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Deductions

Deduction under this Section is allowed to all assesses, whether company or non company, having income under any head.

ESSENTIAL CONDITIONS
1. The donation should be of a sum of money. Donations in kind do not qualify for deduction.
2. The proof of payment is furnished along with the return.

(A) Donations made to following are eligible for 100% deduction without any qualifying limit:
(i) National Defence Fund set up by the Central Govt.
(ii) Prime Minister's National Relief Fund.
(iii) Prime Minister's Armenia Earthquake Relief Fund.
(iv) Africa (Public Contributions - India) fund.
(v) National Foundation for Communal Harmony.
(vi) An approved University / Educational Institution of National Eminence.
(vii) Maharashtra Chief Minister's Earthquake Relief Fund.
(viii) Fund set up by Gujarat govt, for providing relief to the victims of Gujarat earthquake.
(ix) Zila Saksharta Samiti constituted in any district.
(x) The National Blood Transfusion Council or any State Blood Transfusion Council.
(xi) Any fund set up by a State Government to provide medical relief to the poor.
(xii) The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund,
(xiii) National Illness Assistance Fund.
(xiv) The Chief Minster's Relief Fund or the Lieutenant governor's Relief Fund in respect of any state or Union Territory, as the case may be.
(xv) National sports fund set up by the Central Government.
(xvi) National Cultural Fund set up by the Central Government.
(xvii) Fund for Technology Development and application.
(xviii) National Trust for welfare of persons with mental retardation and multiple disabilities.

(B) Donations made to the following are eligible for 50% deduction without any qualifying limit
     (i) Jawaharlal Nehru Memorial Fund
     (ii) National Children's Fund
     (iii) Prime Minister's Drought Relief Fund
     (iv) Indira Gandhi Memorial Trust
     (v) Rajiv Gandhi Foundation

(C) Donations to the following are eligible for 100% deduction subject to qualifying limit;
(i) Donation to Govt, or any approved local authority, institution or association to be utilized for promoting family planning.
(ii) Donation made by a company to Indian Olympic Association or to any other notified institution, for development of infrastructure for sports in India.

(D) Donations to the following are eligible for 50% deduction subject to qualifying limit;
(i) Donation to, Govt, or any approved local authority, institution or association to be utilised for any charitable purpose other
than promoting family planning.
(ii) Any approved charitable institution which satisfies the conditions of section 80G. The institution Should not be for the benefit of any particular community.
(iii) To any authority for satisfying the need for housing accommodation or any corporation for promoting interests of minority community.
(iv) Any notified temple, mosque, gurdwara, church or other place notified by the Government to be of historic, archaeological or artistic importance, for renovation or repair of such place.
For calculating qualifying limit, all donations made to fund / institutions covered under (C) and (D) above shall be aggregated and the aggregate amount shall be limited to 10% of Adjusted Gross Total Income. (Such amount shall be maximum donation which shall be considered for both C and D)

ADJUSTED GROSS TOTAL INCOME MEANS
Gross Total Income less Long Term Capital Gains less Short Term Capital Gains u/s 111A less Deductions under other sections of chapter VI-A (but without deducting deduction under A, B)
Note:
Although deductions of this chapter are not allowed from lottery, therefore logically it should also be excluded while calculating Adjusted GTI. But as law does not provide for exclusion while calculating maximum limit it shall not be deducting only for this purpose.

1. Allowed to individual
(i) Who is self employed i.e. engaged in his own business or profession or 
(ii) If he is an employee, he is neither getting HRA nor rent-free accommodation. But if rent is paid by employee to employer then this deduction is allowed.

2. Assessee, spouse, minor child or HUF does not own any residential accommodation in the city where he works.
3. The assessee paid the rent in specified cities.
4. Amount of deduction: Least of the following is allowed as deduction
    (i) Rent paid - 10% of Adjusted Gross Total Income
    (ii) 25% of the Adjusted Gross Total Income
    (i) Rs. 2,000 per month.
Adjusted Gross Total income means GTI less LTCG less Short Term Capital Gains u/s 111 A less other deductions under chapter VI-A.

DEDUCTION IN CASE OF CERTAIN DONATION Section 80GGA
1. Deduction is allowed to All the assessee except the assessees whose gross total income includes income which is chargeable under the head “Profits and gains of business or profession


2. Deduction is allowed in case of donation or contributions to any of the below mentioned institutions. Deduction allowed is equal to the amount of donations.
(i) Any sum paid by the assessee to a research association which has as its object the undertaking of scientific research or to a University, college or other institution to be used for scientific research and the institution is approved under Section 35.
(ii) Any sum paid by the assessee in the previous year to a research association which has as its object the undertaking of research in social science or statistical research or to a University, college or other institution to be used for research in social science or statistical research and is approved under Section 35.
(iii) Any sum paid by the assessee in the previous year to a public sector company or a local authority or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme, approved under section 35AC.
(iv) To an association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme or rural development approved for the purposes of section 35CCA.
(v) To an association or institution which has as its object the training of persons for implementing programmes or rural development approved under section 35CCA.
(vi) Any sum paid by the assessee in the previous year to a rural development fund set up and notified by the Central Government under Section 35CCA. (vii) Any sum paid by the assessee in the previous year to the National Urban Poverty Eradication Fund set up and notified by the Central Government under Section 35CCA.


1. WHO ELIGIBLE

An Indian company or statutory body carrying on the business of developing, operating or maintaining any infrastructure facility such as road, bridge, rail system, port, airport or water supply system or inland port etc.

2. AUDIT OF ACCOUNTS
Accounts must be audited by a chartered accountant and the report should be furnished alongwith the return.

3. POWER OF CENTRAL GOVERNMENT
Central government may specify the class of undertakings to which this deduction shall not apply.

4. AMOUNT OF DEDUCTION
100% of profits from such business for any 10 years out of 15 years starting from the year in which the undertaking starts its operations. 

5. TRANSFER OF BUSINESS
If the business is transferred to another developer then deduction shall be allowed to transferee only for the remaining period of 10 years.


1. WHO ELIGIBLE

An assessee engaged in the business of developing a special economic zone notified under Special Economic Zone A

2. AMOUNT OF DEDUCTION
100% of profits from such business for any 10 years out of 15 years starting from the year in which SEZ is notified by central government. 

3. TRANSFER OF BUSINESS
lf the business is transferred to another developer then deduction shall be allowed to transferee only for the remaining period of 10 years.

4. AUDIT OF ACCOUNTS
Accounts must be audited by a CA and the report should be furnished along with the return.

5. POWER OF CENTRAL GOVERNMENT
Central government may specify the class of undertakings to which this deduction shall not apply.

FILL IN THE BLANK QUESTIONS WITH ANSWER

Q.1. In computing total income of an assessee, deductions U/S 80 CCC to 80 U are allowed from.

Q.2. From which of the following income, deductions are not allowed-
(a) I/F salary
(b) Long Term Capital Gains
(c) I/F/O/Sources
(d) PGBP

Q.3. The..............amount of deductions shall not exceed the GTI.

Q.4. Deductions U/S 80 C is eligible to..............and............only.

Q.5. The deduction U/S 80 C is available to the maximum of Rs.
(a) 2,00,000
(b) 50,000
(c) 1,00,000
(d) 10,000

Q.6. Deduction U/S 80 C includes the contribution by an employee to a Recognised Provident Fund. (True / False)

Q.7. Deduction U/S 80 CCC is available to HUF only. (True / False)

Q.8. Where deduction is claimed U/S 80 CCC, no rebate U/S 88 is allowed. (True / False)

Q.9. Deduction U/S 80 CCD relates to the
(a) Medical Insurance Premia
(b) Contribution to Pension Fund.
(c) Contribution to LIC
(d) Contribution to pension scheme of Central govt.

Q.10. Deductions cannot be allowed unless Return in furnished. (True / False)

Q.11. 'Salary' includes all allowances and perquisites for the purpose of Sec. 80 CCD. (True / False)

Q.12. What is the maximum exemption limit in deduction in respect of Medical Insurance premia U/S 80 D?

Q.13. Medical Insurance premium is paid by cheque. State whether it is allowed as deduction U/S 80 D?

Q.14. In case of dependent person with severe disability the maximum deduction limit is Rs.............U/S80DD.

Q.15. U/S 80 DDB, the amount should be actually paid for the medical treatment of disease.

Q.16. State any 2 specified disease U/S 80 DDB

Q.17. Deduction U/S 80 G is available to all assesses. (True / False)

Q.18. Donations can be in kind. (True / False)

Q.19. Classify the donations as 50% or 100% -
(a) PM's National relief Fund
(b) National Children Fund
(c) National Illness Assistance Fund
(d) Rajiv Gandhi Foundation.

Q.20. Deduction in respect of Sec. 80GG is available to...................only.

Q.21. Deduction in respect of Rent paid is available to Individual with effect from A.Y.

Q.22. What is the amount of deduction U/S 80 GG?

Q.23. Deduction by companies to political parties U/S 80 GGB is allowed to all the companies. (True /False)

Q.24. …………………. of sum contributed to any political party registered U/S 29A of RP A, 1951 is allowed as deduction.
(a) 100%
(b) 10%
(c) 25%
(d) 50%

Q.25. Donation to political party U/S 80GGC is allowed to every person. (True / False)

Q.26. What is the amount of deduction U/S 80U in respect of totally blind or physically handicapped person?

Q.27. Assessee receives HRA from his employer. Can he claim deduction U/S 80GG.

Q.28. The aggregate amount of deductions U/S 80 C, 80 CCC and 80 CCD shall not exceed 1,00,000 Rs. (True/False)

Q.29. Deduction U/S 80 E is available to
(a) Individual and HUF
(b) Companies only
(c) Individual only
(d) HUF only

Q.30. Donation to Tajmahal authorities for the purpose of White Wash inside the TajMahal is allowed at deduction U/S 80G. (True / False)

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