Income Tax Query

Deductions under Chapter VI-A

Section 80A: The aggregate of deductions specified under sections 80C to 80U cannot exceed the Gross Total Income of the assessee.


In case of Association of Persons (AOP) or Body of Individuals (BOI), any or all of the following deductions admissible in computing the income of the AOP or BOI shall not be again admitted in computing the total income of a member of AOP or BOI in relation to the share of such member in the income of AOP/BOI:

Ø  80G

Ø  80GGA

Ø  80GGC

Ø  80HH

Ø  80HHA

Ø  80HHB

Ø  80HHC

Ø  80HHD

Ø  80-I

Ø  80-IA

Ø  80-IB

Ø  80-IC

Ø  80-ID

Ø  80-IE

Ø  80J

Ø  80JJ


Prohibition on double benefit (Section 80A(4): In case of an assessee, any amount of profits and gains of an undertaking or unit or enterprise or eligible business is claimed and allowed as a deduction for any assessment year under any of the following-

Ø  10A

Ø  10AA

Ø  10B

Ø  10BA

Ø  Chapter VI-A


-deduction in respect of, and to the extent of, such profits and gains shall not be allowed under any other provisions of the Act for such assessment year and shall in no case exceed the profits and gains of such undertaking or unit or enterprise or eligible business, as the case may be.


In effect, deductions claimed under the above provisions is subject to the following restrictions:

Ø  Deductions allowed under the above provisions combined together cannot exceed the profits and gains of such undertaking/unit/enterprise/eligible business.

Ø  Deduction once allowed under any of the above provisions, for the same assessment year, deduction shall not be allowed under any other provision of the Act for the same profits and gains.

Ø  Even if the assessee is eligible for deduction under more than one section, he can claim only under one section and in no case, double deduction is allowed.


Deduction not allowed if not claimed in return (Section 80A(5): In case of the following deductions, it is allowed only when claimed in return:

Ø  10A

Ø  10AA

Ø  10B

Ø  10BA

Ø  Chapter VI-A


However, it may so happen that assessee files a loss return and no claim is made for deduction for, say, Chapter VI-A. If the case is picked up for scrutiny and loss is converted into income due to some additions, no deduction is allowed to the assessee since it was not claimed in the return. Previously, before Section 80A(5) came into being, such deductions were allowed even if not claimed, during scrutiny.


To avoid such circumstances, it is always advisable to indicate or disclose in the return of income that though the assessee is otherwise eligible for deduction under any of the above sections, no claim has been made in the return due to the fact that the same is a loss return.


No deduction to be allowed unless return is filed within due date (Section 80AC): Any deduction admissible under Chapter VI-A under the heading C-Deductions in respect of certain incomes (Section 80H to 80TT) shall be allowed only if the assessee files his return of income for that assessment year before the due date specified for such assessment year.