Chapter VIII

Section 122 is the substantive equivalent of 1961 s. 80 A — opening / charging section of Chapter VIII. Deductions enumerated in Chapter VIII (ss. 123-154) are allowed FROM GROSS TOTAL INCOME (GTI), subject to: (a) deductions cannot…

Section 123 is the substantive equivalent of 1961 s. 80 C — the most-utilised individual-tax deduction. Individual or HUF assessee allowed deduction of aggregate sums (per Schedule XV) NOT EXCEEDING ₹ 1,50,000 from gross total income.…

Section 124 is the substantive equivalent of 1961 s. 80 CCD — the National Pension Scheme (NPS) deduction. Architecture spans 13 sub-sections covering: (i) employer-contribution deduction (sub-ss. 1-2 — 10% or 14% of salary depending on…

Section 125 is the substantive equivalent of 1961 s. 80 CCH (FA 2023 introduction). Individual enrolled in the Agnipath Scheme on/after 1-Nov-2022 and contributing to the Agniveer Corpus Fund is allowed deduction of own contribution. The…

Section 126 is the substantive equivalent of 1961 s. 80 D. Individual / HUF assessee allowed deduction for health insurance premium / preventive-health-checkup / medical-expenditure-on-senior-citizen-without-insurance. Limits: ₹ 25,000…

Section 127 is the substantive equivalent of 1961 s. 80 DD. Resident individual / HUF allowed flat deduction for: (a) expenditure on medical treatment / nursing / training / rehabilitation of a disabled dependant; OR (b) deposits /…

Section 128 is the substantive equivalent of 1961 s. 80 DDB. Resident individual / HUF allowed deduction for medical treatment of specified diseases (cancer, AIDS, neurological diseases, chronic renal failure, hematological disorders,…

Section 129 is the substantive equivalent of 1961 s. 80 E. Individual allowed deduction for INTEREST PAID on loan taken from any financial institution / approved charitable institution for higher education of self, spouse, children, or…

Section 130 is the substantive equivalent of 1961 ss. 80EE / 80EEA — ADDITIONAL housing-loan interest deduction OVER AND ABOVE the s. 23 (HP head) ₹ 2 lakh interest cap. Targeted at first-home buyers acquiring affordable residential…

Section 131 is the substantive equivalent of 1961 s. 80 EE. Alternative to s. 130 — for assessees NOT eligible for s. 130 , this section provides up to ₹ 50,000 additional deduction for first-home loan interest. Earlier sunset window…

Section 132 is the substantive equivalent of 1961 s. 80 EEB. Individual allowed deduction up to ₹ 1,50,000 per FY for INTEREST PAID on loan from financial institution for purchase of an ELECTRIC VEHICLE. Available for one-time /…

Section 133 is the substantive equivalent of 1961 s. 80 G — the principal individual / corporate charitable-donations deduction. Architecture: (I) Sub-section (1)(a) — 100% DEDUCTIBLE donations (24 specified Funds / institutions…

Section 134 is the substantive equivalent of 1961 s. 80 GG. For assessees NOT receiving HRA (housing rent allowance) but paying rent on accommodation, deduction equal to LEAST OF: (a) ₹ 5,000 per month / ₹ 60,000 per year; (b) Rent paid…

Section 135 is the substantive equivalent of 1961 s. 80 GGA. Allowed for any assessee (NOT HAVING PGBP income) — donations to: (a) approved scientific research association / university / college / institution u/s 35(1)(ii) / (iia); (b)…

Section 136 is the substantive equivalent of 1961 s. 80 GGB. Indian Company allowed deduction for contributions to (a) political party registered u/s 29A of Representation of the People Act, 1951; or (b) electoral trust. 100% deductible,…

Section 137 is the substantive equivalent of 1961 s. 80 GGC. Any assessee (other than local authority and Govt-funded artificial juridical person) — typically individuals / HUF / firms — allowed deduction for contributions to political…

Section 138 is the substantive equivalent of 1961 s. 80 -IA. Cross-reference / continuation provision — preserves deduction for legacy 80-IA infrastructure-development undertakings (power generation/distribution / road / port / airport /…

Section 139 is the substantive equivalent of 1961 s. 80 -IAB. Continuation provision for SEZ-developers (legacy approvals before sunset 1-Apr-2017) — 100% deduction of profits for 10 consecutive AYs out of first 15. Distinct from s. 145…

Section 140 is the substantive equivalent of 1961 s. 80 -IAC — the principal Income-tax incentive for start-ups in India. Eligible start-up (DPIIT / Inter-Ministerial-Board-certified) gets 100% deduction of profits and gains derived from…

Section 141 is the substantive equivalent of 1961 s. 80 -IB — legacy provisions for industrial undertakings, hospitals, hotels, scientific R&D, etc. Most categories have sunset (closed window for new undertakings); s. 141 preserves…

Section 142 is the substantive equivalent of 1961 s. 80 -IBA. Real-estate developer constructing affordable-housing project (specified flat-area / project-size / completion-period) gets 100% deduction of profits derived from the project.…

Section 143 is the substantive equivalent of 1961 s. 80 -IE. 100% deduction of profits for 10 consecutive AYs from undertaking commencing operations in any North-Eastern State (including Sikkim) — manufacturing / production /…

Section 144 is the substantive equivalent of 1961 s. 10 AA — for SEZ-units (operating businesses inside SEZ). Deduction structure (for legacy units commenced before 31-Mar-2020 cut-off): (a) First 5 years (Years 1-5): 100% of…

Section 145 is the substantive equivalent of 1961 s. 80 JJA. 100% deduction of profits from business of collecting and processing / treating bio-degradable waste — for generation of: (a) power; (b) bio-fuels; (c) bio-fertilisers; (d)…

Section 146 is the substantive equivalent of 1961 s. 80 JJAA — major employment-incentive deduction. Assessee whose accounts are audited u/s 63 allowed 30% of ADDITIONAL EMPLOYEE COST (cost of new employees employed during the year) for 3…

Section 147 is the substantive equivalent of 1961 s. 80 LA. 100% deduction of specified income for: (a) Offshore Banking Units (OBUs) of scheduled banks operating in SEZ; (b) IFSC (International Financial Services Centre) units in…

Section 148 is the substantive equivalent of 1961 s. 80 M. Domestic company allowed deduction equal to dividend received from another domestic company / business trust / specified foreign company TO THE EXTENT THAT it on-distributes such…

Section 149 is the substantive equivalent of 1961 s. 80 P -- the cornerstone deduction provision for the co-operative sector. The provision recognises the constitutional and policy commitment to the co-operative movement (Article 43-B and…

Section 150 is the substantive equivalent of 1961 s. 80 PA -- a TIME-LIMITED deduction (sunset 1-Apr-2029) for federal co-operatives in respect of dividend income received from companies in which they have invested, provided the dividend…

Section 151 is the substantive equivalent of 1961 s. 80 QQB -- the deduction for resident-individual authors of literary / artistic / scientific books (other than text-books) on royalty / lump-sum-assignment income. The provision…

Section 152 is the substantive equivalent of 1961 s. 80 RRB -- the patent-royalty deduction for resident-individual patentees on royalty income from patents registered ON OR AFTER 1-APR-2003 under the Patents Act 1970. The post-1-Apr-2003…

Section 153 consolidates 1961 s. 80 TTA (general non-senior-citizen / HUF -- INR 10,000 on savings-account interest only) and s. 80 TTB (senior citizen -- INR 50,000 on any deposit including time deposits) into a single section with two…

Section 154 is the substantive equivalent of 1961 s. 80 U -- the SELF-DISABILITY DEDUCTION (distinct from s. 127 / 1961 s. 80 DD which covers DEPENDANT-disability). The deduction recognises increased living costs and reduced earning…