Deduction Reduce Taxable Income

Income Deductible

Law/Particulars/Options/Limits

Tips

Any Sum Contributed (Other than Cash)

Contribution Given to Political Parties u/s 80GGB/80GGC (Indian Companies)

 

100%/50%

The contribution made to Certain Relief Funds and Charitable Institutions(Donation made in Cash exceeding 2,000 is \not allowed)

 

 30% Additional Deduction

  Incentive for employment generation 80JJA at present, under section 80-JJAA of the Act, a deduction of 30% is allowed in addition to normal deduction of 100% in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240/150 days during the year.

 

 

  DEDUCTION IN RESPECT OF DONATIONS FOR SCIENTIFIC RESEARCH AND RURAL DEVELOPMENT (SECTION 80GGA)

 Check Donation Limit as per companies act 2013

 

 Expenditure incurres on corporate social Responsiblity(CSR),Activities as per section 135 of CA Act 2013

 

 5% of capital employed

 Deduction In Relation to Setting up/Extension of a business

Deduction is available over a period of 5 years for setting up extension exp.Like a feasibility report, legal fee, survey

Reduced tax rate on Dividend received from certain company

  • Dividends received from a foreign company wherein the Company holds 26% or more shares are subject to tax at a reduced rate of 15%.

  • Further, the dividends received from such companies are to be reduced from dividends distributed/ payable in the computation of Dividend Distribution Tax [“DDT”], which in turn reduces the DDT liability.

Rarely Usable Deduction

Income Deductible

Law/Particulars/Options/Limits

Tips

50000*

Gift: Property being shares without

consideration: FMV > ` 50,000(Taxable Amount- FMV)

 

50000*

Gift: Property being shares FMV less

consideration > ` 50,000(Taxable Amount-Excess Amount)

 


 

 

 

 

 

 

 

*Excluding Company in which Public is Substantially Interested