Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account (not time deposits) with a bank, co-operative society or post office, is allowable w.e.f. 1st April 2012 (A.Y. 2013-14). This deduction is not valid for time deposits like FD and… Read More »
In order to encourage savings, the government gives tax breaks on certain financial products u/s 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs. l lakh and if you are in the highest tax bracket of 30%,… Read More »
S. 80DDB provides for income tax deduction under chapter VI-A for payment of medical treatment of a person suffering from a specified disease. The deduction u/s 80DDB is allowed only to individual & HUF. Moreover, this deduction is only allowed to those individuals HUF which are resident in India for that year. A deduction to… Read More »
This deduction is available to all the Assessees. The business should be collecting and processing of bio-degradable waste for generating power or producing bio-fertilizers or bio-pesticides or for producing bio-gas. 100% of the profit and gains from such business for a period of five consecutive A.Y. beginning with the A.Y. relevant to P.Y. in which such business commences.… Read More »
U/s 80GG, an individual can claim deduction for the rent paid even if he doesn’t get HRA. S. 80GG allows the individual a deduction in respect of house rent paid by him for his own residence. Conditions for claiming deduction u/s 80GG: The Taxpayer should be an individual The individual is not in receipt of… Read More »
Section 80E deals with deduction in respect of interest on loan taken for pursuing higher education of the assessee and also the relative of the assessee. Conditions for claiming deduction: Education loan should have been taken from a bank or other financial institution or govt recognized charitable organization for higher education. Higher education means full-time… Read More »
Deduction is available up to Rs. 20,000/- for senior citizens and upto Rs. 15,000/ in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/- if parents are senior Citizen and Rs. 15,000/- in other… Read More »
Raising the limit of deduction u/s 80DD for persons with disability and severe disability The section presently provides for a deduction of fifty thousand rupees if the dependent is suffering from disability and one lakh rupees if the dependent is suffering from severe disability (as defined under the said section). The limits u/s 80DD in respect… Read More »
Section 194 deals with the deduction of tax at source on payment of dividends by any domestic company to resident shareholders. In case of dividend payable to non-resident shareholders, tax is deducted at source u/s 195. Dividend means dividend on equity or preference shares, or it may also be deemed dividend u/s 2(22). Dividend may… Read More »
Myth that Deduction under Section 80G is 100% allowed/exempted under Income tax is False. Many Donor’s and Tax payers believe that deductions under section 80G are tax-free or fully allowed as deduction from Income tax but in reality only donations given to government or its specified fund like PM Relief, National Relief, Earthquake Relief, National Children Fund… Read More »