Deductions availability

[SANJAY MACHE]

xyz is self employed as proprietor. He has done with the 1 lakh 80C limit. what are the other option available with transaction period 01.01.2010 to 31.03.2010; towards deduction from taxble income/income tax?

[jasjit narang]

80 D mediclaim and 80 G donation

[rishi mohan]

The self employed proprietor may further go for the deduction under section 80(G) i.e donation based section. He may also avail a deduction under section 80 (D)i.e medical claim section. If the proprietor is residing in a rented property, he may avail the deduction under section 80(GG) also i.e deduction in regards to payment of rent.

[DEV KUMAR KOTHARI]

Besides deductions under chapter VIA,as suggested by other learned readers, a self employed person can also explore possibilities of further claims of deprecaition allowance of assets wholly or partly used in business ( like motor car, office space in home, office space)expenses for maintaining business assets, etc. He can also find some relief by adopting proper accounting methods of incoem and expenses. Take care of tds payments, otherwise even expenses incurred may be fully disallowed u/s 40. The period to be cosnidered is from 01.04.2009 to 31.03.2010 for computation purpsoes and not the period as stated by you.

AI Summary

Tax deductions for self employed: personal mediclaim, donation and rent deductions plus business depreciation and expenses. Self employed proprietors may claim additional personal deductions such as medical insurance premium deduction, donation deduction, and a rent related deduction for those in rented accommodation; they may also claim business allowances including depreciation on assets and ordinary business expenses, subject to proper documentation and accounting methods. Compliance with tax deduction at source obligations is necessary to avoid disallowance of expenses. Compute taxable income using the relevant fiscal year period rather than a shorter transaction window.