, 8 DEDUCTION IN RESPECT MAXIMUM DEDUCTIBLE AMOUNT 1 Para 144.2 SCHEME [SEC. 80CCG] OF INVESTMENT Pare 144 MAI 143. Nowadays, DE UNDER ANY EQUITY SAVINGS deduction under section 80CCG is not available, it tied if - 1. The taxpayer i an individual (maybe resident ene onltins are satisied - undivided family (maybe resi lent/non-resi " ly (maybe resident or non-resident) net & Mian citizen/ foreign citizen) or a Hind 2, Payment should be made out of income chargeab le to tax. 3, Payment should be made by any m od Jheck-up can be made by any ie t 4 tee ane ‘However, payment on account of preventive health 144.1 Maximum deductible am : eed ount- The maximum deductible amount and other relevant points are given Deduction inthe ense of | Deduction in the For whose benefit payment can be made —_ none Family | Parents | Any member A. | @ Medi-claim insurance premium Biigibl il ii 6. Contribution to CGHS/notified scheme Bie |e ete ¢. Preventive health check-up payment gible | Bhi : Maximum deduction ~ aa : ei eal da [applicable in respect of (a), and (0 ) Rs, 25,000 | Rs. 25,000 Rs, 25,000 - Additional deduction [applicable only in case of (@) when medi-claim policy is cake othe ile of a senior citizen] Rs, 25,000 | Rs. 25,000 Rs, 25,000 3. | Medical expenditure on the health of a person who is a senior citizen if medi-claim insurance is not paid on the health of such person Eligible | Eligible Eligible Maximum deduction in respect of (B) Rs. 50,000 | Rs. 50,000 Rs. 50,000 © | Maximum deduction in respect of (A) and (8) Bs. 50,000 | Rs. 50,000 Rs, 50,000 Notes - 1 Family includes individ 2.Parents include father and mother ( 43. The aggregate payment on account of mother cannot exceed Rs. 5,000. iL Theabove payments [given under (A) and (B)] should be made by any mode other than cash. However, payment ncount of preventive health check-up can be male by any ‘mode (including cash). 4b vsenior citizen” is a resident individual who i at least 60 years of age at any time during the previous year. it i jicies havi aforesaid deduction + Inenee of single premium health insurance policies having Soe of more than one year, the aforesaid d shall be allowed ox proportionate nee for the numberof years for which health insurance cover 'S provided. 7 In case of single premium heath insurance polic yer of more than one year, the aforesaid deduction having co resaid d i gnate basis for the number of years for which health insurance cover is provided. ual, spouse of the individual and dependent children of the individual. (dependent or otherwise) Father-in-law and mother-in-law are not included, £ preventive health check-up of self, spouse, dependent children, father and shall be allowed on propo! 80D is notavailable (for fection 1ISBAC, deduction under section the alternative fax regime under sDectuctious ag, Section 8ODD - Deduetie We Jestpech of Hantenanee cheluoting vaeclical preatment if Oo olepenstaw basing Tas f z Yirclrrclnal (Retclent) or HUF ( Revictert) Jacueed Ser ton SS Meobiat Treatment pial e wari) 2th a ae earn of « palate] (bag pesos M4) Please Netto fer Sexsee's tien | drvapiahy cledictrn is allowed vi Seckion Zou | Paid | Deported under Oppucvec! Schenw of He (orl othe yo OTT 4 the wm of —Suue ole penoteint sestaline Dapendent Rela trine ¢ = Spou , Chflolren fered, ileal) Botan Sisters | = re fv Stam clipart eae drsersee , iff intial Befapdec folate A Rap Et Fy (Fe => =a fess<_<. SS pace > Disarity > Ptirctnens deus Vizier “igus este aid rains vanessa Pines Naya) ease with Disability 3 Atleast HOY, Brveconr Deduation : > — | s etl bg ce more (sever hp Saesjam eer LJ PT bea pr anit Deine of attg, OS 2 pace. Geckion ~ SO PDB _ [Deduction wl deeipest of piistaae freatvenh — | Gatdeur coi ier Reker HUF A_expudtivnt on Necbeat frearuen Rerualty a a asics as aka Lule. LLbDwo, "—— 2S PAGE Neg]: Sag cma Spree FO WALLNCNte se Ot dcetvibircril’ Tae eeeelaes | Deel al prows the ceoluction g Cortef ee. Nerucotogist ea thee ff enly é Bitch ek. Aliautd be ebtakad 40 chow) deduction. et era Seclsor = 80U Deduction al al | Qictemt Sralvictvad ‘ Disabit’ ag oe Leow vision deproey — Buparrment gi past he ry | meek 7 Petansateei _prewht Pllnees_) arise = Fai]. vr mere. | LL Ste eo> aay, ZF 1asove | : | caus Rahica foe Tf Seen paved Glam clertuie toe : F (es ae Diath Atleast Yo.0 dtl Section 80» 2 ag e. ——s a nee are Prihiates, Mattpton (approval | Hg dete: fe Se constineys Brannan ‘. ef fre ony S earl! / werner cuted <0. aa L Powe rae fae ieee =f Retiateg ee authoured by aaa bal ai ie [Resesvee’s evn] D> | Cotuent a | acation of Relatives | = wv caste) Spouse, Hlotren Studi for hor SE iat foe Gust Suuowth be wail Sur of Satome Cuengesbie te ton”a 3s pace_—_—_— j lay alloweels — Moe pele Coa Fae crc oeenh fF : Deduction altewed: Fapocat oy the Venu nbsen Toteceeec 08 pad bo Deduchon D allowed g AY) “4 .o i BY oa wee Perestle oem on Loan ; foo} Ud?) He eaanar Precat we patel a - 4 & : : “ whieh iD. eaten. a ‘ aA eaePara IMISSIBLE DEDUCTIONS FROM GROSS TOTAL INCOME 14s. PER ee Se ae vin) a Lt of RS. 740,000 (i.e, Rs. 4,45,000 fr +36 years) resident individu, has income of Rs. 740,000 (i.e, Rs, 445,000 from a busine. AS PL lage 736 yrs) 0 ay) during the previous year 2021-22, Find out 1s net income forthe at Oa nen er 0 fom a rey ‘ Fe etn orate the illoing payments ~ 1. Lif insurance premium on own life (policy since 2011) paid by X in cash on March 31, 2022 (sum assured Rs. 2,00,000) 2 Contribution towards pension fund of UC ig, 3. Medilain insurance premium on the life of dependent father (age 64 years and last foreign travel : durin Ty 1996-97) pid by cheque on April 20, 2021 1g 4 Mii surance preiun onthe iff dependent tannpped broter pai by cheque on Aprit26, 290, 32% 5, Medical treatment of depencient brother (being a person with disability) , om 6 Deposit with LIC fr the mnintenance ofthe dependent brother (being a person with disability) 50 7. X does not want to opt for the alternative tax regime of section 115BAC. 2m Solution : Property income Business income Gross total income Less : Deductions under sections 80C to 80U. Under section 80C [payment of life insurance] Under section 80CCC [contribution towards pension fund of LIC} Under section 80D {mediclaim insurance premium on the health of depend ; lent father ; medicla Premium on the health of dependent brother is not qualified for deduction] father; medilaim Under section 80DD [th tion is i i jon E0DD [the amount of deduction is Rs. 75,000 irrespective ofthe amount incurred or Solution : As grandfather does not ithia iti deducted under secon 80D.” “™ Within the definition of “dependent” in section 80DD, nothing shat acti ’ be. — —— Gate er eeuU ae PU X (age: 36 years) a resident in the \ Fs 135 000 from a property in Bombay eit Hs income of Bs, 740,000 : assessment year 2022-23 taking into cons eae ew 200890 ag $55,000 from « business in Delhi and era reg 20202 Findot hs et one ety 1 Life insurance premium on own life (po sssuret RS 2,00,000) Mic inc 201) pit by X ta ton Mach, 202 i 2 Contribution townrds pension fund of Lic ete 3333 3, Mediclaime insurance premium on the li 11,000 199697) pi by cheque om April 20,2034, @PeMdE father ge 6k years and ls frig rel: uring 4. Medici instroce prem om the life of dependent han 39,000 5. Median! treatment of dependent brother eeing a re brother paid by cheque on April 26, 2021 7,000 6, Deposit witlt LIC for the maintenance of the ee ae ee : 5,000 7.X does not want to opt forthe allerative : ing person with disability) 20,000 7 Xie ‘ax regime of section 115BAC. ‘Propetty. oom: Business income Gross total income Less : Deductions under sections 80C to 80U Under section 80C [payment of life insurance] t 3, Under section 80CCC [contribution towards pension fund of LIC] 1000 Under section 80D [mediclaim insurance premium on the health of | dependent father ; mediclaim premium on the health of dependent brother is not qualified for deduction) i 39,000 Under section 80DD [the amount of deduction is Rs. 75,000 irrespective of the amount incurred or seal 5,000 Net income (rounded off) Taxt on net income ‘Add : Surcharge (applicable if net income exceeds Rs. 50 lakh) Tax and surcharge Add : Health and education cess (4% of tax and surcharge) Tax liability (rounded off)cenit 0 0 sy “ purpose of availing th Problems —— as-p (yrs resident dial, Daring the res Ye 2021-2, he incurs the lowing exendiyg ‘Actual | Amount reimbursed | Amount ein F iture | by insurance . expenditure ese ‘company plore Rs Bs Re 30,000 Nil Fine “aT Fs Pn Sernent pt ear pad dza) fis X | 14000 3000 om ae al ecg by Ci Commission Say of XR 40000. es ce ape tect ar 20223 solution: = Felt in pet of medical treatment of Kandi spouse Greve slay {is Standard deduction Income fom sary Any other income Gs tl nome tas: Deduction under section S0DDB fs: Not] Netincome Nae The amount deductibles a5 fllows— tv actual expendi Re 30000 + FS, 140005 oF 1 a0 (Rs. 00,00 in the cae of senior citizen), whichever is less. Rs 40,000 is deductible if nothings recovered from the insurance company or employer. From theamount deductbie Ge, Bs. 4,000 inthis case), the amount received from insurance company as well as employer shall be deducia “Therefore, Rs 40,000 Rs. 3,000 ~ Rs, 28,000 ~ Rs. 6,000, ie, Rs. 3,000 is deductible. 1146-2 Find out the amount of detuction under section SODDB in the following cnses for the assessment year 2022-23— ein th aes my he Board. Find out eet nce ‘Name of the txpayer x ¥ zi a 3] Residential satus of he Ixpayer ‘Resident | Resident | Resident | Resident | Nw vest spire incurred on eda reatwent of dependent moter ina | $0,000] 26000] 70,000) 1,00,000 | 3400 espa regs bythe Chief Commissioner (amount in rupees) ‘Age of mater 89 years | 59yeors] 64 years | 63 yeas | 6S yrs Residential status of dependent moter Resdent| —Now-| Resident | Non- | Rest resident resident Whether the diese is specified under rule mae bythe Board Yes] Yes} Yes} Yes] Ye Amount ecced fom insurance company (moun pees) 4000] 14,000) 0.000] 15,000 | 7,000 ‘Aun ee fom he epee of he espe nant is 2.000) 3,000] 4.000 20,000 | 16000‘paluction under section S0DDB ¥ ar ¥ z A 3 company and employer "” °° is recovered Rev cre mal Re Legs: Amour Face from insurance comy 25000] 7.000 0,000 | Nil Fount of deduction under secticr ¥7,000| 84,000 | _ 35,000 | _ 23,000 ‘Noles ~ ado 9,000] Nit] — 5,000. | Nil ca rd oh 1. The pera Tespect of rei! ee aforesaid deduction und medical expenditure athe sae er section 80DDB wit} notbeare by employer is not chargeable to tax. ailable, ifthe 146-P3 X isa resident individual, His ‘ssessee opts for tho alternative taxregime the previous yenr 2021-22, he makes income froma X froma business in Det ig {he following payments.” Mis Re 7; 96,000 for the assessment year 2022-23. During Amount deposited on April 10, 2021 in an any : Rs. spi rit pe imuity plan of LIC claim insurance premium paid on April 15,2001 tg at ae wet (ge: ser) Insurance Co. om the life of his dependent Cas espenditre on preventive health checkup of mother 0 Neal “S00 Maictim insurance premium paid on April 20,2071 te Ney India Instr feof his i : aie and gran! moter Gothen ek trance Co. on the life of his dependent aT ture Conte ane the previous year 2021-22 om ‘medical treatment of his dependent grand mother i being aps wih Git (expendi is recovered fom New ne Company) a Expire incurred during September 2021 on medic renner of his father who is suffering from a disease ied in rule 11DD (as certified by the doctor) (Rs, 97,000 is, however, recavered from the New India insurance Company) aa Find out the net income ofX for the assessment year 2022-2, Ignore section 1ISBAC. Solution : nae wa 7,96,000 Any other income sm eerie 7,98,000 uss: Deductions under sections 80C to 80U. der section 80CCC (being contribution towards annuity plan of LIC) uae Un der section 80D (preventive health check up expenditure up to Rs. 5,000 is deductible) (Rs. 42,000 + ie 5,000) (insurance premium on the life of grand father and grand mother is not eligible for deduction) 47,000 Under section 80DD (grand mother does not come within the definition of “dependent”, nothing is i deductible) ae Under section 80DDB (amount deductible is Rs. 98,000 - Rs. 97,000) 737,000 Netincome SEIncome sarge ee Problem << a 147-PL X has taker three education loans on Marc 1, 2021. The details of which are given below Loan 1 Loan 2 For wes lvcation Ts ke % + Purp oa Full fine MBA | Park me MCA Rs. Re “nount ofan 500,000 00,000 “Anmual repayment oftoan during the previous _yeur 2021-22 1,00,000 50,000 “Annual payment of interest during the previous yo yen 2021-22 60,000 40,000 Find out the amount deductible under section 8OE for the assessment year 2022-23. Solution : The amount deductible uncer section S0E would be as follows — ‘Repayment of loan Payment of interest Total Amount deductible under section 80E