We often investment in various schemes but are you aware weather investment made by you can save your income tax. One can use tax saving investments effectively, to achieve financial goals. Now-a-days every one believes in investment but a part of it there is one more benefit that is tax saving. So considering your points we are giving below in nutshell some of the popular deductions, benefit of which can be taken by taxpayers to reduce their tax burden.
Save your tax under section 80C
To promoting the culture of investment government has introduced and approved few schemes by which you can save your taxes. Take a look and do remember the brief of the following few schemes by which you can save your income tax,
Make sure the deduction can be claimed upto Rs.150000 for combination of all investments
- Any sums paid or deposited by the you as a PREMIUM OF LIFE INSURANCE for your family.
- A contribution by an individual to any PROVIDENT FUND
- Contribution by an employee to an approved SUPERANNUATION FUND;
- Subscription to any UNITS OF ANY MUTUAL FUND referred to in clause (23D) of section 10
- TUITION FEES (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter
- Principal paid towards loan take for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property”
- as term deposit for a fixed period of not less than five years with a scheduled bank; and
- Five year time deposit in an account under the Post Office Time Deposit Rules, 1981.
2. Save your tax under section 80D
As mentioned before, Section 80D will help you in tax saving on medical insurance premiums only. The deductions allowed are as follows:
For Self and Family:
- Maximum deduction of Rs.25,000 per year on health insurance premium for self and family.
- Maximum deduction of Rs.30,000 per year if you are a senior citizen.
- Maximum deduction of Rs.25,000 per year on health insurance premium paid on behalf of parents.
- Maximum deduction of Rs.30,000 per year on premium payments for senior citizen parents.
- A deduction of Rs.5,000 can be claimed every year on expenses related to health check-ups. This limit includes the check-up expenses of all members in a family, including spouse, kids and parents.
Note:-The health insurance premium paid for the following members in a family are eligible for deductions of Self/Spouse/Children/Parents
3. Save your tax under section 80E
Deduction in respect of interest on loan taken for higher education.
This section allow you to claim tax deductions on the interest paid. the principal component is not available for a tax break. You can claim the benefit for a loan taken for your or your spouse’s or children’s education.
There is no qualifying limit on the deduction you can claim for the interest. However, there are certain rules for eligibility to deductions under Section 80E:
4. Save your tax under section 80EE
Deduction in respect of INTEREST ON LOAN taken for Residential House Property .This is a new section which has been introduced for the sake of further benefit to tax payer but with the few conditions
The deduction shall not exceed Rs.50000 but the deduction shall be subject to the following conditions, namely:—
(i) the loan has been sanctioned between 1st day of April, 2016 and ending on the 31st day of March, 2017;
(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed Rs.35 lakh rupees;
(iii) the value of residential house property does not exceed Rs.50 lakh rupees;
(iv) the assessee does not own any residential house property on the date of sanction of loan.
5. Deductions in respect of rents paid under section 80GG.
Usually HRA forms part of your salary and you can claim deduction for HRA. If you do not receive HRA, and make payments towards rent for any furnished or unfurnished accommodation, you can claim deduction under section 80GG towards rent that you pay.
Deduction –the lowest of these will be considered as the deduction under this section-
(a) Rs 5,000 per month
(b) 25% of total Income (income to exclude long term capital gain, short term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also income is before making deduction under section 80GG).
(c) Actual Rent less 10% of Income (income to exclude long term capital gain, short term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also income is before making deduction under section 80GG).
There are many more ways by which you can save your maximum income tax. if you have any query regarding your income tax you can freely call us at +91-9971627975