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     Deduction & Allowances 
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    FOR THE ASSESSMENT YEAR 2012 – 2013 |
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| SECTIONÂ | NATURE OF DEDUCTION | WHO CAN CLAIM? |
UNDER THE HEAD “SALARIES” |
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| 16(ii) | Entertainment Allowance (subject to maximum of Rs.5,000) | Government employees |
| 16(iii) | Tax on employment within the meaning of article 276(2) of the constitution, leviable by or under any law | Salaried employees |
UNDER THE HEAD “INCOME FROM HOUSE PROPERTY” |
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| 23(1) Proviso | Taxes levied by local authority and paid by the owner | All Assessees |
| 24(a) | Standard Deduction [30% of Net Annual Value] | All Assessees |
| 24(b) | Interest on Borrowed Capital | All Assessees |
UNDER THE HEAD “CAPITAL GAINS” |
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| 48 | Expenditure incurred wholly and exclusively in connection with transfer of capital asset | All Assessees |
| 48 | Cost of acquisition of capital asset and of any improvement thereto. | All Assessees |
UNDER THE HEAD “INCOME FROM OTHER SOURCES” |
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| 57(i) | Any reasonable sum paid by way of commission or remuneration for the purpose of realizing dividend/interest on securities | All Assessees |
| 57(ii) | Repairs, insurance and depreciation of buildings, plant and machinery and furniture | Assessees engaged in the business of letting out of machinery, plant and furniture on hire |
| 57(iii) | Any other expenditure (not being capital expenditure) expended wholly and exclusively for earning such income | All Assessees |
DEDUCTION UNDER CHAPTER VI-A IN RESPECT OF PAYMENTS |
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| 80C | Life insurance premia, provident fund contribution (maximum: Rs.1,00,000) | Individuals and HUFs |
| 80CCC | Pension Fund (maximum : Rs.1,00,000) | Individuals |
| 80CCD(1) | Contribution by an employee or any other individual towards notified pension scheme (up to 10% of the salary of the employee or up to 10% of gross total income in the case of any other individual) | Individuals |
| 80CCD(2) | Contribution by the employer towards notified pension scheme (up to 10% of salary of the employee) | Employees |
| 80CCE | Sumtotal of deduction u/s 80C,80CCC,80CCD shall not exceed Rs.1,00,000 | Individuals and HUFs |
| 80D | Medical insurance premia (subject to maximum of Rs. 40,000) | Individuals and HUFs |
| 80DD | Maintenance including medical treatment of a handicapped dependent who is a person with disability (maximum : Rs. 1,00,000) | Resident Individuals or Resident HUFs |
| 80DDB | Medical treatment expenses (maximum : Rs. 60,000) | Resident Individuals or Resident HUFs |
| 80E | Payment of interest on loan taken for higher studies | Individuals |
| 80G | Donations to certain funds, charitable institutions [subject to maximum of 50% of qualifying donation (100% in some cases)] | All Assessees |
| 80GG | Rent paid for furnished/unfurnished accommodation [subject to maximum of Rs. 24,000] | Individuals |
| 80GGA | Certain donations for scientific research or rural development | All Assessees not having any income chargeable under the head “Profits and gains of business or profession” |
| 80GGB/Â 80GGC | Contribution to political parties. | Contributor |
DEDUCTION UNDER CHAPTER VI-A IN RESPECT OF CERTAIN INCOMES |
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| 80-IA | Profits and gains from enterprises engaged in infrastructure development | All Assessees |
| 80-IAB | Profits and gains by a undertaking engaged in development of SEZ | Developer |
| 80-IB | Profits and gains from industrial undertakings | All Assessees |
| 80-IC | Profits of certain undertakings or enterprises in certain Special Category States | All Assessees |
| 80-ID | Profits and gains from the business of hotels/convention centres | Any |
| 80-IE | Understandings in North Eastern States | Any |
| 80JJA | Profits and gains from the business of collecting and processing of bio-degradable waste | Any Assessees |
| 80JJAA | Employment of new workmen | Indian Company |
| 80LA | Income of offshore Banking Units | Scheduled Bank |
| 80P | Specified incomes [subject to amount specified in sub-section (2)] | Co-operative society |
| 80QQB | Royalty income of authors (maximum of Rs.3,00,000) | Resident individuals |
| 80RRB | Royalty on Patents (maximum of Rs.3,00,000) | Resident individuals |
| 80U | Income of a person with disability [subject of maximum of Rs. 1,00,000] | Resident individuals |
Synopsis of Deduction And Allowances Under the IT Act
Direct Taxes (including International Taxation) | By ALOK PATNIA | Last updated on Oct 5, 2017
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    FOR THE ASSESSMENT YEAR 2012 – 2013 |
||
| SECTIONÂ | NATURE OF DEDUCTION | WHO CAN CLAIM? |
UNDER THE HEAD “SALARIES” |
||
| 16(ii) | Entertainment Allowance (subject to maximum of Rs.5,000) | Government employees |
| 16(iii) | Tax on employment within the meaning of article 276(2) of the constitution, leviable by or under any law | Salaried employees |
UNDER THE HEAD “INCOME FROM HOUSE PROPERTY” |
||
| 23(1) Proviso | Taxes levied by local authority and paid by the owner | All Assessees |
| 24(a) | Standard Deduction [30% of Net Annual Value] | All Assessees |
| 24(b) | Interest on Borrowed Capital | All Assessees |
UNDER THE HEAD “CAPITAL GAINS” |
||
| 48 | Expenditure incurred wholly and exclusively in connection with transfer of capital asset | All Assessees |
| 48 | Cost of acquisition of capital asset and of any improvement thereto. | All Assessees |
UNDER THE HEAD “INCOME FROM OTHER SOURCES” |
||
| 57(i) | Any reasonable sum paid by way of commission or remuneration for the purpose of realizing dividend/interest on securities | All Assessees |
| 57(ii) | Repairs, insurance and depreciation of buildings, plant and machinery and furniture | Assessees engaged in the business of letting out of machinery, plant and furniture on hire |
| 57(iii) | Any other expenditure (not being capital expenditure) expended wholly and exclusively for earning such income | All Assessees |
DEDUCTION UNDER CHAPTER VI-A IN RESPECT OF PAYMENTS |
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| 80C | Life insurance premia, provident fund contribution (maximum: Rs.1,00,000) | Individuals and HUFs |
| 80CCC | Pension Fund (maximum : Rs.1,00,000) | Individuals |
| 80CCD(1) | Contribution by an employee or any other individual towards notified pension scheme (up to 10% of the salary of the employee or up to 10% of gross total income in the case of any other individual) | Individuals |
| 80CCD(2) | Contribution by the employer towards notified pension scheme (up to 10% of salary of the employee) | Employees |
| 80CCE | Sumtotal of deduction u/s 80C,80CCC,80CCD shall not exceed Rs.1,00,000 | Individuals and HUFs |
| 80D | Medical insurance premia (subject to maximum of Rs. 40,000) | Individuals and HUFs |
| 80DD | Maintenance including medical treatment of a handicapped dependent who is a person with disability (maximum : Rs. 1,00,000) | Resident Individuals or Resident HUFs |
| 80DDB | Medical treatment expenses (maximum : Rs. 60,000) | Resident Individuals or Resident HUFs |
| 80E | Payment of interest on loan taken for higher studies | Individuals |
| 80G | Donations to certain funds, charitable institutions [subject to maximum of 50% of qualifying donation (100% in some cases)] | All Assessees |
| 80GG | Rent paid for furnished/unfurnished accommodation [subject to maximum of Rs. 24,000] | Individuals |
| 80GGA | Certain donations for scientific research or rural development | All Assessees not having any income chargeable under the head “Profits and gains of business or profession” |
| 80GGB/Â 80GGC | Contribution to political parties. | Contributor |
DEDUCTION UNDER CHAPTER VI-A IN RESPECT OF CERTAIN INCOMES |
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| 80-IA | Profits and gains from enterprises engaged in infrastructure development | All Assessees |
| 80-IAB | Profits and gains by a undertaking engaged in development of SEZ | Developer |
| 80-IB | Profits and gains from industrial undertakings | All Assessees |
| 80-IC | Profits of certain undertakings or enterprises in certain Special Category States | All Assessees |
| 80-ID | Profits and gains from the business of hotels/convention centres | Any |
| 80-IE | Understandings in North Eastern States | Any |
| 80JJA | Profits and gains from the business of collecting and processing of bio-degradable waste | Any Assessees |
| 80JJAA | Employment of new workmen | Indian Company |
| 80LA | Income of offshore Banking Units | Scheduled Bank |
| 80P | Specified incomes [subject to amount specified in sub-section (2)] | Co-operative society |
| 80QQB | Royalty income of authors (maximum of Rs.3,00,000) | Resident individuals |
| 80RRB | Royalty on Patents (maximum of Rs.3,00,000) | Resident individuals |
| 80U | Income of a person with disability [subject of maximum of Rs. 1,00,000] | Resident individuals |