DEDUCTIONS [SEC 80C TO 80U]

Deductions from Gross Total Income are not allowed from the following incomes:
1.
2.
3.

Long Term Capital Gain

Short Term Capital Gain u/s 111A
Winning from lotteries, horse races etc.

[Sec 80C] - Deductions for Life Insurance Premium, Provident Fund etc.
Deduction u/s 80C is allowed only to individual or HUF, up to a maximum limit of
Rs. 1, 00,000 and the deduction is allowed only when the amount has actually been
paid by the assessee.
Following amounts paid or deposited are allowed as deduction u/s 80C:

Any sum paid by an individual as Life insurance premium on life of himself,

spouse and children or paid by an HUF for any member of his family.
However premium paid in excess of 20% of the capital sum assured shall be
ignored.
Contribution to statutory provident fund or recognized provident fund
Contribution to superannuation fund
Contribution/subscription to PPF, NSC, NSS, ULIP, ELSS,
Fixed Deposit with any schedule bank for at least 5 years
Subscription to notified bonds of NABARD

Payment of tuition fees (excluding development fees or donation etc) for

maximum two children for full time education to university, college, school or
other educational institution situated in India.

Repayment of principal amount of loan taken for purchase/construction of

residential house property from Central/State Govt, Bank, LIC, National Housing
Bank or from employer( where employer is statutory corporation, public company,

university, college, or local authority or co-operative society)

Payment of stamp duty for the purpose of transfer of residential house

property to the assessee.

Amount invested in deposit scheme of public company engaged in

infrastructure facility or approved mutual fund.

Any sum deposited in an account under the Senior Citizens Saving Scheme.

Any sum deposited as five years time deposit in an account under the Post
Office Time Deposit.

[Sec 80CCC] Contribution to Certain Pension Funds

Deduction is allowed for payment made by individual towards annuity plan of
insurance company for receiving annuity or pension and it is allowed up to a
maximum limit of Rs. 1,00,000.
As per section 80CCC, where an assessee being an individual has in the
previous year paid or deposited any amount out of his income chargeable to tax to
effect or keep in force a contract for any annuity plan of Life Insurance
Corporation of India or any other insurer for receiving pension from the Fund
referred to in clause (23AAB) of section 10, he shall, in accordance with, and
subject to the provisions of this section, be allowed a deduction in the computation
of his total income, of the whole of the amount paid or deposited (excluding
interest or bonus accrued or credited to the assessees account, if any) as does not
exceed the amount of one lakh rupees in the previous year.
Where any amount paid or deposited by the assessee has been taken into
account for the purposes of this section, a rebate/ deduction with reference to such
amount shall not be allowed under section 88 up to assessment year 2005-06 and
under section 80C from assessment year 2006-07 onwards.
Limit- Deduction shall exclude interest or bonus accrued or credited to the
employees account, if any and shall not exceed Rs. 1 lakh and The aggregate
amount of deduction under sections 80C, 80CCC and sub section (1) of Section

80CCD shall not exceed Rs.1,50,000/- (Section 80CCE). Please note that Limit of
deduction Under section 80CCC is enhanced to Rs. 1.50 from One Lakh with
effect from assessment year 2016-17 and for subsequent assessment years. Limit of
deduction under 80CCC raised to Rs. 1.50 Lakh

[Sec 80CCD] Contribution to Pension Scheme of Central Government

Deduction is allowed for contribution made by individual (whether salaried or selfemployed) towards notified pension scheme, but maximum up to a limit of 10% of
Salary or Gross Total Income as the case may be.
Employee is also allowed deduction of the amount which is contributed by the
employer but up to a maximum limit of 10% of employee salary. (Salary includes
Basic Pay and Dearness Allowance, if it forms part of retirement benefit).
Amount received from such pension fund is taxable at the time of receipt.
Section 80CCD(1) allows an employee, being an individual employed by the
Central Government or by any other employer on or after 01.01.2004, or any other
assessee being an individual, a deduction of an amount paid or deposited out of his
income chargeable to tax under a pension scheme as notified vide Notification No.
F.N. 5/7/2003- ECB&PR dated 22.12.2003 (National Pension System NPS) or as
may be notified by the Central Government. However, the deduction shall not
exceed an amount equal to 10% of his salary (includes Dearness Allowance but
excludes all other allowance and perquisites). The deduction under section
80CCD(1) shall not exceed Rs. 1,00,000/-.
As per Section 80CCD(2), where any contribution in the said pension
scheme is made by the Central Government or any other employer then the
employee shall be allowed a deduction from his total income of the whole amount
contributed by the Central Government or any other employer subject to limit of
10% of his salary of the previous year.
If any amount is standing to the credit of the employee in the pension
scheme referred above and deduction has been allowed as stated above, and the
employee or his nominee receives this amount together with the amount accrued
thereon, due to the reason of

"(i) Closure or opting out of the pension scheme or

(ii) Pension received from the annuity plan purchased and taken on such closure or
opting out then the amount so received during the FYs shall be the income of the
employee or his nominee for that Financial Year and accordingly will be charged to
tax."
Where any amount paid or deposited by the employee has been taken into
account for the purposes of this section, a deduction with reference to such amount
shall not be allowed under section 80C.
Further it has been specified that w.e.f 01.04.09 that any amount received by the
employee from the new pension scheme shall be deemed not to have received in
the previous year if such amount is used for purchasing an annuity plan in the same
previous year.
It is emphasized that as per the section 80CCE the aggregate amount of
deduction under sections 80C, 80CCC and Section 80CCD(1) shall not exceed
Rs.1,50,000/-. However, the deduction under Section 80CCD(1)shall not exceed
Rs.1,00000 but contribution made by the Central Government or any other
employer to a pension scheme u/s 80CCD(2) shall be excluded from the limit of
Rs.1,00,000/- provided under this Section.
Budget 2015 Proposes Additional deduction of Up to Rs. 50000/- Under
Section 80CCD for National Pension System contribution
The existing provisions contained in sub-section (1) of section 80CCD, inter
alia, provides that in the case of an individual, employed by the Central
Government on or after 1st January, 2004, or being an individual employed by any
other employer or any other assessee being an individual who has in the previous
year paid or deposited any amount in his account under a pension scheme notified
or as may be notified by the Central Government, a deduction of such amount not
exceeding ten per cent. of his salary is allowed.
It is proposed to omit sub-section (1A) and insert a new sub-section (1B) so
as to provide that an assessee referred to in subsection (1), shall, be allowed an
additional deduction in computation of his total income, of the whole of the
amount paid or deposited in the previous year in his account under a pension
scheme notified or as may be notified by the Central Government, which shall not
exceed fifty thousand rupees. It is also propose to provide that no deduction under
this sub-section shall be allowed in respect of the amount on whcih deduction has
been claimed and allowed under sub-section (1).

Consequential amendments have been proposed in sub-section (3) and sub-section

(4) of section 80CCD.
These amendments will take effect from 1st April, 2016 and will,
accordingly, apply in relation to the assessment year 2016-17 and subsequent
assessment years. Read more- Sec. 80CCD- Additional deduction for National
Pension System contribution

[Sec 80CCE] Limit on deductions u/s 80C, 80CCC and 80CCD

The aggregate amount of deduction u/s 80C, 80CCC and 80CCD (except employer
contribution) shall not, in any case, exceeds Rs. 1,00,000.

[Sec 80CCF] Subscription to long term infrastructure bonds.

Deduction is allowed to an individual/HUF for payment towards subscription to
long-term infrastructure bonds as notified by Central Government, but up to a
maximum limit of Rs. 20,000

[Sec 80D] Deduction in respect of medical insurance premium

Deduction is allowed to an individual/HUF for payment towards Medical
Insurance Premium or to any contribution made to the Central Government Health
Scheme) by any mode other than cash.
Quantum of deduction:

Maximum Rs. 15000 (For insurance of Individual, Spouse, Dependent

Children) or Rs. 20000 in case of senior citizen, and

Maximum Rs. 15000 (For insurance of Parents) or Rs. 20000 if parents are
senior citizen.
[Sec 80DD] Deduction in respect of maintenance including medical treatment
of a dependent who is a person with disability
Deduction is allowed to a resident individual/HUF for payment towards Medical

treatment or training and rehabilitation of a dependent relative who is a person with

disability. Deduction is also allowed for payment towards deposit in a scheme for
receiving annuity or lump sum amount for the benefit of such disabled person.
Relative, for individual, shall include spouse, children, brothers, sisters and
parents. Relative, for HUF, shall be its members.
Quantum of deduction: Deduction of Rs. 50000, irrespective of the actual amount
spent or deposited. In case of severe disability deduction allowed shall be Rs.
100000, irrespective of the amount spent or deposited.

[Sec 80DDB] Deduction in respect of medical treatment, etc.

Deduction is allowed to a resident individual/HUF for payment towards Medical
treatment of specified disease of self or dependent relative or member of HUF.
Deduction is allowed for the amount actually spent or Rs. 40000 (Rs. 60000 in
case of senior citizen), whichever is less.
Deduction shall be reduced by the amount received from the insurer or employer.
Further, a certificate from doctor of government hospital has to be furnished for
claiming the deduction.

[Sec 80E] Deduction of interest paid on loan taken for pursuing higher
education.

Deduction is allowed to an individual for payment of interest on loan taken for

pursuing higher education of himself or relative.
Loan must have been taken from financial institutions or approved charitable
institution. There is no maximum limit prescribed under this section and also
deduction can be claimed for maximum period of 8 years starting from the year in
which payment of interest on the loan begins.
Higher education means any course of study pursued after passing Senior
Secondary Examination.
Relative means spouse, children or the student for whom; he/she is the legal
guardian.

[Sec 80G] Deduction in respect of donations

Deduction is allowed to all assessee for payments made to specified funds/
institutions
Donation shall be sum of money; Donation in kind is not deductible. Further proof
of payment shall be furnished with the return
Part A: Donations made to following are eligible for 100% deduction without any
qualifying limit:

National Defence Fund set up by the Central Government

Prime Ministers National Relief Fund
Prime Ministers Armenia Earthquake Relief Fund
Africa (Public Contributions - India) Fund
National Foundation for Communal Harmony
a University or any educational institution of national eminence as may be
approved by the prescribed authority
Chief Ministers Earthquake Relief Fund, Maharashtra
any fund set up by the State Government of Gujarat exclusively for
providing relief to the victims of earthquake in Gujarat
Zila Saksharta Samiti constituted in any district
National Blood Transfusion Council

any fund set up by a State Government to provide medical relief to the poor
Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air
Force Central Welfare Fund
Andhra Pradesh Chief Ministers Cyclone Relief Fund
National Illness Assistance Fund
Chief Ministers Relief Fund or the Lieutenant Governors Relief Fund
National Sports Fund set up by the Central Government
National Cultural Fund set up by the Central Government

Fund for Technology Development and Application set up by the Central

Government National

Trust for Welfare of Persons with mental retardation and multiple

disabilities.

Part B: Donations made to following are eligible for 50% deduction without any
qualifying limit:

Jawaharlal Nehru memorial fund

Prime Ministers Drought Relief Fund
National Childrens Fund
Indira Gandhi Memorial Trust
Rajiv Gandhi Foundation
Part C: Donations made to following are eligible for 100% deduction subject to
qualifying limit:

Donation to Government or any approved local authority, institution or

association to be utilized for promoting family planning

Donation made by a company to Indian Olympic Association or to any other

notified institution, for development of infrastructure for sports in India.
Part D: Donations made to following are eligible for 50% deduction subject to
qualifying limit:

Donation to Government or any approved local authority, institution or

association to be utilized for any other charitable purpose other than promoting
family planning

Donation to any approved charitable institution which satisfies the condition

of Section 80G.

Donation to any authority for satisfying the need for housing

accommodation or any corporation for promoting interest of minority community.

Donation to any notified temple, mosque, gurudwara, church or other place

notified by the Central Government to be of historical, archaeological or artistic
importance for renovation or repair of such place.
Donations under Part C and Part D above shall not exceed the qualifying limit.
Qualifying limit means 10% of adjusted Gross Total Income.
Adjusted Gross Total Income means:
Gross Total Income
Less: Long Term Capital Gains
Less: Short Term Capital Gains u/s 111A
Less: Deductions u/s 80C to 80U (Except 80G)

[Sec 80GG] Deduction for payment of rent

Deduction is allowed to an individual in respect of rent paid for his residential
accommodation subject to fulfillment of following conditions:
i.

He is a self employed person or if he is an employee, he is neither getting

HRA nor rent free accommodation

ii.

i.
ii.
iii.

Assessee, spouse, minor child or HUF does not own any residential
accommodation in the city where he lives or where he works.
The deduction in respect of rent paid is allowed to the extent of least of the
following:
Rent paid over 10% of Adjusted Gross Total Income
25% of the Adjusted Gross Total Income
Rs. 2000 per month
Adjusted Gross Total Income Means
Gross Total Income
Less: Long Term Capital Gains
Less: Short Term Capital Gains u/s 111A
Less: Deductions u/s 80C to 80U (Except 80GG)

[Sec 80GGA] Deduction in respect of donations for scientific research or

rural development
Deduction is allowed to all assessee provided the assessee does not have income
under the head PGBP. Deduction is allowed equal to the amount of donation or
contribution given below:
i.
ii.

Donation to notified scientific research association as per Sec 35

Donation to notified institution for the purpose of eligible project as per Sec
35AC.

iii.

Donation given to notified institution for rural development or to national

urban poverty eradication fund as per Sec 35CCA

[Sec 80GGB] Deduction in respect of contribution given by companies to

political parties
An enterprise or a company may make a donation to a political party or
parties and also claimed the amount for Tax Deduction under the Section 80GGB,
of the Indian Income Tax Act, 1961. This section is basically details and rules of
the donations provided by Indian companies to any political party or parties or
even an electoral trust. These donations can be done through any recorded mode
other than cash as long as the political party is registered under the section 29A of
the People Act, 1951.
Also any expenses such as advertising, television commercials, radio jingles
and now the latest being social media conducted by the political party is considered
as contribution under this section. According to this section if any Indian company
publicises in a magazine that is owned the political party, the amount will be tax
exempted as per section 80GGB. There are no restrictions on the amount that can
be donated or spent as long as the company has proof of the expenditure of the
same.

[Sec 80GGC] Deduction in respect of contribution given by any person to

political parties
Section 80GGC of the Income Tax Act deals with any contributions made by an
individual to a political party. Under Section 80GGC Individuals can avail of tax
deductions that range from 50% - 100% of the contribution amount. As per the
Income Tax Act, an individual can donate as much as 10% of his or her gross
earning to any political organization of his or her choice.
Individuals who avail of deductions under Section 80GGC have the advantage of
saving on a sizeable portion of tax every financial year in tandem with other
deductions such as House Rent Allowance, Medical Allowance and much more.
Features of Section 80GGC:
The main features of Section 80GGC are:
Deductions under this section can be availed only by individuals ie: noncorporate assessees or taxpayers
This section came into existence via the Finance Act 2009, with the
objective of introducing transparency into electoral funding as well as
making it corruption free
Deductions under this section fall under Chapter VIA deductions. This
means that the total amount of deduction allowed cannot be more than the
total taxable income of the individual
Deductions under this section are not applicable on tax deducted at source
on an individuals salary. Only employees who draw a salary with no other
income from other businesses can avail deductions under this section while
filing their returns.
Eligibility Criteria under Section 80GGC:
Taxpayers looking to avail of deductions under Section 80GGC are required to
fulfill the following eligibility criteria:
The taxpayer or assessee can be any individual or person

 The taxpayer or assessee cannot be a local authority

The taxpayer or assessee cannot be an Artificial Judicial Person, who
receives funding from the government either partially or completely
Companies cannot avail of deductions under this Section.

[Sec 80JJA]

Deduction in respect of profits and gains from business of

collecting and processing of bio-degradable waste
Deduction is allowed to all assessee who are engaged in the business of collecting/
processing or treating etc of bio-degradable waste for generating power or to make
pellets for fuel or to use it in organic manure or to use it in bio-gas plant etc.
Deduction is allowed equal to 100% profits of such business for the 5 consecutive
assessment years beginning with the year in which such business is commenced.

[Sec 80JJAA] Deduction in respect of employment of new workmen

Deduction is allowed to Indian Company, equal to 30% wages of the new regular
workman for 3 assessment years including the year in which the employment is
provided.
Companies shall be engaged in the manufacture or production of any article or
thing and accounts must be audited by Chartered Accountant and the report shall
be furnished with the return of income.
Wages qualifying for deduction:

In the case of new company wages paid to workers in excess of 100

In the case of existing company wages paid to workers in excess of 100,

but there should be at least 10% increase in number of workers, as employed on
the last day of the preceding year.
Regular Workmen does not include:

i.
ii.

Person employed in managerial or administrative capacity or

Workman employed as a casual workman or contract labour or

iii.

Any other workman employed for a period of less than 300 days during the
previous year

[Sec 80LA] Deduction in respect of certain incomes of Offshore Banking

Units and International Financial Services Centre
Deduction is allowed to:
i.
ii.
iii.

A scheduled bank having an offshore banking unit in SEZ or

Any bank, incorporated under the laws of a foreign country and having an
offshore banking unit in SEZ or
A unit of International Financial Services Centre (IFSC)
Quantum of deduction:

i.

For the first 5 consecutive years: 100% of such income beginning with the
previous year in which
a. the permission under the Banking Regulation Act was obtained or
b.
the permission under the SEBI Act, 1992 was obtained or
c.
permission or registration under any relevant law was obtained
ii.
For the next 5 years: 50% of such income
Conditions to be satisfied:
i.

A report of Chartered Accountant, certifying that the deduction has been

correctly claimed, should be submitted with return of income

ii.

Copy of permission obtained under the Banking Regulation Act, 1949

should be furnished along with the return of Income.

[Sec 80P] Deduction in respect of income of co-operative societies

Income from following activities shall be allowed 100% deduction in case of cooperative societies:
i.
ii.
iii.

Income from business of banking or providing credit facilities to its

members
Income from cottage industry
Income from marketing of the agricultural produce grown by its members

iv.
v.
vi.
vii.

Income derived from the purchase of agricultural implements, seeds,

livestock or other articles intended for agriculture
Income from processing without the aid of power
Income from fishing or allied services
Income from supplying milk, oilseeds, fruits & vegetables raised by its
members to federal milk co-operative society
Co-operative societies engaged in a business other than those mentioned above
shall not be liable to pay tax on:
In case of consumer co-operative
society

->

In other cases
->
Deduction allowable to all co-operative
societies:

maximum up to Rs. 1,00,000 of

income
maximum up to Rs. 50,000 of
income

i.

Any interest, dividend income derived from its investments with any other
co-operative society

ii.

Income derived from letting out of godown or warehouses for storage,

processing or facilitating the marketing of commodities

iii.

100% of the income from interest on securities or income from house

property in case of co-operative society not being (i) a housing society or (ii) an
urban consumer society or (iii) society carrying on transport business or (iv)
society engaged in the performance of any manufacturing operating with the aid of
power, provided its GTI does not exceed Rs. 20000

[Sec 80QQB] Deduction in respect of Royalty Income etc of Books

Deduction is allowed to resident individual for royalty income from assignment of
copyright of books, maximum upto Rs. 3,00,000.
i.

Books should be a work of literary, artistic or scientific nature. Books shall

not include text books, diaries, commentaries, journals etc.

ii.

Royalty in excess of 15% of the value of the books sold during the previous
year shall be ignored. However, this condition is not applicable where the royalty is
received in lumpsum.

iii.

If royalty is received from outside India, then to claim deduction, it must be

brought into India within 6 months from the end of the previous year in which such
income is earned.

[Sec 80RRB] Deduction in respect of Royalty Income on patents

Earning money is the primary goal of everyone in todays world, with
multiple avenues available to make a living. There are citizens whose primary
source of income is through royalty, either on their music, books, inventions, etc.
Section 80RRB of the Income Tax Act has been designed keeping their unique
requirements in mind. Citizens who receive an income through royalty on their
patent can claim income tax deductions, encouraging them to produce more work
and earn higher.
What are Patents?
Our world would be a completely different place if not for the inventions
made over the centuries. India is home to some of the best minds in the world,
people who regularly invent new creations, creations which can find use across the
globe. A patent, in simple words, is the right which is given to the creator on his
creation for a specific time period. This right is conferred in exchange of details of
a particular invention or creation. A patent is an intellectual property and the patent
holder can ensure that his/her rights are protected after an idea or product is
developed.

For Example, let us look at Miss Rekha who is an engineer by profession. She
comes up with an idea and creates a Scan pen, a device which can helps you scan a
document through your pen. She applies for a patent and receives it, getting a
certain amount as royalty on her product for 5 years.
Royalty on Patents:
Inventors can give third parties the right to use their ideas, in exchange for a
royalty on the income earned by such parties. Royalty is the payment provided by a
party to the person who created the product (physical product or the idea). It is
seen that major corporates put the idea into effect and produce it, paying a certain
portion of the sales as royalty to the patent holder. The royalty depends on the
patent, but some individuals are known to earn millions of dollars every year by
means of royalty.
Considering the example of Miss Rekha, she grants a global corporation the right
to use her idea, with the company offering her a certain sum as royalty for it.
Eligibility Criteria for Section 80RRB:
Deductions under Section 80RRB can be claimed only upon satisfaction of a few
basic criteria.
Indian Resident: The individual claiming a deduction should be an Indian
resident.
Patent Holder: Only patentees can claim this tax deduction. Individuals who
do not hold the original patent are not eligible for tax benefits.
Patent Registration: The patent in question should be registered under the
Patent Act of 1970, either on or after April 1, 2003.
Deductions on Income received through Royalty on a Patent:
The royalty received by an individual on his/her patent is eligible for tax
deductions under Section 80RRB of the Income Tax Act. The total income of such
an individual can be from royalty plus additional sources, with only that income
received as royalty eligible for deductions. Individuals can claim deductions to the
tune of Rs 3 lakh on such income, provided they are the original patent holders for

such inventions. In case of the income being lower than Rs 3 lakh, they can claim
deductions on the actual income received as royalty.
Individuals who earn royalty from foreign shores can claim deductions only
within 6 from the end of the last year in which the income was received. Patent
holders who are unable to furnish due proofs could find themselves in a position
where their deductions are denied.

[Section 80U] -

The Section 80U deals with tax deductions meant for

residents of India who are categorized as disabled according to government rules.
Under the Income Tax Act, 1961, any individual who has been a resident of India
for the assessment year and suffers from at least 40% disability as specified by the
law are eligible for deductions.
Definition of Disability:
Disability is defined as at least 40% disability in a person as certified by
relevant medical authorities. Persons with disability are defined according to the
Persons with Disability (Equal Opportunities, Protection of Rights and Full
Participation) Act, 1995 passed by the government. Disability is primarily divided
into 7 categories:
Low Vision: Low vision applies to people with visual function impairment
that cant be corrected by a surgery but who are still capable of using their
vision through assists from other devices.
Blindness: Blindness is defined as complete absence of sight or field of
vision limitation by an angle of 20 degrees or worse, or visual acuity less
than 6160 after corrective lenses.
Hearing Impairment: Hearing power loss of at least 60 decibels.
Leprosy Cured: People cured of leprosy but who have lost sensation in feet
or hands and paresis in eyelid and eye. Also senior people or people with
extreme deformities that obstruct them from performing any beneficial
occupation.

 Mental Retardation: People who have incomplete or arrested development of

mental capacities resulting in subnormal intelligence levels.
Loco Motor Disability: People with severely limited movements of limbs
due to disability of joint muscles or bones.
Mental Illness: Other mental disorders not relating to mental retardation.
The law also defines severe disability apart from disability. Severe disability
refers to the condition where a person suffers from 80% or more disabilities in the
aforementioned categories. Severe disability has also come to include multiple
disabilities, cerebral palsy and autism.
Deductions under Section 80U:
The deductions under Section 80U are available for Rs.1.25 lakhs in case of
severe disability and Rs.75,000 for people with disabilities. These limits have been
enhanced from the previous limits of Rs.1 lakh for severe disability and Rs.50,000
for disability. The changes have come into effect from the assessment year 201516.
There are no documentation requirements apart from a certificate from a
recognized medical authority certifying the disability. There is no need to produce
bills or other items incurred as cost of treatment or any other expenses. You are
required to fill different forms in case of mental illnesses and some more
disabilities. Similarly, for cerebral palsy and autism form 10-IA has to be filled.
To file the claim, you need to submit the medical certificate denoting the disability
as well as return of income certificate as per Section 139 for the relevant
assessment year. If the disability assessment certificate has expired, you will still
be able to claim deductions in the year of expiry of the certificate. However, a fresh
certificate will be required from the next year onwards to claim benefits under
Section 80U. Certificates can be obtained from medical authorities as authorized
by the government which can include a MD in Neurology, paediatric neurologist
Chief Medical Officer (CMO) or Civil Surgeon at a government hospital.

What is the Difference between Sections 80U and 80DD?

Section 80U provides tax deductions to persons of disability while Section
80DD provides deductions to the family members of a disabled person. Section
80DD is also applicable if the person has deposited some amount as insurance
premium for caring for a dependent disabled person. The deduction limits are same
as Section 80U. Dependent implies any member of a Hindu Unified Family (HUF)
or an individuals siblings, parents, spouse or children.

Summary of the provisions.

Section
80C
80CCC
80CCD
80CCF

Particulars

Available to
Individual,
Life Insurance Premium etc HUF
Pension Funds of Insurance
Co
Individual
Pension Scheme of Central Individual
Govt,
Long term Infrastructure
Individual/H
UF
bonds

80D

Medical Insurance

80DD

Medical treatment or
training
etc of dependent

Individual/H
UF

Resident

Max Limit
1,00,000
1,00,000
1,00,000
20,000
15000/20000
+(AND)
15000/20000 (for parents)
50000
or

Individual/H
UF

80DDB

relative(disabled)
Medical treatment of self or Resident
Individual/H
dependent relative
UF
Interest on loan taken for

80E

higher education of self or

relative
80G
Donations
80GG
Rent paid for residence
Donations for Scientific
research or rural
80GGA development
etc
Contribution to political
party
80GGB
or electoral trust
Contribution to political
80GGC party
or electoral trust
Business of collecting etc
bio80JJA
degradable waste
Employment of new
80JJAA workmen
80LA
80P

Income of Offshore
Banking
Units/ IFSC
Income of co-operative
societies

80QQB

Royalty of Books

80RRB

Royalty of Patents

Individual

100000(if severe disability)

40000
(60000 in case of senior
citizen)
No Limit, but allowed up to
8
years.

All assessee
Individual
All assessee

limits prescribed
Max up to Rs. 2000 pm.

(No PGBP
income)

100%

Indian
Company

100%

Any person

100%

All assessee

100% of profits from such

business for 5 years.

Indian
Company
Banks

30% of additional wages

100% for 5 years and then
50%
for next 5 years.

Co-operative 100% in some cases.

Societies
Resident
3,00,000
Individual
Resident
3,00,000
Individual