250 Q&A on Deductions

 Here are 250 interview-style questions and answers based on the document DEDUCTIONS.pdf you provided, covering Chapter VI-A Deductions and Section 10AA of the Indian Income Tax Act:

✅ Section-Wise Interview Q&A on Deductions from Gross Total Income

GENERAL OVERVIEW

  1. Q: What is the key difference between exemption under section 10 and deduction under Chapter VI-A?
    A: Exemptions are not included in gross total income, whereas deductions are first included and then reduced from gross total income.
  2. Q: Can a deduction result in a negative total income?
    A: No, deductions cannot create a loss. Total income after deduction is either positive or nil.
  3. Q: Under which tax regime are most deductions under Chapter VI-A not allowed?
    A: Under the default tax regime as per Section 115BAC.
  4. Q: Which deductions are allowed under Section 115BAC default regime?
    A: Deductions under 80CCD(2), 80CCH(2), and 80JJAA.
  5. Q: What is the meaning of "gross total income" under Section 80B(5)?
    A: It is total income before making any deduction under Chapter VI-A.

SECTION 80C – Investment-Based Deductions

  1. Q: What is the maximum limit of deduction under Section 80C?
    A: ₹1,50,000.
  2. Q: Is 80C deduction available under default tax regime?
    A: No, only if taxpayer opts out of Section 115BAC.
  3. Q: What is the premium limit for life insurance policies issued after 1.4.2013 for handicapped persons?
    A: 15% of actual capital sum assured.
  4. Q: What is the limit for investment in PPF for 80C?
    A: ₹1,50,000 per annum.
  5. Q: Can tuition fee for education abroad be claimed under 80C?
    A: No, only for full-time education in India.
  6. Q: Can HUF claim 80C deduction?
    A: Yes, for investments in the name of its members.
  7. Q: Are stamp duty and registration fee eligible under 80C?
    A: Yes, for purchase/construction of house property.
  8. Q: What is the treatment if ULIP is terminated before 5 years?
    A: Earlier deductions are added back to income and taxed.
  9. Q: What is the lock-in period for 5-year bank FD under 80C?
    A: Minimum of 5 years.
  10. Q: Is Sukanya Samriddhi Yojana eligible for deduction?
    A: Yes, under 80C for girl child.

SECTION 80CCC – Pension Fund Deduction

  1. Q: Who can claim deduction under Section 80CCC?
    A: Individuals paying for an annuity plan of LIC or other insurer.
  2. Q: What is the maximum limit for 80CCC?
    A: ₹1,50,000 (combined with 80C and 80CCD(1)).
  3. Q: What is the taxability on surrender of annuity plan under 80CCC?
    A: Entire amount received is taxable in the year of receipt.

SECTION 80CCD – National Pension System (NPS)

  1. Q: What is the deduction limit under 80CCD(1)?
    A: 10% of salary (employee) or 20% of gross total income (self-employed).
  2. Q: What is 80CCD(1B)?
    A: Additional deduction of ₹50,000 beyond ₹1.5 lakh limit.
  3. Q: Is employer’s contribution to NPS taxable?
    A: Yes, but deductible under 80CCD(2) up to 10% (private) or 14% (govt.).
  4. Q: Does 80CCD(2) fall under 80CCE limit?
    A: No, it's over and above the ₹1.5 lakh limit.
  5. Q: Can a taxpayer claim both 80CCD(1) and 80CCD(1B)?
    A: Yes.
  6. Q: Are Tier II NPS contributions eligible for deduction?
    A: Only for Central Government employees under 80C.

SECTION 80CCH – Agnipath Scheme

  1. Q: Who can claim deduction under Section 80CCH?
    A: Individuals enrolled under Agnipath Scheme.
  2. Q: Is the government contribution to Agniveer Corpus Fund taxable?
    A: Yes, but fully deductible under 80CCH(2).
  3. Q: Are withdrawals from Agniveer Fund taxable?
    A: No, exempt under Section 10(12C).

SECTION 80D – Health Insurance Premium

  1. Q: What is the maximum deduction under 80D for individual + parents under 60?
    A: ₹25,000 + ₹25,000 = ₹50,000.
  2. Q: What if one or more of the insured persons are senior citizens?
    A: Deduction increases to ₹50,000 per senior citizen.
  3. Q: Is preventive health check-up covered?
    A: Yes, up to ₹5,000 within overall limits.
  4. Q: Can medical expenditure be claimed without insurance?
    A: Yes, for senior citizens, up to ₹50,000 if not covered under any insurance.
  5. Q: Is cash payment allowed for health insurance?
    A: No, except for preventive health check-ups.

COMPLIANCE REQUIREMENTS

  1. Q: What is the requirement under Section 80AC for claiming deduction?
    A: Filing return on or before due date under Section 139(1).
  2. Q: Can a belated return claim deduction under 80QQB?
    A: No.
  3. Q: Is audit mandatory for claiming 80JJAA?
    A: Yes, along with timely return filing.

SECTION 80CCE – Combined Ceiling

  1. Q: What is the combined limit under 80C, 80CCC, and 80CCD(1)?
    A: ₹1,50,000.
  2. Q: Is 80CCD(1B) included in this limit?
    A: No, it is over and above the ₹1.5 lakh limit.

SECTION 10AA – Units in SEZ

  1. Q: Is deduction under Section 10AA available under 115BAC?
    A: No, only under optional tax regime.
  2. Q: Who is eligible for deduction under Section 10AA?
    A: Units established in SEZs meeting specified conditions.

MISCELLANEOUS DEDUCTIONS & LIMITATIONS

  1. Q: Can 80G donations be claimed by members of AOP if already claimed by AOP?
    A: No, double deduction not allowed.
  2. Q: What if 80C policy is surrendered within 2 years?
    A: Prior deductions become taxable.
  3. Q: What happens if NPS corpus is used for annuity purchase?
    A: It is not treated as received and not taxed.
  4. Q: Is employer’s contribution under 80CCD(2) allowed under default regime?
    A: Yes.
  5. Q: What is “market value” under Section 80A(6)?
    A: The open market price for goods/services on date of transfer.
  6. Q: Is deduction allowed if not claimed in return?
    A: No, as per Section 80A(5).
  7. Q: Can taxpayer claim both 35AD and 80-IA/IB/IE?
    A: No, one of them only.
  8. Q: Is income under Sukanya Samriddhi Account taxable?
    A: No, it is exempt under Section 10(11A).
  9. Q: What happens if post office deposit under 80C is withdrawn before 5 years?
    A: It becomes taxable in the year of withdrawal.
  10. Q: Can both husband and wife claim 80C for tuition fees?
    A: Yes, if they both pay for their two children.
  11. Q: What is the lock-in period for equity shares under 80C?
    A: Three years.

SECTION 80DD – Dependent with Disability

  1. Q: Who can claim deduction under Section 80DD?
    A: An individual or HUF incurring expenses for the medical treatment, training, and rehabilitation of a dependent with disability.
  2. Q: What is the deduction amount under Section 80DD?
    A: ₹75,000 for a dependent with disability, and ₹1,25,000 for a dependent with severe disability.
  3. Q: Is medical expenditure required to be incurred for claiming deduction under 80DD?
    A: Not necessarily; fixed deduction is allowed irrespective of actual expenditure if conditions are met.
  4. Q: Can an NRI claim deduction under 80DD?
    A: No, only resident individuals and HUFs can claim.

SECTION 80DDB – Specified Disease Treatment

  1. Q: What is Section 80DDB related to?
    A: Deduction for medical treatment of specified diseases or ailments.
  2. Q: Who is eligible to claim deduction under 80DDB?
    A: A resident individual or HUF.
  3. Q: What is the maximum deduction under 80DDB?
    A: ₹40,000 for normal patients, ₹1,00,000 for senior citizens.
  4. Q: Is a medical certificate required for claiming deduction under 80DDB?
    A: Yes, from a specialist doctor in government hospital.

SECTION 80E – Interest on Education Loan

  1. Q: What is the deduction allowed under Section 80E?
    A: 100% of interest on education loan for 8 consecutive years.
  2. Q: Is there any limit on the amount of deduction under 80E?
    A: No, the entire interest is deductible.
  3. Q: Can education loan be for spouse or children?
    A: Yes, the assessee can claim deduction for education of self, spouse, or children.
  4. Q: Is the principal repayment deductible under 80E?
    A: No, only interest is allowed as deduction.

SECTION 80EE & 80EEA – Home Loan Interest

  1. Q: What is the deduction under Section 80EE?
    A: Up to ₹50,000 on interest for first-time homebuyers on loans sanctioned between 01.04.2016–31.03.2017.
  2. Q: What is the additional benefit under Section 80EEA?
    A: Additional deduction of up to ₹1,50,000 for loans sanctioned from 01.04.2019 to 31.03.2022.
  3. Q: Can both 80EE and 80EEA be claimed together?
    A: No, if 80EEA is claimed, 80EE cannot be claimed.
  4. Q: Is deduction under 80EE/EEA available under default tax regime?
    A: No, only under the old regime (optional tax regime).

SECTION 80EEB – Electric Vehicle Loan Interest

  1. Q: What is Section 80EEB about?
    A: Deduction of up to ₹1,50,000 for interest on loan taken for purchase of electric vehicle.
  2. Q: Is this deduction available to companies or firms?
    A: No, only individual assessees.
  3. Q: Is the deduction available under both tax regimes?
    A: No, only if the taxpayer opts out of Section 115BAC.

SECTION 80G – Donations

  1. Q: What kind of donations qualify under Section 80G?
    A: Donations to notified funds, charitable institutions, and relief funds.
  2. Q: What is the maximum deduction under Section 80G?
    A: Either 50% or 100%, with or without restriction, depending on the recipient fund.
  3. Q: Is donation in cash allowable?
    A: Yes, up to ₹2,000. Beyond that, payment must be in non-cash mode.
  4. Q: Can 80G deduction be claimed for political party donations?
    A: No, that’s covered under 80GGC/80GGB.

SECTION 80GGA – Scientific Research and Rural Development

  1. Q: Who can claim deduction under 80GGA?
    A: Assessees not having income from business or profession.
  2. Q: What type of contribution is allowed under 80GGA?
    A: Donations for scientific research and rural development.
  3. Q: Are cash donations allowed under 80GGA?
    A: No, only non-cash payments are eligible.

SECTION 80GGB & 80GGC – Donations to Political Parties

  1. Q: Who can claim deduction under Section 80GGB?
    A: Indian companies donating to political parties or electoral trusts.
  2. Q: Who can claim deduction under Section 80GGC?
    A: Any individual (other than company or firm) donating to political parties.
  3. Q: Is donation in cash allowed for 80GGB/GGC?
    A: No, must be by non-cash modes only.

SECTION 80GG – Rent Paid

  1. Q: Who is eligible to claim 80GG deduction?
    A: Individuals not receiving HRA and living in rented accommodation.
  2. Q: What is the maximum deduction under 80GG?
    A: Least of:
  • ₹5,000 per month
  • 25% of total income
  • Rent paid minus 10% of total income
  1. Q: Is declaration required for 80GG?
    A: Yes, Form 10BA must be filed.

SECTION 80TTA & 80TTB – Interest on Deposits

  1. Q: What is the limit under Section 80TTA?
    A: Up to ₹10,000 for interest on savings bank account for non-senior citizens.
  2. Q: Who is eligible for 80TTB?
    A: Senior citizens (60 years or more).
  3. Q: What is the deduction limit under 80TTB?
    A: ₹50,000 on interest from all deposits including FDs and RDs.
  4. Q: Can senior citizens claim 80TTA?
    A: No, they claim 80TTB instead.

SECTION 80U – Persons with Disability

  1. Q: Who can claim deduction under Section 80U?
    A: Resident individuals with a certified disability.
  2. Q: What is the deduction limit under Section 80U?
    A: ₹75,000 (disability), ₹1,25,000 (severe disability).
  3. Q: Can deduction under 80DD and 80U be claimed together?
    A: Yes, if for different individuals (one as dependent and another as self).

OTHER KEY POINTS

  1. Q: What is the condition under 80AC for availing deductions under “certain incomes”?
    A: Return must be filed within due date under Section 139(1).
  2. Q: Can HUF claim deduction under Section 80D?
    A: Yes, for members' medical insurance.
  3. Q: Is Section 80LA deduction available to IFSC units?
    A: Yes, on specified incomes of offshore banking units and IFSC.
  4. Q: Is deduction under 80JJAA available for firms?
    A: Yes, if they employ new regular employees and satisfy audit and filing conditions.
  5. Q: What is the deduction under 80P?
    A: Deduction for income of co-operative societies.
  6. Q: Is deduction under 80PA applicable to farmer producer companies?
    A: Yes, subject to certain turnover limits and conditions.
  7. Q: Can more than one deduction be claimed for the same expense?
    A: No, double deduction is not allowed.
  8. Q: If salary is not taxable, can deductions under Chapter VI-A be claimed?
    A: No, deductions are allowed only against taxable income.
  9. Q: Are contributions to Tier II NPS eligible under 80CCD(1B)?
    A: No, only Tier I is covered under 80CCD(1) & (1B).
  10. Q: What happens if house is sold before 5 years for 80C benefit?
    A: Entire prior deduction becomes taxable in the year of sale.
  11. Q: What is the treatment of interest on withdrawn 5-year deposits?
    A: It becomes taxable in the year of withdrawal.

SECTION 10AA – SEZ Units

  1. Q: Who is eligible to claim deduction under Section 10AA?
    A: An assessee (company or individual) having a unit in Special Economic Zone (SEZ) and opting for the optional tax regime.
  2. Q: Is 10AA deduction available under Section 115BAC?
    A: No, it is not allowed under the default tax regime.
  3. Q: What is the period of deduction under Section 10AA?
    A: For the first 15 consecutive years — 100% for first 5 years, 50% for next 5 years, and 50% of ploughed-back profits for next 5 years.
  4. Q: Is export income eligible under Section 10AA?
    A: Yes, profits derived from export of articles/services from SEZ units.

AGGREGATE RULES & LIMITATIONS

  1. Q: What is Section 80A(2) about?
    A: Deduction amount cannot exceed gross total income.
  2. Q: Can unclaimed deduction be revised in belated return?
    A: No, deduction must be claimed in return filed within due date u/s 139(1) as per Section 80A(5).
  3. Q: Can deduction be carried forward if not claimed?
    A: No, deductions must be claimed in the same assessment year.
  4. Q: What happens if investment made for 80C is reversed later?
    A: Deduction is withdrawn and added back as income.
  5. Q: Can a person claim deduction under both 80GGA and 80G?
    A: No, same contribution cannot be claimed under both.
  6. Q: Can you claim 80C for premium on spouse's life policy?
    A: Yes, even if the spouse is not earning.

SECTION 80RRB – Royalty on Patents

  1. Q: Who can claim deduction under Section 80RRB?
    A: A resident individual who is a patentee receiving royalty income.
  2. Q: What is the maximum deduction under 80RRB?
    A: ₹3,00,000 or actual royalty received, whichever is lower.
  3. Q: What condition is required for claiming 80RRB?
    A: The patent must be registered under the Patents Act, 1970.

SECTION 80QQB – Royalty on Books (Authors)

  1. Q: Who is eligible for deduction under 80QQB?
    A: Resident individual authors of certain books (excluding textbooks).
  2. Q: What is the maximum deduction under 80QQB?
    A: ₹3,00,000 or actual royalty, whichever is lower.
  3. Q: Can foreign royalty be claimed under 80QQB?
    A: Yes, if it is brought to India within specified time.

SECTION 80LA – Offshore Banking/IFSC

  1. Q: What is Section 80LA about?
    A: Deduction for income of offshore banking units and International Financial Services Centres (IFSCs).
  2. Q: What is the deduction limit under Section 80LA?
    A: 100% of income for first 5 years, then 50% for next 5 years.

SECTION 80M – Inter-corporate Dividend

  1. Q: Who can claim 80M deduction?
    A: Domestic companies receiving dividends from other domestic companies.
  2. Q: What is the purpose of 80M?
    A: To avoid double taxation on inter-corporate dividends.

SECTION 80P – Co-operative Societies

  1. Q: What kind of income is exempt under Section 80P?
    A: Income of co-operative societies from banking, cottage industries, etc.
  2. Q: Can housing co-operative societies claim deduction under 80P?
    A: Yes, for interest income from members.

SECTION 80PA – Producer Companies

  1. Q: What is 80PA about?
    A: Deduction for farmer producer companies with turnover < ₹100 crores.
  2. Q: What is the deduction under 80PA?
    A: 100% of profits for 5 years from incorporation.

SECTION 80JJA – Bio-Degradable Waste

  1. Q: Who can claim deduction under Section 80JJA?
    A: Assessees engaged in collecting/processing bio-degradable waste.
  2. Q: What is the deduction amount under 80JJA?
    A: 100% of profits for 5 consecutive years.

SECTION 80JJAA – Employment of New Employees

  1. Q: Who can claim 80JJAA?
    A: Business assessees (not professionals) who increase employment.
  2. Q: What is the deduction under 80JJAA?
    A: 30% of additional employee cost for 3 assessment years.
  3. Q: What is the minimum employment period for new employees under 80JJAA?
    A: 240 days (150 days for apparel, leather, footwear industries).
  4. Q: Is audit report necessary for 80JJAA?
    A: Yes, in Form 10DA.

SECTION 80GGC – Individual Political Donations

  1. Q: Who can claim deduction under Section 80GGC?
    A: Individual taxpayers (not companies/firms).
  2. Q: What is the mode of payment allowed?
    A: Non-cash modes only.

SECTION 80GGB – Corporate Political Donations

  1. Q: Who is eligible under 80GGB?
    A: Indian companies donating to political parties.
  2. Q: Is donation by cash allowed?
    A: No.

ILLUSTRATION-BASED QUESTIONS

  1. Q: Can a person claim 80C for 3 children's tuition fees?
    A: No, only for 2 children.
  2. Q: What is the treatment for early withdrawal from Senior Citizen Saving Scheme?
    A: Interest and principal withdrawn before 5 years is taxable.
  3. Q: What is the effect if NPS withdrawal exceeds 60%?
    A: Amount above 60% becomes taxable unless used for annuity.
  4. Q: What if a life insurance policy’s premium exceeds the % cap?
    A: Deduction will be limited to the capped % of the capital sum assured.
  5. Q: Can 80D deduction be claimed if policy is paid in spouse’s name?
    A: Yes, if spouse is dependent and insured.

ADDITIONAL TECHNICAL SCENARIOS

  1. Q: Can you claim deduction under 80C and 80CCC for the same annuity plan?
    A: No, for same contribution only one can be claimed.
  2. Q: Can you claim 80TTA for interest from FDs?
    A: No, only savings account interest is eligible.
  3. Q: Are donations to foreign charities eligible for 80G?
    A: No, only approved Indian funds/institutions.
  4. Q: What is “additional employee” under Section 80JJAA?
    A: A new employee who increases total headcount and satisfies wage/duration conditions.
  5. Q: Can repayment of education loan be claimed under 80C?
    A: No, only under 80E, and only interest is allowed.
  6. Q: Can HUF claim deduction under 80U?
    A: No, only individuals can claim.
  7. Q: What happens to deductions if GTI is zero?
    A: No deductions are allowed, as deductions cannot exceed GTI.
  8. Q: What is the deduction under 80CCD(2) for Central Govt employees?
    A: Up to 14% of salary.
  9. Q: Can two people claim 80EEB on a jointly held EV loan?
    A: No, only one individual can claim.
  10. Q: What is the tax treatment of pension received from NPS annuity?
    A: It is taxable as income.
  11. Q: Is preventive health check-up payment in cash eligible?
    A: Yes, up to ₹5,000 as part of 80D limit.

REAL-LIFE CASE SCENARIOS & EDGE CONDITIONS

  1. Q: Can a deduction under 80C be claimed for insurance premium paid for in-laws?
    A: No, only self, spouse, and children.
  2. Q: Is interest earned on Sukanya Samriddhi Yojana taxable?
    A: No, it is exempt under Section 10(11A).
  3. Q: If a housing loan is taken jointly, can both claim 80C for repayment?
    A: Yes, proportionately, if both are co-owners and co-borrowers.
  4. Q: Can deduction under 80E continue if loan is paid off before 8 years?
    A: No, it ends with repayment or after 8 years, whichever is earlier.
  5. Q: Can deduction under 80U be claimed without a certificate?
    A: No, valid disability certificate is mandatory.
  6. Q: Can 80CCD(1B) be claimed even if 80CCD(1) is not claimed?
    A: Yes, 80CCD(1B) is independent and additional.
  7. Q: Is stamp duty allowed under 80C even if property is not yet occupied?
    A: Yes, if incurred for transfer of ownership.
  8. Q: Is deduction under 80D allowed for group medical insurance premium paid by employer?
    A: No, only if the assessee himself pays the premium.
  9. Q: Can tuition fees paid to coaching institutes be claimed under 80C?
    A: No, only for schools, colleges, or universities in India.
  10. Q: Is interest paid on delayed housing loan EMIs deductible under 80C?
    A: No, only principal repayment is considered.

MIXED INCOME AND DEDUCTIONS CASES

  1. Q: What if part of interest earned from NPS corpus is taxed earlier?
    A: It will not be taxed again on withdrawal.
  2. Q: Can interest from recurring deposits be claimed under 80TTA?
    A: No, only savings account interest qualifies.
  3. Q: Can a senior citizen claim both 80TTB and 80D?
    A: Yes, both are independent deductions.
  4. Q: Is premium paid for siblings eligible under 80D?
    A: No, only self, spouse, children, and parents.
  5. Q: Can deduction under 80C be claimed for house property outside India?
    A: No, must be situated in India.
  6. Q: Is 80G deduction allowed for donation in kind?
    A: No, only monetary donations qualify.
  7. Q: Can a retired person claim deduction under 80DDB?
    A: Yes, if resident and meeting conditions for specified disease.
  8. Q: Are preventive check-ups for parents covered under 80D?
    A: Yes, up to ₹5,000 within overall limits.
  9. Q: Can a person claim 80D for more than one medical policy?
    A: Yes, as long as total is within the limits.
  10. Q: Is employer’s contribution to NPS under 80CCD(2) exempt from ₹1.5 lakh cap?
    A: Yes, it is over and above the 80CCE limit.

REGULATORY CONDITIONS & MISCONCEPTIONS

  1. Q: What if policy premium exceeds 10%/15% limit of sum assured?
    A: Deduction is restricted to that percentage only.
  2. Q: Can deductions reduce tax liability to negative?
    A: No, income after deductions can be zero but not negative.
  3. Q: Can 80C be claimed on down payment for a house?
    A: Yes, if it’s towards cost of purchase/construction.
  4. Q: Is LIC annuity plan contribution deductible under 80CCC?
    A: Yes, but subject to overall ₹1.5 lakh limit.
  5. Q: Can a person working in PSU claim deduction under 80CCD(1B)?
    A: Yes, if contributing to NPS.
  6. Q: What is the limit for employer’s contribution to Tier-I NPS?
    A: 10% of salary (14% for government employees).
  7. Q: Can donation to PM CARES Fund be claimed under 80G?
    A: Yes, eligible for 100% deduction without limit.
  8. Q: Is Form 10E required for claiming deduction under Chapter VI-A?
    A: No, Form 10E is for salary arrears relief, not deductions.
  9. Q: Can expenses for heart surgery be claimed under 80DDB?
    A: Only if it's among specified ailments.
  10. Q: Can a person with 60% disability claim 80U?
    A: Yes, ₹75,000 is allowed. ₹1,25,000 if disability is 80%+.

PRACTICAL LIMITATIONS & EXCLUSIONS

  1. Q: Is donation to a private trust eligible under 80G?
    A: Only if the trust is registered and approved.
  2. Q: Can capital gains be reduced by Chapter VI-A deductions?
    A: No, only from gross total income excluding capital gains u/s 111A, 112, 112A.
  3. Q: Can deduction under 80DDB be claimed for dependent parents?
    A: Yes, if they are wholly dependent.
  4. Q: Can interest on loan for EV be claimed under 80EEB for a second vehicle?
    A: No, only for first-time electric vehicle buyers.
  5. Q: Are fixed deposits in cooperative banks eligible under 80TTA?
    A: No, only savings account interest in banks/post office.
  6. Q: If spouse pays medical premium, can husband claim 80D?
    A: No, only the actual payer can claim.
  7. Q: Can both parents claim tuition fee deduction for the same child?
    A: Yes, proportionately if both paid.
  8. Q: Can 80G deduction be claimed by a firm?
    A: Yes, if donation is in the name of the firm.
  9. Q: Can business income be reduced by 80D deduction?
    A: Yes, since 80D applies to individual/HUF regardless of income head.
  10. Q: Are donations made in kind (food, books) eligible under 80G?
    A: No, only monetary donations.

ADVANCED UNDERSTANDING & EXCEPTIONS

  1. Q: Is Section 80CCE applicable to employer’s NPS contribution?
    A: No, 80CCD(2) is outside 80CCE limit.
  2. Q: Is reversal of deduction required on surrender of pension plan under 80CCC?
    A: Yes, amount received is taxable.
  3. Q: Is refund of PPF deposit subject to tax?
    A: No, both principal and interest are exempt.
  4. Q: What if donation under 80G is made after the end of the financial year?
    A: It is not allowed in the previous year; it will count in the next.
  5. Q: Can a salaried person claim 80EEA for under-construction house?
    A: Yes, subject to meeting loan and stamp duty limits.
  6. Q: Is maintenance of dependent mentally disabled person covered under 80DD?
    A: Yes, with higher deduction for severe disability.
  7. Q: Is donation to university for research allowed under 80GGA?
    A: Yes, if not carrying on business/profession.
  8. Q: Can 80CCD(2) deduction be claimed by self-employed individuals?
    A: No, only by salaried employees receiving employer’s contribution.
  9. Q: Can 80C deduction be claimed for home bought in joint names with parent?
    A: Yes, if the assessee is a co-owner and co-borrower and repaying the loan.
  10. Q: Can 80C and 80CCD(1B) be claimed together for NPS?
    A: Yes, within respective limits — ₹1.5 lakh (80C + 80CCD(1)) + ₹50,000 (80CCD(1B)).

APPLICATION-BASED AND EDGE CASES

  1. Q: Can an assessee claim deduction under 80C for LIC premium paid for brother?
    A: No, only self, spouse, and children.
  2. Q: Can a non-resident Indian (NRI) claim deduction under 80E for loan taken in India?
    A: Yes, if the loan is taken from a financial institution and used for eligible education.
  3. Q: Can a company claim deduction under 80CCD?
    A: No, only individuals can claim 80CCD deduction.
  4. Q: Can 80TTA and 80TTB be claimed together?
    A: No, if 80TTB is claimed by a senior citizen, 80TTA cannot be claimed.
  5. Q: Is deduction under 80G available for donation to a political candidate?
    A: No, only donations to registered political parties are allowed under 80GGB/80GGC.
  6. Q: If no return is filed, can a person claim 80G deduction?
    A: No, deduction under certain sections (like 80IA to 80RRB) requires return filing within due date (Section 80AC).
  7. Q: Can a person claim 80C deduction for a PPF account in the name of father?
    A: No, only self, spouse, and children qualify.
  8. Q: Can late payment charges on life insurance premium be included in 80C?
    A: No, only basic premium amount qualifies.
  9. Q: What happens if you miss the return filing deadline and want to claim 80QQB?
    A: Deduction is disallowed under Section 80AC.
  10. Q: Can a Hindu Undivided Family (HUF) claim deduction under 80D for a senior citizen member?
    A: Yes, HUF can claim up to ₹50,000 for senior citizen members.

NPS, PENSION & RETIREMENT-BASED DEDUCTIONS

  1. Q: Can 80CCD(1B) be claimed for Tier-II NPS contribution?
    A: No, only Tier-I contribution qualifies under 80CCD(1)/(1B).
  2. Q: Can a person opt for annuity on NPS maturity and avoid tax?
    A: Yes, annuity purchase is tax-deferred; only pension income is taxable.
  3. Q: What portion of NPS withdrawal is exempt under 10(12A)?
    A: 60% of the total corpus is exempt.
  4. Q: What is the tax treatment of partial NPS withdrawal?
    A: Exempt up to 25% of self-contribution under Section 10(12B).
  5. Q: What if employer contributes 18% to NPS?
    A: Only 14% (Govt.) or 10% (other employers) is deductible under 80CCD(2); excess is taxable.

MISCELLANEOUS CONDITIONS & RULES

  1. Q: Is Form 10BA mandatory for claiming 80GG deduction?
    A: Yes, declaration must be filed electronically.
  2. Q: Can 80C deduction be claimed on amount received from employer for LIC?
    A: No, only if premium is paid by the assessee.
  3. Q: Is tuition fee for nursery school eligible under 80C?
    A: Yes, for full-time education in a recognized school in India.
  4. Q: Is investment in ELSS mutual funds eligible under 80C?
    A: Yes, provided it is a notified Equity Linked Saving Scheme.
  5. Q: Can contributions to mutual fund pension plans be claimed under 80CCC?
    A: Yes, if the fund is set up by LIC or other approved insurer.

COMMON ERRORS IN DEDUCTION CLAIMS

  1. Q: What is a common mistake people make while claiming 80C?
    A: Including donations or coaching fees which are not eligible.
  2. Q: Can two policies be claimed under 80C even if total exceeds ₹1.5 lakh?
    A: Yes, but deduction is limited to ₹1.5 lakh in aggregate.
  3. Q: Can a person pay for a dependent parent's health insurance and claim 80D?
    A: Yes, if parent is financially dependent.
  4. Q: Is Form 10IA needed for 80U deduction?
    A: Yes, for certification of disability by authorized medical authority.
  5. Q: Can 80D deduction be claimed for policy paid in instalments?
    A: Yes, total amount paid in financial year is considered.

ADVANCED 80G DONATION CASES

  1. Q: What is the maximum cash donation allowed under 80G?
    A: ₹2,000.
  2. Q: Can anonymous donation be claimed under 80G?
    A: No, PAN and receipt are required for non-cash contributions.
  3. Q: Can NGO donations outside India be claimed?
    A: No, only Indian registered NGOs/funds are eligible.
  4. Q: What percentage deduction is available for Prime Minister's Relief Fund?
    A: 100% without qualifying limit.
  5. Q: Is 80G deduction allowed for donation to foreign disaster relief?
    A: Only if routed through Indian notified funds.

LONG-TERM DEDUCTION PLANNING

  1. Q: Can ELSS funds be withdrawn before 3 years and still retain deduction?
    A: No, withdrawal within lock-in results in capital gains and reversal of benefits.
  2. Q: What happens if NPS corpus is withdrawn before retirement?
    A: Taxable, unless used for annuity or within exempt limits.
  3. Q: Can 80C deduction be claimed for subsequent years of PPF deposit?
    A: Yes, every year up to the limit.
  4. Q: Can 80EEA deduction be claimed for house bought with spouse but loan in one name?
    A: No, only the person taking the loan can claim it.
  5. Q: Can self-employed person claim deduction under 80D for parents?
    A: Yes, up to the specified limit.

CHAPTER VI-A & 10AA DEDUCTION COORDINATION

  1. Q: Can a unit in SEZ claim deduction under both 10AA and 80IA?
    A: No, not for same profits – 80A(4) prohibits double deduction.
  2. Q: Can 10AA be claimed if return is not filed on time?
    A: No, as per Section 80AC.
  3. Q: What is the treatment of inter-unit transactions for deduction?
    A: Must be at market value as per 80A(6).
  4. Q: Is profit from foreign branch eligible under 10AA?
    A: No, only SEZ units in India are covered.
  5. Q: Can loss be set off from SEZ unit claiming 10AA?
    A: Yes, but deduction is limited to profits, not losses.

FINAL WRAP-UP SCENARIOS

  1. Q: Is 80U available to non-residents?
    A: No, only to resident individuals.
  2. Q: Can 80D be claimed for premium paid for parent-in-law?
    A: No, only for parents, not in-laws.
  3. Q: Can tuition fee claimed under 80C include school bus or transport?
    A: No, only tuition fee is allowed.
  4. Q: Is 80D available for single premium health policies?
    A: Yes, on a proportionate basis over the policy term (max 5 years).
  5. Q: What if PAN of donee trust is not mentioned in receipt for 80G?
    A: Deduction may be denied; PAN is mandatory.
  6. Q: Can late filing fees under 234F affect deduction eligibility?
    A: Indirectly — late return may disqualify some deductions under 80AC.
  7. Q: Can deduction under 80E be claimed for part-time education?
    A: Yes, as long as it's from a recognized institution.
  8. Q: Can multiple life insurance premiums be claimed under 80C?
    A: Yes, but total deduction under 80C is capped at ₹1.5 lakh.
  9. Q: What is the mode of verification for 80G donations?
    A: Receipt, PAN of the donee, and mode of payment proof.
  10. Q: Are 80C investments allowed in the name of minor child?
    A: Yes, and deduction is available in the hands of the parent.

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