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Tax Deduction & Tax Relief

Tax Deduction & Tax Relief

Tax deduction & Tax Relief are various tax incentive measures contained in Income Tax Act 1961. If the assessee fulfill certain conditions as stipulated to met for such tax deduction or tax relief then overall tax burden of such assessee gets reduced.

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Tax Deduction & Tax Relief Income Tax Act allows various types of deductions to various persons as per the limits and other criteria. List of deductions provided by Income Tax Act are:
Sections Income Tax Deduction for FY 2019-20 (AY 2020-21) Applicability Limit for FY 2019-20 (AY 2020-21)
Section 80C Investing into very common and popular investment options like LIC, PPF, Sukanya Samriddhi Account, Mutual Funds, FD etc Individual /HUF Combined investment made in section 80C, 80CCC and 80CCD (1) can be availed Upto INR 1,50,000 only
Section 80CCC Investment in Pension Funds Individuals
Section 80CCD (1) Atal Pension Yojana and National Pension Scheme Contribution Individuals
Section 80CCD(1B) Atal Pension Yojana and National Pension SchemeContribution Individuals Upto Rs 50,000
Section 80CCD(2) National Pension SchemeContribution by Employer Individuals Amount Contributed or 14% of Basic Salary + Dearness Allowance (in case the employer is CG) or 10% in case of any other employer, whichever is lower
Section 80D Medical Insurance Premium and Medical Expenditure Individual /HUF Upto INR 1,00,000
Section 80DD Medical Treatment of a Dependent with Disability Individual /HUF Normal Disability: INR 75000/- or Special Disability: INR 125000/-
Section 80DDB Specified Diseases Individual /HUF Senior Citizens: Upto INR 1,00,000 and other upto INR 40,000
Section 80E Interest paid on Loan taken for Higher Education Individual 100% of the interest paid upto 8 assessment years
Section 80EE Interest paid on Housing Loan Individual Upto INR 50,000 subject to some conditions
Section 80EEA IInterest paid on Housing Loan Individual Upto INR 1,50,000/- subject to some conditions
Section 80EEB Interest paid on Electric Vehicle Loan Individual Upto INR 1,50,000 subject to some conditions
Section 80G Donation to Charitable Institutions All Assessee (Individual, HUF, Company etc) 100% or 50% of the Donated amount or Qualifying limit paid through bank, cash donation upto INR 2,000 only
Section 80GG Income Tax Deduction for House Rent Paid Individual Rent paid in excess of 10% of Total Income or 25% of total income whichever is lower
Section 80GGA Donation to Scientific Research & Rural Development All assessees except those who have an income (or loss) from a business and/or a profession 100% of the amount donated through bank account, cash donation upto INR 10,000 only
Section 80GGB Contribution to Political Parties Companies 100% of the amount contributed made through bank account
Section 80GGC Individuals on contribution to Political Parties Individual /HUF/AOP/BOI/Firm 100% of the amount contributed if made through bank account.
Section 80IA Profits and Gains from Industrial Undertakings engaged in infrastructure development, etc. Industrial Undertakings engaged in specified businesses 100% of the profit for 10 consecutive years out of 15 years beginning from year of commencement
Section 80IAB Profits and Gains to SEZ Developers SEZ Developers 100% of the profit for 10 consecutive years out of 15 years beginning from year in which SEZ has been notified by CG
Section 80IAC Eligible startups Company or LLP engaged in eligible business subject to some conditions 100% of the profit for 3 consecutive years out of 7 years beginning from the year of commencement
Section 80IB Profits and Gains from certain Industrial Undertakings other than infrastructure development undertakings Specified Industrial Undertakings 25%, 30% or 100% of the profit for such periods as may be specified subject to certain conditions
Section 80IBA Profits from Housing Projects All persons 100% of the profit
Section 80IC Certain Undertakings in Special category States Certain Industrial Undertakings Sikkim and NE States- 100% of profit for 10 years, HP and Uttranchal-100% of profit for first 5 years and 25% for next five years (for companies 30% instead of 25%).
Section 80ID Profits and Gains of Hotels/Convention Centres in specified area Hotel or Convention Centre 100% of the profit for 5 consecutive years beginning from the year of operation
Section 80IE Certain Undertakings in North Eastern States Undertakings engaged in manufacture/ provision of specified goods/ services or undertake substantial expansion, in North Eastern States 100% of the profit for 10 consecutive years beginning from the year of commencement or completion of expansion, as may be applicable
Section 80JJA Profits and Gains of Specified Business Specified Business 100% of the profit for 5 consecutive years beginning from the year of commencement
Section 80JJAA Employment of New Employees Employer who was subject to tax audit u/s 44AB 30% of additional employee cost for 3 years including the year in which employment is provided
Section 80LA Certain Income of Offshore Banking Units in SEZ and IFSC Offshore Banking Units in SEZ or Unit of IFSC 100% of the income for 5 years
Section 80PA Certain income of Producer Companies Producer Companies engaged in eligible business 100% of the profit
Section 80RRB Royalty on Patents Individuals (Indian citizen or foreign citizen being resident in India) Income from royalty subject to maximum of INR 3,00,000
Section 80QQB Royalty Income of Authors Individuals (Indian citizen or foreign citizen being resident in India) Income from royalty subject to maximum of INR 3,00,000
Section 80TTA Interest earned on Savings Accounts Individual / HUF Upto INR 10,000/-
Section 80TTB Interest Income earned on deposits(Savings/ FDs) Individual (60 yrs or above) Upto INR 50,000/-
Section 80U Disabled Individuals Individuals Normal Disability: INR 75,000 and severe disability INR 1,25,000
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your tax deduction and its and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfil in order to avail proper tax deduction and tax relief. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need.