All About All Important Sections of the Income Tax Act
All imp sections of the Income Tax Act are a must-know for all those taxpayers concerned about it. However, there are seven sections in particular that each taxpayer must know, specifically while deciding to make investments in your corpus in any of the funding instruments.
1. Section 80C- Deductions on Investments
Under section 80C, a deduction of Rs 1,50,000 may be claimed out of your overall earnings. In easy terms, you can reduce the cost as much as Rs 1,50,000 out of your overall taxable earnings through section 80C. This deduction is authorised to an Individual or a HUF (Hindu Undivided Family). Almost Rs 1,50,000 may be claimed for the financial year 2018-19, 2017-18, and 2016-17 each. If you’ve paid extra taxes, however, and have invested in LIC, PPF, Mediclaim, so cost incurred toward these will have a lesser price, etc. The feature claiming a deduction by applying the equation under section 80C, you could record your Income Tax Return, declare those deductions, and get a reimbursement of extra taxes paid
2. Section 80CCC- Deduction for Premium Paid for Annuity Plan of LIC or Other Insurer
This section offers a deduction for any quantity paid or deposited in any annuity plan of LIC or every other plan taken up by the insurer. This program ought to receive a pension from a fund mentioned in Section 10 (23AAB). Any sum acquired from the annuity or amount earned upon giving up any asset, such as the bonus gathered at the grant, is taxable within the year of receipt.
3. Section 80CCD- Deduction for Contribution to Pension Account
A. Employee’s contribution –
Section 80 CCD (1): This is to authorise a person or entity who makes deposits to their pension account. The maximum deduction allowed is 10% of income (if the taxpayer is an employee) or 20% of overall gross earnings (if the taxpayer is self-employed) or Rs 1,50,000, whichever is less. In the financial year 2016-17 and in the advance years, the deductions will be– In the case of a self-hired character, the tax deduction allowed is 10% of overall gross earnings.
B. Deduction for self-contribution to NPS –
Section 80 CCD (1B): A new section 80 CCD (1B) has been brought for an extra deduction of as much as Rs 50,000 for the sum quantity deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana also are eligible.
C. Employer’s contribution to NPS –
Section 80 CCD (2): Additional deduction is authorised for employer’s contribution to employee’s pension account of, as much as 10% of the employee’s income. There isn’t a financial ceiling limit in this deduction.
4. Section 80G- Deduction for donations toward Social Causes
The numerous contributions laid out in u/s 80 G are eligible for deduction as much as 100% or 50% without or with restriction as supplied in section 80 G. From the Financial year 2017-18, any donations made in coins exceeding Rs 2,000 will no longer be allowed as a deduction. The gifts above Rs 2000 must be made in any mode except in form of coins to qualify as deduction u/s 80G.
A. Donations with 100% deduction with no qualifying restriction
- National Defence Fund installation with the aid of using the Central Government
- Prime Minister’s National Relief Fund
- National Foundation for Communal Harmony
- A permitted university/academic organisation of National eminence
- Zila Saksharta Samiti constituted in any district below the chairmanship of the Collector of that district
- Fund installation with the aid of using a State Government for the scientific alleviation to the poor
- National Illness Assistance Fund
- National Blood Transfusion Council or to any State Blood Transfusion Council
- National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
- National Sports Fund
- National Cultural Fund
- Fund for Technology Development and Application
- National Children’s Fund
- Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with appreciation to any State or Union Territory
- The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
- The Maharashtra Chief Minister’s Relief Fund if 3rd and October 6, 1993
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- Any fund installation with the aid of using the State Government of Gujarat solely for supplying alleviation to the sufferers of the earthquake in Gujarat
- Any trust, organisation, or fund to which Section 80G(5C) applies for providing relief to the sufferers of the earthquake in Gujarat (contribution made on January 26, 2001, and September 30, 2001) or
- Prime Minister’s Armenia Earthquake Relief Fund
- Africa (Public Contributions — India) Fund
- Swachh Bharat Kosh (relevant from economic yr 2014-15)
- Clean Ganga Fund (suitable from the financial year 2014-15)
- National Fund for Control of Drug Abuse (relevant from monetary yr 2015-16)
B. Donations with 50% deductions with no qualifying restriction
- Jawaharlal Nehru Memorial Fund
- Prime Minister’s Drought Relief Fund
- Indira Gandhi Memorial Trust
- The Rajiv Gandhi Foundation
C. Donations to the subsequent are eligible for 100 duction problem to 10% of adjusted gross overall earnings
- Government or any other permitted nearby authority, organisation, or under specific affiliation to be applied for the motive of selling own products of relative planning
- Donation in the name of a Company to the Indian Olympic Association or every other notified affiliation or organisation hooked up in India for the improvement of infrastructure for sports activities and video games in India or the sponsorship of sports activities and video games in India.
D. Donations to the subsequent are eligible for 50 duction problem to 10% of adjusted gross overall earnings
Any specific fund or any organisation which satisfies situations referred to in Section 80 G (5) are governed under this section. Government or any nearby authority to be applied for any charitable motive aside from selling own products of relative planning. Any authority constituted in India for engaging in the field of housing lodging or in the sense of planning, improvement, or development of cities, towns, villages or both. Any organisation referred in Section 10 (26 BB) for looking after the interest of the minority community. For upkeeping or preservation of any notified temple, mosque, gurudwara, church, or different places.
5. Section 80 RRB- Deduction with appreciation to any Income with the aid of using manner of Royalty of a Patent
Deduction for any earnings with the assistance of using the royalty method for a patent registered on or after 01.04.2003 below the Patents Act 1970 will be as much as Rs. 3 lakhs or the earnings acquired, whichever is less. The taxpayer ought to be a permanent resident of India who’s a patentee as well. The taxpayer ought to provide all the certificates as in the prescribed form duly signed by the patentee as instructed by the prescribed authority.
6. Section 80 TTA- Deduction from Gross Total Income for Interest on Savings Bank Account
A sum determination of almost Rs 10,000 may be claimed against interest earnings from a financial savings account. Interest from the financial savings account of any financial institution must be first sorted in foreign payments, and deduction may be claimed of the entire interest earned or Rs 10,000, whichever is less. This deduction is permitted to a character or a HUF (Hindu Undivided Family). It may be claimed for recreation on deposits in a financial savings account with a financial institution, or cooperative society, or public office. Section 80 TTA deduction isn’t always on interest earnings from regular deposits, regular deposits, or interest earnings from company bonds.
7. Section 80 TTB- Deduction of Interest on Deposits for Senior Citizens
A new section 80 TTB has been inserted through Budget 2018 wherein an appreciation of interest earnings from deposits of senior customers might be allowed a deduction from the total wages. The restriction for this deduction is Rs. 50,000. Further, no deduction below section 80 TTA will be allowed. In addition to Section 80 TTB, section 194 A of the Act may also be amended to boost restriction for deduction of tax at supply on interest earnings payable to senior residents from the prevailing regulation of the slab of Rs 10,000 to Rs. 50,000.
Frequently Asked Questions
✅ I even have availed a mortgage from my agency for pursuing better training. Can I declare the interest paid on such a mortgage as a deduction under Section 80E?
A deduction of hobby paid on training mortgage under Section 80 E may be made handiest if the mortgage has been available from a monetary growth pursue better training. Therefore, satisfying a mortgage out of your agency will now no longer entitle you to assert the hobby under Section 80 E.
✅ Is there any restrict or most restrict up to which I can declare a deduction under Section 80E?
Law has now no longer prescribed any top restrict for creating a deduction declaration under Section 80 E. Hence, the real hobby paid at some point of a yr may be claimed as a deduction.
✅ Can an organisation or a company take the gain of Section 80C?
The provisions of Section 80C is handiest to people of any class or a Hindu Undivided Family (HUF). Hence, an organisation or a company can’t take the gain of Section 80 C.
Table of Contents
- 1 All About All Important Sections of the Income Tax Act
- 2 2. Section 80CCC- Deduction for Premium Paid for Annuity Plan of LIC or Other Insurer
- 3 3. Section 80CCD- Deduction for Contribution to Pension Account
- 4 4. Section 80G- Deduction for donations toward Social Causes
- 5 Frequently Asked Questions
- 5.1 ✅ I even have availed a mortgage from my agency for pursuing better training. Can I declare the interest paid on such a mortgage as a deduction under Section 80E?
- 5.2 ✅ Is there any restrict or most restrict up to which I can declare a deduction under Section 80E?
- 5.3 ✅ Can an organisation or a company take the gain of Section 80C?