Section - 80E, 80EE, 80TTA - Taxation | Income Tax for assessment (Inter Level) PDF Download

Section 80E. interest on loan taken for Higher Education

1. Higher education means any course of study pursued after passing +2 including vocational studies (Direct Job courses) whether in India or outside India.

2. Who can claim deduction : An individual who has taken loan for his own education or education of his relative [spouse and children] from any Financial Institution or Banking company or any approved charitable  institution.

3. Amount of deduction : Any amount paid by the assessee in the PY by way of payment of interest. From the AY 2007-08 deduction by way of repayment of loan is not allowed as deduction.

Note 1: Relative means spouse and children of that individual or the student for whom the individual is the legal guardian.
Note 2: The deduction shall be allowed from the year the assessee starts payment of interest and subsequent 7 assessment year.

Section 80EE. deduction of interest on acquistion of residential house property

1. Who can claim deduction : An individual, who has borrowed money from any financial institution for the purpose of acquisition of a residential property.
2. Amount of deduction : Maximum Rs. 50,000
3. Conditions
(i) the loan has been sanctioned by the financial institution during the period beginning on the 1-4-2016 and ending on the 31-3-2017.
(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed Rs. 35 Lakhs.
(iii) the value of residential house property does not exceed Rs. 50 Lakhs.
(iv) the assessee does not own any residential house property on the date of sanction of loan.
4. Other Points : Double deduction not available.

P1 : Compute interest allowed as deduction u/s 24b and u/s 80EE.

Sections 80TTA . DEDUCTION OF INTEREST ON SAVIN G ACCOUNT DEPOSIT

1. Who can claim deduction : Any Individual or HUF can claim deduction.

2. Nature of income: Interest on deposits in saving account (other than time deposit)
The saving account is with
a. Bank.
b. Co-operative bank.
c. Co-operative land development bank.
d. Post office.

3. Amount of deduction allowed : The deduction allowed is upto Rs. 10,000.

Note 1 : Interest on post office saving account is exempt upto Rs. 3,500 u/s 10(15).

P1: Miss Chaitali furnishes following particulars of her income, savings and expenditures. You are required to compute total income.
1. Interest on saving account with SBI. - 9,00,000
2. Interest on saving account with Baroda Co-operative bank. - 3,00,000
3. Interest on saving account with Post office. - 20,000
4. Donation to approved charitable trust. Payment was made in cash. - 10,001
5. Appollo hospital conducted full body medical check up for prevention of any disease.
Payment was made in cash. - 6,000
Ans : 9,00,000 + 3,00,000 + 16,500 = 12,16,500 – 10,000 – 5,000 = 12,01,500.
 

P2 :
1. Name the deductions allowed only to individual.
2. Name the deductions allowed only to resident.
3. Name the deductions which are allowed on fixed basis.
4. Name the deductions which are allowed to all assessees.
5. Name the deductions allowed only to both individual and HUF.
6. Name the deductions allowed only to Indian Company.

Solution:
1. 80CCC; 80CCD; 80CCG, 80GG; 80E; 80QQB; 80RRB and 80U.
2. 80CCG; 80DD; 80DDB; 80GGB, 80QQB; 80RRB and 80U.
3. 80DD and 80U.
4. 80G; 80GGA and 80JJA. Deduction u/s 80GGB and 80GGC can be claimed by all assessee except local authority and artificial juridical person.
5. 80C; 80CCF; 80D; 80DD; 80DDB and 80TTA.
6. 80JJAA & 80GGB.