SYBBA / SYBsc – Semester III – Direct and Indirect tax (Academic Year 2025-26)

DEDUCTIONS FROM GROSS TOTAL INCOM UNDER CHAPTER VI-A [SECTIONS 80C TO 80U]
Deductions under Chapter VIA (Section 80C to 80U) cannot be claimed against incomes which are taxable at flat rates i.e., LTCG covered u/s 112, LTCG
covered u/s 112A, STCG covered u/s 111A and Winnings from lotteries, races, etc. covered u/s 115BB.
SECTION 80C: Deduction in respect of Life Insurance Premium, Contribution to provident fund, etc.
Eligible Maximum Other
Nature of Deduction
Assessee Limit Conditions
Individual / 1) Life insurance premium: Life insurance premium paid for Life insurance policy or endowment policy. Maximum Limit There is
HUF [Policy should not be terminated or surrendered within two years] Deduction allowed in respect of premium 1,50,000 lock-in-
paid will be restricted to the limits prescribed based on sum assured as mentioned hereunder. except in period in
respect of a contract for deferred annuity: certain
If policy is If policy is If policy is cases. If the
Person Insured issued before issued during issued on or investments
1.4.2012 FY 2012-13 after 1.4.2013 are sold
If policy is taken for on the life of a disabled 20% of sum 10% of sum 15% of sum within lock-
person. assured assured assured in-period
Policy on the life any other person 20% of sum 10% of sum 10% of sum then the
assured assured assured amount of
Note: It is further clarified that any premium agreed to be returned or any benefit by way of bonus or deduction
otherwise over and above the sum actually assured shall not be considered as ‘capital sum assured’. claimed will
2) Contribution made towards: be
Statutory Provident Fund Recognized Provident Fund withdrawn.
Public Provident Fund. Approved superannuation fund.
Notified pension fund of mutual fund / UTI. Unit Linked Insurance Plan of UTI.
Unit Linked Insurance Plan of LIC Mutual Fund Equity Linked Saving Scheme of Mutual fund /
u/s 10(23D) U.T.I.
Annuity Plan of LIC or any other insurer. Non-commutable deferred annuity.
Deferred annuity scheme of government for government employee.
Contribution by central government employee to Tier II A/c under National Pension Scheme.
3) Points relating to housing:
i) Subscription to any deposit scheme of Housing finance companies or Housing Authorities.
ii) Subscription to Home Loan Account Scheme of the National Housing Bank (including accrued interest).
iii) Repayment of housing loan taken from specified persons, Stamp duty & registration fees.
4) Deposits with post office / Scheduled bank:
i) Subscription to NSC VIII issues.
ii) Senior Citizen Savings Scheme, Rules 2004.
iii) Deposit made under Sukanya Samriddhi Account Scheme.
iv) Term Deposit for 5 years or more with Post Office under PO Time Deposit Rules, 1981.
v) Term Deposit for 5 years or more with a Scheduled Bank.
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SYBBA / SYBsc – Semester III – Direct and Indirect tax (Academic Year 2025-26)
5) Other Points:
i) Subscription to Equity Shares or Debentures forming part of any “Eligible issue of capital” approved
by the CBDT or subscription to any units of mutual fund referred to in Section 10(23D) approved by
the CBDT (Infrastructure Bonds / Debentures / units)
ii) Notified Bonds of NABARD
iii) Tuition fees (excluding donation, development fees) paid by an individual to university, college,
school or other educational institution situated within India for full time education of any 2 children.
Section 80D: Health insurance premium etc.
Assessee Nature of Deduction Max. Limit Conditions
Individual / 1) Deduction for: Deduction is allowed u/s 80D in respect of following payments: Deduction is Payment
HUF i) Health Insurance premium paid, by any mode other than cash, in accordance with the scheme lower of: should be
approved by Central Government or IRDA. i) Actual made out of
ii) Contribution made to the Central Government or State Government Health Scheme, by any mode amount income
paid; and chargeable to
other than cash.
ii) Notified tax.
iii) Any amount paid on account of preventive health check-up, by any mode including cash. amount.
iv) Medical expenditure for senior citizen not having health insurance, by any mode other than cash.
2) Eligibility and Notified amount: It is explained in following table:
Particulars Deduction in case of Individual Deduction in
case of HUF
For whose benefit payment can be made Self, Spouse & Parents (whether Any member of
Dependent dependent or not) HUF
Children
A. a) Medi-claim insurance premium Eligible Eligible Eligible
b) Contribution to CGHS / SGHS Eligible Not eligible Not eligible
c) Preventive health check-up. Eligible Eligible Not eligible
Maximum limit for deduction:
General deduction limit for (a + b + c) 25,000 25,000 25,000
Additional deduction for (a) when
mediclaim policy is taken for senior
citizen. 25,000 25,000 25,000
B. Medical expenditure on the health of a
person who is a senior citizen if
Eligible Eligible Eligible
mediclaim insurance is not paid on the
health of such person.
Maximum limit for deduction for (B) 50,000 50,000 50,000
C. Maximum deduction for (A + B) 50,000 50,000 50,000
(i) Aggregate amount of deduction on account of preventive health check-up of self, spouse, dependent
children, father and mother cannot exceed ` 5,000.

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SYBBA / SYBsc – Semester III – Direct and Indirect tax (Academic Year 2025-26)
(ii) “Senior citizen” means Resident individual aged 60 years or more.
(iii) Section 80D(4A): If lumpsum premium is paid for more than one year then deduction per annum =
Lumpsum amount paid divided by number of years for which premium is paid.
Section 80E : Deduction in respect of payment of interest on loan taken for higher education
Eligible Maximum Other
Nature of Deduction
Assessee Limit Conditions
Individual Interest on loan taken for higher education of assessee himself; or his relative (spouse and children or the Actual amount Payment
student for whom the individual is the legal guardian). of interest paid should be
1) Loan must have been taken from any financial institution (i.e. banking company or other notified (for maximum 8 made out of
financial institution), or any approved charitable institution [notified u/s 10(23C) or funds referred to in years) income
Section 80G(2)(a)] chargeable
2) Period of Deduction: Deduction shall be allowed for: to tax.
a) Eight assessment years starting from the assessment year relevant to the previous year in
which the interest was first paid; or
b) Until the interest is paid by the assessee in full, whichever is earlier.
Meaning of higher education: ‘Higher education’ means any study pursued after passing Senior Secondary
Examination from school, board or university recognised by Central Govt or State Govt or local authority.
Section 80TTA : Deduction on account of interest on savings account
Assessee Nature of Deduction Max. Limit Conditions
Individual / Deduction is allowed to an assessee in respect Interest income on Savings account with Bank / Co- Max. deduction
HUF operative bank / Post office. (Resident senior citizen cannot claim deduction under this section) ` 10,000
Section 80TTB : Deduction in respect of interest on deposits for senior citizen
Eligible Maximum Other
Nature of Deduction
Assessee Limit Conditions
Resident Deduction is allowed in case of senior citizen in respect of interest on Deposits with Bank / Co-operative
Max. deduction
senior bank / Post office.
` 50,000
citizen

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SYBBA / SYBsc – Semester III – Direct and Indirect tax (Academic Year 2025-26)
Q.1. During the PY 2024-25, Mr. X (age: 29 years) pays the following amounts by cheque to get
tax benefits.
Insured person `
For Self & Spouse
Health insurance premium for self and spouse 20,000
Amount contributed to central government health scheme. 3,600
Preventive health check-up expenditure for self and spouse. 3,000
Parents of the tax payer
Health insurance premium for father [67 years – Resident – Independent] 30,000
Medical expenditure for mother not having health insurance. 30,000
[63 years – Resident – Dependent]
Preventive health check-up expenditure for mother. 4,000
Others
Grandparents [Dependent on X] 500
Father of Mrs. X [Dependent on X] 800
Brother [Dependent on X] 900
Compute the amount of deduction available u/s 80D for the AY 2025-26.
Ans. 1. Calculation of amount eligible for deduction u/s 80D:
Particulars `
I) Insured being assessee, spouse and dependent children:
Health insurance premium for self & Spouse. 20,000
Amount contributed to Central government health scheme. 3,600
Preventive health checkup expenditure for self & Spouse. 3,000
Total 26,600
Maximum deduction allowable (A) 25,000
II) Insured being parents of the assessee:
Mediclaim premium paid for father who is senior citizen 30,000
Medical expenditure for mother not having health insurance 30,000
Preventive health checkup expenditure for mother 4,000
Total 64,000
Maximum deduction allowable (B) 50,000
TOTAL (I) + (II) 75,000
Note: Deduction is not allowed for expenditure incurred for grandparents of X, Father of Mrs. X
and brother of X.
Q.2. X had taken three education loans on March 1, 2024. The details of repayment of loan
during previous year 2024-25 are as given below:
Particulars Loan 1 Loan 2 Loan 3
For whose education loan was taken X X Daughter of X
Purpose of loan Full time Part time Full time
MBA (`) MCA (`) MBA (`)
Amount of loan 6,00,000 3,00,000 5,00,000
Annual repayment of loan 1,00,000 50,000 1,00,000
Annual repayment of interest 60,000 40,000 55,000
Find out the amount deductible under section 80E for the assessment year 2025-26.
Ans.2. Statement showing deduction allowed u/s 80E for AY 2025-26:
Particulars `
Interest on Loan 1 for full time MBA of Mr. X 60,000
Interest on Loan 2 for Part time MCA of Mr. X 40,000
Interest on Loan 3 for full time MBA of Daughter of Mr. X 55,000
Total 1,55,000
Note: Amount of principal paid (not allowed as a deduction u/s 80E)

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