Section 80A - Deductions to be made in computing total income - Income-tax Act, 1961

1 [ CHAPTER VI-A DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME A.-General Deductions to be made in computing total income. 80A. (1) In computing the total income of an assessee, there shall be allowed from his gross total income, in accordance with and subject to the provisions of this Chapter, the deductions specified in sections 80C to 2 [ 80U ] . (2) The aggregate amount of the deductions under this Chapter shall not, in any case, exceed the gross total income of the assessee. 3 [ (3) Where, in computing the total income of an association of persons or a body of individuals, any deduction is admissible under section 80G or section 80GGA 4 [ or section 80GGC ] or section 80HH or section 80HHA or section 80HHB or section 80HHC or section 80HHD or section 80-I or section 80-IA 5 [or section 80-IB] 6 [ or section 80-IC ] 7 [ or section 80-ID or section 80-IE ] orsection80J 8 or section80JJ,nodeductionunderthe same section shall be made in computing the total income of a member of the association of persons or body of individuals in relation to the share of such member in the income of the association of persons or body of individuals. ] 9 [ (4) Notwithstanding anything to the contrary contained in section 10A or section 10AA or section 10B or section 10BA or in any provisions of this Chapter under the heading C-Deductions in respect of certain incomes , where, in the 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 under any of those provisions for any assessment year, deduction in respect of, and to the extent of, such profits and gains shall not be allowed under any other provisions of this 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. (5) Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading C.-Deductions in respect of certain incomes , no deduction shall be allowed to him thereunder. ] 10 [( 6) Notwithstanding anything to the contrary contained in section 10A or section 10AA or section 10B or section 10BA or in any provisions of this Chapter under the heading C.-Deductions in respect of certain incomes , where any goods or services held for the purposes of the undertaking or unit or enterprise or eligible business are transferred to any other business carried on by the assessee or where any goods or services held for the purposes of any other business carried on by the assessee are transferred to the undertaking or unit or enterprise or eligible business and, the consideration, if any, for such transfer as recorded in the accounts of the undertaking or unit or enterprise or eligible business does not correspond to the market value of such goods or services as on the date of the transfer, then, for the purposes of any deduction under this Chapter, the profits and gains of such undertaking or unit or enterprise or eligible business shall be computed as if the transfer, in either case, had been made at the market value of such goods or services as on that date. Explanation .-For the purposes of this sub-section, the expression market value ,- (i) in relation to any goods or services sold or supplied, means the price that such goods or services would fetch if these were sold by the undertaking or unit or enterprise or eligible business in the open market, subject to statutory or regulatory restrictions, if any; (ii) in relation to any goods or services acquired, means the price that such goods or services would cost if these were acquired by the undertaking or unit or enterprise or eligible business from the open market, subject to statutory or regulatory restrictions, if any. ] 12 [ (iii) in relation to any goods or services sold, supplied or acquired means the arm's length price as defined in clause (ii) of section 92F of such goods or services, if it is a specified domestic transaction referred to in section 92BA. ] 11 [(7) Where a deduction under any provision of this Chapter under the heading C.-Deductions in respect of certain incomes is claimed and allowed in respect of profits of any of the specified business referred to in clause (c) of sub-section (8) of section 35AD for any assessment year, no deduction shall be allowed under the provisions of section 35AD in relation to such specified business for the same or any other assessment year.] ----------------------------------------------- Notes :- 1. Chapter VI-A, consisting of sections 80A, 80B, 80C, 80D, 80E, 80F, 80G, 80H, 80-I, 80J, 80K, 80L, 80M, 80N, 80-O, 80P, 80Q, 80R, 80S and 80T, was substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968. The original Chapter, consisting of only sections 80A to 80D, was inserted by the Finance Act, 1965, w.e.f. 1-4-1965. In the original Chapter, section 80A was amended by the Finance Act, 1966, w.e.f. 1-4-1966 and new section 80E was inserted by the Finance (No. 2) Act, 1966, w.e.f. 1-4-1966. 2. Substituted for 80VV by the Finance Act, 1985, w.e.f. 1-4-1986. Earlier, 80VV was substituted for 80U by the Taxa tion Laws (Amendment) Act, 1975, w.e.f. 1-4-1976 and 80U was substituted for 80T by the Finance Act, 1968, w.e.f. 1-4-1969. 3. Substituted for sub-section (3) by the Finance Act, 1992, w.e.f. 1-4-1993. Prior to substitution, sub-section (3) was amended by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971, the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972, the Finance Act, 1972, w.e.f. 1-4-1972, the Direct Taxes (Amendment) Act, 1974, w.e.f. 1-4-1974, the Finance Act, 1974, w.e.f. 1-4-1975, the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, the Finance Act, 1975, w.e.f. 1-4-1976, the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978, the Finance Act, 1979, w.e.f. 1-4-1980, the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981, the Finance Act, 1982, w.e.f. 1-4-1983, the Finance Act, 1983, w.e.f. 1-4-1983/1-4-1984, the Finance Act, 1985, w.e.f. 1-4-1986, the Finance Act, 1986, w.e.f. 1-4-1987, the Direct Tax Laws (Amend ment) Act, 1987, w.e.f. 1-4-1989, the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 and the Finance Act, 1989, w.e.f. 1-4-1989. 4. Inserted by the Election and Other Related Laws (Amendment) Act, 2003, w.e.f. 11-9-2003. 5. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000. 6. Inserted by the Finance Act, 2007, w.r.e.f. 1-4-2004. 7. The italicised words shall be inserted by the Finance Act, 2007, w.e.f.1-4-2008. 8. Now omitted by the Finance (No. 2) Act, 1996, w.r.e.f. 1-4-1989. 9. Inserted vide Finance (No. 2) Act, 2009, w.e.f. 1-4-2003 10. Inserted vide Finance (No. 2) Act, 2009, w.e.f. 1-4-2009 11. After sub-section (6) and the Explanation thereto, the sub-section (7) has been inserted vide Finance Act, 2010 w. e. f. the 1st day of April, 2011. 12. Inserted vide Finance Act, 2012, w.e.f. 01-04-2013.