, , ,... ...

---------•11:i
i:::asZ!~ii-~S~KDZlil•!IM•1eD♦:::t1111wr;:,_ _

,,
Gross Tow/ Income (GT.I) •,11111Ded1w1t.u11.\· 42 ~
1
ions 70-lW 1s . k , G .. 1·01al
,.,r· '· tiirw:ird and set olT of losses un<ler sect nown a!> ross
..I ,:11'0
1Jfl" . .
' n~· , n of Gro ss Tot al Income •· Gross. Iota1 inco me means total 111comc
. • • . , .
,,,_ ,p111 1111° . ch \v'II b 1cu 1atcu.1 ·ts
100 dl•duct 1on ,under sec tions 80C-80U ' whi' 1 c ca o11ows• •·
c. . 1
\!I\1 111!
~

,.,,/\' · utc Gross Tornl Inco me (GT I):

,. c,11n r
ss salary - deductions)
~ ; c,1111putc inco me under head salary (gro
nd head house property (gross annual value - deductions)
(J comPuti: income.! u cr .
1tl .
mco me und er head pro fi t or gam from busi ness or profession (profit -
com • ) ruu:
,..1
(kd11c11on
(Ca pital gain exe mpt ions)
Compute income under head capital gain
1-~
t<'l Compute inco me under hea d othe
r sources (gross inco me - ded uctions)
Tl ~ (a+ b + c + d + c)
5lt/' If: Apply Sections 60 - 65 (Clu bbing
Provisions); and
n of income): and
wpJI/: Apply Sec tions 68 - 69D (Aggregatio
ard
ents on account of set otT carrying forw
sup/I': App ly Sections 70-80 (make adjustm
and set off of losses).
~tp V: Gross Total Income = Step
I + Step U+ Step Ill + Step Ill + Step JV
Slip VJ: Net income liable to tax = GT
I - deduction (Sections 80C -80U)
me fSection 288A)
SJtp I'll: Rounding off of Net Taxable inco
T1pe5 of Deduction: Ded uctions are of
the following two types:
sections
/A) Deduction on account of some
pay ments or investments covered under
80C-80GGA.
mes which are already included in gross
/BJ Deduction on account of cert ain inco
HB-80U.
total inco me covered under sections 80H
I. Apply clubbing Deduction
provisions unde r under Chuptcr VIA
!JIii Sec1ions 60-65 blc Income
.1'.lfflcs undLT
Gross Total Income - - - - Nc1 Ta.,a
Ii,. ....
._, ,. of .mcomc

2. Apply aggregation of
income provision under
S<..'Ctions 68-690

3. Apply carry forw:1rd

and set off of losses •
Sec1ions 70-110
or lnvestmenn covered under sections
IJJ
Deduct.ion on account or some paymen ts
80C-80GGA
n
IJ,J.11, • premium, annuity, and contributio
loii· pDl'd11c11o n regarding life insu ran u
Ords 1 .
r ro •1dent fund, etc. jSectio11 SOC]
lO~d · . s
lfto11

(i) A~scssce must be an individual or HUF.

 {1H1 lllO" I dlt \ (in11·, 7i.m/ l11r,m1t•(<,lli tlltt//J 1•d ft l ltlu11 Jl J
~ 1() (' 11
11P· · .,
" 111n funu
of
1,,wu1tt ttf n~J11,-ri.,n : I h.· .11rn111n1 ,,f 1k,l11,1i,1n o< 1hc lca,1 11 IC folio\\ 1
hip, IJ ( ( ,,. nu•1
.,1111r1· h11111111 ""' ;,n)< approved 'U""mn
ti,) \ll N . I S .111
11, I h,; ~r\"•~-" ll'ul11~ in!-). .i1n\,u111, \,r
ng ~uhsrn 1'11u11 w atmnu • •" 11 Ccn1lic111c 1'\f')
o:1 .
\ llllfi1,.'\1 J Ok.'Ul11 l t ~, 'IJ,· . /ntporlU III Pt1ffll
,,,.
• A,auc d i111crc,1f, " dccrncd to tit, rcrnvc,i •d , __, r.
411,-1/m "'~ ,1rr.1,1mt 11 l:i> ,Ul ·•~n·~i,a· ,,r th1.· followi ng: ~ _ ... nou ,~ a"' 1 qUJ 11,1cJ tor
MJur11on fur the ,r~I ltvc years,
, , , ( ,11)(\
1 Cc n1ra1 G
1.,1 I re m, urJn,.c rn·mmm r,uJ h~ (i1llcmmcn1 emplov• cc 0
•
.
Jll\'111<'111 mndc hy ,.1 1,.." ~.,or, und'°' <rn,__
.., ,. furt/u•r Dl'd1_ 1cti11n On• Arrru1•d /ntrrr\f In Rr,pt c I ,fJ'f , 1IH't'\ltn l'nl 1n
. . ''' ln,ur.m,,· :-,·hem,· .11111 .
I mrl•'"' • . •
., ,
'=''. : .\ cc••ru1n2 .• ,
dci.-rr,•J .-11J,mnxn1 J., sur.mcc 111,hcy.
chridrt,, er \'ationul .'iavinx s (trtifir otts VIII ISJ11r . lltJM• TA r,o,·,..
• •
... ,.,
1 ·
ruk I 5 of the :--;sc (VIII ls~uc) Ruks. 19119. 1hc 1ntcm1
~h.,11 accrue io·ihc
,he interes t~ •
'"'"'111Qlf( poi1t~
huldcr or hulclers of the ccr111icotc m the end of each )car and
, Th.· 1,,1:tl Jnnu.11 rn·nuum ,huuld 001exceed ' ""' ,hall ;,.,
accruing 111 the end of each y..-:ir Lp 10 the end of ihc fifth
and J1,t~rcgatcd
: ll', ,,r th-, 1,,1al ,um 1-..surcd if 1hc policy 1s issued before OI,04.20t) Jcc111cd 10 have hcen rc-m,c<teJ on behalf of 1hc holder
., cn111lcd ,;,,
01 04 201 with 1he amount of face ,aluc of1he ccnitica1e 3nd the -.amc
Ul'. tolJI sum •--=d 1f1hc policy is issued on ur after 2 ded111.:1ion under wc1ion ROC
April, 201), ,sri:.
11-'"<H'r, "hm- 1hc polky. issued on or uftcr the Isl day of ~ Conmbullon l'or par1icipa1ion in Unu Linked lnsumncc
Plan 1t LIP I tlf Ln,i
in,W"J.Jl"~,· ~m th( htC of an~, person, who is: 11
Trust nf India
ity us referred 10 ,n
,.,, , J"CN'n "1th• dis:ibrl11y or a person with severe disabil Poirrt.,
SC\'.IIOn 801). or
rules made u"'-"'
(MpOrtU fl(
;.. II 1hc assc"c c ,s an indl\ 1dual. UUP can he in 1hc 0.1l1lC
01 the •-== •
, ,, .uil,-nng frum dise;i,-c or uilmem a., sp,:c11icd in lhe hi< spouse. or any chilli, Such child mny he dependent ur tndcpcm
lcnL m.ik
s..•,:m.>n SODD13.
or fcmak. minor or maior, and mamcd or unmamcd
Then lh< 11ru1ual premium should no1 exce,-d "fiflcen pcrccm•. ;.. Where 1hc asscssce 1> lltndu Undf\tdcJ fJm1l~ . L LIP ,n 1he
rum< or ;he
on his 0\\11 hft,
,. \\krc !he a,,esscc 11 llll ind ividool, 1hc policy can be rnkcn a,scssee or his II fo of any member ot' 1hc fonul~
nt or
tk hfc of his spouse. or any chi ld. Such child muy be depende ;.. The minimum period of holding ,hould be 5 y=.
unmamcd.
Cld<'J'Cfldtnt. male or female. rmnor or maJ or. and married or rL·up , ,,t LI(
policy may be taken on 1,) Con1nbu1ion for pamc,pation in Unil Ltnkcd ln,urnnce Plan
, \\lim: the =s= is Hindu Undivided Family. !he \lutual Fund (earlier known as Dhanrnlsha plan ofLIC Mu1u:il
FunJ
the, hfc of an~ mcmb<r of1hc family.
lmpor1a111 J'tJinLt
, The minimum !'('nod of holding should be 2 yean;. ol.cn on h" ,,.,.n tc :t:e t,·
~ If 1he asscssce 1s 3n rndmdual, l LIP= bc
P•!tnenl 111 r ~ of nor-commutable deform:! annuity .
I ~j
oi' the spouse. or anv chil,L Such ,h,ld ma~ be Jcfll--nJcInt ur 1nJc,r,:nJ,-n1.
,
lmporfllnr PoiJtr
male or female. nu nor or major. ard marrtnl or unnum"'-'
spou.~c or 3ft) ' Where 1hc assesscc is I ltndu UnJf\ idcd hunrli . L UP Ill.I'
~ u.., n ,.., lhe
' S.ich a rtan ma: be, taken ,n the name of an indl\ ,dual or
ch1IJ of 5UCh mdl\ 1dual.
hie of any member of1he farrul~
(, I emplorcc (or rJic
.\n: •um deducted frum salary payable by Govcm mc111 ;.. The minimum period of holdi ng should be 5 ~NI'
purpo.c of <kfrrr<d annu11i .
11 Payment for notified Annui1v Plan oi UC 1,,,uun,•nl~ Jc,,:, m \ .~-11.s, 11.let'''"' '°""" "; ' '" ' ""
f,,.porf llnr Poi1tr • , • •. I ' ...
Dba ra, New kcvan 1\kshny. 1'•" kc,Jn •" "'""~ '
, 'such a pion . Jlbt or
t.: for the benefit of "" ,nd iv1<lu;,I or his >fll Jecvnn Aksh:,v Ill ) ,u uny otha itL,uM.
,h1ld1cn ffia}
141 s · . . I •unJ ,,r l m1 I n,.-1,., lriJ 11
ubscnp1io11 toward.< no111icd unn, ,,1 \lulUJ 't, \lutUJI ~unJ ,., l nit fru,1 ,,,
IJ1 ( •r::nl>u11vn ..,J, ..:.itutol') iicncral pruv1dcn1 fond (SPF CiPfl .nJ If) 11 .
Con1ribu11on 1u notilk,1 111•11,iun fun,1 ,ct 1' l) Il
10... 111
r«ogn11cd pm,.dr nt fund CRPI°) . I' 111. II Fun.I ,,1 l
1-··
'"''a 11.c Re11remen1 o,·111·111 cn,
• • tk• tllH\" \II .,Jnu._,, ..,10 ,-.r l.ll\."f ,,n h .l .tn\
ft-I C1mtnhot11,n u,,._.,c1, I~ )<M> of Pubhc 1'111\11lcn1 l·und
11'1'1·) l,tt' •
1 tune 1i.·Ju...lt"-'" ,, r
Auy ~11111 1111uJ us 1mt h.H1 h.·,· ,,h,thi.:r ial - C ' 11 Ill 111J lJ 1·' :,r rull
'"'"""a"r Poinr, 'l
u,u\\.•r,11) ,_,r '-' '-'llcg1,.• ,,, C"thl\',llH 'rul ur-tttu
,. Ail
,c ,11 . J '''-'1\,rn1'·n1 ri,.~ J-.111.&thm, ,,r
-\<w1J1n11 lo l'ubl1t l'ro\!Ja,1 I und (Pl'J J \Chcmc und I
'"" ' n~ •III' ~11 ) h,,, ch11dr ..·11 ,,fl h\· u,,~·"\."\"
111, tlUIIIC .. , lfl llli.' IUI 11 l I\'" ,,nh 1hc: ..
Jtlt•I d\"IC"\'< (' 11\J) open ., ,,.,,. :i.ccou,u Ill l)WJ1
I1 ,kl-l", lh•t i1wlu,k am 1'-1yint"n ·
""' I~
" " \ fl<IU\C c>r 'h,Jd r'•l) 111\'IH ,,1 "'"''" ,,1h,·r n.1.tun·
"
I. , II ih•,,tu,. ath'n in t IJ
I he minimum •mou111 ,hould no1 1,,: le" 1l rnn f ~U{l 111111 11
11111 , 1111
I lie k-.· 111u,1 t, · ,,.ud h•I Ill 111
nm<>unt ,, f 1.1~1.rw~, per a11nu111
&tQ
~ - '
-l_t ~
,. f ull umc c-uuca ·• 11

f a:carioll l11H',\
on include s any educa1
. ,
ional• course
,
of••ere~ b U
c, Cb•P· 13 Gross Total fncomi• ( GT.T) and n _d
·) Subscnpt1on to any nouticd bonds 0 r th .
= ur 11om -1 l 1
tllll\ crs,r,.'° . 11 ,g,. , ed_u_cn11.onulI mst11u.tion to,• ~llJcl,.t .,.·1
. ,. ,diool. or other
(.• Rural Dcvc lopmcnt (NABARD). · e Nallonal Bank for Agncultural and
II 1 1 1,mc for 1hc said course. I a1so includes P,. v· •t\<"I
•• - II c·
ted under Senior C'ori,cns' S . _ s·chcrnc
h CIIW (( U
1rcular No I 14· ~;(.q
0, , ,
acm 111<-S. prc-n urs.:~ • • • and nursery classes ( ·
120
I
'Cj
(tl Amount deposi . . , · • 11v1ng
I 1.01.2010), 4 ;. The 1111111mum pcnod ofholdmu houId Luc. l_ )<tars.
• • " s
11 Uli1Jlloii•3blc a; 1u111on fee shall include any payrnco r
i Oaf ted an f ive Year Tune De · S h •
l ,) Amount deposs
• •
,. lC JITlO
lln ·, , ··rsui• collcue. school. or any other cducatJ onaJ instil"t, · . CC t • . • PDS1l · c eme m the po,1 on.cc
u on sn I 1
·"" <• •• ., • •
ltleni '14ai ;. The mrnrmum penod ofholdmi; should he ye.rrs,
,.,;.CJll the nmount rcprcsentsng payment in the ~~re of devclop 5
s· f
fcts (,·) i\ny sum paid or dcposucd m Sukanva Samndh •
or J cmauon or capi1a11on fees or payment of s1m1la r nature (",r ' 1n tcoum chernc in 1hc ca., c o
~ c11I11, S
·o 111 · i · I ·
0 • I h'I·'
f h · d · 1ua I,
I ~010. dmed I 1.01.20 10). : ind vrdua . tn lhe name of !hat individual or any .,or
of · I ch,"Id r,or whom such person i~ the leeal 0 ... . d c I u o t n1 m 1v11
tnl An~ ,um paiJ a, the subscription lo lhc I lome Loan _Account Scherne 1h, or any g1r ,., e--.i. 1an
lilnd Other Important Point,f relating lo Sel'titin II0C:
'-•cion.,I lloussng Bank or contnbu11on towards any not,ficd pens,
00
s the ~
hi rhc ~.11iona l Housing Bank. However, the sum also include (ll Where the asscsscc has l'la1mcd a drduc11on under seC1Jon
SOC no d d
euc1 10 n
1ntcrc,t · d · .
or scc1u1r1
c:an be cla rmc wnh regard to that amoun1 under scc1ion !IOCCC
(ol An~ sum pnid a; the subscription to any scheme of: MOCCO.
linance f~ c!t
fr\ Public sector company engaged in providing long term (bl The total a mount of deduction under sm ron~ SOC, MOCCC. and
ROCCO canno1
purrhase or construc1ion of rcsidemrnl houses in India (1.e, Public
0q,oi. Propert y.
Scheme of HUDCO ): exceed ~ 1.5 l_ac. In !he _cas~ o_r ULIP, LIC. and Res1dcn1ial Hou,.c
parucipauon
purpose or plilllq. where 1he penod of holdmg 1s hxcd and the asscssee 1ennmares as
(itl Hou:.ing Board cons1itu1cd in lndiu for tlie before contributing for li,c yt."ars 1hen:
de, doprncn1, or imprnvemcm of cnrc, or towns. 1he said prc\'ious ~car
(a) Any con1rihution mode towards 1hc obo,•e plan m
Ip ) Any J>3yment lownrds the cos1 nf purd1as c
or construction of a resideiiw.
eTIL 11d w1 II not be quuli lied for deduction under section SOC.
propcny. 11 also include~ rcpayme111 of louns taken from the Goventm g ~ear~ ,h:i ll be
r whrrhcnn (hi The quantum of deduction already allowed in the pr«:edm
coop.:r:iu,c Bank. UC, National Housing Bank, Assessee·s employeCoop,,,ll \, deemed as income of the assessee for 1hc prcviou, year in \\htch
1hc
b~ a public company, public sector company. University, and rnniribution to the plan is terminated.
comP3Dy«1
Socic1~. lbe assessee's employer where such employer is a public M Senior C1111cn ,
rublic scc1or company or u univers ity established by law or a college
affil1i1cd tc) In the c:tse of the T ime Deposi1 Scheme in the po,i oflicc
the holdmg
10 such uni \'ersity or a loca l au1hor11y or a co-operati,·e society or
an aulhori1y m Saving Scheme, if the amoum is withdrawn before the c,p,ry or
-.,thdra "aL
ted under • period then 1hc amount withdrawn ;ball be 1a.ublc ,n 1hr ) <:ar of
a board or a corporation or any other body established or constitu been ta,cd
fee. lllld olb:r lloWl'Vcr, such an amoum does no1 include 1n1er,-,,1 1.ha1 hus nlrcaJy
central or State Acl II also includes stump duty, registration in lhc curlier ycai.
assesse~.
c~r,cmcs for the pwpose of transfer of such house propert y to the J moun1 of the pas1
TI11, following paymeol~ shall not qualify for the deduction: Cd) The deduction is allowed on paid basis thrnefore -. here an)
then ll 1.s
of. !ht previous year is paid in 1he current previous yenr under ,cetion NOC
• The cost or any addition or altcrotion 10, or ren<>vation or r<pair clig1blc for deduction.
house propeny which is carried out aflcr t he issue of the comp~ IS~ction 8QCCCJ:
ccnilicatc in respect of the house propert y by the authortly
tJi
co1~:~f IJ.J.I,, D~dut,t/(m rt!l/arding ,·,mtriburion to P~nsion Fund
Condititms
10 1s,uc such certificate or after the house property or any part
has ci1her been occupied by the assessce or any other person 00 ,It (i) Assessce mus1be an individual.
behalf or been let ou1; or (ii) D ·
or JcP<, ,11,-d J , um 11ru.kr
· . .. r he musl b:l-e paiJ,i.ni.1
unng the relcvanl prcv10us )1:a . _ . .:ibton.
3 •
the annuitv pion of UC or any 01rn.-r oour,r for tte~• - P
• Any expend iture in rcsrcc1 of which deduction is allowab le
provisions of Section 24.
undrr
(111 ·
. ) Amount mus1 bl
b,: paid ou1 of mxu • 11"-'0
• =
"h,ch ma, b., ot the , urrcn1
•
previous year or earlier pn:vious years , .
. st11' '
,. The minimum period of holding should be 5 years. (I ) 1-d ,ducuon 15 lc.1, 1of
th<, ,C1ll0"1ng·
shares rn a publ~•fu1uul " Alffo11n1 of Dtd11C1io11: :imounl O <
lqi Amoun1 invc>1cd in appto,cd debentures of and ""Uity . ' f lhCof•'n n<"
.., sector or_umts
. in 1nfr-~ 1ructurc including• power
. ) engaged (a) Amount <lcrosit ed: or
~ompan O
s of \\h1eh arc u1ili1cd for developing. main1ammg, cic.
proceedfacility.
Fuou, ruc1urc
1nfra,1
(b) 1.5 L3c
1 0
"'P •rtan, Points , SOCCC ._..,.,_,, 11r tu, norn,ncc
ul re! I~ - und1.•r ~1,', \:IIOn .,
1,, Amoum dcrm orcd as ,, term deposit for a period
.. • 5 yc:trs 0
( ffll)
' Where a flcr cluirnin·g J,-Jurno u · tr !Mn lhc ;;um-ndered ,uluc shalt t>c
· d.s
acc-ordancc \\llh the Go,cmmcn1 '<.:heme L~f;0 r, 0131UOI\ f
surrcnJ ,:rs. the annu11y' '"' • ,,min« ,n tM \CM o n:ccrpl
'
la.~uhk 1111hc hands ,,t IIie m,:c.
-s~·ot llv
 rauw,m L,,u·,~ Ciro.,., fo111/ lm·nme (GT/) a,rd DPclurtumi -1 35
.13~ t h, p, IJ (1t~P· I.I
If r,·~.mhnq ,ul'h :11111111111 ,k,focli"n is dniml'd under section xor lltcn Ito
;ln111unt reccfrcd f rom Nutlfi d .
, /1// HOCCD(J )I: The amount sl I t Pt nnon Scht mt INSP) iSu1itJ11
,kJu~lllln ,·~n ~,· r1,111wd under , .., ,i,,11 ~occc. . . anc mg to lhc er .. , Of .
•,c·counl for wluch , dcd , h c u ll a,scs<,cc 111 the pcn,1011
, The .1i:i,:rcg:11e amounl of d,-Jurtwn under sc.:tiun~ ROC, soccc, u1111 80Cc1J ' '1 uc111111 as alread be ·
. ccre1ion to such account 5·h 11 he Y en claimed h) hun. then
•• a taxed as me h
,h.,ulJ ,i.11c" ·" ·-' t 1.5 1...·. amounts nrc received b the omc'" I c year m which , uch
. . Y 115scssee or h,s nominee on the closure ur
/.U.c. f>rductinn rrgardin,: ctintributim• lt1 Norij ied Pe11sion S cheme (NP accuw1t or hts
8/JCCl>l . S) 1Stcr;0 n · oplmg
I out or the peMion
· · SC hemc or un receipt • ot• fl<'""'"n
from an annuity p an.
Condition, (<') Amount used ft•r purchasinx an annuity pfa11 ISminn IIOCCD(5)1. \\'here
til ,\ ;..«s_<,"<' nmsl b<: 1111 ,nJ i, 1Jual. the asscssce. has used the amount· for the purch--··"- of an annul!} pIan 1n 1I,c
·•~•,.- ,,,u;l same previous year thc_n the asscssce shall be deemed not 10 have rccel\ed
111,, .·\ s~_.::--...... . be an cmiil,>ycc of Centra l Government or any other cmplovc
1 ror
hc lllJ'' t,c sell cmph,ycd individual any amount ,n the prcvmus year.
pu) Mc nn~t ha,·c joincJ h,scmrloycr on or after January I. 2004. (/) If regarding such amount dcductton 1s claimed under scwon 80<. ,hen no
tn I He has paiJ or Jcpo;i1cd uny amount in his account under the pension scheme dcduclion can be claimed under sect ton 80CCD
nouti,-J h~ Ccntr.il Government (g) ;lnwunt reUil'ed hy the nominu on dtalh of th~ as.1t m •t: Where 1hc
p) th,· amount paid or ,kpositcd by the employee (or self employee) eligible for
amount received by the nominee. on the death o( the as.<e«cc. then that
Jcduction: amount shall not be deemed to be the income of the nomm.:e
tal m the ens,: of an employee: JJ.J.cc. Umit on deduction under section BOC. BOCCC and 1/0CCD IS~ction IIOCC£1
Employcr ·s contribution up10 ten percent of the salary of the employee. The aggregate amount of dcduc11on under sections SOC. ROCCC. and 80CCD ,hould
Therefore. the employer's conrribution is deductible in the hands of the not exceed t 1.5 lac.
employee in the year in which lhe contribution is made provided it ts Currently. the contribution made by the employer towards the recogntLeJ pro, tdcnt
upm twcnry percent of the salary of the employee. Hence, employer's rund. an approved superannuation fund, or an approvcd gr:,ru11y fund 1, Jllo" able onJ
contribution in excess of ten percent of lhe solary or employee would l«luction from bus iness income under section 36, subject to ccrmm hmtlS. Ho"'e' er. the
not Ix eli!,<ibk for deduction and hence taxable in the hands of the contribution made by an employer to the NPS ts not allowed as a &ducuon.
employee: II, therdo re, proposed to amend section 36 so as 10 pro, 1Je 1hnt •n, , um pa,J b~ the
In ca,c the employer is the Central Govcrn111c111 or rile Stat,· osscsscc as an employer by way of contributton towards a pension ;cbemc. :i. rdcrred 10
Gu,.,.mment' contribution upto 14 percent of lhc salary of an employ-« mscctton &OCCD(2) to the account of an employee to the extent 11JI/I.'> not <'Ce.:d tn•.
15 deducuble. of lhe salary of the employee in the previous yt-ar. shall be allo-..c-d J.S d.:Juctton in
computing the income under the head .. Profits and gains of bustnc"" or prolc'>-'"'".. For
Employce·s contnout ion upto 10 cent of his salary. Therefore. un
lb¢ purpose or this clause ..salary.. includes d,·arm:ss allow:mct ii the 1c:rm, ,,f
employcc·s contribution 10 a notified pension scheme is deductible in
the year m which the contribution is made provided it is upto 10% cent employment so provide , but excludes ull other allowances wJ p,:111uis,ic:.
of his sa lary. Hence. an employee 's contribution in excess of ten Employer ' s contribution excluded from 1b• limit or oo• Lac: Ernpio~cr ,
percent of the salary of the employee would not be eligible for contribution shall no I be considered for the ccihng of t I 5 lac
dcduc1,on However, in the case of Centtal Government cmployccs. 11 /J.J.d. Deduction rrgarding Health /nsura111·e pr,mia ISn:ri SODI
1111
15 14' •.
Co11ditions
' /,J ,n any other case. 20 percent of bis gross Iota! income in the previous yeat.
(,) Assc~sce must be un i11di\'1dual llr II UF.
. Significantly. !>ect,on 80CCD is also applicable to to a sclf-employed · .1 -
0111 111
th: pf\'\ 11J~ ,e.11 to l.ii:ncrul
individual. However, this benefit is upto twenty percent of his GTI _and (" ' Asscssec must• huvc
, con1ribu1
• • eJ
i ""~ h>·•r ansur;im:"· liJ\\.lJU:, mcw1;
• , ...
.u:, iru,ur.im.:•c
".here contnbut,on made by , uch a,scsscc exceeds twenty percent of _h,s Insurance Corp,,rn1t<111 ((, IC) or WI~ " 1 ' • 111 l·kJhh S.:hcmc• or ,uch
. • Ih I·• "(\•ntrJI G<l\<nu11< • ,
(,ro,s 1 otal Income (GTIJ then excess shall not be taken into considcrntton prcmmm on the hca t ." m <r .. ...., l' _,,,·mmcnt m th1 , lxh.1 lf ur unv
' ti Jbnhel enu.u •v ·
for the purpo~ of i.:ctton kOCCO. ntl,er schcm~ as mny be nou .(' . . ,,,. h<'J1th 1.·hc.,· l ·UP "I' th,· .L'!'>~~,1.·-..: or h1~
II I Additional ~'.duc·titm of rso.ooo ur,d~r Sutfon BOCCl>(I 8)): AS prr
r,aymcnl nutdc ,m ~h:cuunt ,,t pn..·, '- nt
'>c-cttun. ROC(D(I BJ. lndlvldu1b wh11 arc employees or srlf-rmploY~ family" of thc foliu\\ 111g.
c~n-d 11m an ■ddlllona l drductlon or t 511,000 ,.-hen they cont rlhull' 1
1
/I. PS or Al■f Prn,ion Yoj ■ na . I h" deductmn i, " "er aml uhow th< un•••""
that can b.: d n,rned under Sectwn ijOCCI l( 1) (u) . cti by t.,11.,,nn~
Suh,1ilu1 ' . b, 1h,· I 111.111,< ,\,t. : ot~ " < I 01,J.J .,1:
• t.1
l hi • ' pt·r cent , " h«•· ,u,h ,.,.,,nt.Ju,111 ,, nuJ< ~- the l <nir,1 l•l'<mmcn< 11
1
1,,unc-·11
· ,c111. "her,· ' .'"·h ,•,1111t1bu11••• ,, 111J<k• b) "'" oth« ,-mrl<') <I, u l h« ,alnn
rn t><r •
1l""'"" '
IS ) t•.11 " sh,11 I'<· ,ut»111u1,,I uolh rtltct tl\•111 th< l >I J.,, "' \ pnl . W?n .. tn '
l"'<ncd br the h mm« An 2022 ... e ( I 4 21J2r1
 ] i u 'Q(ltlfl tllH S , Gro.u Toro/ /nm,..r (GT!'
~36 ( h•P· I. . "tmd Dedur1inn, 431
Cb
, 111 •,1.sscsscc has mcurrccl cxpen11:s , medical .
As.,.•s.~<'r Thr pu.wm 11n "·hos<' hrulth - - - ap. IJ •1 r~habihtau.on o1• a dependent (being · ,or
a 1 ·
. rcwncnt or 1n11ning an<
1
lndl\ ,Ju~I I (al Ind" ,dual or h,, fannly: ---... ......_
,pa,ited under any scheme firamcd • thper,on wnh a di,ab,l11) l or ha, paid o r
Jc - in isbchalib Lfi 1 I
--
• ,y other in,urcr or the adminis·
i rnio · ·
(It\ l'3rcn1 or p:1rcn1s of 1k individual (whc1h' -...., •11 )
r 01 ,pcc1fied e n,urnncc (orpom11on
null. er dcpcndc Or
of dcpcndcnl (being a person wuh a di<a 1·
.· . company or ma1n1enance
"' Of be approved by the boord for th1> purpose bilily). llowcvcr, ~uch • ""hcn1c muSI
IILF An) member of HUF.
Important Points
1111 ) Su,h msumncc musl be 111 uccordancc wi1h a scheme framed iry~ (n) Dependent (bemg a person wi1h a disability) me·rn . i •
Nh:r in,ura and :ipprovcd by Insurance rcgulutory and dcvcloplllc □1 auih or ll!) 1he following conditions : h0 · f
' '· person " " " " ,..,
In I Tht pl)m,·n1 must be made by him by any mode of paymcm oihcr IbaClnl) (o) In 1~e case of .an ind1v1dual.
I i.,.- c,cr. 111 the c:ase of prcvcn1i,c health checks up p.iymcnt ma , b O ct~ f depcndcn1 means. spouse.,,.
.L'ld rcn. parcnL,.
bro1h crs an d SISICrs o such individual or any of 1hcm:
moJc including cn, h
,111) } c llllldt !,1
-
(/J) In inc cusc of HUF depcndcn1 means a member of l IUF:
(1·) Amount II/ Dduction: (<') Such person must be wholly or ma,nly dependent upon such ,ndl\ ,dual
A1sesst-e Amount or Deduction or HUF for suppon 3nd mamtcnancc:
lnJividu,il I(") TI1c whole amo-u1-11- p-ai_d_ u_, cllcct or 10 keep in force-;
insurance on the hea lth of assesscc o r his spou.w an!

{d) S~ch re~on must nol claim dcduc11on undcr ~-c11on Ml ,n compuuni;
hi s wtal income for 1hc relcvunl asscs<mcn1 year.
(e) Disability has the same meaning a, (ISSigned to it undc1 ,cc11on 2( r) of
dependcm children or any contribution made 10 ('enlnl 1hc Person " ~th Disabih11es ( Equal Opponurn11es. Protocuon ,,i R1gh1>
Govemmem health scheme hut should nm c~cced m
and Full Panicipn11c,n\ Act, 1995:
aggrcgntc US.000.
(/) Person w11h a disability menn; disabili1y should nol b<: less than ~O" •
(b) The whole amounl paid to eff,-ct or 10 keep
in fom (i•l Amounl of d.-durrion is:
insurance on the health of the pnrenl or parems wh,1hn
(o) n s.OUO(in case 1he d1s:ib1hty is more thlln -1m. bu1up10 ~O".). or
der,r ndcnt o r no t o f the asSC!"iscc but should not 1:,w ccJ m
uggrcga1c f25.000. (bl ~ 1.25.000 in case dcpeadcnt is a person wi1h sewrc d1,ab1lity i. .-. more lhon
I (c) paymcn1 made on account of preventive health check-up ~! ~0%.
(cl If dependent dies before a.scssce then the amounl paid or dcpos11,-J sh311 be
1he asscsscc or his family(spouse, depcndcnl children. and deemed 10 be the income of the as= for lhe pre, ,ou. )"1lr 10 "hich such
I - -- -'
I -----
parents) should not exceed in aggrega1e t 5.000.
- --- - - - - - -- amount ls rcccivcd by the :issesSI!<! and hence chargcJbk 10 13.\.
IIUF (a) The whole amount paid 10 cfTect or 10 kecp ·m force and Am.-ndm.-nt ofby 1h.- Finant'<' At·t, 1011 /1\.eJ I 4.10!3!
- - - - ~ - -- -
I insurance on the health of any member of 1ha1 Hl'f d,..s
1101ex,·ced in excess oH25 ,000.
- - - -
/1/ 111 s11h-sec1io11 (1), for dausf (a/. 1hr (ollo"ing r/<N.h' rhalf M ju/>mrutt:d.
110111ely:-
.4tltli1iooa/ tl,tlu,·tion of (lS,0110. where the person on whose name health 1·~J) uron·,
m:. ..(a) tire Icf,eme referred 10 111 douse (bi o/'sub-s<!<·/11111 r/J prtwiJ,·s /r,r /taymr111
is taken " a senior c11i,en (60 )'l'ars for the previous year
of the annuity or /ump .mm amou/11 {or 1h, be11e/i1 01 a drf}<•ndan1. l>t'i11g "
relevant 10 A. Y · 1022·-
additional drduc1ion of U5.000 shall be allowed, i.e., 101al ~50,000. person
• .
. ( . with
I a disabilily.
if I I- h o( ih; mdwidual or 1h,· m,•mb,•r ol rh,• Hmd11 .
f.ramplr: Dunng Prc\lou, Year 2021-22. Mr. A has pa,d . the ,o, IIow,.11" mcdicJ1 ,) ,n l,e ('Vent o l ''-' t ,.,m . . h cripriun to tltt1 sch,.n1e· lws bt:.:11
insuntn\'.'1..' prcmia: 0
undiliid,•1/ f amily ,n whv.w """" , u s
Ill t 10.000 for an 1nsun,ncc pohcy on his health and 1hc health of his spause, made; or . ..~• ,,r mon· t,, ,&; l h tr.di\ ,Jufll or lhl!
1
(11 J l l!l.000 for un insurnncc policy on the health of purcn1s. (11··, an a/lammg · · th f a~•e o,jsun- · · • - · 1 . ,ml rht • I"" m,·• t or Jepo<11 10
.fhcrcfu,c.
. niembt 1r nf the Nim/u u~ubud~·•1-~0 "'.~:' · '
he 1.s el1g1hlc for
. deduction of ?25.000
(f 10,000 ~ f 15.000)· Ho"'"~r.
()()0. , h <b.,,.,, ,/,scon1111111 J. •
•
S MC I sc It
J I me a: 1. · // • , ••f~trrd. r,unr~h- -
\\h<rc une pucnl ",enior ciu,cn then he 1s eligible for deduction of '28.000 (f lO, ( ') I>- ...,.,,,.,, snu ••• · •
l 1~.000) u a/1...·r ..s ub-:tectio11 ( J)..lh••
. ' (olltm·rn
. ..ilh·-'"1"f.•(lOtl
J
, .:, thall fk}I urrh 10 I It
13.J.e. Drtlurriun rrxurding muintrnanc" /ntfuditix mrilit'ul treutmmt of tleptnJt~r (.!A) n,,, [''°"'·"'"'' 11( ' ." s
, JJf.>f\ tJII " l

•• amounl
·ih (, ,fo.r/,r/1r1 t,,,Jcr~ his ,1,,a1h. b i•
•
btinx u pen11n with dL,uhility l.'imit,n IIODDI O rl!c_•e,',•t•tl h,· rllt· ,/,•pendant. ,.._.,,,~
1;, a . { rhe l ,0 ,u/Jrwn t(')t'"t•fl to "'sul>•
. h ,p/wamin o
Cuntlitiun, ""\' ,if nnnwt\' ur lump sum Y ''I . ..
c/1111.<,· (iii a/ i·1"u<•' (tJ) t!/ •ul>-S"' /WII (.I
(11 i\«es,;ec mu,t be indiv ,dunl or II UF.
Iii) As.scs,cc mus1 be rcsidcn1 in lndi:1.
 (ir, •s.,· Ji,111/ /11 ,.,.1111 . ( C, // I 1111,/ l),.,t,,, 1'"''
~ I.1
..... .
/)1-dll•·tifJII R,•gurd,ng ine'11n,e of l't•r~·,,,, WI/ .
\
4X I
, ,. 11 l>1.w1hlllti· (/' I" / . .
,11""4< . . . · ,·. J) l,\1•ctill11 HfJU I
,,,,.,,,·,· 11111~1 he an 111d1v1dual [lllll" . .
. 11111 or lorc1g11 ci1i • I
Ill' 11111,1 h~· a rc.s1dc111 of India d uring . t en •
the rcle ·
!{, OR hul not 1NR) . va111 Previous Year (ROR or
Pt~t111 ll'it/, Di.~abili~•,: Mc must b. .1 1 , .
b'I' .
,,'
·
, 111h :i nu mmum o 1 40
· 01/o or more of. c •· d" crson. w11h
. .D'isa I Hy 1.e. he must suffer
rcrwn With Disability ( Equal o any ~a?ihty given
1
under sect ion 2/il of 1hc
. . . ·
pponun1tie s· Prot ect1on f .
p3rtic1p:i11o n) Act. 1995 i.e.: o R1gh1s and Full
10) Blind11t•ss: II refers to a condition , h . .
followi ng conditions namely: " ere a person suffers from any of the
( I) total absence of sight; or
(2) visual acuity· not exceeding 6160 or 201200 (sncllcn) in the bcner eye
'th
w1 correctmg 1cnses; or
- degrecs or
limitation of the licld of visions subtending an angIc of '0
(3) worse.

with low vision: It means a person with impairmc111 of visual

(b) Pers~11 _
funcuomng even atlcr treatment or standard refractive correc1ion bul who
uses or is potentially capable of using vision for the planning or cxccu1ion
of a task with an appropriate assistivc device.
(c) leprosy-c ured person means any person who has been cured of leprosy but
has:
(I ) loss of sensation in hands or feel as well as loss of sensa1io n and paresis
in the eye and eye lid but with no manifest deformit y;
(2) manifest defonnjty and paresis but having sufficient mobility in 1heir
hands and feet to enable from to engage in normal economic ac1ivity;
(3) extreme physical deformity as well as advanced age wh ich prevents
him from undertakin g any gainful occupation.
Id) Hearing impairme nt: It means loss of si~1y decibels or more in the belier
ear in the conversati onal range of frequencies.
le) L d" b •t · It means disability of the bones, joints. or muscle~
ocomotor btsu 1 11y: . . .
. . . .• - or the movement of the hmbs ur any fom1
Iea d mg to su stanua1 rcstnc 1100
palsy.
1/J of cerebral . • condi1ion of am:sted 1H 111co111ple1c
Mental returda11011: It means a h. h •. , . •ciallv cl1r1mcteriLed b,
developme nt of the mine.I of a person w ic is t:sp.: · '

~ub-normulity of inte ll igence. . d

J' , ·:ler nihcr 1111111 mentn I remr uttun.
1K) Mental i/lne.\'.,·: It mcuns uny mentu isim_ . 1 ns O pcrson with 11111rc
. . h . • e di.mbrlto•: 1t meu . • .
Meantn,: of the per.mn wtl ., ev_•~ . : ,i1,ncd under sei.:111111 :-6(·ll ,,t
.,· ·•1bil111e,· 11·' 111•n · • 1•ro1ecm111 , ,t• Rig · 1
11s :in,
I
than 80% of one or 111urc uis, 1••~-
•. - I op 1111rtu111
the Person:. with Disab11i11es ( 1~ 11
1 111

Full Panicipali on) /\ct, I lJIJ5.

!h•J . 1l1u11 .t(l" u hul upl•• XO" "
,l,,,ount of Deduct/OIi
(a) n5 000 where Normal 1)1sa · bT1c111 0r•
• IIY . . . bT i . in,,rc ihan l<O""
(b) ' . . · s. 11
•rl' 1)1sa 1 Y -~-
t I.25,000 - where di sahilit y is sH
4Sl 7tulll/1 111 I t/11~
'
( 1 Crmijirau t, 1 \ lrJir,1I ,l111l111rity: I or <.h11m1n11 dcdu
• . c11un as\c\ flap Ii
<"Crtifical\' 1~,m·d h, the- 1111:<ln:11I aul I1011t! in 11c
I . sec rw,..
prcscnbct1 fl ...,. ~
10-111,) nnd m,mner ;lun g,, uh the return of the inco 0 11
me. "' fh11,n •
further. nflcr the c,rir y llf a pcno<l \llpulatcd
m that certificate as~cs~cc Ill
IN a nc,, ccnifo:atc otherwise no deduction
shall be allowed to the asscssee, u11 ~,
Wb & th;,- .,,,c~,cc I\ cum 111g mcomc from a busin
ess, deduction under \cc
t'f tht, Act ,hall not be d1,alllmcd becau\e 11 1s not
a cond1 lion precedent u d II n!L
llut the a,,c "ee should he uncmployc d or not earning , n er thiJ
any! hmg. [Sardar llur, >.a
, CIT (1991) Ili 7 11 R '179 (i\11)]
P'tti Sin~,
I.t s E1emplion and deduction
The mam difference between c:<cmpllon and dcdu
cuon 1s that c,cmptcd a
not to he added to the taxable mcome of the asses
sce whereas deductible ~ 1•
alre3d) added to the l!ross income from "hic h
the same amount 1s d~ducte~' ~1
~ample, ,cholar-h1p " full~ exempted Therefore
. \\ here the assessec rcee,h~ t~
amount 1h a scholnruup n ,~ not to be added
1nto the GTI. There arc some incomes~
are paniall) exempted such as gratuity. pension. etc.,
m such case, after cakulaiion.tic
exempted amoun1 balance 1s added to taxable incom
e. An cxample of deducuble u1e-:::
1, 1me-1mc111 ,uch as contnbuuon to>nards PPF, hom
e loan pnnc1pal, etc. covered under
Section 80(. which 1s already there m GTI and IS dedu
cted from there
13.6 Conclusion
GTI is 1 otal mcomc under-five hearu. of mcome 11nd
applies all the sec110n,, from~
80, i.c • clubbing pro, is100~. Jggrcgallon of income.
and sell off carry mg forward •'ld I:'
off of to~-cs. from G fl dcducuons under Chapter
VIA arc given Such dcducnons art of
the following twu tvpes. lxducuon on account of somc
payments or m,e~tments co1ml
under sections 80C-80CJGA and Deduction on acco
unt of certain incomes 11h1Ch a.c
already included in gro,~ 1otal m~omc covered unde
r secuons XOJ LHB- SOU Und~r cid-
typc, there :arc various subscc1ions
13.7 Polnh to Rememb er
I. Gro u Total lnw me (GT /): Total mcomc befo
re g1vmg dcducuon, un&t
section, ROC-80U
2, From G I J deductions under Chapter VIA
arc given. Such dcduc1ions arc oflhi
followmg l\l.o 1)1),~. Oeducuon on account of somc
pay,m:nB or in 1 ~'1111eni;
Co\ered under ~cction, 80( -BOGGA und Dedu
ction on account 01 ~
1111.:omes >nh1ch arc already included
in gross total income ,o,·crcd 1111
seclluns 81Jl lllB-!IOU '

3 /Jijfr rl'llf l' bl'tk'l'l'n Fw mption

and D1•d14cti1111:
I xcmptcd mwm~ Nut 10 be added 10 lhe taxublc mcom
c of the a,,c,,,•c. , •
Deduc1111n Ah\·,idy added 111 itrn~s income from 111111 1
Jcdue1cJ "hic h the s,1111.: ' \11 •

4 1/11• IIJ(J(re,:1111• un111u11t 111' tlcduuion lur lhc

a,,c,!.111cn1 'I car ,02:i-2J u11J,1
•(·Clion \ KIi( . KIi( ( C, 11nd HOC( I) ,huulJ not cxcc
ctl 1.5 hie