TDS on Salaries - Income Tax Department

CHAPTER-6
DEDUCTIONS UNDER
CHAPTER VI-A
6.1 Introduction : The Income Tax Act provides for allowability
of certain deductions from the gross total income of the assessee.
These deductions are given in Chapter VIA of the Income Tax
Act. For the purpose of <strong>TDS</strong>, the employer/DDO may allow some
of these deductions to the employee on furnishing of the required
particulars. The deductions allowable by the DDO/ employer are
being described below:
6.2 Eligible deductions u/s 80C as per section 80C deduction
eligible u/s 80C (reintroduced w.e.f.-01.04.2006) the following
investments/payments are eligible for deduction.
NATURE OF INVESTMENT
Life Insurance Premium.
Sum paid under contract for
deferred annuity.
Sum deducted from salary
payable to Govt. Servant for
securing deferred annuity for
self-spouse or child.
Contribution made under
Employee’s Provident Fund.
REMARKS
For individual, policy must be in
self or spouse’s or any child’s
name. For HUF, it may be on
life of any member of HUF.
For individual, on life of self,
spouse or any child.
Payment limited to 20% of
salary.
—
Scheme to which Provident
Funds Act 1975 (19 of 1925
applies).
Contribution to PPF.
Contribution by employee to a
Recognized Provident Fund or
a superannuation fund.
Sum deposited in 10 year/15year
account of Post Office Saving
Bank.
Subscription to any notified
securities/notified deposits
scheme.
Subscription to any notified
savings certificate, Unit Linked
Savings certificates.
Contribution to Unit Linked
Insurance Plan of LIC Mutual
Fund.
Contribution to notified deposit
scheme/Pension fund set up by
the National Housing Scheme.
For individual, can be in the
name of self/spouse, any child
& for HUF, it can be in the name
of any member of the family.
—
—
e.g. NSS
e.g. NSC VIII issue.
e.g. Dhanrakhsa, 1989
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