TDS on Salaries - Income Tax Department
TDS on Salaries - Income Tax Department
TDS on Salaries - Income Tax Department
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80G<br />
80GG<br />
80U<br />
of interest <strong>on</strong> loan taken from<br />
a Financial instituti<strong>on</strong> or<br />
approved charitable<br />
instituti<strong>on</strong> for higher<br />
educati<strong>on</strong> of self or higher<br />
educati<strong>on</strong> of a relative.<br />
Higher educati<strong>on</strong> means any<br />
course of study pursued<br />
after senior sec<strong>on</strong>dary<br />
examinati<strong>on</strong> or its equivalent.<br />
D<strong>on</strong>ati<strong>on</strong>s to certain funds,<br />
charitable instituti<strong>on</strong>s etc.<br />
Deducti<strong>on</strong> available is the<br />
least of<br />
(i) Rent paid less 10% of total<br />
income<br />
(ii) Rs.2000/- per m<strong>on</strong>th<br />
(iii) 25% of total income<br />
Deducti<strong>on</strong> of Rs. 50,000/- to<br />
an individual who suffers<br />
from a physical disability<br />
(including blindness) or<br />
mental retardati<strong>on</strong>. Further,<br />
students taking loans for<br />
higher studies. The payment<br />
of the interest there<strong>on</strong> will be<br />
allowed as deducti<strong>on</strong> over a<br />
period of upto 8 years.<br />
Further, by Finance Act, 2008<br />
deducti<strong>on</strong> under this secti<strong>on</strong><br />
shall be available not <strong>on</strong>ly in<br />
respect of loan for pursuing<br />
higher educati<strong>on</strong> by self but<br />
also by spouse or children of<br />
the assessee or a child where<br />
assessee is a legal guardian.<br />
The various d<strong>on</strong>ati<strong>on</strong>s<br />
specified in Sec.80G are<br />
eligible for deducti<strong>on</strong> upto<br />
either 100% or 50% with or<br />
without restricti<strong>on</strong> as<br />
provided in Sec. 80G (see<br />
para 6.4).<br />
1) Assessee or his spouse or<br />
minor child should not own<br />
residential accommodati<strong>on</strong> at<br />
the place of employment.<br />
2) He should not be in receipt<br />
of house rent allowance.<br />
3) He should not have a selfoccupied<br />
residential premises<br />
in any other place.<br />
Certificate should be<br />
obtained from a Govt. Doctor.<br />
The relevant rule is Rule 11D<br />
in case of individuals with<br />
severe disability a deducti<strong>on</strong><br />
of Rs.75,000/- permissible.<br />
W.e.f. 1.4.2010 the amount<br />
of Rs. 75,000/- shall be<br />
enhanced to Rs. 1,00,000/-<br />
It should be noted that the aggregate amount of<br />
deducti<strong>on</strong> u/s 80C, 80CCCand 80CCD should not in any case<br />
exceed <strong>on</strong>e lakh rupees.<br />
6.4 Deducti<strong>on</strong> u/s 80 G : In respect of Secti<strong>on</strong> 80G, no<br />
deducti<strong>on</strong> should be allowed by the employer/DDO, from the salary<br />
income in respect of any d<strong>on</strong>ati<strong>on</strong>s made for charitable purposes.<br />
The tax relief <strong>on</strong> such d<strong>on</strong>ati<strong>on</strong>s as admissible u/s 80G will have to<br />
be claimed by the taxpayer in the return of income. However,<br />
DDOs, <strong>on</strong> due verificati<strong>on</strong>, may allow d<strong>on</strong>ati<strong>on</strong>s to the following<br />
bodies to the extent of 50% of the c<strong>on</strong>tributi<strong>on</strong>:<br />
a. The Jawaharlal Nehru Memorial Fund,<br />
b. The Prime Minister’s Drought Relief Fund,<br />
c. The Nati<strong>on</strong>al Children’s Fund,<br />
d. The Indira Gandhi Memorial Trust,<br />
e. The Rajiv Gandhi Foundati<strong>on</strong>, and to the following bodies to<br />
the extent of 100% of the c<strong>on</strong>tributi<strong>on</strong>:<br />
(1) The Nati<strong>on</strong>al Defence Fund or the Prime Minister’s<br />
Nati<strong>on</strong>al Relief Fund,<br />
(2) The Prime Minister’s Armenia Earthquake Relief Fund,<br />
(3) The Africa(Public C<strong>on</strong>tributi<strong>on</strong>-India) Fund,<br />
(4) The Nati<strong>on</strong>al Foundati<strong>on</strong> for Communal Harm<strong>on</strong>y,<br />
(5) The Chief Minister’s Earthquake Relief Fund,<br />
Maharashtra,<br />
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