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Section
80CCC has been inserted with effect from the assessment
year 1997-98. This section provides a deduction to an
individual for any amount paid or deposited by him to
effect or keep in force any annuity plan of the Life Insurance
Corporation of India or any other insurer (including Private
sector Life Insurance Companies) for receiving pension
from a fund set up by the said Insurer, referred to in
section 10(23AAB). The deduction shall be restricted upto
Rs. 1,00,000 U/S 80C.
Where the assessee or his nominee surrenders the annuity
before the maturity date of such annuity, the surrender
value shall be taxable in the hands of the assessee or
his nominee, as the case may be in the year of the receipt.
The amount received by the assessee or his nominee as
pension will be taxable, in the hands of the assessee
or his nominee, as the case may be in the year of the
receipt.
Medical
Treatment of handicapped dependents (Sec-80DD)
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In
the case of resident individuals or HUFs, who incur any
expenditure on medical treatment (including nursing),training
and rehabilitation of a handicapped dependent relative
or have paid or deposited any amount in an approved scheme
of Life Insurance Corporation of India or Unit Trust of
India or any other Life Insurance Company, a deduction
of upto Rs. 50,000 is deductible. A higher deduction of Rs75,000/- shall be allowed where such is a person with severe disability.
Deduction
in respect of repayment of loan taken for higher education
(Sec-80E)
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A new deduction for Asst. Year 1995-96 and onwards in
respect of repayment of loan taken from any specified
financial institution or any approved charitable institution,
by a student(individual assessee) for pursuing higher
studies is allowable. This deduction has been brought
to encourage young men and women to take up higher studies.
Repayment and interest is eligible for deduction.
Deduction
in respect of certain donations (Sec-80G)
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Donations to certain funds, approved educational institution(s)
of national importance, charitable institutions etc. is
admissible u/s 80-G of the Act. This has to be claimed
by the tax payers while filing the Return. Genarally the
deduction will be 50% of the amount. However, 100% deduction
is available in cases where contributions are made to
certain approved Funds. Presently,100% deduction is available
for contributions to certain Funds like the Prime Minister
National Relief Fund, National Foundation for Communal
Harmony, National and State Blood Transfusion Council,
the Africa Fund,Earthquake Relief Fund. The total Deduction
under this Section is limited to 10% of Total Income.
It is advisable that when a person contributes to a Charitable
Institution where a deduction is 50% the donor can insist
for a 80G Exemption Certificate from the Institution.
Deduction
in respect of house rent paid (Sec-80GG)
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Section
80GG of the Income-tax Act provided for a deduction to
all assessees (except the salaried persons who received
house rent allowance covered under section 10(13A) in
respect of expenditure incurred towards payment of rent
for residential accommodation, subject to certain limits.
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Subject to certain conditions, the deduction is now allowable
to an assessee who incurs any expenditure in excess of
10% of his total income towards payment of rent in respect
of any furnished or unfurnished accommodation occupied
by him for the purpose of his own residence. The amount
of allowable deduction will be the least of the following
:-
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the excess of actual rent paid over 10% of the total
income.
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Rs. 2000 per month.
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25 per cent of the total income.
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The
benefit of above deduction will not be available to an
assessee in a case where he, his spouse or minor child
or the HUF of which he is a member, owns any residential
accommodation at a place where the assessee ordinarily
resides, performs the duties of his office or employment
or carries on his business or profession. The deduction
will also be denied to an assessee who owns any residential
accommodation at any other place and the concession in
respect of self-occupied property is claimed by him in
respect of such accommodation.
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Section
& Sub-sec.
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NATURE
OF EXEMPTED INCOME
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10(1)
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Agricultural
Income(included only for Rate purpose)
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10(2)
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Receipts
from a Hindu Undivided Family being paid out of family's
income or in the case of an impartible estate belonging
to family being paid out of such estate's income.
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10(2A)
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Share
of partner in total income of a firm which is assessed
separately as such.
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10(3)
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Receipts
being in the nature of casual and non-recurring nature
not exceeding Rs. 5,000/- (Rs. 2500/- in the case of
winnings from horse races, etc.).
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10(4)(I)
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Interest
on securities and bonds including premium on redemption
of bonds by Non Resident as notified by Central Government.
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10(4)(ii)
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Interests
on amounts in Non-resident (External) Account in any
bank in India being maintained as per FERA, 1973 and
rules thereunder by an individual.
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10(4B)
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Interest
on specified Central Government's Savings Certificates
which were subscribed to in convertible foreign exchange
remitted from a country outside India as per FERA and
rules thereunder by an individual citizen or a person
of Indian Origin.
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10(5)
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Value
of Leave Travel Concession or Assistance not exceeding
the amount actually spent.
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10(5A)
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Specified
remuneration to a foreigner and non-resident individual
for shooting of film in India who comes solely for such
purpose.
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10(5B)
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Income-tax
paid by the employer carrying on scientific research
in respect of the salary income of certain technicians
from abroad commencing from 1.4.93 subject to conditions
stated therein.
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Incomes of foreigners in respect of :-
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10(6)(i)
(a)
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Passage
Money.
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10(6)(ii)
(b)
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Remuneration
received by an ambassador, diplomats, etc. as specified.
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10(6)(vi)
(c)
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Remuneration
received by employees of foreign companies in respect
of services rendered during stay in India subject to
conditions as specified.
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10(6)(via)
(d)
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Remuneration
received from foreign philanthropic institutions etc.
in respect of services rendered in India subject to
both the institutions and the purposes thereof being
approved by the Central Govt.
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10(6)(viia)
(e)
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income-tax
paid by the employer carrying on scientific research
in respect of the salary income of certain technicians
from abroad commencing from 1.4.88 till 31.3.93 subject
to conditions stated therein.
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10(6)(viii)
(f)
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Salaries
to non-resident employed on a foreign ship subject to
aggregate stay of not more than 90 days in the previous
year.
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10(6)(ix)
(g)
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Salaries
to non-residents professors or teachers.
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10(6)(x)
(h)
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Income
of individuals engaged in research work in India under
duly approved research schemes.
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10(6)(xi)
(i)
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Remuneration
received from foreign government for training in a government
office or undertakings as an employee.
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10(7)
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Allowances
or perquisites paid by the Government to Indian employees
who are posted outside India.
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10(8A)
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Any
remuneration or fees received by approved consultant
out of funds made available to an international organisation
under a technical assistance grant agreement.
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10(8B)
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Any
remuneration or fees received by an employee of the
consultant as mentioned in s. 10(8A) above.
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10(9)
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Income
accruing or arising outside India to a member of the
family of individual specified in sub sections 10(8)/(8A)/(8B)
and is liable to tax there, provided the same is not
deemed to accrue or arise in India.
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10(10)(i)
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Death-cum-retirement
gratuity payable to specified members of civil or defense
services.
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10(10)(ii)
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Gratuity
not exceeding Rs.3 ½ Lakhs payable under the Payment
of Gratuity Act, 1972.
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10(10)(iii)
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Any
other gratuity not exceeding Rs. 3½ Lakhs (not covered
under Payment of Gratuity Act, 1972 ) received by employee
on retirement or termination of his services or by legal
heirs on death of employee limited to 15 days salary
for each completed year of service.
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10(10A)
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Receipt
in respect of commutation of pension as per specified
limits.
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10(10AA)
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Leave
encashment not exceeding 8 months salary and subject
to specified conditions & limits.
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10(10B)
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Compensation
paid to employees on account of retrenchment under Industrial
Disputes Act, 1947: Ascertainment of amount to be either
minimum Rs. 50,000 or as per the said Act whichever
is less.
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10(10BB)
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Payments
made under Bhopal Gas Leak Disaster Act, 1985.
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10(10c)
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Receipt
of amount on voluntary retirement upto Rs. 5,00,000
subject to specified scheme and guidelines and necessary
approval.
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10(10D)
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Payment
on a Life Insurance Policy, including bonus thereon
but excluding therefrom amounts received u/s 80DDA(3).
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10(11)
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Receipt
of Payment from Public Provident Fund or Statutory Provident
Fund.
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10(12)
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Payment
to employee from recognised provident fund in respect
of accumulated balance standing to the credit thereof.
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10(13)
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Receipt
of Payment from Superannuation Fund subject to specified
conditions and limits.
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10(13A)
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House
Rent Allowance.
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10(14)
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Special
Allowance to employees within meaning of s.17(2) subject
to conditions stated therein.
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10(14A)
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Receipt
of premium on account of Exchange risk from borrower
of foreign currency.
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10(15)(i)
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Receipt
of interest or premium on redemption etc. on notified
securities, bonds etc. such as monthly payment on 15-year
Annuity Certificates subject to specified condition
and limits.
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10
(15)(iib)
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Interest
on the new Capital Investment Bonds.
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10
(15)(iic)
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Interest
income from notified Relief Bonds w.e.f., assessment
year 1989-90.
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10
(15)(iid)
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Interest
on notified bonds owned by a non-resident etc. and bought
in foreign exchange subject to certain conditions.
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10
(15)(iii)
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Interest
on securities under the Ceylon Monetary Law Act, 1949
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10
(15)(iiia)
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Interest
payable to any bank incorporated outside India and approved
by RBI.
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10
(15)(iv)(a)
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Receipt
of interest from Govt. etc. on moneys lent to them from
sources outside India.
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10
(15)(iv)(b)
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Receipt
of interest from industrial undertaking in India being
approved foreign financial institutions in respect of
moneys lent to it.
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10
(15)(iv)(c)
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Receipt
of interest from industrial undertaking in India in
respect of moneys lent to it outside India for purchases
of raw materials, plant & machinery, etc. from abroad.
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10
(15)(uv)(d)
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Receipt
of interest from specified financial institution in
India in respect of moneys lent to it from sources outside
India.
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10
(15)(iv)(e)
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Receipt
of interest from financial institution other than those
covered by 15(iv)(d) above in respect of moneys lent
to it from sources outside India for the purposes as
specified.
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10
(15)(iv)(f)
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Receipt
of interest from industrial undertaking in India in
respect of moneys lent to it in foreign currency from
sources outside India.
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10(15)
(iv)(fa)
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Receipt
of interest from scheduled bank in respect of deposits
made in foreign currency subject to same being duly
approved by the RBI.
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10
(15)(iv)(g)
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Receipt
of interest from public company having been formed and
registered in India to provide long-term finances for
construction/purchase of houses in respect of moneys
lent to it in foreign currency from sources outside
India.
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10
(15)(iv)(h)
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Receipt
of interest from public sector company in respect of
bonds and debentures as notified.
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10
(15)(iv)(i)
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Receipt
of interest from Government in respect of deposits made
in its specified schemes from funds due on retirement.
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10
(15)(v)
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Receipt
of interest on securities held by Welfare Commissioner,
Bhopal Gas Victims as also on deposits made with RBI
or Public Bank from 1-4-1994 for the benefit of such
victims.
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10(15A)
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Receipt
of payment from an Indian company carrying on business
of operation of aircraft, to acquire an aircraft or
aircraft engine excluding spares etc., on lease from
foreign Govt. or enterprise under an agreement entered
into before 1-4-1997 and being duly approved.
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10(16)
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Scholarships
granted to meet the cost of education.
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10(17)(ii)
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Daily
allowances received by MPs, MLAs and MLCs.
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10(17)(ii)
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Receipt
of allowances by MPs under the Member of Parliament
[Constituency Allowance] Rules, 1986.
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10(17)(iii)
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Receipt
of allowances by MLAs under the limit of Rs. 2,000/-
per month
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10(17A)(i)
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Receipt
of any amount in connection with an award, including
award in kind, for literary, scientific or artistic
work etc. instituted by Government etc.
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10
(17A)(ii)
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Receipt
of amount in connection with a reward including award
in kind from Government in respect of public interest
purposes.
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10(18A)
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Receipt
of ex-gratia payments from Government to ex-rulers in
respect of abolition of their privy purses.
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10(32)
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Income
relating to minor child if clubbed u/s 64(1A) in the
hands of the assessee not exceeding Rs.1,500 in respect
of each minor chid.
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10(33)
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Any
income by way of dividends (whether interim or otherwise)
declared, distributed or paid by a Domestic Company
or on units of UTI or any other approved Mutual Fund.
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