Deductions to Be Made in Computing Total Income

Deductions to Be Made in Computing Total Income

Before we discuss various clauses of deduction, let us have a clear idea of differences between deductions and exemptions. Table shows differences between deduction and exemption:

Basis	Deduction	Exemption
Definition	Subtractions; sum of money that can be reduced from the taxable income	Exclusions; if a specific income is exempt from tax, it would not contribute to a person’s total income
Concept	To get the net income, the deduction amount is first included in the total gross income and then deducted from it	For the taxpayer, the entire amount is an exemption. The exempted income is not considerable under the total income
What is it?	It is concession.	It is relaxation.
Objective	Promoting investments and savings of people	Boosting that specific Section in which tax has been exempted
Income is	Tax-deductible	Tax-free
Allowable to	Specific people	Everyone
Applicable Sections	Sections 80C to 80U	Section 10
Is it conditional?	Yes	No

Taxpayers can leverage the benefits of deductions only if he/she claims them for investments made in specific instruments. In this manner, such incomes become the part of the taxpayer’s gross total income and then deductions can be used to calculate the total income.

There are four categories of the deductions which are as follows:

• Deduction regarding certain payments: Some examples include medical insurance premium, life insurance premium paid and donations to charitable institutions.
  
  
• Deduction regarding certain incomes: Some examples include royalty on patents and specific incomes from cooperative societies.
  
  
• Deduction regarding other incomes: Some examples include interest income on savings account, time deposits, etc.
  
  
• Other deductions: For example, deduction in case of a person with disability

The term ‘exemption’ has been derived from the word ‘exempt’, which implies a sum of money that is not liable to anything. These are those incomes that are not considerable when computing the total income. Therefore, such source of income is not included from taxable income or chargeable to tax.

Some incomes are entirely exempt from tax, which include agricultural income. However, some incomes are partly exempted and the exemption is provided only to a specific limit. In this case, the exceeding part of the income is subject to tax and, hence, considerable when calculating the gross total income.

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Deductions to Be Made in Computing Total Income (Section 80A)

Gross Total Income (GTI) of an assessee is the total of what the assessee earns in any previous year under five different heads of income as specified under Section 14 of the Income Tax Act, 1961. However, for the computation of actual taxable income of an assessee, certain general deductions are allowed from GTI, which are covered by Chapter VI-A of the Income Tax Act, 1961. According to Section 80A, deductions specified under Section 80C to 80U covered by Chapter VI-A shall be allowed while computing the total income of the assessee from his/her GTI.

The deductions covered under Chapter VI-A of the Income Tax Act, 1961 are as given in Figure:

It is also worth clarifying here that certain incomes are not eligible for deductions. These are long-term capital gains taxable under Section 112/112A, short-term capital gains taxable under Section 111A, winnings from lotteries, etc., as referred to in Section 115BB, and some specified incomes of non-residents including presumptive income. Hence, the GTI is reduced by these amounts to arrive at the qualifying limit eligible for deductions under Chapter VI-A. Now let us discuss these deductions in detail.

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Income Tax Deductions Under New Tax Regime FY 2020-21

Individuals opting to pay tax under the new proposed lower personal income tax regime will have to forgo almost all tax breaks that you have been claiming in the old tax structure. Below is the list of the main tax exemptions and deductions that are not available for the tax payers if you opt for the new regime;

• The most commonly claimed deductions under section 80C will go.
  
  
• Section 80C deductions claimed for provident fund contributions, life insurance premium, school tuition fee for children and various specified investments such as ELSS, NPS, PPF, cannot be availed.
  
  
• House rent allowance
  
  
• Leave travel allowance
  
  
• Standard deduction of ₹50,000
  
  
• Deduction available under section 80TTA (Deduction in respect of Interest on deposits in savings account) and 80TTB (Deduction in respect of Interest on deposits to senior citizens)
  
  
• Interest paid on housing loan taken (Section 24)
  
  
• Under the new tax regime, set-off of loss under

“Income from House Property” is not allowed. However, you can still use it to nullify rental income from a let-out property.

• The deduction claimed for medical insurance premium under section 80D will also not be claimable.
  
  
• Tax break on interest paid on education loan will not be claimable-section 80E.
  
  
• Tax break on donations to charitable institutions available under section 80G will not be available.

So, all deductions under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc.) will not be claimable by those opting for the new tax regime. The above are part a total of 70 deductions and tax exemptions that will not be available in the new tax regime.

(A) Deductions in Respect of Certain Payments

Section 80DDB

Deduction under Section 80DDB is available to a resident individual or an HUF in respect of amount paid for medical treatment of some specified diseases or ailments for himself or a dependent of an individual or an HUF. In case of an individual, the payment for medical treatment of specified diseases may be made for himself or his dependent being spouse, children, brothers, sisters, or parents who are mainly dependent upon the individual for his support and maintenance. In case of an HUF, the payment for medical treatment of specified diseases may be made for any member of the HUF.

The amount of deduction is lower of the following:

• Amount actually paid
• ₹40,000 (₹1,00,000 if the payment is made for medical treatment of a senior citizen).

The amount of deduction as computed above will be reduced by any amount reimbursed by employer or received from an insurance company.

Section 80EE

Deduction under Section 80EE is available to an individual who pays interest on loan taken from a financial institution (any housing finance company or bank) for the purpose of acquiring a residential house property. The quantum of deduction allowed is ₹50,000 or the actual amount of interest payable on loan, whichever is lower.

Deduction under this section shall not be allowed if the following conditions are not met:

• The loan should have been sanctioned by the financial institution during the period of previous year 2016-17.
  
  
• The amount of sanctioned loan should be less than or equal to ₹35 lakhs and the value of residential house should be less than or equal to ₹50 lakhs.
  
  
• The assessee should not be the owner of any residential house as on the date of sanction of loan.
  
  
• If, for any assessment year, deduction is claimed by the assessee under this section, then he or she cannot claim similar deduction under any other provision of the Act for such interest payment for the same assessment year.

Section 80G

Deduction under Section 80G is available to all assessees for making donations to certain charitable funds, institutions, etc. The donations are divided into following four categories depending upon the nature of donee:

• Donation to Prime Minister’s National Relief Fund, National Children’s Fund, etc., (Category I) – 100% deduction of amount donated is allowed to the assessee without any qualifying limit.
  
  
• Donation to Prime Minister’s Drought Relief Fund, Jawaharlal Nehru Memorial Fund, etc., (Category II) – 50% deduction of amount donated is allowed to the assessee without any qualifying limit.
  
  
• Donation to Government or local authority for promotion of family planning, etc., (Category III) – 100% deduction of amount donated is allowed to the assessee subject to qualifying limit.
  
  
• Donation to Government or any local authority for other specified charitable purposes, renovation of notified temple, etc., (Category IV) – 50% deduction of amount donated is allowed to the assessee subject to qualifying limit.

Qualifying limit is the maximum permissible deduction allowed that is computed with respect to 10% of the GTI

Section 80GG

Deduction under Section 80GG shall be allowed to an individual assessee. The deduction is available in respect of rent payments made by an assessee for his residential accommodation, provided the assessee is not in receipt of House Rent Allowance or owns a rent-free accommodation.

The quantum of deduction allowed is the least of the following:

• ₹5,000 per month
  
  
• 25% of the total income (Total income here means income arrived at after allowing for deductions under Chapter VI-A except Section 80GG)
  
  
• Rent paid in excess of 10% of total income

However, no deduction shall be allowed to the assessee if he/his spouse/HUF/minor child owns a residential accommodation in a place where he resides ordinarily or carries on his business or profession or performs his official duties of employment.

Section 80GGA

Deduction under Section 80GGA is allowed to any assessee who does not have incomes chargeable under the head ‘Profits and Gains of Business or Profession’. The deduction is available in respect of donations made by the assessee to some specified research associations, institutions, etc., for the purpose of scientific research or rural development. The quantum of deduction allowed is 100% of the amount donated.

However, no deduction shall be allowed for donations by way of cash payments in excess of ₹2,000. Also, if for any assessment year, deduction is claimed by the assessee under this Section, then he or she cannot claim similar deduction under any other provision of the Act for such payment for the same assessment year.

Section 80GGB

Deduction under Section 80GGB is allowed to an Indian company in respect of contribution made by Indian company during the previous year to a political party or an electoral trust. The amount of deduction allowable is 100% of the actual contribution made by an Indian company otherwise than by way of cash. No deduction shall be allowed if the contribution is made by the assessee by way of cash.

Section 80GGC

Deduction under this Section is allowed to any person other than a local authority or an artificial judicial person wholly or partly funded by the Government. The deduction is available in respect of a contribution made by such person during the previous year to any political party or an electoral trust. The amount of deduction allowable is 100% of the amount of actual contribution made otherwise than by way of cash. Thus, no deduction is allowed if the contribution is made to the political parties by cash. Remaining deductions under this head have been explained in detail in the later parts of this chapter.

(B) Deductions in Respect of Certain Incomes

Section 80JJAA

Deduction under Section 80JJAA is allowed to an assessee whose GTI includes profits and gains of business or profession and who is subjected to tax audit under Section 44AB. The deduction is available to the eligible assessee in respect of employee cost incurred by the assessee for employment of new employees during the previous year.

Some of the conditions for claiming this deduction are as follows:

• The business of the assessee should not be formed by way of splitting up or reconstruction of an existing business.
  
  
• The business of the assessee should not be formed by way of transfer from another person or through reorganisation.
  
  
• Audit report of the accountant giving prescribed particulars has to be furnished along with the return of income.

The amount of deduction allowed under this Section is equal to 30% of the additional employee cost incurred by the assessee (cost paid to new employees) in respect of new employees employed during the previous year. Moreover, such 30% deduction is available for three assessment years comprising the assessment year relevant to the previous year in which such new employment is provided.

Section 80RRB

Deduction under Section 80RRB is allowed to a resident individual assessee. The deduction is available to the assessee on his or her income by the way of royalty on patents. For claiming this deduction, the assessee should have earned royalty income on patents which are registered on or after 01.04.2003. The eligible assessee is one who is registered under the Patents Act, 1970 as the true and first inventor in relation to an invention (including the co-owner of patents). The amount of deduction allowed from GTI is ₹3,00,000 or the whole of such royalty income, whichever is lower.

Section 80QQB

Deduction under Section 80QQB is allowed to a resident individual being an author. This deduction is available in respect of consideration for grant of the author’s interests in the copyright of a book of scientific, literary or artistic nature; or in respect of royalty income of authors from books excluding brochures, guides, diaries, commentaries, newspapers, journals, pamphlets, magazines, school textbooks and other publications of the same nature.

The deduction allowed is lower of the following:

• Income derived in the exercise of profession, or
• ₹3,00,000

For this purpose, the income derived in the exercise of profession is equal to the amount received or receivable in case of lump sum royalty, or up to 15% of the value of books sold during the relevant previous year if the royalty is not paid in lump sum.

(C) Deductions in Respect of Other Income

Deductions under Section 80TTA and 80TTB have been explained in detailed in the later parts of this chapter.

(D) Other Deductions

Deduction under Section 80U has been explained in detailed in the later parts of this chapter.

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Deduction in Respect of Investments/Contributions to Specified Assets (Section 80C)

Deduction under Section 80C is allowed to an individual or an HUF for making certain payments or contributions in respect of life insurance premium, specified term deposits, provident fund, etc. The eligibility and conditions for claiming deductions under this Section are as discussed in Table:

Eligible Assessee	Conditions for Claiming Deduction	Amount of Permissible Deduction from GTI
Individual or HUF	Deduction is available in respect of some specified investments made by an individual or an HUF during the previous year. Some of the investments which qualify for claiming deduction under this section are as follows: Payment of life insurance premium on the life of specified persons, i.e., individual, spouse, children or member of HUF Contribution by an employee towards Statutory Provident Fund or Recognised Provident Fund or Approved Superannuation Fund Any amount deposited in Public Provident Fund (in the name of individual, spouse or children) Any amount invested in NSC certificates and interest accrued thereon	The amount of deduction is equal to the sums paid or deposited subject to the maximum limit of ₹1,50,000.
	Repayment of housing loan taken for the construction or acquisition of new residential house property from bank, Government, LIC, specified employer, financial institution, etc. Tuition fees paid to any university, educational institution, college or school in India for the education of the children (deduction can be claimed for maximum of 2 children for their full-time education)
	Investment made in the units of mutual fund specified under Section 10(23D) or any other notified schemes Any amount deposited in five-year post-office deposit scheme Contribution towards Unit-Linked Insurance Plan (ULIP) of LIC Mutual Fund Deposits made in Senior Citizen Saving Scheme account Subscription to/deposits made in notified bonds of NABARD Subscription to certain equity shares/debentures or certain units of mutual fund Amount deposited in term deposits with a scheduled bank for a fixed period of not less than 5 years Amount paid or deposited to Sukanya Samriddhi Account Scheme (in the name of individual or girl child or a girl child for whom the individual is the legal guardian)

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Life Insurance Premium Allowable as Deduction

The insurance premium paid in relation to a life insurance policy is allowable as a deduction subject to the following limits:

• For policies issued on or before 31.03.2012, the premium paid to the extent of 20% of a actual capital sum assured is allowed as a deduction.
  
  
• For policies issued on or after 01.04.2012, the premium paid to the extent of 10% of a actual capital sum assured is allowed as a deduction.
  
  
• For policies issued on or after 01.04.2013 and where insurance is on the life of a person with disability/severe disability as specified under Section 80U or a person suffering from specified disease/ailment as prescribed under Section 80DDB, premium paid to the extent of 15% of actual capital sum assured is allowed as a deduction.

Let us now understand this concept with the help of an illustration.

Illustration 1: Following Details is given by Mr Amit.

	Date of issue of Policy	Person insured	Actual capital sum assured (₹)	Insurance premium paid during 2020- 21 (₹)
(i)	30/3/2012	Self	5,00,000	51,000
(ii)	1/5/2016	Spouse	1,50,000	20,000
(iii)	1/6/2018	Handicapped son (section 80U disability)	4,00,000	80,000

Compute the eligible deduction under section 80C for A.Y. 2021-22 in respect of life insurance premium paid by Mr Amit During the P.Y.2020-21

Solution:

	Date of issue of policy	Person insured	Actual capital sum assured	Insurance premium paid during 2020-21	Deduct- ion u/s 80C for A.Y.2021- 22	Remark (restricted to % of sum assured)
(i)	30/3/2012	Self	5,00,000	51,000	51,000	20%
(ii)	1/5/2016	Spouse	1,50,000	20,000	15,000	10%
(iii)	1/6/2018	Handicapped son (section 80U disability)	4,00,000	80,000	60,000	15%
	Total				1,26,000

It should be noted that life insurance premium paid in the name of parents is not accountable for deduction. The reason is that parents do no come under the definition of ‘specified person’.

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Deduction in Respect of Contribution to Pension Fund (Section 80ccc) and Deduction in Respect of Contribution to Pension Scheme of Central Government (Section 80CCD)

Deduction under Section 80CCC is available to an individual in respect of contribution made to an approved annuity plan of LIC or certain pension funds. The eligibility and conditions for claiming deduction under this Section are as discussed in Table:

Eligible Assessee	Conditions for Claiming Deduction	Amount of Permissible Deduction from GTI
Individual	Deduction is available to any individual who has paid or deposited any amount during the previous year to keep in effect a contract for any annuity plan of LIC of India or other insurer for the purpose of receiving pension from such fund set up by LIC or other insurers.	The amount of deduction allowed is limited to ₹1,50,000.

Deduction under Section 80CCD can be availed by an individual assessee in respect of contribution made to the Central Government Pension Scheme.

The eligibility and conditions for claiming deductions under this Section are as discussed in Table:

Eligible Assessee	Conditions for Claiming Deduction	Amount of Permissible deduction from GTI
Individual assessee employed by the Central Government or employed any other employer or self-employed	Deduction is available to an individual who is employed by the Central Government on or after 01.01.2004 or any other employer or any other assessee and who has made a contribution, deposit or payment of any amount to his account under the notified pension scheme of the Central Government, such as National Pension Scheme.	For salaried assessees, the deduction allowed under Section 80CCD(1) is the amount of employee’s contribution made which is restricted to 10% of salary. In addition, the deduction of employer’s contribution is restricted to 10% of salary under Section 80CCD(2). For other assessees, the deduction allowed under Section 80CCD(1) is the amount of employee’s contribution made which is restricted to 20% of GTI.
Under Section 80CCD(1B), a further additional deduction of up to ₹50,000 shall be available to all assessees.

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Limit of Deduction Under Sections 80C, 80CCC AND 80CCD (Section 80CCE)

According to Section 80CCE, the amount of maximum permissible deduction under Sections 80C, 80CCC and 80CCD(1) is restricted to ₹1,50,000. However, the limit of ₹1,50,000 under Section 80CCE is not applicable to deductions allowed under Section 80CCD(2) and Section 80CCD(1B). Now, let us understand this concept with the help of some illustrations.

Illustration 2: Determine deductions available as per Section 80CCD for Mrs. Nikky who does not derive salary income. She has made a contribution of ₹2,20,000 towards a notified pension scheme by the Central Government. The GTI of Mrs. Nikky for the Assessment Year 2021-2022 is ₹9,00,000.

Solution: Now, as per Section 80CCD (1), 20% of the GTI, which is ₹1,80,000 is deductible. However, as per Section 80CCE, the limit of deduction applicable to Sections 80C, 80CCC, 80CCC(1) is ₹1,50,000. Therefore, the deduction amount that can be claimed is ₹1,50,000. With respect to the balance of ₹70,000, Mrs. Nikky becomes eligible for additional deduction under Section 80CCD(1B) to the maximum of ₹50,000. Therefore, the total deduction under Section 80CCD(1) and 80CCD(1B) will be ₹2,00,000.

Illustration 3: Mahesh who is currently self-employed earns a GTI of ₹6,00,000. He made a deposit of ₹1,25,000 in public Provident Fund and 80,000 in a Central Government-approved pension scheme. Compute his taxable income.

Solution:

Particulars	Amount (in ₹)	Amount (in ₹)
Gross Total Income		6,00,000
Less: Deductions
Under Section 80C	1,25,000
Under Section 80CCD (1) equal ₹80,000 but limited to 20% of GTI of ₹6,00,000	1,20,000
Total deductions	2,45,000
But limited to ₹1,50,000 as per Section 80CCE	1,50,000
Additional deduction under Section 80CCD (1B)	50,000	2,00,000
Total income		4,00,000

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Deduction in Respect of Health Insurance Premia (Section 80D)

Deduction under Section 80D is available to an individual or an HUF in respect of payment of medical health insurance premium for self or a family member. The eligibility and conditions for claiming deductions under this Section are as discussed in Table:

Eligible Assessee	Conditions for Claiming Deduction	Amount of Permissible Deduction from GTI
Any individual or HUF	Medical health insurance premium paid otherwise than by cash for keeping in force insurance on the health of self, spouse and dependent children in case of an individual (or family member of HUF in case the assessee is an HUF). AND/OR Any contribution made by an individual otherwise than by way of cash to CGHS or such other scheme as may be notified by the Central Government is also eligible for deduction.	The amount of deduction is limited to the maximum of ₹25,000. However, in case the individual or spouse or member of HUF is a senior citizen, the maximum amount deductible is ₹50,000.
Individual	Medical health insurance premium paid otherwise than by way of cash to keep in force a medical insurance for the health of the parents, whether they are dependent on the individual or not.	The amount of further deduction in addition to above is limited to the maximum of ₹25,000. However, in case either or both of the parents are senior citizens, the maximum amount deductible is ₹50,000.
Individual or HUF	Any medical expenditure incurred otherwise by way of cash on the health of the individual or his family member or parents or member of HUF, provided such person is a senior citizen and no other amount has been incurred to give effect to the insurance policy on the health of such person.	The amount of deduction is limited to the maximum of ₹50,000.

Some important points:

• Also, if any amount has been incurred by any mode including cash payment on account of preventive health-check up of the assessee himself, spouse, dependent children and parents, an amount of deduction equivalent to ₹5,000 is allowed. However, the said deduction is within and subject to the aggregate limit of deduction of ₹25,000/₹50,000, as the case may be.
  
  
• If the individual or his family member or member of HUF is a senior citizen, the aggregate deduction in respect of insurance premium, CGHS and medical expenditure is restricted to ₹50,000.
  
  
• It is also clarified here that if one parent is a senior citizen for whom medical insurance premium is paid and the other parent is a senior citizen for whom medical expenditure is incurred by the assessee, then the maximum allowable deduction is restricted to ₹50,000.

Let us discuss now, an example to understand the above-mentioned concept.

Illustration 4: Determine deduction under Section 80D for Mr Shashank who is 50 years old and provides the following information related to Mediclaim policy premium paid for the year ending Mar 31, 2019 by cheque.

• For self: ₹10,000
  
  
• For spouse who is 48 years old: ₹9,000
  
  
• For dependent mother who is 70 years old: ₹7,000
  
  
• For dependent mother-in-law who is 62 years old: ₹5,000
  
  
• For preventive health check-up of self and spouse in cash: ₹6,000
  
  
• Dependant father’s medical expenditure who is 82 years old: ₹50,000

In case the premium has been paid in cash, would the answer differ?

Solution: The calculation of deduction under Section 80D for Mr Shashank is shown as follows:

Particulars	Amount Paid	Eligibility	Deduction Allowed
(a) For individual and his family
Self – Mediclaim premium	₹10,000	Yes	₹10,000
Spouse – Mediclaim premium	₹9,000	Yes	₹9,000
Self and Spouse – Preventive Health Check-up	₹6,000	Yes, but restricted to ₹5,000	₹5,000
Total	₹25,000		₹24,000
(b) For Parents
Dependent mother – Mediclaim Premium	₹7,000	Yes	₹7,000
Father – Medical Expenditure	₹50,000	Yes, but restricted to ₹43,000	₹43,000
Total	₹50,000		₹50,000

It should be noted that ₹5,000 that has been paid for mother-in-law is not allowed for deduction because it is not included in the definition of ‘family’. As per Section 80D, the health insurance premium payment by any mode other than cash is allowed. If any payment has been made through cash, it cannot be availed as deduction. However, preventive health check-up of self and spouse in cash of ₹5,000 is allowed.

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Deduction in Respect of Maintenance Including Medical Treatment of a Dependent Who is a Person With Disability (Section 80DD)

Deduction under Section 80DD is available to a resident individual or HUF for payments in respect of maintenance including medical treatment of a dependent disabled. The eligibility and conditions for claiming deductions under this section are as discussed in Table:

Eligible Assessee	Conditions for Claiming Deduction	Amount of Permissible Deduction from GTI
Resident individual or HUF	The deduction from GTI shall be available to the assessee who has made expenditure in relation to a medical treatment (including nursing), training and rehabilitation of a dependent having a disability; or who has deposited any sum in this behalf under a scheme framed by LIC/ other insurers/approved specified company for maintenance of the dependent disabled.	In case of normal disability of dependent, the amount of deduction allowed is ₹75,000. In case of severe disability of dependent (i.e., 80% or more disability), the amount of deduction allowed is ₹1,25,000. The assessee is allowed to claim a flat deduction of ₹75,000/₹1,25,000 as the case may be, irrespective of the amount actually spent by the assessee.

For the purpose of Section 80DD, the meaning of a dependent person is as follows:

• In case of an individual, a dependent may be his or her spouse/ children/parents/brothers or sisters who is wholly dependent upon such individual for maintenance and support.
  
  
• In case of an HUF, dependent may be any member of the HUF who is wholly dependent upon such HUF for maintenance and support.

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Deduction in Respect of Loan Taken for Higher Education (Section 80E)

While computing the gross total income, Section 80E allows an individual assessee to claim a deduction in respect of interest payment on any loan taken for pursuing higher education. The eligibility and conditions for claiming deductions under this Section are as discussed in Table:

Eligible Assessee	Conditions for claiming deduction	Amount of permissible deduction from Gross Total Income
Individual	Deduction is available to an individual who pays interest on loan taken from any financial institution or an approved charitable institution for higher education of himself or his relatives (spouse and children of the individual) or a student for whom the individual is a legal guardian. Deduction under this Section can be claimed only when interest is paid out of the income chargeable to tax under the Act.	The amount of deduction allowed is without any limit. It can be claimed from the initial year of commencement of interest payment to seven assessment years succeeding the initial commencement year or until the full interest payment is made, whichever is earlier.

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Deduction in Respect of Interest on Deposits in Savings Account (Section 80TTA) and Deduction in Respect of Interest on Deposits in Case of Senior Citizens (Section 80TTB)

Deduction under Section 80TTA is available to assessees whose GTI includes any interest income from deposits in a savings account maintained with banks. The eligibility and conditions for claiming deductions under this Section are as discussed in Table:

Eligible Assessee	Conditions for Claiming Deduction	Amount of Permissible Deduction from GTI
Individual (except senior citizen) or HUF	Deduction is available to an individual other than senior citizen who earns interest income from deposits in a savings account with a bank, a co-operative society bank, or a post office. The deposits for this purpose exclude any time deposits which are repayable after the completion of certain fixed time.	The amount of deduction allowed is the lower of the following: Actual interest, or ₹10,000

Deduction under Section 80TTB is available to individuals aged 60 years or more during the previous year, who have an interest income on deposits with banks. The eligibility and conditions for claiming deductions under this section are as discussed in Table:

Eligible Assessee	Conditions for Claiming Deduction	Amount of Permissible Deduction from GTI
Individual senior citizen	Deduction is available to an individual (of age 60 years or more), who earns interest income from deposits with a banking company, a co-operative society bank, or a post office. The deposits for this purpose may include time deposits.	The amount of deduction allowed is the lower of the following: Actual interest, or ₹50,000

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Deduction in the Case of a Person With Disability (Section 80U)

Deduction under Section 80U is available to resident individuals suffering from disability. The eligibility and conditions for claiming deductions under this Section are as discussed in Table:

Eligible Assessee	Conditions for Claiming Deduction	Amount of Permissible Deduction from GTI
Resident individual having disability	Deduction is available to a person who, at any time during the previous year, has been certified by the medical authority to be a person holding disability.	For persons with disability, a flat deduction of ₹75,000 is allowed. For persons with severe disability, i.e., persons having 80% or more disability, a flat deduction of ₹1,25,000 is allowed.