How a new condition make you ineligible for claiming deduction u/s 78 (read 80DD) .

Section 78 of Direct Tax Code 2010 are equivalent to section  80DD. Section 78 provides deduction for expenditure and insurance on treatment , nursing and maintenance of disable dependant person.The deduction is Rs 1,00,000 if specified  person suffering from severe disability The deduction is Rs 50,000 if specified person suffering from general disability.While … [Read more...]

Does Direct Tax Code 2010 allow Interest deduction from house property income?

Well interest is allowed without any limit in case house is let out. However, no interest is allowed to be deducted while computing the "income from house property" on a property which is not put to rent . The simple reason is that there is no computation of income from house property as the house was not let out.However , good news is that the interest to the extent of Rs … [Read more...]

Can a second holder of the joint account claim deduction u/s 80C or 80CCF ?

Let us say you want to invest in tax saving fixed deposits which gives you deduction u/s 80C . Let us say , your wife is made first holder and you have given your name as second holder . The question comes , whether you can claim deduction for investment in such tax saving fixed deposits.80CCF also provides additional deduction of Rs 20,000 . Let us say , you have a demat … [Read more...]

Claim additional deduction of Rs 20,000 u/s 80CCF for investment in bonds

The Finance Act2010 introduced a new deduction u/s 80CCF for deduction up to the extent of Rs 20,000 for investment in specified infratrcuture bonds. now the government has approved plans of LIC and certain other finance companies for issue of infrastructure bonds . The section 80CCF is80CCF. In computing the total income of an assessee, being an individual or a … [Read more...]

Claimed dedcution u/s 80 DD of Rs 50000. A.O says deduction shall be allowed only for expense for which I show proof .Is he right?

In my view , the action of A.O is not according to the provision of the Section 80DD of the I T ACT. Even a ruppee you spend on dependent person for his medical treatment and maintenance , you are allowed a deduction of Rs 50000.Section 80DD states :"Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year, … [Read more...]