management or applied sciences, pure sciences including mathematics or statistics. However, from 2011 onwards, the scope of this exemption has been extended to cover all fields of studies including vocational studies after completing the Senior Secondary examination or equivalent. No exemption is applicable on part-time courses.
One often donates a certain amount on philanthropic grounds to help the destitute. Such an amount can be donated to trusts, charitable institutions, approved educational institutions and qualifies for deduction under Section 80G. The exemptions can be up to 50% or 100% of the donations made. Funds in which the donations are eligible for tax exemptions include the National Defense Fund, Prime Minister Drought Relief fund, National Foundation for communal Harmony, National Children’s Fund and Prime Minister’s National Relief Fund. One needs to attach a proof of donation with their return of income to avail this exemption.
If a salaried or self employed person staying in a rented house does not receive any kind of HRA, they can claim a deduction under this section. However, you cannot avail any such benefit if you, your spouse and/or your child owns any residential accommodation in India or abroad. You can claim the least of the following under Section 80GG:
25% of the total income
Rs 2000 per month
Excess of rent paid over 10% of total income
Any monetary contribution to any political party or electoral trust is eligible for tax exemption. Thus, your contribution, as a matter of appreciation for their work, will serve both the purposes.
A resident of India suffering from any kind of specified disability is eligible to claim tax deduction under this section. In order to enjoy this opportunity, one should be suffering from not less than 40% of the following diseases — Blindness, low vision, mental illness, loco motor-disability, mental retardation and hearing impairment. The deduction provided is flat R50,000, irrespective of the expense incurred. If the disability is severe, the deduction can be up to Rs 1 lakh. One needs to provide a copy of all the certificates issued by a medical authority in order to avail this benefit.
The Finance Act 2012 introduced a new Section 80CCG to offer 50% tax break to new investors who invest up to Rs 50000 and whose GTI is less than or equal to Rs10 lakhs. It has been introduced for budding investors entering the equity markets for the first time and is a once-in-a-lifetime benefit. Hence, there are