The Income-Tax Act, 1961

¹[Chapter VIA

Deductions to be Made in Computing Total Income

A.-General

80A. Deductions to be made in computing total income.-

(1) In computing the total income of an assessee, there shall be allowed from his gross total income, in accordance with and subject to the provisions of this Chapter, the deductions specified in section 80C to ²[80U].

(2) The aggregate amount of the deductions under this Chapter shall not, in any case, exceed the gross total income of the assessee.

³[(3) Where, in computing the total income of an association of persons or a body of individuals, any deduction is admissible under section 80G or section 80GGA ⁴[or section 80GGC] or section 80HH or section 80HHA or section 80HHB or section 80HHC or section 80HHD or section 80-I or section 80-IA ⁵[or section 80-IB] ⁶[or section 80-IC] ⁷[or section 80-ID or section 80-IE] 8*** 9***, no deduction under the same section shall be made in computing the total income of a member of the association of persons or body of individuals in relation to the share of such member in the income of the association of persons or body of individuals.]

¹⁰[(4) Notwithstanding anything to the contrary contained in section 10A or section 10AA or section 10B or section 10BA or in any provisions of this Chapter under the heading "C.-Deductions in respect of certain incomes", where, in the case of an assessee, any amount of profits and gains of an undertaking or unit or enterprise or eligible business is claimed and allowed as a deduction under any of those provisions for any assessment year, deduction in respect of, and to the extent of, such profits and gains shall not be allowed under any other provisions of this Act for such assessment year and shall in no case exceed the profits and gains of such undertaking or unit or enterprise or eligible business, as the case may be.

(5) Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C.-Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder.]

(6) Notwithstanding anything to the contrary contained in section 10A or section 10AA or section 10B or section 10BA or in any provisions of this Chapter under the heading "C.-Deductions in respect of certain incomes", where any goods or services held for the purposes of the undertaking or unit or enterprise or eligible business are transferred to any other business carried on by the assessee or where any goods or services held for the purposes of any other business carried on by the assessee are transferred to the undertaking or unit or enterprise or eligible business and, the consideration, if any, for such transfer as recorded in the accounts of the undertaking or unit or enterprise or eligible business does not correspond to the market value of such goods or services as on the date of the transfer, then, for the purposes of any deduction under this Chapter, the profits and gains of such undertaking or unit or enterprise or eligible business shall be computed as if the transfer, in either case, had been made at the market value of such goods or services as on that date.

Explanation.-For the purposes of this sub-section, the expression "market value",-

(i) in relation to any goods or services sold or supplied, means the price that such goods or services would fetch if these were sold by the undertaking or unit or enterprise or eligible business in the open market, subject to statutory or regulatory restrictions, if any;

(ii) in relation to any goods or services acquired, means the price that such goods or services would cost if these were acquired by the undertaking or unit or enterprise or eligible business from the open market, subject to statutory or regulatory restrictions, if any;]

¹[(iii) in relation to any goods or services sold, supplied or acquired means the arm's length price as defined in clause (ii) of section 92F of such goods or services, if it is a specified domestic transaction referred to in section 92BA.]

²[(7) Where a deduction under any provision of this Chapter under the heading "C.-Deductions in respect of certain incomes" is claimed and allowed in respect of profits of any of the specified business referred to in clause (c) of sub-section (8) of section 35D for any assessment year, no deduction shall be allowed under the provisions of section 35AD in relation to such specified business for the same or any other assessment year.]

1. Subs. by Act 20 of 1967, s. 33 and the Third Schedule, for Chapter VIA (w.e.f. 1-4-1968).

2. Subs. by Act 32 of 1985, s. 36, for "80VV" (w.e.f. 1-4-1986).

3. Subs. by Act 18 of 1992, s. 41, for sub-section (3) (w.e.f. 1-4-1993). Earlier substituted by Act 4 of 1988, s. 21 (w.e.f. 1-4-1989) and then restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989).

4. Subs. by Act 46 of 2003, s. 9, for "section 80GGA" (w.e.f. 11-9-2003).

5. Ins. by Act 27 of 1999, s. 90 (w.e.f. 1-4-2000).

6. Ins. by Act 22 of 2007, s. 22 (w.r.e.f. 1-4-2004).

7. Ins. by s. 22, ibid. (w.e.f. 1-4-2008).

8. Section 80J omitted by Act 33 of 1996, s. 29 (w.e.f. 1-4-1989).

9. Section 80JJ omitted by Act 26 of 1997, s. 26 (w.e.f. 1-4-1988).

10. Ins. by Act 33 of 2009, s. 29 (w.e.f. 1-4-2003).

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

2. Ins. by Act 14 of 2010, s. 23 (w.e.f. 1-4-2011).

80AA. [Computation of deduction under section 80M].-Omitted by the Finance Act, 1997 (26 of 1997), s. 21 (w.e.f. 1-4-1998)]. Earlier inserted by Act 44 of 1980, s. 12 (w.e.f. 1-4-1968).

³[80AB. Deductions to be made with reference to the income included in the gross total income.-

Where any deduction is required to be made or allowed under any section 4*** included in this Chapter under the heading "C.-Deductions in respect of certain incomes" in respect of any income of the nature specified in that section which is included in the gross total income of the assessee, then, notwithstanding anything contained in that section, for the purpose of computing the deduction under that section, the amount of income of that nature as computed in accordance with the provisions of this Act (before making any deduction under this Chapter) shall alone be deemed to be the amount of income of that nature which is derived or received by the assessee and which is included in his gross total income.]

3. Ins. by Act 44 of 1980, s. 12 (w.e.f. 1-4-1968).

4. The brackets, words, figures and letters "(except section 80M)" omitted by Act 26 of 1997, s. 22 (w.e.f. 1-4-1998).

⁵[80AC. Deduction not to be allowed unless return furnished.-

Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after-

(i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE;

(ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading "C.-Deductions in respect of certain incomes", no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.]

5. Subs. by Act 13 of 2009, s. 25, for section 80AC (w.e.f. 1-4-2018) which was earlier inserted by Act 21 of 2006, s. 15 (w.e.f. 1-4-2006).

80B. Definitions.-

In this Chapter-

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(5) "gross total income" means the total income computed in accordance with the provisions of this Act, before making any deduction under this Chapter 10*** 11***;

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6. Clause (1) omitted by Act 41 of 1975, s. 17 (w.e.f. 1-4-1976).

7. Clause (2) omitted by Act 4 of 1988, s. 22 (w.e.f. 1-4-1989).

8. Clause (3) omitted by Act 19 of 1968, s. 30 and the Third Schedule (w.e.f. 1-4-1969).

9. Clause (4) omitted by Act 4 of 1988, s. 22 (w.e.f. 1-4-1989).

10. The words, figures and letter "or under section 280-O" omitted by Act 26 of 1988, s. 54 (w.e.f. 1-4-1988).

11. The words and figures "and without applying the provisions of section 64" omitted by Act 42 of 1970, s. 18 (w.e.f. 1-4-1968).

12. Clause (6) omitted by Act 4 of 1988, s. 22 (w.e.f. 1-4-1989).

1. Clause (7) omitted by Act 16 of 1972, s. 15 (w.e.f. 1-4-1973).

2. Clause (8) omitted by Act 4 of 1988, s. 22 (w.e.f. 1-4-1989).

3. Clause (9) omitted by Act 41 of 1975, s. 17 (w.e.f. 1-4-1976).

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