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Tuesday, 15 November 2016

Trick to Remember Section 80 Deductions Mnemonic Codes FOR CA IPCC/FINAL



Trick to Remember Section 80 Deductions | Mnemonic Codes |IPCC FINAL TAX NOTES MAY NOV 2017 




Remembering all the Income Tax Section 80 Deductions is no mean task.
There are such instances where students get confused with one section number with the other section numbers. This leads to much bigger problems.
To solve this confusion to some extent, We are providing the list of Section 80 Deductions along with the Mnemonic code to remember them.

Mnemonic Code for Section 80 Deductions:

Section No.Shortcut Code
80D80D se dawai
80E80E se education
80EEextra enterest
80Gse Garib gov. Ko donation
80DDdependent dukhi
80DDBdependent dukhi bimar
80GGCgadhe ghode (donation to politicial party) charao by foriegn co.
80GGBgadhe ghode (donation to politicial party) banao by indian
80GGghar ghar
80GGAGaav development with science
80QQBquality quality Books
80RRBroyalty to resident
80Uunstable person


Section 80 Deductions Quick Revision Before Exam:

80C [Contribution to PPF, LIC etc]
80CCC [Pension Funds] and 80CCD(1):
Rs.1,50,000 Deduction for the above two.

80CCG [Investment in Equity Savings]
50% of amount invested
Or
Rs.25,000
Whichever is lower

80DD [Maintenance and Medical Treatment of Disabled dependent]:
Flat Deduction of Rs.75,000 (In case of severe disability i.e., 80%, Deduction is Rs.1,25,000]

80D [Medical Insurance Premium] :
Rs.25,000 allowed (Rs.30,000 in case of senior citizen)

80DDB [Medical treatment for specified diseases]:
Rs.40,000 for Normal Individuals
Rs.60,000 for Senior Citizens
Rs.80,000 for Super Senior Citizens

80E [Interest on Educational Loan]:
Deduction allowed in Initial Assessment Year and 7 preceeding years.

80G [Donations]:
50% and 100% in different cases.

80GG [Rent]:
Least of the following is allowed as deduction-
  1. 25% of total income
  2. Rent paid (-) 10% of Adjusted Income
  3. Rs.2,000 per month

80GGB [Contribution to Political Parties]:
Actual contribution is allowed as deduction.

80QQB [Royalty Income] and
80RRB[Royalty on Patents]:
Least of Amount received or Rs.3,00,000 is allowed as deduction.

80TTA [Interest from Savings Account]:
Actual interst subject to a maximum of Rs.10,000

80U [Person with disability]:
Rs.75,000 for normal disability and Rs.1,25,000 for severe disability.