Deduction to an Eligible Start-up [Section 80-IAC] • Eligible startups (companies or LLPs) can claim deduction for profits and gains from eligible business activities. • Deduction is allowed up to 100% of profits and gains for 3 consecutive assessment years out of 10 assessment years beginning from the year of incorporation. Deduction is computed assuming… Read More »
Deduction for Profits from Business of Developing a Special Economic Zone (SEZ) [Section 80-IAB] • Developers of SEZ can claim a deduction for profits and gains from the operation and maintenance of SEZ. • Deduction available for 100% profits for 10 consecutive assessment years out of 15 years from commencement. • Deduction amount is computed… Read More »
Profits from Industrial Undertaking or Infrastructural Development [Section 80-IA] • Deduction under this section is available to any assessee deriving profits from specified eligible businesses. The deduction is allowed up to 100% of profits for 10 consecutive assessment years out of 15 or 20 years, as applicable. • Development, operation or maintenance of an infrastructure facility –… Read More »
Contributions by Companies to Political Parties [Section 80GGB] An Indian company contributing to a political party or an electoral trust can claim a deduction under this section. However, contributions made in cash are not deductible. Contributions by persons other than Companies to Political Parties [Section 80GGC] A deduction is available to any assessee, other than… Read More »
Deduction for Donations towards Scientific Research or Rural Development [Section 80GGA] • Any assessee not having any income taxable under the head “Profits and Gains of Business or Profession” is eligible to claim a deduction for amounts contributed to specified associations or institutions for scientific research or rural development. • No deduction shall be allowed for cash… Read More »
Deduction for Rent Paid [Section 80GG] • Deduction under Section 80GG is available only to individuals (resident or non-resident), including salaried and self-employed persons. • Not allowed to those claiming HRA exemption under Section 10(13A). • Deduction can be claimed for rent paid on furnished or unfurnished accommodation used for own residence. • The deduction is the least of… Read More »
Deduction in respect of Donations [Section 80G] Any assessee (resident or non-resident) who makes a donation to specified funds, institutions, or associations is eligible to claim a deduction underSection 80G.The deduction allowed ranges from 50% to 100% of the donation amount, subject to certain limits and conditions. Donations made in cash exceeding Rs. 2,000 are… Read More »
Deduction for Interest on loan taken to buy Electric Vehicles [Section 80EEB] • Section 80EEB offers deduction for interest paid on loans taken to purchase electric vehicles, promoting a pollution-free environment. • Any individual (resident or non-resident) who has taken a loan to purchase an electric vehicle. • A deduction of up to Rs. 1,50,000 for interest… Read More »
Deduction for Interest on Housing Loan [Section 80EE] Section 80EEallows deduction to an individual in respect of interest payable on housing loan for the acquisition of residential property, subject to specified conditions. Deduction is allowed up to Rs. 50,000 per financial year for interest paid or payable. Conditions for eligibility: Loan sanctioned between 01-04-2016 and… Read More »
Deduction for Interest on Education Loan [Section 80E] • Section 80E allows individuals to claim deduction for interest paid on an education loan taken for higher education for themselves or their relatives. ‘Relative’ of an individual means his spouse, his children or the student for whom he is the legal guardian • Higher Education means any course… Read More »