INCOME TAX, 1961

(As amended by Finance Act, 2015)

Structure of ActChapt

er Sections Description

I 1-3 DefinitionsII 4-9A Residential StatusIII 10-13B ExemptionsIV 14-59 Heads of IncomeV 60-65 Clubbing ProvisionsVI 66-80 Setoff Provisions

VI-A 80-80U Deductions

Person [Sec.2(31)]Individual

Hindu Undivided FamilyCompanyFirmAOP or BOI

Local AuthorityEvery Artificial Judicial Person

Residential StatusBasic Conditions1) Stay in India, in

relevant the Previous Year, not less than 182 days.

2) Stay should be,i. At least 60 days in

relevant previous year &

ii. At least 365 days in LAST 4 years preceding the Previous Year.

Additional Conditions1) Should be Resident

of India, for at least 2 Year, in LAST 10 Years preceding the Previous Year, &

2) Stay in India, at least 730 days in LAST 7 years, preceding the Previous Year,

Sr. No.

Residential Status

Basic Condition(One or More

Condition)

Additional

Conditions

(Both 2 Conditio

ns)

1 Non- Resident 2 Non Ordinary

Resident 3 Ordinary

Resident

COMPUTATIONFOR

INDIVIDUAL

Heads of income (S/14)

Salary

Income from House

Property

Profits and Gains of

Business and Profession

Capital Gain

Income from Other source

Particulars Amount

Amount

Income under different Heads of Income:

Salary XXXIncome from House Property XXXProfits and Gains of Business & Profession XXX

Capital Gains XXXIncome from Other Sources XXX

Gross Income XXXDeductions under Chapter VI-A (Section 80C to 80U) (XXX)

Total Taxable Income XXX

Total Tax Payable (calculated on the basis of Slab Rates) XX

DEDUCTIONS

80-80U

80C – Qualified Savings Contribution to Provident Fund (except URPF) Life Insurance Premium Contribution to Post Office, Cumulative Time Deposit Subscription to notified Central Govt. Securities Subscription to notified Deposit Scheme Subscription to units of any Mutual Fund approved by CBDT Investment in units of Equity Linked Scheme of LIC, UTI Payment to Group Insurance Scheme Deposit in National Saving Scheme 1992 Tuition Fees paid for children Subscription to Notified bonds of NABARD

MAXIMUM DEDUCTION ALLOWABLE IS Rs. 1,50,000.

80CCC – Pension Fund Any Amount paid or deposited in an

Annuity plan of LIC or other Insurer for receiving pension.

DEDUCTION ALLOWABLE least of the following:

1. Actual Amount paid/deposited2. 1,50,000

80CCD – New Pension Scheme Applicable for All type of Employees (i.e. Local

Authority, State Govt., Central Govt., Private Employee & Self-Employed)

For Self-Employed: Least of the following will qualify for deduction

1. Actual Contribution2. 10% of GTI

For Other Employees: Least of the following will qualify for deduction

1. Actual Contribution2. 10% of Salary Section 80CCD(1) has

been deleted by Finance Act, 2015, which earlier

specified the limit of 1,00,000 to this section

80CCE – Limits of Deduction

80C 80CCC

80CCD

Not more than 1,50,000

80CCD (1B) – New Pension Scheme

This section is introduced by Finance Act, 2015 to provide additional deduction for New Pension Scheme.

Deduction Available: 50,000 Over and Above the limits specified in 80CCE

Particulars Amount (Rs.)

Amount (Rs.)

Amount (Rs.)

Deduction u/s 80C XXXDeduction u/s 80CCC XXXDeduction u/s 80CCD XXX XXXDeduction u/s 80CCE (Subject to Max. of 1,50,000)

1,50,000

XXXDeduction u/s 80CCE (1B) 50,000

Total Deduction XXX

Particulars Amount (Rs.)

Amount (Rs.)

Amount (Rs.)

Deduction u/s 80C 90,000Deduction u/s 80CCC 20,000Deduction u/s 80CCD (1,40,000-50,000) 60,000 1,70,000

Deduction u/s 80CCE (Subject to Max. of 1,50,000)

1,50,000

1,50,000Deduction u/s 80CCE (1B) 50,000

Total Deduction 2,00,000

80D – Medical Insurance Premium(Part – 1)

1. Any premium paid, other than by way of cash, to keep in force an insurance on the health of-

a) In case of Individual - Self, Spouse and

Dependent Childrenb) In case of HUF - Family Member

2. Contribution to CGHS of such other scheme as notified by Govt.

3. Any payment, including cash payment, for PREVENTIVE HEALTH CHECKUP for himself, spouse, dependent children.Maximum Deduction Allowable Rs.

25,000 Rs. 30,000 if individual or spouse is

a senior citizen

80D – Medical Insurance Premium(Part – 2)

1. Any premium paid, other than by way of cash, to keep in force an insurance on the health of parents, whether or not dependent on individual.

2. Any payment, including cash payment, for PREVENTIVE HEALTH CHECKUP of parents.

Maximum Deduction Allowable Rs. 25,000

Rs. 30,000 in case either or both parents are senior citizen

Maximum Rs. 5,000 for Preventive Health Checkup (in aggregate, i.e. for

himself, spouse, children, parents) Subject to overall limit of 25,000 or

30,000

Deduction u/s 80D1.

a.

Medical Insurance for self/spouse/children

22,000

b.

Preventive Health Checkup for self/spouse/children Rs. 5000 (but restricted to 3000) (25000-22000, since Max Allowable Deduction is 25000)

3,000

25,000

2.

a.

Health Insurance for Parents

26,000

b.

Preventive Health Checkup for Parents Rs. 7000 (but restricted to 2000) (5000-3000, since Max Allowable Deduction for Preventive Health Checkup is 5000)

2,000

28,000

Total of (1.) & (2.) 53,000

80DD – Medical Treatment of Dependent Disabled

Any amount incurred for the medical treatment, training and rehabilitation of dependent disabled

and/or Any amount paid or deposited under the scheme

framed in this behalf by the LIC or any other insurer or administrator or specified company.

Flat Deduction Allowed is Rs. 75,000

In case of Severe Disability the Flat Deduction shall be Rs.

1,25,000

80DDB – Specified Diseases or ailments

In Case of individual

For Himself, &DEPENDENT Spouse, Child, Parents, Brothers & Sisters

In case of HUF For any Family MemberA. Actual Sum Paid XXXB. Less:

(XXX) XXX

Below 60 years 40,000

Senior Citizen 60,000

SUPER SENIOR CITIZEN

80,000

C. Amount reimbursed from Insurance Co. or Employer

(XXX)

Total Deduction u/s 80DDB XXX

80E – Interest on Education Loan

Deduction is available for interest payment in the Initial A.Y. and 7 A.Y. immediately succeeding the Initial A.Y.

or until the interest is paid in full

No limit for deduction

80G – Donation Prime Minister’s National Relief Fund Prime Minister’s Drought Relief Fund National Children’s Fund Rajiv Gandhi Foundation Govt. or any approved Local Authority, Institution for promotion of

Family Planning Programme Donation to certain Funds, Charitable Funds, Charitable Institution.

Deduction Available: 50% or 100% of Donated Amount

NO Deduction shall be allowed for donation in excess of 10,000, if paid in cash

80E – Rent PaidConditions: Assessee is not receiving HRA Assessee, spouse or minor children do not own

house in the place of business/profession if Assessee has house at any other place than

business/profession, he should not claim benefit of self-occupancy.

In case of Employee, Rent Free Accommodation is not provided by his employer

He is paying Rent for house

80E – Rent PaidLeast of the following is allowable as deductionA. Rent Paid (-) 10% of Adjusted GTIB. 25% of Adjusted GTIC. 2,000 p.m.

Adjusted GTI = GTI (–) Long Term Capital Gain(–) Deduction u/c VI-A[except u/s 80GG]

80U – Person with Disability This section applicable to a resident

individual who at any time during the previous year certified by the medical authority to be a person with disability.

Deduction Available

Normal Disability Severe Disability(less than 80%

Disability)(more than 80%

Disability)Flat Deduction of

75,000Flat Deduction of

1,25,000