Deductions in respect of certain payments | Income-Tax Act, 1961 | Bare Acts | Law Library

Follow @SCJudgments

The Income-Tax Act, 1961

B.- Deductions in respect of certain payments

⁴[80C. Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.-

(1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed ⁵[one hundred and fifty thousand rupees].

(2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee-

(i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);

(ii) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan referred to in clause (xii), on the life of persons specified in sub-section (4):

Provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity;

(iii) by way of deduction from the salary payable by or on behalf of the Government to any individual being a sum deducted in accordance with the conditions of his service, for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum so deducted does not exceed one-fifth of the salary;

(iv) as a contribution by an individual to any provident fund to which the Provident Funds Act, 1925 (19 of 1925) applies;

(v) as a contribution to any provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette, where such contribution is to an account standing in the name of any person specified in sub-section (4);

(vi) as a contribution by an employee to a recognised provident fund;

(vii) as a contribution by an employee to an approved superannuation fund;

(viii) ⁶[as subscription, in the name of any person specified in sub-section (4), to] any such security of the Central Government or any such deposit scheme as that Government may, by notification in the Official Gazette, specify in this behalf;

(ix) as subscription to any such savings certificate as defined in clause (c) of section 2 of the Government Savings Certificates Act, 1959 (46 of 1959), as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(x) as a contribution, in the name of any person specified in sub-section (4), for participation in the Unit-linked Insurance Plan, 1971 (hereafter in this section referred to as the Unit-linked Insurance Plan) specified in Schedule II of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(xi) as a contribution in the name of any person specified in sub-section (4) for participation in any such unit-linked insurance plan of the LIC Mutual Fund ⁷[referred to in clause (23D)] of section 10, as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(xii) to effect or to keep in force a contract for such annuity plan of the Life Insurance Corporation or any other insurer as the Central Government may, by notification in the Official Gazette, specify;

(xiii) as subscription to any units of any Mutual Fund ¹[referred to in clause (23D)] of section 10 or from the Administrator or the specified company under any plan formulated in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(xiv) as a contribution by an individual to any pension fund set up by any Mutual Fund ¹[referred to in clause (23D)] of section 10 or by the Administrator or the specified company, as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(xv) as subscription to any such deposit scheme of, or as a contribution to any such pension fund set up by, the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987) (hereafter in this section referred to as the National Housing Bank), as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(xvi) as subscription to any such deposit scheme of-

(a) a public sector company which is engaged in providing long-term finance for construction or purchase of houses in India for residential purposes; or

(b) any authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both, as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,-

(a) to any university, college, school or other educational institution situated within India;

(b) for the purpose of full-time education of any of the persons specified in sub-section (4);

(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head "Income from house property" (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of-

(a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or

(b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or

(1) the Central Government or any State Government, or

(2) any bank, including a co-operative bank, or

(3) the Life Insurance Corporation, or

(4) the National Housing Bank, or

(5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or

(6) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or

(7) the assessee's employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or

(8) the assessee's employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society; or

(d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee, but shall not include any payment towards or by way of-

(A) the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder or member; or

(B) the cost of any addition or alteration to, or renovation or repair of, the house property which is carried out after the issue of the completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or

(xix) as subscription to equity shares or debentures forming part of any eligible issue of capital approved by the Board on an application made by a public company or as subscription to any eligible issue of capital by any public financial institution in the prescribed form.

Explanation.-For the purposes of this clause,-

(i) "eligible issue of capital" means an issue made by a public company formed and registered in India or a public financial institution and the entire proceeds of the issue are utilised wholly and exclusively for the purposes of any business referred to in sub-section (4) of section 80-IA;

(ii) "public company" shall have the meaning assigned to it in section 3 of the Companies Act, 1956 (1 of 1956);

(iii) "public financial institution" shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956);

(xx) as subscription to any units of any mutual fund referred to in clause (23D) of section 10 and approved by the Board on an application made by such mutual fund in the prescribed form: Provided that this clause shall apply if the amount of subscription to such units is subscribed only in the eligible issue of capital of any company.

Explanation.-For the purposes of this clause "eligible issue of capital" means an issue referred to in clause (i) of the Explanation to clause (xix) of sub-section (2);

¹[(xxi) as term deposit-

(a) for a fixed period of not less than five years with a scheduled bank; and

(b) which is in accordance with a scheme framed and notified, by the Central Government, in the Official Gazette for the purposes of this clause.

Explanation.-For the purposes of this clause, "scheduled bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), or a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank, being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);]

¹[(xxii) as subscription to such bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by notification in the Official Gazette, specify in this behalf;]

²[(xxiii) in an account under the Senior Citizens Savings Scheme Rules, 2004; (xxiv) as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.]

(3) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an ³[insurance policy, other than a contract for a deferred annuity, issued on or before the 31st day of March, 2012,] as is not in excess of twenty per cent of the actual capital sum assured.

Explanation.-In calculating any such actual capital sum assured, no account shall be taken-

(i) of the value of any premiums agreed to be returned, or

(ii) of any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person.

⁴[(3A) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an insurance policy, other than a contract for a deferred annuity, issued on or after the 1st day of April, 2012 as is not in excess of ten per cent of the actual capital sum assured:

⁵[Provided that where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is-

(a) a person with disability or a person with severe disability as referred to in section 80U, or

(b) suffering from disease or ailment as specified in the rules made under section 80DDB, the provisions of this sub-section shall have effect as if for the words "ten per cent.", the words "fifteen per cent." had been substituted.]

Explanation.-For the purposes of this sub-section, "actual capital sum assured" in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking into account-

(i) the value of any premium agreed to be returned; or

(ii) any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person.]

(4) The persons referred to in sub-section (2) shall be the following, namely:-

(a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-section,-

(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and

(ii) in the case of a Hindu undivided family, any member thereof;

(b) for the purposes of clause (ii) of that sub-section, in the case of an individual, the individual, the wife or husband and any child of such individual;

¹[(ba) for the purposes of clause (viii) of that sub-section, in the case of an individual, the individual or any girl child of that individual, or any girl child for whom such person is the legal guardian, if the scheme so specifies;]

(c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual. (5) Where, in any previous year, an assessee-

(i) terminates his contract of insurance referred to in clause (i) of sub-section (2), by notice to that effect or where the contract ceases to be in force by reason of failure to pay any premium, by not reviving contract of insurance,-

(a) in case of any single premium policy, within two years after the date of commencement of insurance; or

(b) in any other case, before premiums have been paid for two years; or

(ii) terminates his participation in any unit-linked insurance plan referred to in clause (x) or clause (xi) of sub-section (2), by notice to that effect or where he ceases to participate by reason of failure to pay any contribution, by not reviving his participation, before contributions in respect of such participation have been paid for five years; or

(iii) transfers the house property referred to in clause (xviii) of sub-section (2) before the expiry of five years from the end of the financial year in which possession of such property is obtained by him, or receives back, whether by way of refund or otherwise, any sum specified in that clause, then,-

(a) no deduction shall be allowed to the assessee under sub-section (1) with reference to any of the sums, referred to in clauses (i), (x), (xi) and (xviii) of sub-section (2), paid in such previous year; and

(b) the aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.

(6) If any equity shares or debentures, with reference to the cost of which a deduction is allowed under sub-section (1), are sold or otherwise transferred by the assessee to any person at any time within a period of three years from the date of their acquisition, the aggregate amount of the deductions of income so allowed in respect of such equity shares or debentures in the previous year or years preceding the previous year in which such sale or transfer has taken place shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.

Explanation.-A person shall be treated as having acquired any shares or debentures on the date on which his name is entered in relation to those shares or debentures in the register of members or of debenture-holders, as the case may be, of the public company.

²[(6A) If any amount, including interest accrued thereon, is withdrawn by the assessee from his account referred to in clause (xxiii) or clause (xxiv) of sub-section (2), before the expiry of the period of five years from the date of its deposit, the amount so withdrawn shall be deemed to be the income of the assessee of the previous year in which the amount is withdrawn and shall be liable to tax in the assessment year relevant to such previous year: Provided that the amount liable to tax shall not include the following amounts, namely:-

(i) any amount of interest, relating to deposits referred to in clause (xxiii) or clause (xxiv) of sub-section (2), which has been included in the total income of the assessee of the previous year or years preceding such previous year; and

(ii) any amount received by the nominee or legal heir of the assessee, on the death of such assessee, other than interest, if any, accrued thereon, which was not included in the total income of the assessee for the previous year or years preceding such previous year.]

(7) For the purposes of this section,-

(a) the insurance, deferred annuity, provident fund and superannuation fund referred to in clauses (i) to (vii);

(b) unit-linked insurance plan and annuity plan referred to in clauses (xii) to (xiiia);

(d) amount borrowed for purchase or construction of a residential house referred to in clause (xv), of sub-section (2) of section 88 shall be eligible for deduction under the corresponding provisions of this section and the deduction shall be allowed in accordance with the provisions of this section.

(8) In this section,-

(i) "Administrator" means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(ii) "contribution" to any fund shall not include any sums in repayment of loan;

(iii) "insurance" shall include-

(a) a policy of insurance on the life of an individual or the spouse or the child of such individual or a member of a Hindu undivided family securing the payment of specified sum on the stipulated date of maturity, if such person is alive on such date notwithstanding that the policy of insurance provides only for the return of premiums paid (with or without any interest thereon) in the event of such person dying before the said stipulated date;

(b) a policy of insurance effected by an individual or a member of a Hindu undivided family for the benefit of a minor with the object of enabling the minor, after he has attained majority to secure insurance on his own life by adopting the policy and on his being alive on a date (after such adoption) specified in the policy in this behalf;

(iv) "Life Insurance Corporation" means the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956);

(v) "public company" shall have the same meaning as in section 3 of the Companies Act, 1956 (1 of 1956);

(vi) "security" means a Government security as defined in clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944);

(vii) "specified company" means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(viii) "transfer" shall be deemed to include also the transactions referred to in clause (f) of section 269UA.]

4. Ins. by Act 18 of 2005, s. 21 (w.e.f. 1-4-2006). Earlier omitted by Act 12 of 1990, s. 50 (w.e.f. 1-4-1991).

5. Subs. by Act 25 of 2014, s. 27, for "one lakh rupees" (w.e.f. 1-4-2015).

6. Subs. by Act 20 of 2015, s. 16, for "as subscription to" (w.e.f. 1-4-2015).

7. Subs. by Act 21 of 2006, s. 16, for "notified under clause (23D)" (w.e.f. 1-4-2007).

1. Subs. by Act 21 of 2006, s. 16, for "notified under clause (23D)" (w.e.f. 1-4-2007).

1. Ins. by Act 21 of 2006, s. 16 (w.e.f. 1-4-2007).

1. Ins. by Act 22 of 2007, s. 24 (w.e.f. 1-4-2008).

2. Ins. by Act 18 of 2008, s. 16 (w.e.f. 1-4-2008).

3. Subs. by Act 23 of 2012, s. 24, for "insurance policy other than a contract for a deferred annuity" (w.e.f. 1-4-2013).

4. Ins. by s. 24, ibid. (w.e.f. 1-4-2013).

5. Ins. by Act 17 of 2013, s. 12 (w.e.f. 1-4-2014).

1. Ins. by Act 20 of 2015, s. 16 (w.e.f. 1-4-2015).

2. Ins. by Act 18 of 2008, s. 16 (w.e.f. 1-4-2008).

80CC. [Deduction in respect of investment in certain new shares].-Omitted by the Finance (No. 2) Act, 1996 (33 of 1996), s. 22 (w.e.f. 1-4-1993).

¹[80CCA. Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan.-

(1) Where an assessee, being-

(a) an individual, or

(b) a Hindu undivided family, 2*** 3* * * * * has in the previous year-

(i) deposited any amount in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf 4***; or

(ii) paid any amount to effect or to keep in force a contract for such annuity plan of the Life Insurance Corporation as the Central Government may, by notification in the Official Gazette, specify, out of his income chargeable to tax, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income of the whole of the amount deposited or paid (excluding interest or bonus accrued or credited to the assessee's account, if any) as does not exceed the amount of twenty thousand rupees in the previous year:

⁵[Provided that in relation to-

(a) the assessment years commencing on the 1st day of April, 1989 and the 1st day of April, 1990, this sub-section shall have effect as if for the words "twenty thousand rupees", the words "thirty thousand rupees" had been substituted;

(b) the assessment year commencing on the 1st day of April, 1991 and subsequent assessment years, this sub-section shall have effect as if for the words "twenty thousand rupees", the words "forty thousand rupees" had been substituted:] ⁶[Provided further that no deduction under this sub-section shall be allowed in relation to any amount deposited or paid under clauses (i) and (ii) on or after the 1st day of April, 1992.]

(2) Where any amount-

(a) standing to the credit of the assessee ⁷[under the scheme referred to in clause (i) of sub-section (1)] in respect of which a deduction has been allowed under sub-section (1) together with the interest accrued on such amount is withdrawn in whole or in part in any previous year, or

(b) is received on account of the surrender of the policy or as annuity or bonus in accordance with the annuity plan of the Life Insurance Corporation in any previous year, an amount equal to the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee of that previous year in which such withdrawal is made or, as the case may be, amount is received, and shall, accordingly, be chargeable to tax as the income of that previous year:

¹[Provided that nothing contained in this sub-section shall apply to any amount received by the assessee on account of the surrender of the policy in accordance with the terms of the annuity plan of the Life Insurance Corporation where the assessee elects to surrender before the 1st day of October, 1992, the said annuity plan in respect of which he had paid any amount under clause (ii) of sub-section (1) before the 1st day of April, 1992.]

²[(3) Notwithstanding anything contained in any other provision of this Act, where a partition has taken place among the members of a Hindu undivided family or where an association of persons has been dissolved after a deduction has been allowed under sub-section (1), the provisions of sub-section (2) shall apply as if the person in receipt of income referred to therein is the assessee.]

Explanation I.-For the removal of doubts, it is hereby declared that interest on the deposits made ³[under the scheme referred to in clause (i) of sub-section (1)] shall not be chargeable to tax except in the manner and to the extent specified in sub-section (2).

Explanation II.-For the purposes of this section, "Life Insurance Corporation" shall have the same meaning as in clause (a) of sub-section (8) of section 80C.

1. Subs. by Act 26 of 1988, s. 23, for section 80CCA (w.e.f. 1-4-1988).

2. The words "or" omitted by Act 32 of 1994, s. 50 (w.e.f. 1-4-1988.)

3. Clause (c) omitted by s. 50, ibid. (w.e.f. 1-4-1988).

4. The brackets and words "(hereafter in this section referred to as the National Savings Scheme)" omitted by Act 49 of 1991, s. 25 (w.e.f. 1-10-1991).

5. Subs. by Act 12 of 1990, s. 16, for the proviso (w.e.f. 1-4-1991).

6. Ins. by Act 18 of 1992, s. 42 (w.e.f. 1-4-1993).

7. Subs. by Act 49 of 1991, s. 25, for "under the National Savings Scheme" (w.e.f. 1-10-1991).

1. Ins. by Act 18 of 1992, s. 42 (w.e.f. 1-4-1993).

2. Ins. by Act 12 of 1990, s. 16 (w.e.f. 1-4-1991).

3. Subs. by Act 49 of 1991, s. 25, for "under the National Savings Scheme" (w.e.f. 1-4-1991)

⁴[80CCB. Deduction in respect of investment made under Equity Linked Savings Scheme.-

(1) Where an assessee, being-

(a) an individual, or

(b) a Hindu undivided family,5*** 6* * * * * has acquired in the previous year, out of his income chargeable to tax, units of any Mutual Fund specified under clause (23D) of section 10 or of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), under any plan formulated in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf (hereafter in this section referred to as the Equity Linked Savings Scheme), he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income of so much of the amount invested as does not exceed the amount of ten thousand rupees in the previous year:

⁷[Provided that no deduction shall be allowed in relation to any amount invested under this sub-section on or after the 1st day of April, 1992.]

(2) Where any amount invested by the assessee in the units issued under a plan formulated under the Equity Linked Savings Scheme in respect of which a deduction has been allowed under sub-section (1) is returned to him in whole or in part either by way of repurchase of such units or on the termination of the plan, by the Fund or the Trust, as the case may be, in any previous year, it shall be deemed to be the income of the assessee of that previous year and chargeable to tax accordingly.

(3) Notwithstanding anything contained in any other provision of this Act, where a partition has taken place among the members of a Hindu undivided family or where an association of persons has been dissolved after a deduction has been allowed under sub-section (1), the provisions of sub-section (2) shall apply as if the person in receipt of income referred to therein is the assessee.]

4. Ins. by Act 12 of 1990, s. 17 (w.e.f. 1-4-1991).

5. The word "or" omitted by Act 32 of 1994, s. 50 (w.e.f. 1-4-1991.)

6. Clause (c) omitted by s. 50, ibid. (w.e.f. 1-4-1991).

7. Ins. by Act 18 of 1992, s. 43 (w.e.f. 1-4-1993).

¹[80CCC. Deduction in respect of contribution to certain pension funds.-

(1) Where an assessee being an individual has in the previous year paid or deposited any amount out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India ²[or any other insurer] for receiving pension from the fund referred to in clause (23AAB) of section 10, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessee's account, if any) as does not exceed the amount of ³[one hundred and fifty thousand rupees] in the previous year.

(2) Where any amount standing to the credit of the assessee in a fund, referred to in sub-section (1) in respect of which a deduction has been allowed under sub-section (1), together with the interest or bonus accrued or credited to the assessee's account, if any, is received by the assessee or his nominee-

(a) on account of the surrender of the annuity plan whether in whole or in part, in any previous year, or

(b) as pension received from the annuity plan, an amount equal to the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee or his nominee, as the case may be, in that previous year in which such withdrawal is made or, as the case may be, pension is received, and shall accordingly be chargeable to tax as income of that previous year.

⁴[(3) Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section,-

(a) a rebate with reference to such amount shall not be allowed under section 88 for any assessment year ending before the 1st day of April, 2006;

(b) a deduction with reference to such amount shall not be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.]]

1. Ins. by Act 33 of 1996, s. 23 (w.e..f 1-4-1997).

2. Ins. by Act 14 of 2001, s. 36 (w.e.f. 1-4-2002).

3. Subs. by Act 20 of 2015, s. 17, for "one lakh rupees" (w.e.f. 1-4-2016).

4. Subs. by Act 18 of 2005, s. 22, for sub-section (3) (w.e.f. 1-4-2006).

⁵[80CCD. Deduction in respect of contribution to pension scheme of Central Government.-

(1) ⁶[Where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004 or, being an individual employed by any other employer], ⁷[or any other assessee, being an individual] has in the previous year paid or deposited any amount in his account under a pension scheme notified or as may be notified by the Central Government, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited ⁸[as does not exceed,-

(a) in the case of an employee, ten per cent of his salary in the previous year; and

(b) in any other case, ¹[twenty per cent.] of his gross total income in the previous year.]

³[(1B) An assessee referred to in sub-section (1), shall be allowed a deduction in computation of his total income, whether or not any deductions is allowed under sub-section (1), of the whole of the amount paid or deposited in the previous year in his account under a pension scheme notified or as may be notified by the Central Government, which shall not exceed fifty thousand rupees:

Provided that no deduction under this sub-section shall be allowed in respect of the amount on which a deduction has been claimed and allowed under sub-section (1).]

(2) Where, in the case of an assessee referred to in sub-section (1), the ⁴[Central Government or any other employer] makes any contribution to his account referred to in that sub-section, the assessee shall be allowed a deduction in the computation of his total income, of the whole of the amount contributed by the ⁴[Central Government or any other employer] as does not exceed ten per cent of his salary in the previous year.

(3) Where any amount standing to the credit of the assessee in his account referred to in ⁵[sub-section (1) or sub-section (1B)], in respect of which a deduction has been allowed ⁶[under those sub-sections] or sub-section (2), together with the amount accrued thereon, if any, is received by the assessee or his nominee, in whole or in part, in any previous year,-

(a) on account of closure or his opting out of the pension scheme referred to in ⁵[sub-section (1) or sub-section (1B)]; or

(b) as pension received from the annuity plan purchased or taken on such closure or opting out, the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee or his nominee, as the case may be, in the previous year in which such amount is received, and shall accordingly be charged to tax as income of that previous year.

⁷[Provided that the amount received by the nominee, on the death of the assessee, under the circumstances referred to in clause (a), shall not be deemed to be the income of the nominee.]

⁸[(4) Where any amount paid or deposited by the assessee has been allowed as a deduction under ⁵[sub-section (1) or sub-section (1B)],-

(a) no rebate with reference to such amount shall be allowed under section 88 for any assessment year ending before the 1st day of April, 2006;

(b) no deduction with reference to such amount shall be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.]

⁹[(5) For the purposes of this section, the assessee shall be deemed not to have received any amount in the previous year if such amount is used for purchasing an annuity plan in the same previous year.]

Explanation.-For the purposes of this section, "salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.]

5. Ins. by Act 23 of 2004, s. 15 (w.e.f. 1-4-2004).

6. Subs. by Act 25 of 2014, s. 28, for "Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1st day of January, 2004" (w.e.f. 1-4-2015).

7. Ins. by Act 33 of 2009, s. 30 (w.e.f. 1-4-2009).

8. Subs. by s. 30, ibid., for "as does not exceed ten per cent. of his salary in the previous year" (w.e.f. 1-4-2009).

1. Subs. by Act 7 of 2017, s. 33 for "ten per cent." (w.e.f. 1-4-2018).

2. Sub-section (1A) omitted by Act 20 of 2015, s. 18 (w.e.f. 1-4-2016).

3. Ins. by s. 18, ibid. (w.e.f. 1-4-2016).

4. Subs. by Act 22 of 2007, s. 25, for "Central Government" (w.e.f. 1-4-2004).

5. Subs. by Act 20 of 2015, s. 18, for "sub-section (1)" (w.e.f. 1-4-2016).

6. Subs. by s. 18, ibid., for " under that sub-section" (w.e.f. 1-4-2016).

7. Ins. by Act 28 of 2016, s. 37 (w.e.f. 1-4-2017).

8. Subs. by Act 18 of 2005, s. 23, for sub-section (4) (w.e.f. 1-4-2006).

9. Ins. by Act 33 of 2009, s. 30 (w.e.f. 1-4-2009).

¹[80CCE. Limit on deductions under section 80C, section 80CCC and 80CCD.-

The aggregate amount of deductions under section 80C, section 80CCC and ²[sub-section (1) of section 80CCD] shall not, in any case, exceed ³[one hundred and fifty thousand rupees].]

1. Ins. by Act 18 of 2005, s. 24 (w.e.f. 1-4-2006).

2. Subs. by Act 8 of 2011, s. 9, for "section 80CCD" (w.e.f. 1-4-2012).

3. Subs. by Act 25 of 2014, s. 29, for "one lakh rupees" (w.e.f. 1-4-2015).

⁴[80CCF. Deduction in respect of subscription to long-term infrastructure bonds.-

In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, the whole of the amount, to the extent such amount does not exceed twenty thousand rupees, paid or deposited, during the previous year relevant to the assessment year beginning on the 1st day of April, 2011 ⁵[or to the assessment year beginning on the 1st day of April, 2012], as subscription to long-term infrastructure bonds as may, for the purposes of this section, be notified by the Central Government.]

4. Ins. by Act 14 of 2010, s. 24 (w.e.f. 1-4-2011).

5. Ins. by Act 8 of 2011, s. 10 (w.e.f. 1-4-2012).

⁶[80CCG. Deduction in respect of investment made under an equity savings scheme.-

(1) Where an assessee, being a resident individual, has, in a previous year, acquired listed equity shares ⁷[or listed units of an equity oriented fund] in accordance with a scheme, as may be notified by the Central Government in this behalf, he shall, subject to the provisions of sub-section (3), be allowed a deduction, in the computation of his total income of the assessment year relevant to such previous year, of fifty per cent of the amount invested in such equity shares ⁷[or units] to the extent such deduction does not exceed twenty-five thousand rupees.

⁸[(2) The deduction under sub-section (1) shall be allowed in accordance with, and subject to, the provisions of this section for three consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed equity shares or listed units of equity oriented fund were first acquired.]

(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:-

(i) the gross total income of the assessee for the relevant assessment year shall not exceed ⁹[twelve lakh rupees];

(ii) the assessee is a new retail investor as may be specified under the scheme referred to in sub-section (1);

(iii) the investment is made in such listed equity shares ⁷[or listed units of equity oriented fund] as may be specified under the scheme referred to in sub-section (1);

(iv) the investment is locked-in for a period of three years from the date of acquisition in accordance with the scheme referred to in sub-section (1); and

(v) such other condition as may be prescribed.

(4) If the assessee, in any previous year, fails to comply with any condition specified in sub-section (3), the deduction originally allowed shall be deemed to be the income of the assessee of such previous year and shall be liable to tax for the assessment year relevant to such previous year.]

¹[Explanation.-For the purposes of this section, "equity oriented fund" shall have the meaning assigned to it in the Explanation to clause (38) of section 10.]

²[(5) Notwithstanding anything contained in sub-sections (1) to (4), no deduction under this section shall be allowed in respect of any assessment year commencing on or after the 1st day of April, 2018:

Provided that an assessee, who has acquired listed equity shares or listed units of an equity oriented fund in accordance with the scheme referred to in sub-section (1) and claimed deduction under this section for any assessment year commencing on or before the 1st day of April, 2017, shall be allowed deduction under this section till the assessment year commencing on the 1st day of April, 2019, if he is otherwise eligible to claim the deduction in accordance with the other provisions of this section.]

6. Ins. by Act 23 of 2012, s. 25 (w.e.f. 1-4-2013).

7. Ins. by Act 17 of 2013, s. 13 (w.e.f. 1-4-2014).

8. Subs. by s. 13, ibid., for sub-section (2) (w.e.f. 1-4-2014).

9. Subs. by s. 13, ibid., for "ten lakh rupees" (w.e.f. 1-4-2014).

1. Ins. by Act 17 of 2013, s. 13 (w.e.f. 1-4-2014).

2. Ins. by Act 7 of 2017, s. 34 (w.e.f. 1-4-2018).

³[80D. Deduction in respect of health insurance premia.-

(1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode ⁴[as specified in sub-section (2B)], in the previous year out of his income chargeable to tax.

(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:-

(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family ⁵[or any contribution made to the Central Government Health Scheme] ⁶[or such other scheme as may be notified by the Central Government in this behalf] ⁷[or any payment made on account of preventive health check-up of the assessee or his family] as does not exceed in the aggregate ⁸[twenty-five thousand rupees]; and

(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parents or parents of the assessee ⁷[or any payment made on account of preventive health check-up of the parent or parents of the assessee] as does not exceed in the aggregate ⁸[twenty-five thousand rupees];

⁹[(c) the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family as does not exceed in the aggregate ¹⁰[fifty thousand rupees]; and

(d) the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate ¹⁰[fifty thousand rupees]:

Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a 11*** senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:

Provided further that the aggregate of the sum specified under clause (a) and clause (c) or the aggregate of the sum specified under clause (b) and clause (d) shall not exceed ¹⁰[fifty thousand rupees].]

Explanation.-For the purposes of clause (a), "family" means the spouse and dependant children of the assessee.

⁷[(2A) Where the amounts referred to in clauses (a) and (b) of sub-section (2) are paid on account of preventive health check-up, the deduction for such amounts shall be allowed to the extent it does not exceed in the aggregate five thousand rupees.

(2B) For the purposes of deduction under sub-section (1), the payment shall be made by-

(i) any mode, including cash, in respect of any sum paid on account of preventive health check-up;

(ii) any mode other than cash in all other cases not falling under clause (i).]

¹[(3) Where the assessee is a Hindu undivided family, the sum referred to in sub-section (1), shall be the aggregate of the following, namely:-

(a) whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate twenty-five thousand rupees; and

(b) the whole of the amount paid on account of medical expenditure incurred on the health of any member of the Hindu undivided family as does not exceed in the aggregate ²[fifty thousand rupees]:

Provided that the amount referred to in clause (b) is paid in respect of a 3*** senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:

Provided further that the aggregate of the sum specified under clause (a) and clause (b) shall not exceed ²[fifty thousand rupees].]

(4) Where the sum specified in clause (a) or clause (b) of sub-section (2) ⁴[or clause (a) of sub-section (3)] is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, 5***, the provisions of this section shall have effect as if for the words ⁶[twenty-five thousand rupees], the words ⁷[fifty thousand rupees] had been substituted.

⁹[(4A) Where the amount specified in clause (a) or clause (b) of sub-section (2) or clause (a) of sub-section (3) is paid in lump sum in the previous year to effect or to keep in force an insurance on the health of any person specified therein for more than a year, then, subject to the provisions of this section, there shall be allowed for each of the relevant previous year, a deduction equal to the appropriate fraction of the amount.

Explanation.-For the purposes of this sub-section,-

(i) "appropriate fraction" means the fraction, the numerator of which is one and the denominator of which is the total number of relevant previous years;

(ii) "relevant previous year" means the previous year beginning with the previous year in which such amount is paid and the subsequent previous year or years during which the insurance shall have effect or be in force.]

(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by-

(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or

(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).]

¹[Explanation.-For the purposes of this section,-

(i) "senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year;

3. Subs. by Act 18 of 2008, s. 17, for section 80D (w.e.f. 1-4-2009).

4. Subs. by Act 23 of 2012, s. 26, for ", other than cash," (w.e.f. 1-4-2013).

5. Ins. by Act 14 of 2010, s. 25 (w.e.f. 1-4-2011).

6. Ins. by Act 17 of 2013, s. 14 (w.e.f. 1-4-2014).

7. Ins. by Act 23 of 2012, s. 26 (w.e.f. 1-4-2013).

8. Subs. by Act 20 of 2015, s. 19, for "fifteen thousand rupees" (w.e.f. 1-4-2016).

9. Ins. by s. 19, ibid. (w.e.f. 1-4-2016).

10. Subs. by Act 13 of 2018, s. 26, for "thirty thousand rupees" (w.e.f. 1-4-2019).

11. The word "very" omitted by s. 26, ibid. (w.e.f. 1-4-2019).

1. Subs. by Act 20 of 2015, s. 19, for sub-section (3) (w.e.f. 1-4-2016).

2. Subs. by Act 13 of 2018, s. 26, for "thirty thousand rupees" (w.e.f. 1-4-2019).

3. The word "very" omitted by s. 26 (w.e.f. 1-4-2019).

4. Subs. by Act 20 of 2015, s. 19, for "or in sub-section (3)" (w.e.f. 1-4-2016).

5. The words "or a very senior citizen" omitted by Act 13 of 2018, s. 26 (w.e.f. 1-4-2019) which was earlier inserted by Act 20 of 2015, s. 19 (w.e.f. 1-4-2016).

6. Subs. by Act 20 of 2015, s. 19, ibid., for "fifteen thousand rupees" (w.e.f. 1-4-2016).

7. Subs. by Act 13 of 2018, s. 26, for "thirty thousand rupees" (w.e.f. 1-4-2019). Earlier it was substituted by s. 19, ibid., for "twenty thousand rupees" (w.e.f. 1-4-2016).

8. Explanation omitted by Act 20 of 2015, s. 19 (w.e.f. 1-4-2016).

9. Ins. by Act 13 of 2018, s. 26 (w.e.f. 1-4-2019).

1. Ins. by Act 20 of 2015, s. 19 (w.e.f. 1-4-2016).

2. Clause (ii) omitted by Act 13 of 2018, s. 26 (w.e.f. 1-4-2019).

³[80DD. Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.-

⁴[(1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,-

(a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or

(b) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability, the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of seventy-five thousand rupees from his gross total income in respect of the previous year:

Provided that where such dependant is a person with severe disability, the provisions of this sub-section shall have effect as if for the words "seventy-five thousand rupees", the words "one hundred and twenty-five thousand rupees" had been substituted.]

(2) The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely:-

(a) the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made;

(b) the assessee nominates either the dependant, being a person with disability, or any other person or a trust to receive the payment on his behalf, for the benefit of the dependant, being a person with disability.

(3) If the dependant, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2), an amount equal to the amount paid or deposited under clause (b) of sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year.

(4) The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed:

Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income.

Explanation.-For the purposes of this section,-

(a) "Administrator" means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(b) "dependant" means-

(i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;

(ii) in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year;

(c) "disability" shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) ¹[and includes "autism", "cerebral palsy" and "multiple disability" referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];

(d) "Life Insurance Corporation" shall have the same meaning as in clause (iii) of sub-section (8) of section 88;

(e) "medical authority" means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) ¹[or such other medical authority as may, by notification, be specified by the Central Government for certifying "autism", "cerebral palsy", "multiple disabilities", "person with disability" and "severe disability" referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];

(f) "person with disability" means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) ¹[or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];

²[(g) "person with severe disability" means-

(i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or

(ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);]

(h) "specified company" means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).]

3. Subs. by Act 32 of 2003, s. 34, for section 80DD (w.e.f. 1-4-2004).

4. Subs. by Act 20 of 2015, s. 20, for sub-section (1) (w.e.f. 1-4-2016).

1. Ins. by Act 23 of 2004, s. 16 (w.e.f. 1-4-2005).

2. Subs. by s. 16, ibid., for clause (g) (w.e.f. 1-4-2005).

¹[80DDB. Deduction in respect of medical treatment, etc.-

Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board-

(a) for himself or a dependant, in case the assessee is an individual; or

(b) for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family, the assessee shall be allowed a deduction of the amount actually paid or a sum of forty thousand rupees, whichever is less, in respect of that previous year in which such amount was actually paid :

²[Provided that no such deduction shall be allowed unless the assessee obtains the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed:]

Provided further that the deduction under this section shall be reduced by the amount received, if any, under an insurance from an insurer, or reimbursed by an employer, for the medical treatment of the person referred to in clause (a) or clause (b):

Provided also that where the amount actually paid is in respect of the assessee or his dependant or any member of a Hindu undivided family of the assessee and who is a senior citizen, the provisions of this section shall have effect as if for the words "forty thousand rupees", the words "³[one hundred thousand rupees]" had been substituted:

Explanation.-For the purposes of this section,-

(i) "dependant" means-

(a) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,

(b) in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

(iii) "insurer" shall have the meaning assigned to it in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);

(iv) "senior citizen" means an individual resident in India who is of the age of ²[sixty years] or more at any time during the relevant previous year;]

1. Subs. by Act 32 of 2003, s. 35, for section 80DDB (w.e.f. 1-4-2004).

2. Subs. by Act 20 of 2015, s. 21, for the proviso (w.e.f. 1-4-2016).

3. Subs. by Act 13 of 2018, s. 27, for "sixty thousand rupees" (w.e.f. 1-4-2019).

4. The fourth proviso omitted by s. 27, ibid. (w.e.f. 1-4-2019). Earlier it was inserted by Act 20 of 2015, s. 21 (w.e.f. 1-4-2016).

1. Clause (ii) omitted by Act 20 of 2015, s. 21 (w.e.f. 1-4-2016).

2. Subs. by Act 23 of 2012, s. 27, for "sixty-five years" (w.e.f. 1-4-2013).

3. Clause (5) omitted by Act 13 of 2018, s. 27 (w.e.f. 1-4-2019). Earlier inserted by Act 20 of 2015, s. 21 (w.e.f. 1-4-2016).

⁴[80E. Deduction in respect of interest on loan taken for higher education.-

(1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education ⁵[or for the purpose of higher education of his relative].

(2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest referred to in sub-section (1) is paid by the assessee in full, whichever is earlier.

(3) For the purposes of this section,-

(a) "approved charitable institution" means an institution specified in, or, as the case may be, an institution established for charitable purposes and ⁶[approved by the prescribed authority] under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;

(b) "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;

⁷[(c) "higher education" means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so;]

(d) "initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan;]

¹[(e) "relative", in relation to an individual, means the spouse and children of that individual or the student for whom the individual is the legal guardian.]

4. Subs. by Act 18 of 2005, s. 25, for section 80E (w.e.f. 1-4-2006). Earlier omitted by Act 4 of 1988, s. 33 (w.e.f. 1-4-1989) and later inserted by Act 32 of 1994, s. 23 (w.e.f. 1-4-1995).

5. Ins. by Act 22 of 2007, s. 27 (w.e.f. 1-4-2008).

6. Subs. by s. 27, ibid., for "notified by the Central Government" (w.e.f. 1-4-2008).

7. Subs. by Act 33 of 2009, s. 32, for clause (c) (w.e..f 1-4-2010).

1. Subs. by Act 33 of 2009, s. 32, for clause (e) (w.e.f. 1-4-2010). Earlier inserted by Act 22 of 2007, s. 27 (w.e.f. 1-4-2008).

²[80EE. Deduction in respect of interest on loan taken for residential house property.-

(1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential property.

(2) The deduction under sub-section (1) shall not exceed fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2017 and subsequent assessment years.

(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:-

(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2016 and ending on the 31st day of March, 2017;

(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees;

(iii) the value of residential house property does not exceed fifty lakh rupees;

(iv) the assessee does not own any residential house property on the date of sanction of loan.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

(5) For the purposes of this section,-

(a) "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies, or any bank or banking institution referred to in section 51 of that Act or a housing finance company;

(b) "housing finance company" means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.]

2. Subs. by Act 28 of 2016, s. 38, for section 80EE (w.e.f. 1-4-2017).

80F. [Deduction in respect of educational expenses in certain cases].-Omitted by the Finance Act, 1985 (32 of 1985), s. 17 (w.e.f. 1-4-1986). Before omission by Act 3 of 1989, s. 95 it was ins. by Act 4 of 1988, s. 24 (w.e.f. 1-4-1989).

80FF. [Deduction in respect of expenses on higher education in certain cases].-Omitted by the Finance (No. 2) Act, 1980 (44 of 1980), s. 14 (w.e.f. 1-4-1981). Earlier inserted by Act 25 of 1975 s. 11 (w.e.f. 1-4-1976).

80G. Deduction in respect of donations to certain funds, charitable institutions, etc.-

¹[(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,-

²[(i) in a case where the aggregate of the sums specified in sub-section (2) includes any sum or sums of the nature specified ³[in sub-clause (i) or in ⁴[sub-clause (iiia)] ⁵[or in sub-clause (iiiaa) ⁶[or in sub-clause (iiiab)] ⁷[or in sub-clause (iiib)] ⁸[or in sub-clause (iiie)] ⁹[or in sub-clause (iiif)] ¹⁰[or in sub-clause (iiig)] 1¹[or in sub-clause (iiiga)] 1²[or sub-clause (iiih)] 1³[or sub-clause (iiiha) or sub-clause (iiihb) or sub-clause (iiihc)] 1⁴[or sub-clause (iiihd)] 1⁵[or sub-clause (iiihe)] 1⁶[or subclause (iiihf)] 1⁷[or sub-clause (iiihg) or sub-clause (iiihh)] 1⁸[or sub-clause (iiihi)] 1⁹[or sub-clause (iiihj)] or] 20[sub-clause (iiihk) or sub-clause (iiihl) or] 20[sub-clause (iiihm) or] in] sub-clause (vii) of clause (a) 2¹[or in clause (c)] 1¹[or in clause (d)] thereof, an amount equal to the whole of the sum or, as the case may be, sums of such nature plus fifty per cent of the balance of such aggregate; and]

(ii) in any other case, an amount equal to fifty per cent of the aggregate of the sums specified in sub-section (2).]

(2) The sums referred to in sub-section (1) shall be the following, namely:-

(a) any sums paid by the assessee in the previous year as donations to-

(i) the National Defence Fund set up by the Central Government; or

(ii) the Jawaharlal Nehru Memorial Fund referred to in the Deed of Declaration of Trust adopted by the National Committee at its meeting held on the 17th day of August, 1964; or

(iii) the Prime Minister's Drought Relief Fund; or

2²[(iiia) the Prime Minister's National Relief Fund; or]

⁵[(iiiaa) the Prime Minister's Armenia Earthquake Relief Fund; or]

2³[(iiiab) the Africa (Public Contributions-India) Fund; or]

2⁴[(iiib) the National Children's Fund; or]

2⁵[(iiic) the Indira Gandhi Memorial Trust, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of February, 1985; or]

¹[(iiid) the Rajiv Gandhi Foundation, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of June, 1991; or]

²[(iiie) the National Foundation for Communal Harmony; or]

³[(iiif) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or]

⁴[(iiig) the Maharashtra Chief Minister's Relief Fund during the period beginning on the 1st day of October, 1993 and ending on the 6th day of October, 1993 or to the Chief Minister's Earthquake Relief Fund, Maharashtra; or]

⁵[(iiiga) any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat; or]

⁶[(iiih) any Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for the purposes of improvement of primary education in villages and towns in such district and for literacy and postliteracy activities.

Explanation.-For the purposes of this sub-clause, "town" means a town which has a population not exceeding one lakh according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or]

⁷[(iiiha) the National Blood Transfusion Council or to any State Blood Transfusion Council which has its sole object the control, supervision, regulation or encouragement in India of the services related to operation and requirements of blood banks.

Explanation.-For the purposes of this sub-clause,-

(a) "National Blood Transfusion Council" means a society registered under the Societies Registration Act, 1860 (21 of 1860) and has an officer not below the rank of an Additional Secretary to the Government of India dealing with the AIDS Control Project as its Chairman, by whatever name called;

(b) "State Blood Transfusion Council" means a society registered, in consultation with the National Blood Transfusion Council, under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India and has Secretary to the Government of that State dealing with the Department of Health, as its Chairman, by whatever name called; or

(iiihb) any fund set up by a State Government to provide medical relief to the poor; or

(iiihc) the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants; or]

⁸[(iiihd) the Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996; or]

⁹[(iiihe) the National Illness Assistance Fund; or]

¹⁰[(iiihf) the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in respect of any State or Union territory, as the case may be:

Provided that such Fund is-

(a) the only Fund of its kind established in the State or the Union territory, as the case may be;

(b) under the overall control of the Chief Secretary or the Department of Finance of the State or the Union territory, as the case may be;

(c) administered in such manner as may be specified by the State Government or the Lieutenant Governor, as the case may be; or]

¹[(iiihg) the National Sports Fund to be set up by the Central Government; or (iiihh) the National Cultural Fund set up by the Central Government; or]

²[(iiihi) the Fund for Technology Development and Application set up by the Central Government; or]

³[(iiihj) the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under sub-section (1) of section 3 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or]

⁴[(iiihk) the Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of section 135 of the Companies Act, 2013 (18 of 2013); or

(iiihl) the Clean Ganga Fund, set up by the Central Government, where such assessee is a resident and such sum is other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of section 135 of the Companies Act, 2013 (18 of 2013); or]

⁵[(iiihm) the National Fund for Control of Drug Abuse constituted under section 7A of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); or]

(iv) any other fund or any institution to which this section applies; or

(v) the Government or any local authority, to be utilised ⁶[for any charitable purpose other than the purpose of promoting family planning; or]

⁷[⁸[(vi) an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both;]

⁹[(via) any corporation referred to in clause (26BB) of section 10; or]

(vii) the Government or to any such local authority, institution or association as may be approved in this behalf by the Central Government, to be utilised for the purpose of promoting family planning;]

(b) any sums paid by the assessee in the previous year as donations for the renovation or repair of any such temple, mosque, gurdwara, church or other place as is notified by the Central Government in the Official Gazette to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States;

¹[(c) any sums paid by the assessee, being a company, in the previous year as donations to the Indian Olympic Association or to any other association or institution ²[established in India, as the Central Government may, having regard to the prescribed guidelines, by notification in the Official Gazette, specify in this behalf] for-

(i) the development of infrastructure for sports and games; or

(ii) the sponsorship of sports and games, in India;]

³[ (d) any sums paid by the assessee, during the period beginning on the 26th day of January, 2001 and ending on the 30th day of September, 2001, to any trust, institution or fund to which this section applies for providing relief to the victims of earthquake in Gujarat.]

⁵[(4) Where the aggregate of the sums referred to in sub-clauses (iv), (v), ⁶[(vi), (via) and (vii)] of clause (a) and in ⁷[clauses (b) and (c)] of sub-section (2) exceeds ten per cent of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of ten per cent of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under subsection (1).]

(5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely:-

⁸[(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 9*** 10*** 1¹[or clause (23AA) or clause (23C)] of section 10:]

1²[Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if-

(a) the institution or fund maintains separate books of account in respect of such business;

(b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and

(c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;]

(ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose;

(iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste;

(iv) the institution or fund maintains regular accounts of its receipts and expenditure; 1***

(v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, 2*** or is an institution financed wholly or in part by the Government or a local authority; 3***

⁴[(vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commissioner in accordance with the rules ⁵[made in this behalf; and]]

⁷[(vii) where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have been,-

(a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and

(b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009.]

⁸[(5A) Where a deduction under this section is claimed and allowed for any assessment year in respect of any sum specified in sub-section (2), the sum in respect of which deduction is so allowed shall not qualify for deduction under any other provision of this Act for the same or any other assessment year.]

⁹[(5B) Notwithstanding anything contained in clause (ii) of sub-section (5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five per cent of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply.]

¹⁰[(5C) 1¹[This section] applies in relation to amounts referred to in clause (d) of sub-section (2) only if the trust or institution or fund is established in India for a charitable purpose and it fulfils the following conditions, namely :-

(i) it is approved in terms of clause (vi) of sub-section (5);

(ii) it maintains separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat;

(iii) the donations made to the trust or institution or fund are applied only for providing relief to the earthquake victims of Gujarat 1²[on or before the 31st day of March, 1³[2004]];

¹[(iv) the amount of donation remaining unutilised on the 31st day of March, ²[2004] is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, ²[2004];]

(v) it renders accounts of income and expenditure to such authority and in such manner as may be prescribed, ³[on or before the 30th day of June, ²[2004]].]

⁴[(5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding ⁵[two thousand rupees] unless such sum is paid by any mode other than cash.]

Explanation 1.-An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5).

⁶[Explanation 2.-For the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be denied merely on either or both of the following grounds, namely:-

⁷[(i) that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of ⁸[section 11, section 12 or section 12A;

(ii) that, under clause (c) of sub-section (1) of section 13, the exemption under ⁹[section 11 or section 12] is denied to the institution or fund in relation to any income arising to it from any investment referred to in clause (h) of sub-section (2) of section 13 where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent of the capital of that concern].]

Explanation 3.-In this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature.

¹⁰[Explanation 4.-For the purposes of this section, an association or institution having as its object the control, supervision, regulation or encouragement in India of such games or sports as the Central Government may, by notification in the Official Gazette, specify in this behalf, shall be deemed to be an institution established in India for a charitable purpose.]

1¹[Explanation 5.-For the removal of doubts, it is hereby declared that no deduction shall be allowed under this section in respect of any donation unless such donation is of a sum of money.]

12*

1. Subs. by Act 66 of 1976, s. 17, for sub-section (1) (w.e.f. 1-4-1977).

2. Subs. by Act 32 of 1985, s. 18, for clause (i) (1-4-1986).

3. Subs. by Act 28 of 1999, s. 2, for "in sub-clause (iiia)" (w.e.f. 1-4-2000).

4. Restored by Act 3 of 1989 s. 95, Earlier subs. by Act 4 of 1988, s. 25 (w.e.f. 1-1989).

5. Ins. by Act 11 of 1989, s. 3 (w.e.f. 24-1-1989).

6. Ins. by Act 49 of 1991, s. 26 (w.e.f. 1-4-1991).

7. Ins. by Act 17 of 2013, s. 16 (w.e.f. 1-4-2014).

8. Ins. by Act 38 of 1993, s. 13 (w.e.f. 1-4-1993).

9. Ins. by s. 13, ibid. (w.e.f. 1-4-1994).

10. Ins. by Act 32 of 1994, s. 26 (w.e.f. 1-4-1994).

11. Ins. by Act 4 of 2001, s. 6 (w.e.f. 3-2-2001).

12. Ins. by Act 22 of 1995, s. 16 (w.e.f. 1-4-1996).

13. Ins. by Act 33 of 1996, s. 24 (w.e.f. 1-4-1997).

14. Ins. by Act 35 of 1996, s. 2 (w.e.f. 14-11-1996).

15. Ins. by Act 14 of 1997, s. 3 (w.e.f. 1-4-1997).

16. Ins. by Act 26 of 1997, s. 23 (w.e.f. 1-4-1998).

17. Ins. by Act 21 of 1998, s. 29 (w.e.f. 1-4-1999).

18. Ins. b y Act 27 of 1999, s. 43 (w.e.f. 1-4-2000).

19. Ins. by Act 14 of 2001, s. 39 (w.e.f. 1-4-2002).

20. Ins. by Act 20 of 2015, s. 22 (w.e.f. 1-4-2016).

21. Ins. by Act 10 of 2000, s. 31 (w.e.f. 1-4-2001).

22. Ins. by Act 1 of 1976, s. 2 (w.e.f. 9-9-1975).

23. Ins. by Act 49 of 1991, s. 26 (w.e.f. 1-4-1991).

24. Ins. by Act 14 of 1982, s. 15 (w.e.f 1-4-1983).

25. Ins. by Act 32 of 1985, s. 18 (w.e.f. 1-4-1985).

1. Ins. by Act 49 of 1991, s. 26 (w.e.f. 1-4-1991).

2. Ins. by Act 38 of 1993, s. 13 (w.e.f. 1-4-1993).

3. Ins. s. 13, ibid. (w.e.f. 1-4-1994).

4. Ins. by Act 32 of 1994, s. 24 (w.e.f. 1-4-1994).

5. Ins. by Act 4 of 2001, s. 6 (w.e.f. 3-2-2001).

6. Ins. by Act 22 of 1995, s. 16 (w.e.f. 1-4-1996).

7. Ins. by Act 33 of 1996, s. 26 (w.e.f. 1-4-1997).

8. Ins. by Act 35 of 1996, s. 2 (w.e.f. 14-11-1996).

9. Ins. by Act 14 of 1997, s. 3 (w.e.f. 1-4-1997).

10. Ins. by Act 26 of 1997, s. 23 (w.e.f. 1-4-1998).

1. Ins. by Act 21 of 1998, s. 29 w.e.f. 1-4-1999).

2. Ins. by Act 27 of 1999, s. 43 (w.e.f. 1-4-2000).

3. Ins. by Act 14 of 2001, s. 39 (w.e.f. 1-4-2002).

4. Ins. by Act 20 of 2015, s. 22 (w.e.f. 1-4-2015).

5. Ins. by s. 22, ibid. (w.e.f. 1-4-2016).

6. Subs. by Act 66 of 1976, s. 17, for "for any charitable purpose;" (w.e.f. 1-4-1977).

7. Ins. by s. 17, ibid. (w.e.f. 1-4-1977).

8. Subs. by Act 20 of 2002, s. 30, for sub-clause (vi) (w.e.f. 1-4-2003).

9. Ins. by Act 22 of 1995, s. 16 (w.e.f. 1-4-1995).

1. Ins. by Act 10 of 2000, s. 31 (w.e.f. 1-4-2001).

2. Subs. by Act 20 of 2002, s. 30, for "as notified by the Central Government under clause (23) of section 10" (w.e.f. 1-4-2003).

3. Ins. by Act 4 of 2001, s. 6 (w.e.f. 3-2-2001).

4. Sub-section (3) omitted by Act 32 of 1994, s. 24 (w.e.f. 1-4-1994).

5. Subs. by Act 4 of 1988, s. 25, for sub-section (4) (w.e.f. 1-4-1989).

6. Subs. by Act 22 of 1995, s. 16, for "(vi) and (vii)" (w.e.f. 1-4-1995).

7. Subs. by Act 10 of 2000, s. 31, for "clause (b)" (w.e.f. 1-4-2001).

8. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier subs. by Act 4 of 1988, s. 25 (w.e.f. 1-4-1989).

9. The words, brackets, figures and letter "or clause (22) or clause (22A)" omitted by Act 21 of 1998, s. 29 (w.e.f. 1-4-1999).

10. The words, brackets and figures "or clause (23)" omitted by Act 20 of 2002, s. 30 (w.e.f. 1-4-2003).

11. Subs. by Act 11 of 1987, s. 35, for "or clause (23C)" (w.e.f. 1-4-1988).

12. The proviso added by Act 11 of 1983, s. 39 (w.e.f. 1-4-1984).

1. The word "and" omitted by Act 32 of 1994, s. 24 (w.e.f. 1-4-1994).

2. The words, brackets and figures "or is an institution approved by the Central Government for the purposes of clause (23) of section 10", omitted by Act 20 of 2002, s. 30 (w.e.f. 1-4-2003).

3. The word "and" omitted by Act 33 of 2009, s. 33 (w.e.f. 1-4-2009).

4. Ins. by Act 49 of 1991, s. 26 (w.e.f. 1-10-1991).

5. Subs. by Act 33 of 2009, s. 33, for "made in this behalf:" (w.e.f. 1-4-2009).

6. The proviso omitted by s. 33, ibid., (w.e.f. 1-10-2009).

7. Ins. by s. 33, ibid. (w.e.f. 1-10-2009).

8. Ins. by Act 44 of 1980, s. 15 (w.r.e.f. 1-4-1962).

9. Ins. by Act 27 of 1999, s. 43 (w.e.f. 1-4-2000).

10. Ins. by Act 4 of 2001, s. 6 (w.e.f. 3-2-2001).

11. Subs. by Act 20 of 2002, s. 30, for "This sub-section" (w.e.f. 3-2-2001).

12. Subs. by s. 30, ibid., for "on or before the 31st day of March, 2002" (w.e.f. 3-2-2001).

13. Subs. by Act 32 of 2003, s. 36, for "2003" (w.e.f. 3-2-2001).

1. Subs. by Act 20 of 2002, s. 30, for clause (iv) (w.e.f. 3-2-2001).

2. Subs. by Act 32 of 2003, s. 36, for "2003" (w.e.f. 3-2-2001).

3. Subs. by s. 30, ibid., for "on or before the 30th day of June, 2002" (w.e.f. 3-2-2001).

4. Ins. by Act 23 of 2012, s. 28 (w.e.f. 1-4-2013).

5. Subs by Act 7 of 2017, s. 35 for "ten thousand rupees" (w.e.f. 1-4-2018).

6. Subs. by Act 19 of 1970, s. 13, for the Explanation 2 (w.e.f. 1-4-1971) earlier substituted by Act 20 of 1967, s. 33 and the Third Schedule (w.e.f. 1-4-1967).

7. Restored by Act 3 of 1989, s. 95 (h) (w.e.f. 1-4-1989). Earlier subs. by Act 4 of 1988, s. 25 (w.e.f. 1-4-1989).

8. Subs. by Act 16 of 1972, s. 17, for "section 11" (w.e.f. 1-4-1973).

9. Subs. by s. 17, for "section 11" (w.e.f. 1-4-1973).

10. Subs. by Act 20 of 2002, s. 30, for the Explanation 4 (w.e.f. 1-4-2003).

11. Ins. by Act 66 of 1976, s. 17 (w.e.f. 1-4-1976).

12. Sub-section (6) omitted by Act 19 of 1968, s. 30 and the Third Schedule (w.e.f. 1-4-1969).

¹[80GG. Deductions in respect of rents paid.-

In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent (by whatever name called) in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence, to the extent to which such excess expenditure does not exceed ²[five thousand rupees] per month or twenty-five per cent of his total income for the year, whichever is less, and subject to such other conditions or limitations as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations:

Provided that nothing in this section shall apply to an assessee in any case where any residential accommodation is-

(i) owned by the assessee or by his spouse or minor child or, where such assessee is a member of a Hindu undivided family, by such family at the place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession; or

(ii) owned by the assessee at any other place, being accommodation in the occupation of the assessee, the value of which is to be determined ³[under clause (a) of sub-section (2) or, as the case may be, clause (a) of sub-section (4) of section 23].

Explanation.-In this section, the expressions "ten per cent of his total income" and "twenty-five per cent of his total income" shall mean ten per cent or twenty-five per cent, as the case may be, of the assessee's total income before allowing deduction for any expenditure under this section.]

1. Ins. by Act 21 of 1998, s. 30 (w.e.f. 1-4-1998).

2. Subs. by Act 28 of 2016, s. 39, for "two thousand rupees" w.e.f. 1-4-2017).

3. Subs. by Act 14 of 2001, s. 40, for "under sub-clause (i) of clause (a) or, as the case may be, clause (b) of sub-section (2) of section 23" (w.e.f. 1-4-2002).

⁴[80GGA. Deduction in respect of certain donations for scientific research or rural development.-

(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2).

(2) The sums referred to in sub-section (1) shall be the following, namely:-

(a) any sum paid by the assessee in the previous year to a ⁵[research association] which has as its object the undertaking of scientific research or to a University, college or other institution to be used for scientific research:

Provided that such association, University, college or institution is for the time being approved for the purposes of clause (ii) of sub-section (1) of section 35;

⁶[(aa) any sum paid by the assessee in the previous year ⁷[to a research association which has as its object the undertaking of research in social science or statistical research or to a University], college or other institution to be used for research in social science or statistical research:

Provided that ¹[such association, University], college or institution is for the time being approved for the purposes of clause (iii) of sub-section (1) of section 35.]

²[Explanation.-The deduction, to which the assessee is entitled in respect of any sum paid to a ³[research association], University, college or other institution to which clause (a) or clause (aa) applies, shall not be denied merely on the ground that, subsequent to the payment of such sum by the assessee, the approval to such association, University, college or other institution referred to in clause (a) or clause (aa), as the case may be, has been withdrawn;]

(b) any sum paid by the assessee in the previous year-

(i) to an association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development approved for the purposes of section 35CCA; or

(ii) to an association or institution which has as its object the training of persons for implementing programmes of rural development:

⁴[Provided that the assessee furnishes the certificate referred to in sub-section (2) or, as the case may be, sub-section (2A) of section 35CCA from such association or institution.]

²[Explanation.-The deduction, to which the assessee is entitled in respect of any sum paid to an association or institution for carrying out the programme of rural development to which this clause applies, shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee, the approval granted to such programme, or as the case may be, to the association or institution has been withdrawn;]

⁵[(bb) any sum paid by the assessee in the previous year to a public sector company or a local authority or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme: Provided that the assessee furnishes the certificate referred to in clause (a) of sub-section (2) of section 35AC from such public sector company or local authority or, as the case may be, association or institution.

²[Explanation 1.-The deduction, to which the assessee is entitled in respect of any sum paid to a public sector company, or to a local authority or to an association or institution for carrying out the eligible project or scheme referred to in section 35AC, shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee,-

(a) the approval granted to such association or institution has been withdrawn; or

(b) the notification notifying the eligible project or scheme referred to in section 3535AC carried out by the public sector company, or local authority or association or institution has been withdrawn.]

Explanation ¹[2].-For the purposes of this clause, the expressions "National Committee" and "eligible project or scheme" shall have the meanings respectively assigned to them in the Explanation to section 35AC;]

²[(c) ³[any sum paid by the assessee in any previous year ending on or before the 31st day of March, 2002] to an association or institution, which has as its object the undertaking of any programme of conservation of natural resources ⁴[or of afforestation], to be used for carrying out any programme of conservation of natural resources ⁴[or of afforestation] approved for the purposes of section 35CCB:

Provided that the association or institution is for the time being approved for the purposes of subsection (2) of section 35CCB;]

⁴[(cc) any sum paid by the assessee in any previous year ending on or before the 31st day of March, 2002 to such fund for afforestation as is notified by the Central Government under clause (b) of sub-section (1) of section 35CCB;]

⁵[(d) any sum paid by the assessee in the previous year to a rural development fund set up and notified by the Central Government for the purposes of clause (c) of sub-section (1) of section 35CCA;]

⁶[(e) any sum paid by the assessee in the previous year to the National Urban Poverty Eradication Fund set up and notified by the Central Government for the purposes of clause (d) of sub-section (1) of section 35CCA.]

⁷[(2A) No deduction shall be allowed under this section in respect of any sum exceeding ten thousand rupees unless such sum is paid by any mode other than cash.]

(3) Notwithstanding anything contained in sub-section (1), no deduction under this section shall be allowed in the case of an assessee whose gross total income includes income which is chargeable under the head "Profits and gains of business or profession".

(4) Where a deduction under this section is claimed and allowed for any assessment year in respect of any payments of the nature specified in sub-section (2), deduction shall not be allowed in respect of such payments under any other provision of this Act for the same or any other assessment year.]

4. Ins. by Act 21 of 1979, s. 11 (w.e.f. 1-4-1980). Restored to its original position by Act 3 of 1989 s. 95 (w.e.f. 1-4-1989).

Earlier omitted by Act 4 of 1988 s. 26 (w.e.f. 1-4-1989).

5. Subs. by Act 14 of 2010, s. 26, for "scientific research association" (w.e.f. 1-4-2011).

6. Ins. by Act 49 of 1991, s. 27 (w.e.f. 1-4-1992).

7. Subs. by Act 14 of 2010, s. 26, for "to a University" (w.e.f. 1-4-2011).

1. Subs. by Act 14 of 2010 s. 26, for "such University" (w.e.f. 1-4-2011).

2. Ins. by Act 29 of 2006, s. 11 (w.e.f. 1-4-2006).

3. Subs. by Act of 2010, s. 26, for "scientific research association" (w.e.f. 1-4-2011).

4. Subs. by Act 23 of 1983, s. 23, for the proviso (w.e.f. 1-4-1983).

5. Ins. by Act 49 of 1991, s. 27 (w.e.f. 1-4-1992).

1. Explanation renumbered as Explanation 2 thereof by Act 29 of 2006, s. 11 (w.e.f. 1-4-2006).

2. Ins. by Act 14 of 1982, s. 17 (w.e.f. 1-6-1982).

3. Subs. by Act 20 of 2002, s. 31, for "any sum paid by the assessee in the previous year" (w.e.f. 1-4-2003).

4. Ins. by Act 12 of 1990, s. 19 (w.e.f. 1-4-1991).

5. Ins. by Act 23 of 1983, s. 23 (w.e.f. 1-4-1983).

6. Ins. by Act 22 of 1995, s. 17 (w.e.f. 1-4-1996).

7. Ins. by Act 23 of 2012, s. 29 (w.e.f. 1-4-2013).

⁸[80GGB. Deduction in respect of contributions given by companies to political parties.-

In computing the total income of an assessee, being an Indian company, there shall be deducted any sum contributed by it, in the previous year to any political party ⁹[or an electoral trust]:

¹[Provided that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.]

Explanation.-For the removal of doubts, it is hereby declared that for the purposes of this section, the word "contribute", with its grammatical variation, has the meaning assigned to it under section 293A of the Companies Act, 1956 (1 of 1956).]

8. Ins. by Act 46 of 2003, s. 10 (w.e.f. 11-9-2003).

9. Ins. by Act 33 of 2009, s. 34 (w.e.f. 1-4-2010).

1. Ins. by Act 17 of 2013, s. 17 (w.e.f. 1-4-2014).

80GGC. Deduction in respect of contributions given by any person to political parties.-

In computing the total income of an assessee, being any person, except local authority and every artificial juridical person wholly or partly funded by the Government, there shall be deducted any amount of contribution made by him, in the previous year, to a political party or an electoral trust:

²[Provided that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.]

Explanation.-For the purposes of sections 80GGB and 80GGC, "political party" means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951).]

2. Ins. by s. 18, ibid. (w.e.f. 1-4-2014).

Back

Index

Information provided on advocatekhoj.com is solely available at your request for informational purposes only and should not be interpreted as soliciting or advertisement