severance pay, leave encashment, voluntary retrenchment benefits, commutation of pension and the like.

Conditions: no deduction unless assessee furnishes along with the return of income

i.                  Report of CA certifying the deduction in Form No. 10CCF.

ii.                  copy of the permission obtained  under section 23(1)(a) or copy of permission or registration obtained under the International Financial Services Centre Authority Act, 2019

Unit of an International Financial Services Centre: 100% of income for any 10 consecutive AY, at the option of the assessee, out of 15 years,

“Due date” means the date one month prior to the date for furnishing the return of income under section 139(1).

 Note: The provisions of this section shall not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank.

co-operative bank” and “primary agricultural credit society” shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949

Primary co-operative agricultural and rural development bank” means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.

(b)               Deduction of whole of the amount of profits and gains of such business of primary co-operative society, being a engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members to—

(i)    a federal co-operative society, being a society engaged in the business of supplying milk, oilseeds, fruits, or vegetables, as the case may be; or

(ii)    the Government or a local authority; or

(iii)    a Government company

(c ) other co-operative society – amount of profits and gains subject to following limit:

(i)                 For consumers’ co-operative society- ₹ 1 lakh

(ii)               Others – ₹ 50,000/-

(d) interest or dividends derived by the co-operative society from its investments with any other co-operative society –  deduction of whole such amount

(e) letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities- deduction of whole such amount ,

(f)  other if GTI upto ₹ 20,000/- deduction of amount of any income by way of interest on securities or any income from house property chargeable under section 22.

Note:

Producer Company” shall have the meaning assigned to section 581A (l) of the Companies Act, 1956.

eligible business” means—

(a)    the marketing of agricultural produce grown by the members; or

(b)    the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to the members; or

(c) the processing of the agricultural produce of the members;

Note:

Books” shall not include newspapers, journals, magazines, diaries, brochures, tracts, pamphlets and other publications of a similar nature by whatever name called.

Deduction in one of the 4 AY commencing from AY 1992-93. In other words no deduction after AY 1995-96.

GTI include income derived by him in the exercise of his profession, on account of any lump sum consideration for the assignment or grant of any of his interests in the copyright of any book being a work of literary, artistic or scientific nature, or of royalty or copyright fees (whether receivable in lump sum or otherwise) in respect of such book.

Note: books” shall not include brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, text-books for schools, tracts and other publications of similar nature, by whatever name called;

author” includes a joint author

Note: if consideration is not lump sum then any amount of income, before allowing expenses attributable to such income, as is in excess of 15%  of the value of such books sold during the previous year shall be ignored.

Note: income earned from any source outside India, to claim deduction it must be brought to India in convertible foreign exchange within 6 months from the end of the previous year.

Conditions:

§  No deduction unless Certificate in the prescribed form 10CCD.

§  No deduction shall be allowed in respect of any income earned from any source outside India, unless the assessee furnishes a certificate, in the prescribed Form No. 10H.

Patentee has Income by way of royalty in respect of a patent registered on or after the 1st day of April, 2003 under the Patents Act, 1970.

To claim deduction Income earned from any source outside India, to claim deduction it must be brought to India in convertible foreign exchange within 6 months from the end of the previous year.

Conditions:

§  No deduction unless Certificate in the prescribed form No. 10CCE.

No deduction shall be allowed in respect of any income earned from any source outside India, unless the assessee furnishes a certificate, in the prescribed Form No. 10H.

Time deposits” means the deposits repayable on expiry of fixed periods.]

No deduction for interest on time deposit.

Those claiming deduction u/s 80TTB are not allowed to claim deduction under this section. In other words either deduction u/s 80 TTA or 80 TTB not in both.

Note: senior citizen” means an individual resident in India who is of the age of 60 years or more at any time during the relevant previous year.]

 In this section deduction for interest on term deposit as well which is not available in section 80TTA. 

Note: person with disability” means a person referred to in section 2(t) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

person with severe disability” means

1. 80%  or more of one or more disabilities, as referred to in section 56(4) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995

2. person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999

medical authority” means the medical authority as referred to in section 2(p) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995

Limit:

1. person with disability – ₹ 75000/-

2. person with severe disability– ₹ 1.25 lakh

Eligibility: certificate issued by the medical authority in the form No. 10-IA and this certificate must be valid  during PY.