22. Deduction in respect of donations to certain Funds, Charitable Institutions etc. [Section 80G] Donation Qualifying Amount Rate A. No limit donations 100% 100% 1. 100% 100% 2. To Africa Fund 100% 100% 3. To Armenia Earthquake Relief Fund 100% 100% 4. To University or institution of National Eminence (so notified) 100% 100% 5. To National Foundation for communal harmony 100% 100% 6. To the Chief Minister’s Earthquake Relief Fund, Maharashtra 100% 100% 7. To Zila Saksharta Samiti 100% 100% 8. To National Blood Transfusion Council or State Blood Transfusion Council 100% 100% 9. To any fund set up by the State Govt. To provide medical relief to poor 100% 100% 10. To Army Central

Welfare Fund, Indian Naval Benovelont Fund or Air Force Central Welfare Fund 100% 100% 11. To National Illness Assistance Fund 100% 100% To P.M. National Relief Fund

relief to the victims of Earthquake in Gujarat 100% 100% 19. Any sum paid by the assessee during the period beginning on the 26th day of January 2001 and ending on 30th day of Sept. 2001 to any trust, institution or fund to which this section applies for providing relief to the victims of Earthquake in Gujarat 100% 100% 20. To the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities 100% 100% 21. To P.M. National Drought Relief Fund 100% 50% 22. To National Children’s Fund 100% 50% 23. To Jawaharlal Nehru Memorial Fund 100% 50% 24. To Indira Gandhi Memorial Trust 100% 50% 25. To Rajiv Gandhi Foundation 100% 50%

24. Donation Qualifying Amount Rate Actual total of 1 to 10 or 10% of gross taxable income whichever is less is Q.A. Out of Q.A. :– 100% of donation for Family Planning + by a company to Indian Olympics Association and balance 50% B. With limit donations 1. To State Govt. 2. To Local Authority 3. To Educational Institutions 4. To Charitable Institutions 5. To Sports Institutions 6. To a corporate set up to protect the interests of minorities 7. To an authority constituted for development of housing and planning of cities and towns 8. To a place of art, public worship or historical importance (so notified) 9. To an institution or association engaged in promotion of family planning in India 10. Any sum paid

by a company to Indian Olympic Association for development of infrastructure and sponsorship of sports and games in India Gross Taxable Income = Gross Total Income – [Long term capital gain + All deductions u/s 80 except 80G + Rebateable Income, if any + Short term capital gain on shares which are subject to STT ] Rebateable Income = Share of income from AOP provided total income of such AOP exceeds the exempted limit i.e. 2,00,000.

25.  Rate of deduction (a) Statutory limit 2,000 p.m. (b) Rent paid – 10% of Adjusted G. T. I.* (c) 25% of Adjusted G. T. I.* *Adjusted Gross Total Income = Gross Total Income – [LTCG + STCG on shares covered under Securities Transaction Tax +

Income referred to in Sec. 115A + All other deductions u/s 80 except 80 GG] He should not be getting any HRA He does not have a self occupied house any where in India and in that town on his own name or on the name of any member of his family or HUF The assessee must be living in a rented house due to his employment, business or profession This deduction is allowed to individual only for rent paid Deduction in respect of Expenditure Incurred on Payment of House Rent [Section GG]

26.  Following are the qualifying amounts under this section : i. Donation given to institution or association engaged in scientific research and approved for the purpose. ii. Donation given to

institution or association engaged in approved rural development programme or conservation of natural resources or afforestation. iii. Donation given to institution engaged in training of persons for rural development programme. iv. Any amount given to a Rural Development Fund (from 1-4-83 onwards). Applicable to all assessees except those who have any income or loss under the head Profits and Gains of Business or Profession. Deduction in respect of any payment made to certain scientific institutions or an institution having rural development programme as its object [Section 80GGA]

27.  In case, the donation exceeds ₹10,000 then it must be given by any

mode other than cash otherwise deduction u/s 80GGA shall not be allowed. v. Amount of deduction – 100% of the amount paid to the above institutions/funds. Any amount given to fund for afforestation. vi. Any amount given by assessee to a University, College or other institution (so notified) for research in social science or statistical research. vii. Any amount paid by assessee to a public sector company or a local authority or to an institution or association approved by the National Committee for carrying out any eligible project or scheme. viii. Fund set up for eradication of poverty.

28. Deduction in respect of Contributions given by Companies to Political Parties and Electoral Trust

[Section 80GGB] In case a company is donating or contributing any amount to any Political Party and Electoral Trust, a deduction @ 100% of such donation shall be allowed.

29.  If donation is given to registered political party in India or donation to electoral trust , then 100 % deduction is allowed. The assessee is any person except local authority and every artificial juridical person. Deduction in respect of Contributions given by any person to Political Parties and Electoral Trust [Section 80GGC]

30. Deduction for Infrastructure Projects [Section 80IA] The deduction is allowed to undertakings engaged in Category I Carrying on the business of a) Developing b) Operating and maintaining, or c)

Developing, operating and maintaining any infrastructure facility [Simply stated Infrastructure facility] Category II Providing telecommunication services [Simply stated Telecommunication services] Category III Developing, operating or maintaining an industrial park or special economic zone (SEZ) notified by the Central Govt. [Simply stated Industrial park] Category IV a) b) c) d) Category V Undertaking set up for reconstruction or revival of power generating plant Generation Generation and Distribution of power Laying of new transmission lines for power distribution Undertakes substantial renovation and modernisation of the existing transmission or distribution lines [Simply stated Power Generation]

31. Nature of the industries Commencement of business Rate of deduction Company 1. Infrastructure facility (a) In case of port, airport, inland water way or inland port (b) In case of other infrastructure facilities Others 3. Developing, operating or maintaining (a) Industrial park (b) Special Economic Zone 1.4.95 onwards 100% - 1.4.95 onwards 100% - 1.4.95 to 31.3.05 100% 100% 30% 2. Telecommunication services 30% 1.4.2006 to 31.3.11 1.4.97 to 31.3.05 100% Period of Deduction 100% For 10 consecutive years out of first 20 years. For 10 consecutive years out of first 15 years. For first 5 consecutive years out of first 15 years. For next 5 consecutive years out of first 5 years.

For 10 consecutive years out of first 15 years.

32. 4. (a) Generation or generation and distribution of power (b) Laying of new transmission lines for power distribution or undertakes substantial renovation and modernisation of the existing transmission or distribution lines (c) Undertakes substantial renovation and modernisation of existing network of transmission or distribution lines 1.4.1993 to 31.3.2013 100% - For 10 consecutive years out of first 15 years. 1.4.1999 to 31.3.13 100% - For 10 consecutive years out of first 15 years. 1.4.2004 to 31.3.2013 100% - For 10 consecutive years out of first 15 years. 5. An undertaking 1.4.2004 to owned by an Indian 31.3.2011 Company and set up for

reconstruction or revival of power generating plant 100% - For 10 consecutive years out of first 15 years.

33.  The undertaking can claim this deduction for a total period of 10 previous years out of first 15 years previous years beginning with the year in which such Special Economic Zone is notified. This deduction is allowed @ 100% of profits Deduction to developers of Special Economic Zones [Section 80IAB] Deduction under this section shall be allowed only if following conditions are fulfilled : i. This deduction is available only to those undertaking who are engaged in the business of developing Special Economic Zones ii. The Special Economic Zone is notified on or after 1.4.2005. iii. The

undertaking must have some income from Special Economic Zones which is taxable under the head “Profits and gains of Business or Profession”. iv. The accounts of undertaking must be audited. v. It must fulfill any other condition which may be notified.

34. Deduction for Setting up new Undertakings [Section 80IB] Deduction u/s 80IB is available to different industrial undertaking as follows : a) Operation of ship b) Hotels c) Industrial Research d) Production of Mineral Oil e) Developing and building housing projects f) The business of processing, preservation and packing of fruits or vegetables or integrated, handling, storage and transportation of food grain units g) Multiplex

theater h) Convention Centre i) Hospitals

35. Industrial Undertaking (set up in a backward state) Industrial Undertaking (set up in Category A notified backward state) Industrial Undertaking (set up in Category B notified backward state ) Cold chain facility for agriculture produce Any other undertaking including small scale undertaking 1.4.1993 to 1.3.2004 1.10.1994 to 1.3.2004 1.10.1994 to 1.3.2004 1.4.1999 to 1.3.2004 1.4.1991 to 1.3.2005 Owned by a company 100% for first 5 years and 30% for next 5 years. 100% for first 5 years and 30% for next 5 years. 100% for first 3 years and 30% for next 5 years. 100% for first 5 years and 30% for next 5 years. 30% for 10 years. Owned by a

Co-operative Society 100% for first 5 years and 25% for next 7 years. 100%for first 5 years and 25% for next 7 years. 100% for first 3 years and 25% for next 9 years. 100% for first 5 years and 25% for next 7 years. 25% for 12 years. Owned by any other person 100 % for first 5 years and 25% for next 5 years. 100% for first 5 years and 25% for next 5 years. 100% for first 3 years and 25% for next 5 years. 100% for first 5 years and 25% for next 5 years. 25% for 10 years. Time Limit Amount of Deduction :

36. Deduction for setting up industries in backward states [Section 80IC] State in which the Industrial undertaking is set up Time Limit for commencement of production or substantial expansion

Amount deductible Sikkim December 23, 2002 to March 31, 2007 100% of profit and gain for 10 years commencing from initial assessment year. Himachal Pradesh and Uttaranchal January 7, 2003 to March 100% of profits and gains 31, 2012 for 5 years commencing with the initial assessment year and 25% (30% in case of a company) for the next 5 years. North-Eastern State (i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura ) December 24, 1997 to March 31,2007 100% of profit and gain of industrial undertaking for 10 years commencing from the initial assessment year.

37.  Undertakings Time limit for construction/commencement of

hotel/convention centres For Hotels 1.4.2007 to 31.7.2010 For Convention Centres 1.4.2007 to 31.7.2010 For hotel at World Heritage Site 1.4.2008 to 31.32013 The deduction is available to all undertakings irrespective of any specific form of business i.e. Sole proprietor, partnership firm etc. Deduction in respect of profit and gains from Business of hotels in specified area/World Heritage Site and convention centres in specified area [Section 80ID] The deduction is allowed to undertakings engaged in the business of i. Hotels in the specified area ii. Owing and operating a convention centre in the specified area iii. Hotel located in the specified district having a World Heritage Site

38.  The amount of deduction is equal to 100% of profits and gains of such business of operating and maintaining a hotel or a convention centre. The deduction is available for a period of 5 consecutive assessment years beginning the initial assessment year. Specified area means the National Capital Territory of Delhi and Districts of Faridabad, Gurgaon, Ga utam Budh Nagar and Ghaziabad. Hotel means a hotel of Two-star and Four-star category as classified by the Central Govt. Convention Center means a building of a prescribed area comprising of convention halls to be used for the purpose of conference and seminars being of such size and number and having

such other facilities and amenities, as may be prescribed.

39.  The deduction is available for 10 consecutive assessment years beginning with the initial assessment year. The amount of deduction is equal to 100% of profit and gains derived from such business. This deduction is allowed to undertaking manufacturing or producing any eligible article or thing or undertake substantial expansion or carry on any eligible business from April 1, 2007 to March 31, 2017. The object of this deduction is to promote socio-economic development of North-eastern states i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. Special provisions in respect of certain

undertakings in North-Eastern states [Section 80IE]

40.  Period of deduction – The deduction is available for a period of 5 years beginning with assessment year relevant to the previous year in which such business commences. Rate of deduction – 100% of profits and gains from such business Deduction in respect of Profits and Gains from business of collecting and processing of bio-degradable waste [Section 80JJA] This is available to all Industrial undertakings/ enterprises engaged in collection and processing or treatment of bio-degradable waste for generating power or producing bio-fertilisers, bio-pesticides or making pellets or briquettes for full or organic manure.

41.  This deduction shall be allowed for a period of three previous years in which employment is provided. The amount of deduction is equal to 30% of “Additional Wages” paid to the new “regular workman” employed by the assessee in the previous year. No deduction shall be allowed : i. If the industrial undertaking is formed by splitting up or reconstruction of an existing undertaking or amalgamation with another industrial undertaking ii. Unless the assessee furnishes along with the return of income the report of the accountant to claim this deduction This deduction is allowed to Indian company engaged in the manufacture or production of article or thing. Deduction in respect of

wages paid for additional company jobs [Section 80JJAA]

42.  “Additional wages” means the wages paid to the new regular workmen in excess of one hundred employed during the previous year. “Regular workman” does not include a casual workman or a workman employed through contract labour or any other workman employed for a period of less than 300 days during the previous year.

43.  Assessee entitled – A scheduled bank or any bank incorporated by or under the laws of a country outside India, having an offshore banking unit in a special economic zone, or b) A unit of an International financial services centre. a) Amount of deduction Period of deduction 100% of profits For 5 consecutive

assessment years relevant to the previous year in which the permission for such business is obtained from appropriate authority. 50% of profits For next 5 consecutive assessment years .Deduction in respect of certain Incomes of offshore banking units and International Financial Services Centre [Section 80LA]

44.  The amount of deduction shall not exceed – (a) 1,00,000 in case of consumers’ co-operative society and (b) 50,000 in any other case. The amount of deduction shall be 100% of the profits from these activities. Deduction in respect of income of Co-operative Societies [Section 80P] In the case of co-operative society engaged in following activities can apply for deduction under this section

: i. Carrying on the business of banking or providing credit facilities to its members; or ii. A cottage industry; or iii. The marketing of agricultural produce grown by its members; or iv. The purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members; or v. The processing, without the aid of power, of the agriculture produce of its members; or vi. Fishing and allied activities.

45.  The amount of deduction shall be : (a) Income from royalty from books or (b) 3,00,000 Whichev₹ His gross total income includes any income derived by him in the exercise of his profession, in the copyright of any book being a work of

literary, artistic or scientific nature, or of royalty or copyright fees (whether receivable in lump sum or otherwise) in respect of such book This deduction is allowed to an individual resident in India includes authors and co-authors only Deduction in respect of royalty income, etc., of author of certain books [Section 80QQB] er is less.

46.  i. ii. iii. The amount of deduction shall be (a) Income from royalty or (b) 3,00,000 Whichever is less. ₹ His gross total income of the previous year includes royalty. Deduction in respect of royalty on patents [Section 80RRB] This deduction is allowed to an assessee : who is an individual (whether resident or N.O.R.) who is a patentee who is in receipt of any income by

way of royalty in respect of a patent registered on or after April 1, 2003 under the Patents Act, 1970.

47.  Amount of deduction : (a) Actual amount of interest or (b) 10,000 ₹Whichever is less. Eligible income - Interest on deposits (not being time deposits) in a saving account with : i. A banking company to which the Banking Regulation Act, 1949, applies ii. A co-operative society engaged in carrying on the business of banking iii. A post office as defined in Section 2(k) of the Indian Post Office Act, 1898 This deduction shall be allowed to an individual and a HUF Deduction in respect of interest on deposits in saving account [Section 80TTA]

48.  A fixed deduction of 50,000 in ₹case of a person with disability ₹

1,00,000 in case of a person with severe disability (having any disability over 80%) He furnishes a certificate issued by the medical authority in the prescribed form along the return of income He is certified by the medical authority to be a person with disability, at any time during the previous year He is a person with disability The assessee is an individual being a resident Deduction in case of a person with disability [Section 80U] To help a disabled person by reducing his tax burden, this section has been incorporated. Following are the provisions :