Latest e-Book on Income Tax Deductions u/s. 80C to 80U for A.Y. 2017-18

Indian tax laws contain certain provisions, which are intended to act as an incentive for achieving certain desirable socio-economic objectives. These provisions are contained in Chapter VIA and are in the form of deductions (80C TO 80U) from the Gross Income. By reducing the chargeable income, these provisions reduce the tax liability, increase the post-tax income and thus induce the tax-payers to act in the desired manner. This unit is intended to give a broad idea of such deductions.

Following are the basic rules for deduction

1.The aggregate amount of deductions under sections 80C to 80U cannot exceed gross total income(gross total income after excluding long term capital gains, short term capital gain under section 111A, winnings from lottery, crossword puzzles etc.)

2.These deductions are to be allowed only if the assessee claims these and gives the proof of such investments/ expenditure/ income.

CATEGORIES OF DEDUCTIONS

There are various kinds of deductions. Some of them are to encourage savings, some are for certain personal expenditure, a few are for socially desirable activities, and some are for economic growth. For the sake of better understanding we have categorized them into four kinds. They are:

• For certain personal expenditure
• For socially desirable activities
• For physically disabled persons

DEDUCTIONS TO ENCOURAGE SAVINGS

The government wants to encourage the habit of people to save for the rainy day. To give impetus to savings these deductions are given on certain investments or certain expenditure made by the assessee. Deduction is allowed when the saving is invested but normally any withdrawal is treated as income in the year of withdrawal.

The following e-Book helps you to know more about Income Tax Deductions u/s. 80C to 80U.

e-Book about Income Tax Deducation u/s. 80C to 80U

Posted in: Deductions Under Chapter-VIA,Saving of Income Tax Tips,Sec. 80 C,Tax Saving Tips