In this video we have covered 8 Deductions of Chapter VIA of Income Tax Act, 1961.
Section 80D : An individual can claim a deduction of up to Rs 25,000 for the insurance of self, spouse, and dependent children. An additional deduction for the insurance of parents is available to the extent of Rs 25,000, if they are less than 60 years of age, or Rs 50,000 (as per the Budget 2018) if your parents are aged above 60.
If both the taxpayer and the parent whom the medical covers have been taken for are aged more than 60 years, the maximum deduction that can be availed under this section is to the extent of Rs. 100,000.
Section 80G : Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. All donations, however, are not eligible for deductions under section 80G. Only donations made to prescribed funds qualify as a deduction.
Section 80GGB & Section 80GGC : These sections are responsible for guiding corporate assessees and non corporate assessees on contributing to political parties. It provides exemptions to the donations made by a company, to a party or parties. Basically, donations to any political parties or Electoral Trust by any company lies under this section. All Indian companies can contribute to any political Party(s)/Electoral Trust. The cashless amount donated to any political party registered u./s 29A, is eligible for 100% deductions.
Section 80RRB : Deductions under Section 80 RRB can be claimed only upon satisfaction of a few basic criteria by the inventor:
1. The individual claiming a deduction should be an Indian resident.
2. Only patentees can claim this tax deduction. Individuals who do not hold the original patent are not eligible for tax benefits.
3. The patent under Section RRB in question should be registered under the Patent Act of 1970, either on or after April 1, 2003.
The royalty received by an individual on his/her patent is eligible for tax deductions under Section 80 RRB of the Income Tax Act. In some cases, the total income earned by an individual on a Patent can be divided into royalty and additional income classified not under royalty.
In all cases, the income received as royalty alone is eligible for tax deduction. The patent holder of a particular inventions can claim tax deductions up to Rupees three lakhs on such income. In case of the income being lower than Rs.3 lakhs, they can claim deductions on the actual income they received as royalty.
Section 80TTA & Section 80TTB : Section 80TTB is a provision whereby a taxpayer who is a resident senior citizen, aged 60 years and above at any time during a Financial Year (FY), can claim a specified amount as a deduction from his gross total income for that FY. This section is applicable w.e.f 1 April 2018. A deduction of lower than Rs 50,000 or an amount from a specified income is allowed from the gross total income.
Section 80TTA provides a deduction of Rs 10,000 on interest income earned on savings account. This is not available on Interest on Fixed deposits. This deduction is available to an Individual and HUF. If your interest income is less than Rs 10,000, the entire interest income will be your deduction. If your interest income is more than Rs 10,000, your deduction shall be limited to Rs 10,000.
Section 80U : Tax benefit is available to any resident individual who is certified as “a person with disability” by the “medical authority”.
For deduction under section 80U, individuals or persons with disability are categorized into two types:
1. Person with disability: A person with disability means the person is suffering from at least 40% of a disability. If an individual has at least 40% of a disability then he is eligible for a deduction of Rs. 75,000.
2. Person with severe disability: A person with disability means the person who is suffering from at least 80% of a disability. If an individual has severe disability (i.e., 80% or more of a disability) then he is eligible for a deduction of Rs. 1,25,000.
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Link to our other video where 5 important tax saving deductions are covered : • Save Income Tax | 5 Ta...
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20 сен 2024
