Income Tax Act, 1961
Section 7: Ins. by Act 20 of 1974, s. 13 (w.e.f. 11975).
7. Ins. by Act 20 of 1974, s. 13 (w.e.f. 11975).
327
1[CHAPTER VIA
DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME
A.—General
80A. Deductions to be made in computing total income.—(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 section 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] 8*** 9***, no deduction under the 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.]
10[(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.]
(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;
1. Subs. by Act 20 of 1967, s. 33 and the Third Schedule, for Chapter VIA (w.e.f. 11968).
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 section 80C to 2[80U].
The aggregate amount of the deductions under this Chapter shall not, in any case, exceed the gross
total income of the assessee.
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] 8*** 9***, no deduction under the 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.]
10[
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.
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.]
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”,—
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;
1. Subs. by Act 20 of 1967, s. 33 and the Third Schedule, for Chapter VIA (w.e.f. 11968).