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Thursday, September 1, 2011

Deductions u/s 80 C to 80 U for Individuals for F/Y 2011-12


(Public Provident Fund (Amendment) Scheme, 2010) 

Now its the time to finalize your Income Tax Calculations for this financial year i.e. 2010-11. Every one is planning to save tax while making some savings. Here are the details of Income Tax Sections from 80 C to  80 U with the help of these section you will find yourself easy to make calculations. The season of tax has arrived. Therefore , there is need for easy chart of all tax deduction u/s 80c to 80U for an Individual taxpayer?Under Income tax , deduction u/s 80C, 80CCC, 80CCF, 80D, 80DD, 80DDB, 80G , 80GG, 80GGA, 80GGC , 80IAB , 80IB , 80IC , 80ID ,80IE , 80JJA , 80QQB ,80RRB , 80U  are relevant to Individuals depending on the condition fulfillment. (TAX PLANNING)

The following chart of deductions will give instant and fair idea about certain deductions to individual tax payers. (section 80IAB to 80IE are not discussed which are specific to business men ) .
Sl NoSectionDetails of deductionsQuantum
General deduction for investment in PPF,PF,Life Insurance, ULIP, Stamp duty on house, Fixed deposits for 5 years , bonds etc
Maximum Rs 1 ,00,000 is allowed.Investment need not be from taxable income.
280CCCDeduction in case of contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income.Maximum is Rs 1,00,000
380CCDDeduction in respect to contribution to new pension scheme. Employees of central and others are eligible.Maximum is sum of employer’s and employee’s contribution to the maximum : 10 % of salary.
It should be noted that as per section 80CCE , the maximum amount of deduction which can be claimed in  aggregate of 80C ,80CCC & 80CCD is Rs 1,00,0000
580DMedical insurance on self, spouse , children or  parentsRs 15,000 for self , spouse & childrenExtra Rs 15,000 for insurance on parents. IF parents are above 65 years, extra sum should be read as Rs 20,000
Thus maximum is RS 35,000 per annum
680DDFor maintenance including treatment or 7insurance the lives of physical disable dependent relatives (CLICK HERE FOR MORE DETAILS)Rs 50,000 . In case disability is severe , the amount is Rs 75,000.
780DDBFor medical treatment of self or relatives suffering from specified diseaseAcutal amount paid to the extent of Rs 40,000. In case of patient being Sr Citizen , amount is Rs 60,000
880EFor interest payment on loan taken for higher studies for self or education of spouse or children. (Eligibility - Who Can Claim This)Actual amount paid as interest and start from the financial year in which he /she starts paying interest and runs till the interest is paid in full.
980GDonations to charitable institution. (Make Donations and Cut down your Tax)100% or 50% of amount of donation made to 19 entities (National defense fund , Prime minister relief fund etc. )
1080GGFor rent paid.This is only for people not getting any House Rent Allowance. Maximum is Rs 2000 per month.  Rule 11B is method of computation.
1180GGAFor donation to entities in scientific research or rural development fOnly those tax payers who have no business income can claim this deduction .Maximum is equivalent to 100 % of donation.
1280GGCFor contribution to political parties100 % of donations
1380QQBAllowed only to resident authors for royalty income for books other than text bookRoyalty income or Rs 3,00,000 whichever is less.
1480RRBFor income receipt as royalty on patents of resident individualsActual royalty or Rs 3,00,000 whichever is less.
1580UDeduction in respect of permanent physical disability including blindness to taxpayerRS 50,000 which goes to Rs 75,000 in case taxpayer is suffering from severe disability.

And for this Financial Year a one can make Deduction 
u/s 80 CCF for Rs. 20000/- in addition to Rs. 100000 u/s 80C.  
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