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

Self-employed individual seeks extra tax deductions beyond Section 80C, exploring Sections 80D, 80G, and 80GG options. A self-employed proprietor who has reached the Section 80C limit is exploring additional tax deduction options for the period from January 1, 2010, to March 31, 2010. Suggestions include deductions under Section 80D for medical insurance and Section 80G for donations. If residing in rented accommodation, Section 80GG for rent payment is applicable. Additional advice includes claiming depreciation on business assets and ensuring proper accounting methods to maximize deductions. It is noted that the relevant computation period for these deductions is from April 1, 2009, to March 31, 2010, not the stated period.