Any allowance granted to meet the expenditure incurred wholly, necessarily
and exclusively on conveyance in performance of the duties of office
and so certified by the employer is exempt u/s 10(14).
Any allowance granted to an employee to meet his expenditure for the
purpose of commuting between the place of his residence and the place
of his duty to the extent of Rs.800/- per month is exempt u/s.10(14).
An amount of Rs.15,000 or the actual amount reimbursed by the employer
whichever is less is exempt u/s.17(2)(v).
For let out property, deduction of 1/4th of the Net Annual Value is
allowed for Repairs and Collection Charges.
For self occupied property, deduction on account of interest on borrowed
capital for individuals is Rs.30,000/- or actual interest whichever
is less is allowed at source by the DDO on receipt of an application
from the assessee in Form No.12C alongwith the Interest Certificate.
Where the property is acquired or constructed with capital borrowed
on or after 1/4/99 and such aquisition or construction is completed
before 1/4/2003, a deduction of 1,00,000/- or actual interest paid
whichever is less is allowed.
Deduction for family pension u/s.57(iia):
An amount of Rs.15,000/- or 33 1/3% of family pension whichever is
less is allowed as deduction.
The Capital Gain arising on or after 1/4/2000 out of sale of long
term capital asset can be invested in NABARD or National Highways
Authority of India within six months from the date of sale. (Lock-in
period is 3 years)
Any sum paid by cheque to keep in force an insurance on health of
the assessee or his dependents in accordance with the Scheme framed
by the GIC., upto Rs.10,000/- is allowed as a deduction. Where the
premium is paid in respect of a Senior Citizen, the permissible deduction
will be Rs.15,000/- in relation to the Assessment Year 2000-2001 and
The amount (a) of expenditure incurred by way of medical treatment,
training and rehabilitation of a handicapped dependent or (b) paid
or deposited under any scheme framed in this behalf by the LIC or
UTI and approved by the Board for the maintenance of the handicapped
dependent, shall be allowed as a deduction upto Rs.40,000/- either
under (a) or (b) or aggregate of (a) and (b) on the production of
a certificate from the Government hospital/ proof of deposit (applicable
to Resident Individual or HUF) subject to conditions stipulated in
If any expenditure is actually incurred for the medical treatment
of specified diseases or ailments for the assessee or his dependent
then a deduction of Rs.40,000/- is allowable on the production of
a certificate in Form No.10-I, issued by any doctor registered with
IMA with Post Graduate qualification. In the case of senior citizen
the limit of deduction is Rs.60,000/-. The amount of deduction of
Rs.40,000 or Rs.60,000 will be reduced by the amount received under
an insurance for medical treatment. (Assessment Year 2000-2001 and
An assessee not in receipt of HRA incurs any expenditure on Rent,
is allowed a deduction of least of the following:
a) Rent paid in excess of 10% of the total income
b) 25% of the total income
c) Rs.2,000 per month
Note: Total Income means Total Income before allowing deduction
under this section. The above deduction is allowable only if the assessee
or spouse or minor child does not own a house.
To claim such a deduction, the assessee should file a declaration
in Form No.10BA.
Applicable to individual and HUF. A deduction of upto Rs.12000/- is
available. An additional deduction of Rs.3,000 is available if income
includes interest on Government Securities.
Any income by way of :
i) dividends from company referred to in Sec.115-O
ii) income received in respect of units from the Unit Trust of India
iii) income received in respect of the units of a mutual fund are
exempt under section 10(33).
Any assessee suffering from a permanent physical disability (including
blindness) or is subject to mental retardation on the production of
medical certificate from a Government Hospital before the Assessing
Officer for the first assessment year, shall be allowed a deduction
A rebate of 20% of the amount invested subject to a maximum of Rs.60,000/-
is available from the tax payable.
A rebate of 20% on an additional amount of Rs.20,000/- is available
when such sum is invested in specified investments.
u/s. 88B for Senior Citizens:
For a resident individual who has attained the age of 65 years or
more,at any time during the previous year is entitled to a deduction
of 100% of the income-tax or Rs.15,000/- whichever is less from the
u/s. 88C for women below the age of 65years
A resident woman individual below the age of 65 years is entitled
to a deduction of Rs.5,000/- or actual tax payable whichever is less
from the tax payable.
If a person as required under section 139(1), fails to furnish such
return before the end of the relevant assessment year, shall be liable
to pay by way of penalty a sum of Rs.1,000/-.
Where the Return of Income for any assessment year u/s.139(1) or 139(4)
or in response to a notice u/s.142(1), is furnished after the due
date, or is not furnished, the assessee shall be liable to pay simple
interest at the rate of one and one half percent for every month or
part of a month comprised in the period commencing on the date immediately
following the due date.
Where an assessee who is liable to pay advance tax under section 208
has failed to pay such tax or, where the advance tax paid by such
assessee under the provisions of section 210 is less than 90% of the
assessed tax, the assessee shall be liable to pay simple interest
at the rate of one and one half percent for every month or part of
a month comprised in the period from the 1st day of April next following
the financial year.
Where an assessee other than a Company, who is liable to pay advance
tax under section 208 has failed to pay such tax or,
i) the advance tax paid by the assessee on his current income on or
before the 15th day of September is less than 30% of the tax due on
the returned income or the amount of such advance tax paid on or before
the 15th day of December is less than 60% of the tax due on the returned
income, then, the assessee shall be liable to pay simple interest
interest at the rate of one and one half percent per month for a period
of three months on the amount of the shortfall from 30% or, as the
case may be, 60% of the tax due on the returned income;
ii) the advance tax paid by the assessee on his current income on
or before the 15th day of March is less than the tax due on the returned
income, then, the assessee shall be liable to pay simple interest
at the rate of one and one half percent on the amount of the shortfall
from the tax due on the returned income.