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Monday, May 01, 2017

FY 2017 - 18 Income Tax Savings - Look Beyond Section 80C..!

By on Monday, May 01, 2017

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 
7.  New Pension Scheme (NPS)
8.Sukanya Samriddhi Account (SSA)

Section 80D
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

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. 

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