Income Tax Savings - Look
Beyond Section 80C..!
by Mr. Mohit Gang Co-Founder & CEO Moneyfront
Most investors are aware
of only Section 80C for tax planning. But, there are several other tax saving
options which give you additional tax exemption, apart from that in Section
80C. The table below will help you to understand better.
Income Tax Section
|
Deductable Amount
|
Tax Saving Schemes
|
Section 80C
|
Limit: Rs. 1,50,000
|
1. Public Provident
Fund (PPF)
2.Employee Provident Fund (EPF)
3.Principal Repayment
of Housing Loans
4.Bank 5 year Fixed
Deposits (FD) , National Saving Certificates (NSC)
5. Life Insurance
Premium (Term Plan, ULIPS, Endowment..)
6. Equity Linked
Savings Scheme
(ELSS)
7. New Pension Scheme (NPS)
8.Sukanya Samriddhi
Account (SSA)
|
Section 80D
|
Limit:
Rs.25,000 for
non-senior
citizens (self,
spouse and
dependent
children)
Rs.30,000 for senior
citizens (attained 60 years of age)
Rs. 35,000 for very
senior
citizens (above
the age of 80
years)
|
Health insurance premium in case of non-senior and
senior citizens
Medical expenditure only in case of very senior
citizens as they can’t avail health insurance
|
Section 80DD
|
Limit: Rs. 75,000 for disabled dependents
Rs.1,25,000 for
dependents
with severe
disability
(Dependents include
spouse,children, parents & siblings)
|
Medical treatment
|
Section 24B
|
Limit:Rs. 2,00,000 for a self-occupied property and rented out
property
|
Interest on home loans
|
Section 80EE
|
Limit: Rs. 50,000
|
First time home buyers
|
Section 80E
|
No limit
|
Interest on the educational loan for higher studies
for self, spouse or children
|
Section 80GG
|
Limit: Rs. 60,000
|
Individuals who do not own a residential house and
do not receive HRA
|
Section 80G
|
Subject to terms and conditions
|
Donations to charitable institutions and relief
funds
|
Section 80TTA
|
Limit: Rs. 10,000
|
Interest on deposits in a savings account with a
bank, co-operative society or post office
|
Section 10(10D)
|
Sum assured should be equal to 10 times
|
ULIPs, Term, Endowment and Moneyback Plans
* Maturity Benefit / Death Benefit /
Surrender
Value
* Sum allocated by way
of bonus
|
A few of these sections
have sub-clauses which can enable you to avail even further tax deductions.
For instance, you can
avail:
·
An additional deduction
of Rs. 50,000 (over & above Rs. 1.50 lakhs) for contribution to the New
Pension Scheme (NPS) under Section 80CCD.
·
If you take a joint home
loan with a spouse, parent or sibling, each of you can claim benefits under
Section 80C and section 24B.
In case you are eligible
to claim tax benefit in any of the above sections and find it complicated to
understand, it would be a good idea to contact a professional tax expert.
May 1, 2017
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