Saral Pro

Chapter VI-A deductions in ITR 5

In this post, we will be seeing the various types of Chapter VI-A deductions in ITR 5 such as 80GGA, 80LA, 80P, etc.

These include deductions allowed under ITR-3, which can be viewed here:

Chapter VI-A deductions in ITR-3 [80-IA, 80-IAB, 80-IB, 80-IBA  etc].

The common deductions in ITR-3 and ITR-5 are section 80G, 80GGC, 80IA, 80IAB, 80IB, 80IBA, 80IC, 80JJA, 80JJAA & 80-IE.

The process of entering is similar to that explained in ITR-3.

Now, let us see the remaining sections in ITR-5. The section 80GGA allows deduction on the donation made towards scientific research or rural development. Click the “…” button, select the type of donation made and enter the related details.

Note: Mode of Donation can be in the form of a cheque/DD or in cash; however cash donations in excess of Rs 10,000 are not allowed as deductions. 100% of the amount that is donated or contributed in other form is considered eligible for deductions.

The section of 80LA is a deduction in respect of certain income of offshore banking units and international financial services centre. The income is directly entered in the specified column and the applicable deduction will be auto considered.

Note: The deduction will be allowed for the below incomes included in the gross total income of the assessee:

  • Income from offshore Banking Unit in an SEZ, or
  • From any unit of International Financial Service Centre
  • Income from the banking business with:
    • Undertaking located in an SEZ or
    • Any undertaking which develops & operated or operates and maintains an SEZ

In case, the assessee type is a co-operative society, then section 80P will be enabled. Click on “…” button and the entry screen for the section will be displayed. On entering the related information, save the details and the income and deduction will be considered for computation.

Note: Section 80P is not applicable to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank.

Apart from Chapter VIA deduction, an assessee can also claim Deduction under section 10AA/10A who derive any profits or gains from an undertaking being a unit engaged in the export of articles or things or providing any service provided they meet the essential conditions for the claim of the deduction.

To enter Section 10AA deductions in Saral Income Tax, go to Ded. U/s 10AA in the tax meter.

In the displayed window, the Business income will be auto taken. Enter the deduction particulars, select the applicable year and the amount.

Note: If any income is available as mentioned in Section 10(23FB)/10(23FBA)/10(23FC)/10(23FCA), then the same has to enter the relevant fields given.

This completes the details on various types of Deductions applicable under ITR-5.