TaxTMI 
TaxTMI 
TaxTMI 
QUICK RIVIEW ON BUDGET 2012- DEDUCTIONS
DEDUCTION UNDER SECTION 80C
- Section 80C provides that in computing the total income of individual and HUF, a deduction up to Rs. 1 Lac is allowed for life insurance premium, contribution to PPF, tuition fees, etc. The deduction for LIC premium was allowed only to the extent of 20% of actual capital sum insured. The said constraint of 20% has been further reduced to 10% of actual capital sum insured in respect of insurance policies issued on or after 1st April 2012.
DEDUCTIONS UNDER SECTION 80D AND 80DDB
- Section 80D is proposed to be amended to allow deduction of Rs. 5000 on payment made by the assessee on account of preventive health checkup of self, spouse, dependent children or parents during the previous year. However, the said limit is within the existing overall allowability limits prescribed under section 80D.
- For the purposes of availing deduction under section80D, payment will have to be made in the following modes :-
- On account of Preventive Health checkups; Any Mode of Payment includes Cash.
- In other Cases like health insurance, contribution to Central Government Health Scheme; Any Mode of Payment other than Cash.
- For the purposes of deduction under section80D and 80DDB, the definition of senior citizens has been amended to be age of 60 years instead of 65 years erstwhile.
DONATIONS UNDER SECTION 80G AND 80GGA
- For the purposes of deduction under section80G and 80GGA, the payment of donation will have to be in the following modes:-
- Donation less than or equal to Rs. 10,000 ; Any Mode of Payment including Cash.
- Donation exceeding Rs. 10000/- ; Any Mode of Payment other than Cash.
DEDUCTIONS IN RESPECT OF INTEREST ON DEPOSITS IN SAVINGS BANK ACCOUNTS
- As per the newly inserted section 80TTA, deduction to the extent of maximum Rs. 10000/- will be allowable from the income of an Individual or HUF in respect of income by way of interest on deposits (not being time deposits) in a savings account with Banking Company / Cooperative Society / Post Office.
- The said deduction shall not be allowed in computing the income of a partner or member, if the savings account is held by or on behalf of a firm, AOP, BOI.
DEDUCTION FOR INFRASTRUCTURAL DEVELOPMENT, ETC
- It is proposed to extend time limit for a further period of 1 year up to 31 st March 2013 for availing deduction under Section 80 IA(4)(iv) in respect of specified projects.