Saral Pro

Chapter VI-A deductions in ITR-1 and 2 [80C and 80D]

In this post, we will see the entry of various Chapter VI-A deductions in ITR-1 and 2 with screenshots to explain the process in detail.

We will be covering section 80C and 80D along with their sub-sections in this post. The others will be covered in part-2 of this post.

To begin with, ITR-1 is filed by Resident Individuals who have income from Salary or one house property or basic other sources of income. Depending on the ITR selected, the Chapter VI-A deductions will also vary.

Now, we will see the various Chapter VI-A Deductions applicable to ITR-1 and the entry of same in Saral Income Tax.

To enter Chapter VI-A Deduction details, click on VI A Deductions in Tax Meter.

The VI A Deductions screen will be displayed with the applicable deductions for the selected ITR i.e. ITR-1

Now, start entering the details one-by-one in, applicable sections.

Firstly and commonly used setting is 80C, where the deduction is available on general Investment & Savings are covered. All together around 18 types of investment & Savings are listed in this section. Click on “…” button next to 80C section. In 80C Deduction, the window has two sections, one to identify the qualifying amount out of Life Insurance Premium and other of other types of Investment & Savings.

Enter the Life Insurance Premium details in the first section if you want to auto calculate the qualifying amount. This is most applicable in the case of a single premium policy. The second part details are entered as available by selecting the applicable type from the dropdown list. The Qualifying amount will be auto taken and the total Qualifying amount from the section is limited to Rs. 150,000.

If an investment is done in Specified Pension fund or Pension contribution under 80CCD then enter in the relevant section columns i.e. 80CCC and 80CCD(1).

Note: 80CCD(1) is a contribution made by the individual to the pension fund. The Qualifying amount of all three sections (80C+80CCC+80CCD(1)) put together is Rs. 150,000.

If an employee has contributed over and above Rs. 150,000 in 80CCD(1), then an additional deduction of maximum Rs. 50,000 can be claimed under 80CCD(1B).

In case, the employer has also contributed to the pension fund to which employee is contributing, then deduction of such contribution can be made under 80CCD(2).

For any investment made in Rajiv Gandhi Equity Savings Scheme, the details of the investment can be shown in 80CCG section. The Qualifying amount is auto taken as Rs. 25,000 or 50% of the actual amount, whichever is the least.

If any Health Insurance premium is paid, then the details of the premium amount are given at 80D section. Click on “…” button next to 80D section. In Deduction u/s 80D window, enter the details in relevant fields.

Note: Enable Senior checkbox, if the insured person(s) is above 60 years. The computation of Qualifying amount in the window can be seen by clicking on the link Qualifying amount calculation. If the individual or the parents are VerySenior citizen (Above 80 years) who are not covered under Health insurance, their medical expenses can be claimed under the field Medical Expenditure (In case of senior citizen).

If the individual has a handicapped dependent, the medical expenses incurred towards that dependent can be claimed for deduction under Section 80DD. Enable the checkbox of 80DD. If the disability of the dependent is severe (above 80%), then enable the option Severe Disability to claim a higher deduction.

If the individual has undergone any Medical Treatment as defined under the Act, then enter the amount in 80DDB section. In the case of a senior citizen, enable the option Age above 60 which will auto claim the higher deduction.

This complete part-1 of this tutorial.