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Home >> India Tax >> Deduction

India Tax Deduction

Tax Deduction is a benefit offered by the Government of India to all earning individuals who are liable to pay direct taxes. India Tax Deduction is modeled with the objective of boosting individual spending habits for a number of causes.

India Tax Deduction (Income Tax)

  • Donations for Charity - Section 80G of the Income Tax Act, allows tax deduction 50% -100% of the amount donated to Prime Minister's Relief Fund, National Foundation for Communal Harmony, Blood Transfusion Council, The Africa Fund, Earthquake Relief Fund.

    • Physically challenged persons and those dependent on them - Section 80DD and 80U of Income Tax Act, deducts tax upto INR 40,000 of persons with physical disabilities. Persons dependent on handicapped enjoy tax deductions against expenditure on medical treatment, training, and rehabilitation of challenged dependents or amount paid in an approved scheme of LIC or UTI.

    • Repayment of Loan Taken For Higher Education - Income Tax is deducted in respect of repayment of student loans taken from banks or other financial institutions for higher education anywhere in the world.

  • Contribution to Pension Fund - Under Section 80CCC, tax is deducted for any amount paid to keep in force annuity plan of the LIC for receiving pension from a fund set up by that corporation, as per section 10(23AAB) of Income Tax Act,1961.

  • Amount paid as House Rent - Section 80 GG allows tax deduction on amount paid by a person (not a salaried person getting housing allowance) for residential accommodation.

  • Remuneration received in Foreign Currency by Employer - Under Section 80 RR, any creative Indian, who brings income to India according to foreign exchange regulation, is entitled to get a deduction of amount equal to 75% of such income as it is brought in India in convertible foreign exchange.
    • Remuneration received for services rendered outside India - Under Section 80 RRA, an individual who is getting remuneration in a foreign currency from an employer for his service in outside of India, will get a deduction of 75% of such income brought into India.

    • Investments - Under Section of 80 L, encompasses few investments which are deducted upto INR12,000 - 15,000 in taxable amount on certain specified investments in government securities, UTI mutual funds, bonds and other tax saving schemes.

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