Section 80L of ITA, 1961 : Section 80L: [Omitted]

Explanation using Example

Imagine Mr. Sharma, a taxpayer, who had invested in specified government securities and was receiving interest income from these investments. Until the financial year 2005-06, he was able to claim deductions on this interest income under Section 80L of the Income-tax Act, 1961, which allowed deductions for certain types of interest earnings.

However, with the Finance Act, 2005, Section 80L was omitted. This means that starting from April 1, 2006, Mr. Sharma could no longer claim deductions on the interest income from government securities under Section 80L when filing his income tax returns. He now had to include this interest income in his taxable income without the benefit of the deduction that was previously available.