What is the maximum exemption under Chapter VI A?
The maximum deduction limit is Rs 1,50,000. Read to know more details. The deduction amount shall be restricted to 14% of salary(Basic salary + DA) in case of central Govt. employees and 10% in any other employees.
What is exemption under Chapter VI A?
The Chapter VI A of Income Tax Act contains the following sections: 80C: Deduction in respect of life insurance premium, deferred annuity, contributions to provident fund (PF), subscription to certain equity shares or debentures, etc. The deduction limit is Rs 1.5 lakh together with section 80CCC and section 80CCD(1).
What is deduction U S VI A?
You can seek a deduction under Chapter VI A, which will help you reduce your taxable income. There are a lot of deductions available under various sections to help you bring down the taxable income. For example, you can claim deductions under sections 80C, 80CCC, 80CCD, 80CCE and 80D.
What is Part B of Chapter VI A of income tax?
Chapter: VI-A. DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME. Part: B. Deductions in respect of certain payments.
Is 80G under Chapter VI-A?
1 Chapter VI-A, consisting of sections 80A, 80B, 80C, 80D, 80E, 80F, 80G, 80H, 80-I, 80J, 80K, 80L, 80M, 80N, 80-O, 80P, 80Q, 80R, 80S and 80T, were substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
What is aggregate of deductible amount under Chapter VI-A?
Income Tax deductions under Chapter VIA
| Sr.no | Section | Limit |
|---|---|---|
| 30. | 80P | 100% deduction if engaged into certain specified activities. |
| 31. | 80QQB | Rs.300000 or original amount of royalty amount received whichever is less. |
| 32. | 80TTA | Rs.10000 |
| 33. | 80TTB | Rs.50000 |
How much house rent is tax free?
An Illustration
| Condition | Tax Exemption |
|---|---|
| 1 | Rs 60, 000 (@Rs 5000 Per Month, according to the HRA exemption 2016-17 rules, earlier the limit was Rs 2, 000) |
| 2 | Rent paid i.e. 1.5 Lakhs – 10% of the total annual income, i.e. Rs 40, 000= Rs 1, 10, 000 |
| 3 | 25% of the total income= Rs 1 Lakh |
What is the maximum limit of deduction?
Deduction is limited to whole of the amount paid or deposited subject to a maximum of Rs. 1,50,00012. This maximum limit of Rs. 1,50,00012 is the aggregate of the deduction that may be claimed under sections 80C, 80CCC and 80CCD.
What is under Chapter VI A?
The income tax law, allows the subtraction of some specified expenditures / investments from your gross total income, for the calculation of taxes. These specified expenditures/investments are covered under Chapter VI-A of the Income Tax Act under various sections (Section 80C -Section 80U).
What is aggregate of deductible amount under Chapter VI A?
What are the exemptions for income tax?
Exemption Rules and Limits under the Income Tax Act
- House Rent Allowance.
- Leave Travel Allowance or Leave Travel Concession.
- Transport Allowance.
- Children Education Allowance.
- Hostel Subsidy.
What is the maximum HRA exemption limit?
Your allotted HRA cannot exceed more than 50% of your basic salary. As a salaried employee, you cannot claim for the full rental amount you are paying. Your exemption will be based on the least of the below mentioned options: The actual amount allotted by the employer as the HRA.
What are the deductions under Chapter VI a?
Deductions under Chapter VI A allow an assessee to considerably reduce the tax payable. Chapter VI A of Income Tax Act contains various sub-sections of section 80 that allows an assessee to claim deductions from the gross total income on account of various tax-saving investments, permitted expenditures, donations etc.
What are the provisions of Chapter VI a of the Act?
They all are covered under Chapter VI A of the act. Premium paid on Mediclaim policy covering employee, spouse, dependent parent, and dependant children. Expenditure incurred on maintenance/ treatment of handicapped dependant amount deposited with LIC/UTI scheme of insurance company/UTI must be approved by CBDT.
What is the limit of etax Guru deduction under Chapter 6A?
Deduction Under Chapter 6A – ETax Guru Deduction under chapter 6A 80C: Maximum limit Rs.1.50 Lacs Life insurance premium for self, spouse, children– premium amount can’t more than 10% of sum assured, suffering from disability = 15% of sum assured
What is the limit of section 17ca?
Rule 17CA 5% of the total contributions received in a year subject to an aggregate limit of Rs. 5,00,000 in the first year of incorporation and Rs.3,00,000 in subsequent year H. Eligible Investment Funds A new Section 9Ais inserted by the Finance Act, 2015.