Not All Donations Are Fully Deductible Donations under Section 80G are not always 100% deductible. Deductibility depends on the type of institution, purpose of donation, and mode of payment. Donations are categorized based on percentage of deduction and whether they...
Purpose and Scope Section 80G of the Income Tax Act provides deductions for donations made to approved funds, charitable institutions, and relief organizations. It encourages taxpayers to contribute to social, cultural, and national welfare activities. Deduction is...
Eligible Deduction Under Section 80D Health insurance premiums are eligible for deduction under Section 80D of the Income Tax Act. Deduction is available for policies taken for self, spouse, dependent children, and parents. It helps reduce taxable income and...
Purpose and Applicability Section 80D of the Income Tax Act allows deductions for premium paid on health insurance policies. It encourages individuals and families to secure medical coverage and reduce tax liability. Deduction is available for individuals and Hindu...
Overall Deduction Limit The maximum deduction allowed under Section 80C is ₹1,50,000 per financial year. This limit is common for all eligible investments and expenses combined. Applicable to individual taxpayers and Hindu Undivided Families (HUFs). Deduction is made...
Provident Fund and Pension Schemes Contributions to Employee Provident Fund (EPF) by salaried employees. Investments in Public Provident Fund (PPF) with a lock-in of 15 years. Subscription to National Pension System (NPS) under Section 80CCD(1), subject to combined...
Purpose and Scope Section 80C of the Income Tax Act allows taxpayers to claim deductions from gross total income. It is aimed at encouraging savings and investments in specified financial instruments. The deduction reduces the taxable income, thereby lowering the...
Definition and Applicability Income from other sources is a residual head of income under Section 56 of the Income Tax Act. It covers income that does not fall under salary, house property, business, or capital gains. It ensures that all taxable income is reported,...
Overview of Allowable Expenses Allowable business expenses are those incurred wholly and exclusively for business or professional purposes. These expenses are deducted from gross income to compute taxable business profits. They must be genuine, reasonable, and...
Definition of Business Income Business income refers to profits or gains earned from any trade, commerce, manufacturing, or service activity. It is taxed under the head “Profits and Gains of Business or Profession.” Includes earnings from sole proprietorships,...