BASIC RULES GOVERNING DEDUCTIONS UNDER SEC 80C- 80U.
• These deductions are allowed from gross total income.
• Aggregate amount of deductions under sections 80C to 80U cannot exceed (gross total income minus shortterm
capital gain under section 111A minus any long-term capital gain).
• Deductions under sections 80-IA to 80U is admissible in respect of “net income” computed under the
provisions of the Act (i.e., income arrived at after deducting permissible deductions and adjusting current or
brought forward losses).
• Deduction under sections 80-IA, 80-IAB, 80-IB, 80-IC and 80-ID is not available if return of income is not
submitted on or before the due date of submission of return of income.
• Deduction in respect of profits and gains shall not be allowed under any provisions of section 10A or section
10AA or section 10B or section 10BA or under sections 80H to 80RRB, if a deduction in respect of same
amount under any of the aforesaid sections has been allowed in the same assessment year. The aggregate
deductions under these provisions shall not exceed the profits and gains of the undertaking or unit or enterprise
or eligible business, as the case may be. No deduction under the above provisions shall be allowed if the
deduction has not been claimed in the return of income.
• For the purpose of claiming deduction under section 35AD or under Chapter VI-A (i.e., sections 80C to 80U),
the transfer price of goods and services between the undertaking (i.e., unit or enterprise eligible for these
deductions) and any other undertaking or unit or enterprise or business of the assessee, shall be determined at
the market value or arm’s length price, of such goods or services as on the date of transfer.