Deductions under Chapter VI-A of Income Tax Act - ( Sec.

80C to 80U )
Sec. 80 C Deduction in respect of investment in to certain tax eligible investments:
This deduction is available to individual & HUF. The deduction is permissible if the assessee
invests in to certain specified securities or investment avenues during the previous year & such
investmentdeposit should be made from the income chargeable to income tax.
The amount of deduction under this section is !s."#$$#$$$% or the amount actually invested
during the previous year &hichever is less ' The limit prescribed here includes amounts
invested us ($ )# ($ ))) & ($ ))D*.
The list of the tax eligible investment is as follo&s:
". payment of life insurance premium for self# spouse & minor children. The premium paid
should not be more than +$, of sum assured else the -ualifying amount &ill be
restricted to +$, of sum assured.
+. payment in respect of non%commutable deferred annuity
.. contribution 'employees portion* to&ards statutory recogni/ed provident fund
0. contribution to public provident fund '11F* account for self# spouse & minor children.
2ualifying amount is restricted to maximum !s.3$#$$$% per 11F account.
4. contribution to&ards approved superannuation fund
5. investment in 67) '6ational 7avings )ertificates 8999th issue*
3. accrued interest on investment made in 67) in earlier years
(. contribution in Unit%lin:ed 9nvestment plan of ;9) <utual Fund
=. contribution to approved annuity plan of ;9) '>eevan Dhara# >eevan ?:shay *
"$. subscription to notified pension funds set%up by UT9 or <utual Funds
"". sum paid as tuition fees for children@s education in approved educational institution#
school# college or university
"+. any sum paid as repayment of housing loan 'i.e. repayment of principal component* to
any nationali/ed ban:# financial institution# company formed for granting housing loans
".. investment in 91A of debentures or e-uity shares of an approved public ;td. company
engaged in infrastructure# po&er or units of mutual fund set%up for development &
maintaining infrastructure facility.
"0. investment in fixed deposit &ith nationali/ed ban:scheduled ban: for term of 4 years or
more# as per the scheme framed by central Bovt.
"4. subscription to notified units of mutual fund or UT9.
7ec. ($ ))) Deduction in respect of amount contributed to ?nnuity 1lan of ;9) or 1ension
Fund of any other 9nsurer referred to us "$'+.??C*.
7ec. ($ ))D Deduction in respect of contribution to 1ension 7cheme notified by )entral
Bovernment. )onditions prescribed are assessee is an 9ndividual# employed
by the )entral Bovt. or any other employer after $".$0.+$$0 and has paid or
deposited any amount in his ?c under 1ension 7cheme notified by )entral
Bovernment.
Sec. 80 D Deduction in respect of medical insurance premium paid:
This deduction is available to an individual or HUF. The medical insurance premium paid to the
Beneral 9nsurance company 'B9)* or any of it@s subsidiary in respect of individual %self#
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spouse# dependant children and dependant parents. 9n respect of HUF the health of any
member of the family.
The premium should be paid in cash or by account payee che-ue out of taxable income of the
assessee for the previous year. The amount of deduction is the medical insurance premium
paid or !s."4#$$$% &hichever is less. 9f the member of the family covered includes senior
citi/en the additional deduction of !s. 4#$$$% &ould be available.
Sec. 80DD Deduction in respect of maintenance including medical treatment of handicapped
dependent having disability.
This deduction is available to resident individual and HUF. The Ddependent individual having
disabilityE in respect of &hich the deduction is to be claimed should be &holly or mainly
dependant upon the assessee 'i.e. an individual or HUF* for support and maintenance. The
Ddependent individual having disabilityE should be having disability of 0$, or above and should
not have claimed deduction us ($ U &hile computing his taxable income.
The DdisabilityE includes physical as &ell as mental disability. Fhile claiming the deduction# the
assessee should furnish copy of the medical certificate issued by the prescribed authority G i.e.
Hospital or institution notified by appropriate Bovernment under 1ersons &ith disabilities
'H-ual opportunities# protection of !ights and full 1articipation* ?ct# "==4.I
The assessee can claim deduction under t&o options:
a* the assessee has actually incurred an expenditure on the medical treatment
'including maintenance i.e. nursing# training# rehabilitation* of dependant individual
having disability. % !
b* the assessee has paid or contributed under any scheme framed by ;9) or other
approved body by )CDT# for maintenance of dependant individual having disability
The amount of deduction is amount actually expended by the assessee or contributed in the
scheme by the assessee or !s.4$#$$$% &hich ever is less. 9f the dependant individual having
disability level of over ($, then amount of deduction &ould be actual expenditure or
!s."#$$#$$$% &hichever is less.
Sec. 80 DD" Deduction in respect of medical treatment of specified diseases:
This deduction is available to an individual or HUF assessee. The assessee should be resident
in 9ndia. The assessee should have actually incurred expenditure on treatment of specified
disease for himself or &holly mainly dependant spouse# children# parents# brother or sister of
the assessee. The assessee has to submit a certificate about the treatment of specified
diseases# in the prescribed format from a notified specialist doctor &or:ing in Bovt. Hospital.
The Dspecified diseaseE means the disease notified by )CDT under !ule ""DD of 9.T. !ules.
The amount of deduction is amount actually spent by the assessee for the treatment of
specified disease or !s.0$#$$$% &hichever is less. Fhen the patient to be treated for specified
disease is a senior citi/en the limit of !s.0$#$$$% is increased to !s.5$#$$$%.
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Sec. 80 # Deduction in respect of repayment of loan obtained for pursuing higher education:
This deduction is available to an individual. The assessee should have secured loan from Can:
or Financial institution or approved charitable institute. The loan should be in respect of
pursuing higher education i.e. G full time studies for graduate or post%graduate level in
engineering 'including technology artchitecture*# medicine# management or post graduate
course in applied science including mathematics and statistics .I
The amount of deduction is amount of repayment of loan 'i.e. principle J interest* in the
previous year by the assessee or !s.0$#$$$% &hich ever is less. The deduction can be
claimed by the assessee for ( years or the term 'no. of years* for &hich interest is paid
&hichever is less. The first year in &hich the deduction is available is the year in &hich the
person starts re%paying the ;oan.
Sec. 80 $ Deduction in respect of donations to certain charitable institutions# funds:
This deduction is applicable to any assessee. The donation should be in cash or by account
payee che-ue. The donation in :ind does not -ualify for deduction. The minimum amount of
donation should be !s.+4$%. 9t should be made to approved charitable institute# during the
previous year out of taxable income of the assessee. Ho&ever# from ?.K. +$".%"0 9f donation is
paid in cash exceeding !s."$#$$$% then deduction &ould not be available under this section.
The net -ualifying amount of eligible donation is restricted to "$, of gross total income of the
assessee as reduced by other deductions under chapter 89%?# exempt income# longterm
capital gains & short term capital gains.
For certain notified fundsinstitutionstrusts 'e.g. )entral Bovt@s 6ational defence fund# 1rime
<inister@s 6ational !elief Fund# 6atioanl foundation for communal harmony etc.* the amount of
deduction is "$$, of net -ualifying amount. Donations to Bovt. approved local authority#
institutions carrying out family planning programme -ualify for "$$, deduction. 9n case of
other approved institutions 4$, of net -ualifying amount is allo&ed as deduction.
?ssessee must attach original receipts for Donations made along &ith return of income# in
support of claiming the said deduction.
Sec. 80 U Deduction in case of person &ith disability:
The deduction is available to the assessee &ho is an individual and having not less than 0$,
disability such as blindness# lo& vision# leprosy cured# hearing impairment# locomotor disability#
mental retardation# mental illness.
The said disability is verified & duly certified by the notified <edical authority i.e. Bovernment
Hospital.
The deduction granted to the disabled individual &hile computing his income is !s.4$#$$$%
and in case of severe disability G i.e. above ($, disability I !s. "#$$#$$$%.
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