The Maximum Limit of Deductions under chapter - VIA as per each Income Tax section for salaried Employee to invest fund and utilized the Tax Limit under chapter-VIA for the Financial Year 2011-12 and Assessment Year 2012-13. Employee did not aware about what type of deductions can be claimed under Chapter-VIA by him to avoid undue deductions of Income Tax from his Salaries. The following deductions are relating to salaried Employees:
Deductions at a Glance to Salaried Taxpayee:
Serial No’s
|
Sections
|
Particulars
|
Assessee to whom allowed
|
Quantum of Deduction
|
1
|
80CCC
|
Deduction in respect of contribution to certain pension funds
|
Only Individuals
|
Max. Rs. 1,00,000
|
2
|
80CCD
|
Deduction in respect of contribution to new pension scheme
|
Any employee or a self-employed person
|
In case of employees maximum 10% of salary and in case of self-employed persons 10% of Gross Total Income
|
3
|
80CCE
|
Limit of deduction u/s. 80C,80CCC and 80CCD (only employees contribution to New Pension Scheme to be included for the limit of Rs. 1,00,000)
|
Individual or HUF
|
Max. Rs. 1,00,000
|
4
|
80CCF
|
Deduction in respect of Long-Term infrastructure bonds.
|
Individuals or HUF
|
Max. Rs. 20,000
|
5
|
80D
|
Deduction in respect of medical insurance premia w.e.f. A.Y. 2011-12 any contribution made to the Central Government Health Scheme (CGHS) shall also be eligible for deduction
|
Individual or HUF whether resident or non-resident.
|
In Case of Individuals
|
(i) For individual himself, spouse and dependent children Rs. 15,000
| ||||
(ii)
| ||||
For parents of the individuals, whether dependent or not. RS. 15,000
| ||||
In case of HUF Rs. 15,000
| ||||
Note:- Addl. Rs. 5,000 if any of the above person insured is a senior citizen.
| ||||
6
|
80DD/
|
Deduction in respect of maintenance including medical treatment of person with physical disability.
|
Individual or HUF resident in India:
| |
Rule 11A
|
1) With disability
|
Rs. 50,000
| ||
2) With severe disability.
|
Rs. 1,00,000
| |||
7
|
80DDB/
|
Deduction in respect of medical treatment etc.
|
Individual or HUF resident in India
|
Rs. 40,000
|
Rule 11DD
|
For senior citizen
|
Addl. Rs. 20,000
| ||
8
|
80E
|
Deduction for interest paid on loan taken for pursuing his higher education or for the purpose of higher education of his relative. Higher education shall cover all post schooling courses.
|
Individual whether resident or not.
|
Actual amount paid.
|
“Relative” means the spouse and children of the individual.
| ||||
9
|
80G/Rules 11AA & 18AAA
|
Deduction in respect of donations to certain funds, charitable institutions, etc.
|
All assesses
|
(a) 100% or 50% of eligible donations, without applying qualifying limit in certain cases.
|
(b) 100% or 50% of eligible donations, after applying Qualifying limit of 10% of adjusted GTI.
| ||||
10
|
80GG and Rule 11B
|
Deductions in respect of Rent Paid
|
Individual only
|
Max. Rs. 2,000 p.m.
|
11
|
80GGA
|
Deduction in respect of certain donations for scientific research or rural development, etc. w.e.f A.Y. 2011-12 donations to any research association will be eligible for deduction.
|
All assesses no having business income.
|
100% of sum donated.
|
12
|
80GGC
|
Deduction in respect of contribution to political parties/Electoral Trust
|
All assesses (except local authority and artificial judicial person)
|
100% of sum contributed.
|
13
|
80QQE
|
Deduction in respect of royalty income, etc. of authors of certain books other than text books.
|
Individuals who are residents in India and are authors.
|
Actual income or Rs. 3,00,000 whichever is less.
|
14
|
80RRB
|
Deduction in respect of royalty on patents.
|
Individual who is resident in India and is a patentee.
|
100% of such income or Rs. 3,00,000 whichever is less.
|
15
|
80U/Rule 11D
|
Deduction in the case of permanent physical disability (including blindness)
|
Resident Individual:
|
Rs. 50,000 in case of a per with disability.
|
Rs. 1,00,000 in case of a person with a severe disability.
|
