Gsoftnet
Showing posts with label 80 DD. Show all posts
Showing posts with label 80 DD. Show all posts

How to Claim your Medical Insurance Premium u/s. 80D ?

DEDUCTION IN RESPECT OF MEDICAL INSURANCE PREMIA SEC 80D

If the following conditions are satisfied then an assessee may claim deduction under this section.

  • The taxpayer is an individual or a Hindu undivided family.
  • Insurance premium is paid by the taxpayer in accordance with the scheme framed in this behalf by the General Insurance Corporation of India and approved by the Central Government. The scheme is known as “mediclaim” insurance policy. (The amount deposited in a similar scheme of any other insurer who is approved by the Insurance Regulatory and Development Authority shall also be eligible for deduction).
  • The aforesaid premium is paid by cheque.
  • Mediclaim policy is taken on the health of the taxpayer, on the health of spouse, dependent parents or dependent children of the taxpayer. In case of HUF on the health of any member of the family.


HEALTH POLICY ANALYSIS


Note: If the mode of the payment is not given, then make an assumption that premium is paid by cheque out of taxable income

PROBLEM

Sri "X" submitted the following particulars under section 80(d) Medical Insurance premium:

Self: 10,000____Father(age 69 years): 24000

Solution

For self:

Least of the two amounts: 10,000

For father:

Least of the two amounts: 20,000

TOTAL: 30,000

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

There are so many Income Tax Deductions which are allowed to be claimed by an Salaried Employee, Individual or HUF. Though this a few Income Tax Deductions are very useful, which can be easily claimed and are helpful in reducing the tax burden. 

What do you mean by Tax Deductions ?

Tax deduction helps to reducing your tax-liabilities. It decreases your overall tax liabilities and save tax and grow savings. However, depending on the type of tax deduction you claim, the amount of deduction varies. You can claim tax deduction for amounts spent in tuition fees, medical expenses and charitable contributions. Also, you can invest in various schemes such as life insurance plans, retirement savings schemes, and national savings schemes etc. to get tax deductions. The government of India offers tax exemptions for various expenses incurred in different activities to encourage individuals and commercial institutions take part in activities having social benefits.

A number of day-to-day expenditures qualify for deductions, with information about them being crucial to help us save money. Tax deduction can be claimed on money spent for education, medical expenses, charitable contributions, investments in insurance, retirement schemes, etc. These deductions have been put in place to encourage members of the society to participate in certain useful activities, helping everyone involved in the process.

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

Notified Contributory Health Service Scheme under section 80D.

The Central Board of Direct Taxes has notifies the Contributory Health Service Scheme of the Department of Spcae for the purpose of said Clause under section 80D for the Assessment Year 2014-15 and subsequent Assessment Years.  The full notification is as under:

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART-II, SECTION-3, SUB-SECTION (ii)]
Government of India
Ministry of Finance
Department of Revenue
[Central Board of Direct Taxes]
INCOME-TAX

NOTIFICATION
****
New Delhi, the 15th January, 2014

S.O.107 (E). — In exercise of the powers conferred by clause (a) of sub-section (2) of section 80D of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the Contributory Health Service Scheme of the Department of Space for the purposes of the said clause for the assessment year 2014-15 and subsequent assessment years.

[Notification No.6/2014 (F. No. 149/97/2013 –TPL)]

Sd/-
(Arju Garodia)
Under Secretary (TPL)

Deduction U/s. 80DDB, U/s. 80U & person with disability.

The deduction u/s 80DDB is available if the expenses for the medical treatment of specified disease or ailment is incurred by assessee on himself or on dependant. The specified disease for the purpose of section 80DDB is prescribed in Rule 11DD as under:
    11DD. (1) For the purposes of section 80DDB, the following shall be the eligible diseases or ailments :
    (i) Neurological Diseases where the disability level has been certified to be of 40% and above,—
    (a) Dementia ;
    (b) Dystonia Musculorum Deformans ;
    (c) Motor Neuron Disease ;
    (d) Ataxia ;
    (e) Chorea ;
    (f) Hemiballismus ;
    (g) Aphasia ;
    (h) Parkinsons Disease ;
    (ii) Malignant Cancers;
    (iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
    (iv) Chronic Renal failure ;
    (v) Hematological disorders :
    (i) Hemophilia ;
    (ii) Thalassaemia.
The amount of deduction allowable under section 80DDB is the expenditure actually incurred or Rs. 40,000/- (Rs. 60,000/- for senior citizen) whichever is lower.

Deduction under section 80U of the I.T. Act, 1961 is available to an individual who is resident and who at any time during the previous year is certified by a medical authority to be a person with disability.
    “Person with Disability” means a person suffering from not less than 40% of any of the disability given below:
    i) blindness
    ii) low vision
    iii) leprosy-cured
    iv) hearing impairment
    v) locomotor disability
    vi) mental retardation
    vii) mental illness
    viii) austim
    ix) cerebral palsy
    x) multiple disability referred to in clauses (a), (c), & (h) of section 2 of the National Trust for welfare of persons with Austim Cerebral Palsy, Mental Retardation & Multiple Disabilities Act-1999.
    The deduction under this Section is a sum of Rs 50,000/- in normal cases and if the person is suffering from a severe disability (80% or more) then with effect from F.Y. 2009-10, a sum of Rs. 1,00,000/- is allowable as deductions.
    As far as the arrears of the TA received during the year is concerned, you can claim the benefit of deduction available u/s 89(1) in respect of arrears payment.

Source: The Hitwada News Paper

New Medical Insurance Scheme by State Governments u/s. 80D w.e.f. 01.04.2014.

The previous provisions of section 80D, inter alia, provide that the whole of the amount paid in the previous year out of the income chargeable to tax of the assessee, being an individual, to effect or to keep in force an insurance on his health or the health of the family or any contribution made towards the Central Government Health Scheme (CGHS) or any payment made on account of preventive health check-up of the assessee or his family, as does not exceed in the aggregate fifteen thousand rupees, is allowed to be deducted in computing the total income of the assessee.

It has been noticed that there are other health schemes of the Central and State Governments, which are similar to the CGHS but no deduction for such schemes is available to the subscribers of such schemes. In order to bring such schemes at par with the CGHS, it is proposed to amend section 80D, so as to allow the benefit of deduction under this section within the said limit, in respect of any payment or contribution made by the assessee to such other health scheme as may be notified by the Central Government.

This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.

In section 80D of the Income-tax Act, in sub-section (2), in clause (a), after the words “Central Government Health Scheme”, the words “or such other scheme as may be notified by the Central Government in this behalf” shall be inserted with effect from the 1st day of April, 2014.

Exemption of Medicalim u/s. 80D and its Calculations for Asstt. Year 2013-14.

Taxpayee wants to save Income Tax except Exemption Limit in the Asstt. year 2013-14 (i.e., FY 2012-13), an individual can claim deduction towards any sum paid on account of preventive health check up of himself, spouse, dependant children or parents. It may be noted that the total deduction towards preventive health check up cannot exceeds Rs. 5,000/-. The said deduction is admissible u/s 80D of the Income Tax Act-1961 & is over and above the deduction of Rs. 15,000/- / Rs. 20,000/- otherwise also available towards mediclaim policy.   The best option is that Mediclaim Exemption to save Income Tax u/s. 80D and secure the heath. The medicalim Policy is for Individual and HUF are available and get benefit of Tax u/s. 80D. The details regarding 80D and medicalim Insurance are as under:

1. Addition to section 80 C: Section 80D is available other than 100000 deduction available under 80C for life insurance, ppf, gpf, tuition fee, ULIP, House loan repayment etc.
2. Insurer covered: This deduction is available for medical claim policy which should be framed in this behalf by
* by GIC (General insurance Corporation) or by
* any other insurer but approved by IRDA (Insurance Regulatory Development authority)
3. Available to : Deduction is available to
* Individual (resident or non resident, Indian Citizen or foreign citizen)
* HUF(Hindu undivided Family may be resident or non resident)
4. Mode of payment: Insurance Premium should be paid by any mode other than by Cash . Means if insurance premium is paid by cash then no deduction is available.Before Assessment year 2008-09 ,only payment by cheque was allowed under this section but from Ay 2008-09 onwards the deduction is allowed by other mode also like online payment which is now a days is very popular or by credit card is also allowed.
5. Out of Income : The amount should be paid out of the income chargeable to tax.
6. Proposer of the policy is not must: The premium is to be paid to effect or keep inforce insurance policy ,there is no condition that assessee should be the proposer of the policy ,
7. Partly contribution: Assessee can partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)
8. Insurance cover on?: First deduction given below : Insurance Premium may be paid for medical claim insurance policy for assessee himself or spouse or dependent children or any combination of three.
9. Addition for parents: Second deduction given below:Insurance premium may be paid for medical claim insurance for assessee parents (father or mother or for both)
10. Deduction upto 40000: Theoretically ,maximum deduction can be claimed for Rs 40000.(detail as given below)

Amount Of deduction : Two type of Deductions are available to Individuals under this section from Assessment year 2009-10

1. Deduction on Medical insurance premium paid for himself,spouse,dependent children =Rs 15000 maximum.
2. Deduction on Medical insurance premium paid for parents ,whether dependent on assesee or not =Rs 15000 maximum

Deduction to HUF: Deduction to HUF is available on insurance premium paid for policy taken for of any member of the HUF.

Addition deduction for Resident Senior Citizen: In addition to two point above, additional deduction of Rs 5000 is available where assessee or his spouse (wife or husband) or dependent parents or any member of the family in case one and father or mother is a resident in India and a senior citizen in case two.And same in the case of HUF assessee if policy has been taken on member which is senior citizen than additional Rs 5000/- deduction is available also to HUF.

Senior citizen means who is at least of 65 year of age or more at any time during the previous year.

Limit for Tax Claim u/s. 80D, 80DD and 80U of IT by Senior Citizen and Other Individuals.



As per Income Tax Law the Income Tax Deduction Limit u/s. 80D, 80DD and 80U for Senior Citizen and Individuals to claim Income Tax Exemptions for Assessment Year 2013-14 are as follows:

Section 80D enables an assessee to claim deduction from Gross Total Income the following payment:
  • Payment of health insurance premium of assessee or his family or his parents
  • Contribution to the Central Government Health Scheme
  • Payment for preventive health check up of the assessee or his family or his parents.
Amount of Deduction:
Deduction can be claimed by an individual in respect of the medical insurance premium paid up to Rs 15,000/- for himself and his spouse and dependent children. Additionally, he can also claim deduction for the medical insurance premium up to Rs 15,000 for his parent(s). The aforesaid deductions shall be Rs 20,000 in case the premium is paid for senior citizen (60 years or more from the FY 2012-13).

A Precaution:
  • Ensure to make the payment by cheque only.
  • There is a max ceiling of Rs. 5,000/- on preventive health check up from the FY 2012-13 within the overall limit mentioned above.
Further, you may examine the availability of deduction u/s 80DD of the Income Tax Act-1961 as under:

Deduction U/s 80DD
Deduction under this section is available to an individual/HUF who incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependent or Deposits any amount in schemes like Life Insurance Corporation for the maintenance of a disabled dependant. A deduction admissible u/s 80DD is of Rs 50,000/- in normal course. Where the dependant is a person with a severe disability, a higher deduction of Rs 1,00,000/- is allowed. The term 'dependent', as mentioned above, refers to the spouse, children, parents and siblings of the assessee who are dependent on him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes u/s 80U. The dependant for the purpose of section 80DD has to be a “person with a disability”.

Deductions of Medical Treatment etc. u/s. 80DDB for Asstt. Year 2013-14.

Section 80DDB allows a deduction in case of employee, who is resident in India, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules HDD (1) (see Annexure) for himself or a dependant. The deduction allowed is equal to the amount actually paid or Rs. 40,000 whichever is less. Further the amount paid should also be reduced by the amount received if any under insurance from an insurerer or reimbursed by an employer. In case of a senior citizen (an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year) the amount of deduction allowed is Rs. 60,000/-.

DDO must ensure that the employee furnishes a certificate in Form 10-I from a neurologist, an oncologist, a urologist, nephrologist, a haematologist, an immunologist or such other specialist, as mentioned in proviso rule 11(2) of the Rules.

For the purpose of this section in the case of an employee "dependant" means individual, the spouse, children, parents, brothers and sisters of the individual or any of them,

Limit of Deduction u/s. 80D, 80DD and 80U of Income Tax for Senior Citizen and Other Individuals.

As per Income Tax Law the Income Tax Deduction Limit u/s. 80D, 80DD and 80U are as follows:
Section 80D enables an assessee to claim deduction from Gross Total Income the following payment:
  • Payment of health insurance premium of assessee or his family or his parents
  • Contribution to the Central Government Health Scheme
  • Payment for preventive health check up of the assessee or his family or his parents.
Amount of Deduction:
Deduction can be claimed by an individual in respect of the medical insurance premium paid up to Rs 15,000/- for himself and his spouse and dependent children. Additionally, he can also claim deduction for the medical insurance premium up to Rs 15,000 for his parent(s). The aforesaid deductions shall be Rs 20,000 in case the premium is paid for senior citizen (60 years or more from the FY 2012-13).

A Precaution:
  • Ensure to make the payment by cheque only.
  • There is a max ceiling of Rs. 5,000/- on preventive health check up from the FY 2012-13 within the overall limit mentioned above.
Further, you may examine the availability of deduction u/s 80DD of the Income Tax Act-1961 as under:

Deduction U/s 80DD
Deduction under this section is available to an individual/HUF who incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependent or Deposits any amount in schemes like Life Insurance Corporation for the maintenance of a disabled dependant. A deduction admissible u/s 80DD is of Rs 50,000/- in normal course. Where the dependant is a person with a severe disability, a higher deduction of Rs 1,00,000/- is allowed. The term 'dependent', as mentioned above, refers to the spouse, children, parents and siblings of the assessee who are dependent on him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes u/s 80U. The dependant for the purpose of section 80DD has to be a “person with a disability”.

Tax Benefit of e-Filing.

Income-tax return is a legal document and it should be filed by the assessee with due care and caution. There should be no corrections or overwriting and it should be properly signed and verified by the person authorized to do so under the provisions of the Income-tax Act. The following important points may be taken care of while filling up the return forms:

Assessment year to which New Forms are applicable:
The new ITRs notified are applicable for the assessment years 2012-13 onwards only, for return of income relating to earlier assessment years return is to be furnished in the appropriate form as applicable in that assessment year. Each assessee has to identify the correct ITR Form applicable in its case before filing the return of Income.

No enclosures to the return:
Rule 12(2) of the I.T Rules provides that the return of income and return of fringe benefits required to be furnished in Form No. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, or ITR-7 shall not be accompanied by a statement showing the computation of tax payable on the basis of return, or proof of tax, if any, claimed deducted or collected at source or the advance tax or tax on self assessment, if any, claimed to have been paid or any document or copy of any account or form or report of audit required to be attached with the return of income or return of fringe benefits under any provisions of the Act.

For timely delivery of refunds, ensure correct address and account number on your Return of Income:
From 1.10.07 onwards, all income tax refunds in Bangalore, Chennai, Delhi, Kolkata and Mumbai will be delivered by the Refund Banker directly at the communication address mentioned on the Return of Income. Taxpayers are requested to fill in the correct address (available during working hours for delivery) to ensure speedy delivery of refunds. In the case of taxpayers who opt for refunds through ECS, it will be credited directly to the bank account for which correct MICR code/ Bank Account Number has to be furnished on the Return.

Manner of filing the new Forms :
These Forms can be submitted in the following manner:
  1. a paper form;
  2. e-filing
  3. a bar-coded paper return.
Returns can be e-filed through the internet. E-filing of return is mandatory for companies and firms requiring statutory audit u/s 44AB. E-filing can be done with or without digital signaturea):
  • If the returns are filed using digital signature, then no further action is required from the tax payers.
  • If the returns are filed without using digital signature, then the tax payers have to file ITR-V with the department within 15 days of e-filing.
  • The tax payers can e-file the returns through an e-intermediary who would e-file and assist him in filing of ITR-V within 15 days.
Where the form is furnished by using bar coded paper return then the tax payers need to print two copies of Form ITR-V. Both copies should be verified and submitted. The receiving official shall return one copy after affixing the stamp and seal.

Filling out acknowledgement:
Where the return is furnished in paper format, acknowledgement slip attached with the return should be duly filled in. The new forms are not required to be filed in duplicate.

Intimation of processing under section 143(1):
The acknowledgement of the return is deemed to be the intimation of processing under section 143(1). No separate intimation will be sent to the taxpayer unless there is a demand or refund.

Furnishing details of high value transactions:
In the return the details of high value transactions need to be compulsorily stated, which are ordinarily reported through the annual information return (AIR) and these details are cross checked and matched with the data in the AIR.

Filing your return through Tax Return Preparers (TRPs):
If you are an individual or an HUF assessee and you are not required to get your accounts audited (called ‘eligible person’) under the provisions of the Income Tax Act, then you can use the services of a Tax Return Preparer (TRP). However, if the ‘eligible person’ is not a resident in India during the previous year relevant to such assessment year, he can not avail of the services of a TRP.

If you are filing your returns through a TRP then you should ensure that:
  1. You are eligible to file return of Income under this Scheme;
  2. You give your consent to any Tax Return Preparer to prepare your return of income for any assessment year;
  3. You verify that the facts mentioned in the return are true and correct before you sign the return;
  4. You certify the amount which has been paid by you under this Scheme to the Tax Return Preparer for preparing and furnishing of the return of income; and
  5. You take a receipt of the payment made to the Tax Return Preparer and produce the same before the Resource Centre or Assessing Officer, if required,
Incentive to Tax Return Preparers:
The Tax Return Preparer shall charge a fee of two hundred and fifty rupees for any assessment year from the eligible person for preparing and furnishing his return of income for that assessment year:

Provided that he will charge no fees for preparing and furnishing the return for any eligible assessment year if the amount disbursable to him as per the scheme notified by the government for that eligible assessment year exceeds two hundred and fifty rupees. If the amount disbursable is less than two hundred and fifty rupees, we can charge the difference between rupees two hundred fifty and the amount disbursable.

Verification:
The verification must be signed by the authorized person before furnishing the return and the name and designation of the person signing the return should also be written. Any person making false statement is liable to be prosecuted under section 277 of the Act.

Taxfree perquisites for Assessment Year 2013-14 for Salaried Employee.


It is general demand of salaried employee (Taxpayee) regarding calculations of Income Tax for the Assessment Year 2013-14 to Deposit Savings, Demand of Tax etc. Thus the taxpayee go through Chaperter-VIA to save tax and project to invest for growing Deposit Savings. In accordance with this  Salaried Employee (Taxpayee) searches Tax free perquisites.  In Fin. year 2012-13 and Assessment Year 2013-14 Taxfree perquisites for Salaried Employee who deducted Tax as TDS monthly from his salary are as follows:

Justify Full1. Medical Facility or Medical Reimbursement:
  • Medical Facility :- The value of any medical treatment provided to an employee or any member of his family in a hospital, dispensary or a nursing home maintained by the employee shall be a tax free perquisite.
  • Medical Reimbursement : Any sum paid by the employer in respect of any expenditure incurred by the employee on his medicaltreatment or treatment of any member of his family subject to maximum of Rs. 15,000 in the previous year.
2. Recreational Facilities : Any recreational facility provided to a group of employees (not being restricted to a select few employees) by the employer is not taxable.

3. Training of Employees: Any expenditure incurred by the employer, for providing training to the employees or by way of payment of fees of refresher courses attended by the employees.

4. Use of health club, sports and similar facilities provided uniformly to all employees by the employer.

5. Expenses on Telephone, including a mobile phone, actually incurred on behalf on the employee by the employer.

6. Employer’s Contribution: Employer’s contribution to superannuation fund of the employee or provided such contribution does not exceed Rs. 1,00,000 per employee per year.

7. The premium paid by the employer on an accident policy taken out by it in respect of the employee would not be a perquisite. [CIT v Lala Shri Dhar (1972) 84 ITR 192 (Del) and CIT v Vinay Bharat Ram (1981) 129 ITR 128 (Del)].

8. Motor car provided by the employer to the employee or expenses incurred by the employer in connection with motor car belonging to the employee (for purposes other than exclusively for personal purposes) shall be a tax free perquisite in the hands of the employee.

9. Amount given by the employer of assessee to assessee’s child as scholarship is exempt under section 10(16). [CIT v B.L. Garg (2006) 155 Taxman 189 (All)]

10. Food and Beverages provided to Employees: The following shall be a tax free perquisite in the hands of the employees-
  • free food and non-alcoholic beverages provided by the employer to his employees during working hours:
(a) at office or business premises or
(b) through paid vouchers which are not transferable and usable only at eating joints.
Provided the value of such meal is upto Rs. 50 per meal.
(ii) Any tea or snacks provided during working hours.
(iii) Free food and non-alcoholic beverages during working hours provided in a remote area
or offshore installation.
11. Loans to Employees : - In the following cases the value of benefit to the assessee resulting from the provision of interest free or concessional loan shall be nil :
(a) where the amount of loans are petty, no exceeding in the aggregate Rs. 20000;
(b) Loans made available for medical treatment in respect of disceases specified in rule 3A of the Income-tax Rules. However, the exemption so provided shall not apply to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.

12. Perquisites provided outside India : Perquisites provided by the Government to its employees, who are citizens of india for rendering services outside India, are not taxable. [Section 10(7)].

13. Rent Free House/Conveyance Facility: Rent free official residence and conveyance facilities provided to a Judge of the Supreme Court/High Court is not a taxable perquisite.

14. Specified Perquisite allowed to certain Persons:
(a) Specified perquisites allowed to Judges of the Supreme Court, Chief Election Commissioner, Election Commissioner.
(b) Chairman or retired Chairman, member or a retired member of U.P. S.C.
are not taxable perquisites.

15. Residence to officials of Parliament etc. :- The Rent Free furnished residence (including maintenance thereof) provided to an officer of the Parliament a Union Minister or Leader of Opposition in Parliament, is not a taxable perquisite.

16. Accommodation in a Remote Area : - The accommodation provided by the employer shall be a tax free perquisite if the accommodation is provided to an employee working at mining site or an onshore oil exploration site or a project execution site, or a dam site or a power generation site or an offshore site which -
(a) being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometres away from the local limits of any municipality or a cantonment board; or
(b) is located in a remote area.

17. Educational Facility for Children of the Employee: where the educational institution itself is maintained and owned by the employer and free educational facilities are provided to the children of the employee or where such free educational facilities are provided in any institution by reason of his being in employment of that employer, there shall be no perquisite value if the cost of such education or the value of such benefit per child does not exceed Rs. 1,000 p.m.

18. Use by the employee or any member of his household of laptops and computers belonging to the employer or hired by him.

19. Leave Travel Connection will be discussed in detail later.

20. Tax paid by the Employer on Non-Monetary Perquisites : Tax paid by the employer on non-monetary perquisites of the employee shall be exempt in the hands of the employee. [Section 10(10CC)]

Deduction except under Chapter VI-A, in respect of Donation to Certain Funds, Charitable Institution etc.

To encourage donations for social cause all assessees are entitled to this deduction from their gross total income, if the donation is made in the previous year to the following funds or charitable institutions. For the sake of convenience we have divided the donations into four categories depending on the quantum of deduction.
Donations made to following are eligible for 100% deduction without any qualifying limit.
  1. Prime Minister’s National Relief Fund
  2. National Defence Fund
  3. Prime Minister’s Armenia Earthquake Relief Fund
  4. The Africa (Public Contribution - India) Fund
  5. The National Foundation for Communal Harmony
  6. Approved university or educational institution of national eminence
  7. The Chief Minister’s Earthquake Relief Fund, Maharashtra
  8. Donations made to Zila Saksharta Samitis.
  9. The National Blood Transfusion Council or a State Blood Transfusion Council.
  10. The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.
Donations made to the following are eligible for 50% deduction without any qualifying limit.
  1. Jawaharlal Nehru Memorial Fund.
  2. Prime Minister’s Drought Relief Fund
  3. National Children’s Fund
  4. Indira Gandhi Memorial Trust
  5. The Rajiv Gandhi Foundation.

Donations to the following are eligible for 100% deduction subject to qualifying limit (i.e. 10% of adjusted gross total income).
  1. Donations to the Government or a local authority for the purpose of promoting family planning.
  2. Sums paid by a company to Indian Olympic Association
Donations to the following are eligible for 50% deduction subject to the qualifying limit (i.e. 10% of adjusted gross total income).
  1. Donation to the Government or any local authority to be utilized by them for any charitable purposes other than the purpose of promoting family planning.
Amount of deduction
The quantum of deduction is as follows :
Category A- 100 % of amount donated
Category B -50 % of the amount donated in the funds
Category C – 100% of the amount donated in the funds subject to maximum limit of 10% of Adjusted GTI.
Category D – 50% of the amount donated in the funds subject to maximum limit of 10% of Adjusted GTI.
The total of these deductions under categories A,B,C, & D is the quantum of deduction under this section without any maximum amount.

Effect on Income Tax by Section 80C Deduction and its guidelines.

Section 80C of income tax act:- In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:


Provident Fund & Voluntary Provident Fund
Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer’s contribution. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free.

Public Provident Fund
An account can be opened with a nationalized bank or Post office. The current rate of interest is 8%, which is tax-free and the maturity period is 15 years. The minimum amount of contribution is Rs 500 and the maximum is Rs 70,000.

National Savings Certificate
These are 6-year small-savings instrument, where the rate of interest is 8% and is compounded half-yearly. The interest accrued every year is liable to tax but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

Equity-Linked Savings Scheme
Mutual funds offer you specially-created tax saving funds called ELSS. These schemes invest your money in equities and hence, return is not guaranteed. Money invested here is locked for a period of three years.

Life Insurance Premiums
Any amount that you pay towards life insurance premium for yourself, your spouse or your children can be included in section 80C deduction. If you are paying premium for more than one insurance policy, all the premiums can be included. Besides this, investments in unit-linked insurance plans (ULIPs) that offer life insurance with benefits of equity investments are also eligible for deduction under Section 80C.

Home Loan Principal Repayment
Your EMI consists of two components, namely principal and interest. The principal component of the EMI qualifies for deduction under Section 80C.

Stamp Duty and Registration Charges For Home
The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C. However, this can be done only in the year in the year of purchase of the house.

Five-Year Bank fixed deposits
Tax-saving fixed deposits (FDs) of scheduled banks with a tenure of five years are also entitled for section 80C deduction.

Others
Apart from the above, things like children’s education expenses that can be claimed as deductions under Section 80C. However, you need receipts to claim the same

Conditions to Claim Deduction u/s. 80DD for Dependent under Handicapped.

Deduction under section 80DD, in this regard the Income Tax Department put the following conditions to claim Deductions under section 80DD of Medical Treatment Handicapped dependent which are as under:

Eligible Taxpayers to whom deduction is Available :
This deduction can be claimed By Resident Individual/HUF.  He may be ordinary resident Indian or Not ordinary resident Indian. He may be foreign citizen or Indian citizen. However Non resident can not claim this deduction.

Options :
Taxpayer may have done any (or both) of following options-
 The taxpayer has incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependant; or 
 Deposits any amount in schemes like Life Insurance Corporation for the maintenance of a disabled dependant. An annuity or a lump sum amount is paid to the dependant or to a nominee for the benefit of the dependant in the event of the death of the individual depositing the money, from the said scheme,

Amount of deduction :

 A deduction of Rs 50,000 is available. The amount of deduction is fixed irrespective of the amount deposited under option 2.1 or 2.2 as above. Where the depandant is with a severe disability, a deduction of Rs 1,00,000 is allowed. ( Rs 75000/- up to AY 2009-10)

Death of the defendant occurs before that of the assessee:
If the death of the dependant occurs before that of the assessee, the amount in the scheme is returned to the individual and is taxable in his hands in the year that it is received.

Certificate :
An individual should furnish a copy of the issued certificate by the medical board constituted either by the Central government or a state government in the prescribed form, along with the return of income of the year for which the deduction is claimed,However as per new rule 12 no document is to be attached with Income tax return .

Dependent Meaning :
The term 'dependent' here refers to -
 For Individual: the spouse, children, parents and siblings(brother,Sister) of the assessee who are dependant on him for maintenance.
 For HUF : menber of  HUF  who are dependent on him for maintenance

Depended claim of 80U :

Further Dependent themselves haven't claimed a deduction for the disability under section 80U in computing their total incomes.

Disability :
Normal disability not less than 40 % and severe disability means more than and equal to 80 %.