Gross Total Income (GTI) means the aggregate of income computed under each head as per provisions of the Act. GTI is computed after giving effect to the provisions for clubbing of incomes and set off of losses, but before making any deductions under Chapter VIA of the Act. In order to compute ‘Total Income or Net Total Income’, deductions under Chapter VIA are considered and adjusted from GTI. The aggregate amount of deductions under Chapter VIA cannot exceed GTI of the assesse. For the purpose of calculating Income Tax Total Income will be considered.
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Deductions Available under Chapter VIA |
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| Section | Brief Information about the Section | Deduction Limit |
| 80C | Amount paid or deposited towards life insurance, contribution to Provident Fund set up by the Government, recognized Provident Fund, contribution by the assessee to an approved superannuation fund, subscription to National Savings Certificates, tuition fees, payment/ repayment for purposes of purchase or construction of a residential house and many other investments. For full list, please refer to section 80C of the Income-tax Act. ( The aggregate amount of deduction under section 80C, 80CCC and 80CCD(1) shall not exceed Rs. 1,50,000/- ) | 80C + 80CCC+ 80CCD(1) should be less than or equal to Rs. 1,50,000 |
| 80CCC | Deduction in respect of Payment of premium for annuity plan of LIC or any other insurer. Deduction is available upto a maximum of Rs. 150,000/-. | |
| The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund. | ||
| 80CCD (1) | Deduction for contribution in pension scheme notified by the Government to the extent of 10% of salary in case of employees and 10% of total income in case of others. | |
| 80CCD (1B) | Contribution to National Pension Scheme. The deduction is in addition to the maximum deduction of Rs. 1,50,000/- available under 80C, 80CCC and 80CCD(1). | Rs. 50,000 |
| 80CCD (2) | Contribution by employer in pension scheme notified by the Government | Max 10% of salary. |
| 80CCG | Investment in Rajiv Gandhi Equity Saving Scheme | upto 50% of the amount invested ( Max. of Rs. 25,000 ) |
| 80D | Medical Insurance Premium for Self and family members. | |
| For self, spouce and children ( any one age < 60 yrs ) | Rs. 25,000 | |
| For Parents – Father or mother or both (any one age < 60 yrs) | Rs. 25,000 | |
| For self, spouce and children ( any one age > 60 yrs ) | Rs. 30,000 | |
| For Parents – Father or mother or both (any one age > 60 yrs) | Rs. 30,000 | |
| 80DD | Deduction in respect of maintenance including medical treatment of dependent who is a person with disability. | Rs. 1 lac – severe diability Rs. 50,000 – others |
| 80DDB | Medical treatment of specified disease or ailment for self or dependent relative. | Max Rs. 40000 |
| 80E | Interest on loan taken for pursuing higher education of self or family members or a relative. | No limit |
| 80G | Eligible Donations | upto either 100% or 50% with or without restriction |
| 80GG | House Rent ( for self employed and emp. Who have not recived HRA ) | Rs. 60,000 |
| 80TTA | Interest on Saving accounts | Rs. 10,000 |
| 80U | Person with disability. | Severe Disability – Rs. 1,00,000 General Disability – Rs. 50,000 |
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