Deductions Under Chapter VI A
Deductions Under Chapter VI A
Deductions Under Chapter VI A
Introduction
The last budget brought bad news to the assessee with the amendments primarily to section 80C which
reduced the rate of premium limits. This situation is still continuing with little amendment.
Amendments to section 80CCG, 80G, 80JJAA and insertion of new section 80EE have granted further
relief to the assessee. Let us have a quick look at each of these.
This amendment will take effect from 1 April 2014 and will accordingly apply to the assessment year
2014-15 and subsequent years.
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This amendment will take effect from 1 April 2014 and will accordingly apply to the assessment year
2014-15 and subsequent years.
This amendment will take effect from 1 April, 2014 and will, accordingly, apply in relation to the
assessment year 2014-15 and subsequent assessment year.
It is further provided that the deduction under the proposed section shall not exceed Rs. 1Lakh and
shall be allowed in computing the total income of the individual for the assessment year beginning on
01.04.2014 and in a case where the interest payable for the previous year relevant to the said
assessment year is less than one lakh rupees, the balance amount shall be allowed in the assessment
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year beginning on 1 April, 2015.
It is also provided that the deduction shall be subject to the following conditions: All Rights Reserved Udyog Software
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(i) The loan is sanctioned by the financial institution during the period beginning on 1 April, 2013
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and ending on 31 March, 2014;
(ii) The amount of loan sanctioned for acquisition of the residential house property does not
exceed Rs. 25 Lakhs;
(iii) The value of the residential house property does not exceed Rs. 40 Lakhs;
(iv) The assessee does not own any residential house property on the date of sanction of the loan.
It is also provided that where a deduction under this section is allowed for any assessment year, in
respect of interest referred above, deduction shall not be allowed in respect of such interest under any
other provisions of the Income-tax Act for the same or any other assessment year.
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This amendment will take effect from 1 April, 2014 and accordingly apply in relation to the assessment
year 2014-15 and subsequent assessment year.
For the purpose of this section
Financial institution means a banking company to which the Banking Regulation Act, 1949
Applies including any bank or banking institution referred to in section 51 of that Act or a housing
Finance company
This amendment will take effect from 1 April, 2014 and will, accordingly, apply in relation to
assessment year 2014-15 and subsequent assessment years.
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provide that no deduction shall be allowed under section 80GGB and 80GGC in respect of any sum
contributed by way of cash.
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This amendment will take effect from 1 April, 2014 and will, accordingly, apply in relation to the
assessment year 2014-15 and subsequent assessment years.
These amendments will take effect from 1 April, 2014 and will, accordingly, apply in relation to the
assessment year 2014-15 and subsequent assessment years.
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It is also proposed to provide that the deduction under this section shall not be available if the factory is
hived off or transferred from another existing entity or acquired by the assessee company as a result of
amalgamation with another company.
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This amendment will take effect from 1 April, 2014 and will, accordingly, apply in relation to
assessment year 2014-15 and subsequent assessment years.
Conclusion
The Budget has wrought further relief to assesses in terms of deductions under chapter VI A. The good
thing about the budget is, nothing has been taken back, it has only added or amended few deductions
giving opportunity for the assesses to claim more deductions, thus decreasing the tax liability.
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