TAX PLANNING TIPS

Tax Planning U/s. 80C, U/s. 80CCC and U/s. 80 CCD

·           An individual can invest in an instrument as specified U/s. 80C, U/s. 80CCC and U/s. 80 CCD

·                                 —Maximum Combined deduction allowed under these section is Rs.150000

·           An additional investment of Rs.50000 over and above this limit is allowed, if an individual invest in NPS

·                                 —In total, an individual can claim Rs.200000 under these 3 section

·                                 —Most popular investment choices u/s. 80C is

o                                                        —Equity Linked Savings Scheme (ELSS)

o                                                        —Life Insurance Policies

o                                                        —Public Provident Fund

o                                                        5 year tax saving Bank FD

o                                                        National Savings Scheme (NSC)

·              U/s 80CCC one can invest in a pension policy of an insurance company

·              u/s 80CCD an individual can invest in National Pension Scheme (NPS)

Tax Planning Sec 80D – Mediclaim

·         u/s. 80D, An individual is allowed claim deduction on expenditure if a premium is paid towards mediclaim policy for self & family and mediclaim policy for parents.

Policy for	Age	Deduction allowed	Total deduction allowed
Self and Family	< 60	25000	50000
Parents	<60 b="">	25000
Self and Family	< 60	25000	55000
Parents	>60	25000
Self and Family	> 60	25000	60000
Parents	>60	25000
Self and Family	> 60	30000	30000
Self and Family	< 60	25000	25000

Sec 80 DD and Sec 80 DDB

U/s. 80DD Deduction is available on

   ·                                 —Expenditure incurred on medical treatment, training and rehabilitation of handicapped dependent relative

   ·                                 —Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

—u/s. 80DD medical expenditure can be claimed

   ·                                 —Where disability is 40% or more but less than 80% – fixed deduction of Rs 75,000

   ·                                 —Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1,25,000.

—u/s. 80DDB Deduction is available on

   ·                                 — Expenditure actually incurred by individual on himself or dependent relative for medical treatment of specified disease or ailment

—u/s. 80DD Amount of deduction will be lower of amount actually paid on medical treatment or

   ·                                 —Individual <60 age="" of="" rs.40000="" span="">

   ·                                 —Individual >60  but <80 age="" rs.60000="" span="">

   ·                                 —Individual >80 Age – Rs.80000

Tax Savings on Home Loan

   ·         —Indian income tax law gives opportunity to individual investor to build wealth in the form of residential house

   ·                                 —An individual can  leverages tax while building his own home

   ·                                 —Buying House property on a home loan could cut down your tax bill significantly

   ·                                 —As per Indian tax law, an individual is allowed to claim maximum deduction of Rs.

  o                                                        —2,00,000 p.a. against interest component of your Housing loan

  o                                                        —1,50,000 p.a. of principle paid for the housing loan against u/s. 80C

Thank You