Here at EquityPandit.com we will discuss complete tax saving plan. But before proceeding further about Tax saving, lets see how much tax you will have to pay !

There are 5 types of relief available:

§         Section 80 C

§         Section 80 CCC

§         Section 80 CCD

§         Section 80 D

§         Section 80 E

Section 80 C:

• Cannot exceed Rs.1,00,000
• Sum may be paid or deposited at any time during the year
• No limits for various items specified u/s. 80C. Therefore, an assessee may opt to invest even in only one item say insurance premium
• Premium or other payment made on insurance policy not in excess of 20% of actual capital sum assured
• Tuition Fee for any two children of the assessee
• Principal repayment on loan borrowed for acquiring commercial property is not eligible
• Residential property under construction for which principal has been repaid does not qualify for deduction
• Repayment of principal on loan borrowed for residential house (whether let-out or self occupied) only is entitled for deduction.
• Where the loan is availed for any addition, alteration, repair or renovation no deduction can be claimed for principal repayment
• Repayment of loan borrowed for housing from relatives, friends, non-specified employer / institution are not eligible for deduction.
• However, any interest paid on such loan borrowed is deductible under section 24, while computing income under the head “House Property”
• Fixed Deposit in Banks must be for 5 years
• Five year time deposit in an account under Post Office Time Deposit Rules, 1981.
• Deposit in an account under the Senior Citizens Savings Scheme Rules, 2004

Section 80c popular choices:

§         Mutual Funds

§         Insurance

§         ULIP

§         Principal repayment of Housing Loan

§         Tuition fee – paid for children (own, adopted, step) for full time education in India.

                               [Note: Tuition fee paid for grandchildren is eligible for deduction for the HUF]

§         Fixed Deposits in Banks (5 years)

§         NSC – National Savings Certificate

§         PF – Provident Fund [SPF, PPF, RPF]

§         10 year Post Office Savings Bank (CTD)

§         Stamp Duty and Registration Charges

Section 80CCC and Section 80CCD - Pension-No Tension!

80CCC-Contribution to pension scheme

• Rs.1,00,000 (outer limit)
• Disallowance on cancellation or lapse
• All withdrawals are taxable on surrender / maturity

80CCD-Contribution to CG pension scheme

• 10% of Salary (Basic + DA)
• All withdrawals are taxable on surrender / maturity

Section 80D - Health is wealth (literally)!

80 D – Contribution to Medical Insurance Schemes

• Rs: 15,000
• Self + Spouse + Dependent Children + Dependent Parents
• Rs: 20,000 for senior citizens
• Now, an additional deduction of Rs: 15,000 (Rs: 20,000 if parents are senior citizens) is available to an individual for payment of medical insurance premium for parents.

Section 80E - It’s good to study!

80 E – Repayment of Education Loans

• Only Interest is eligible for deduction
• No Limit
• Deduction eligible for initial year and immediately succeeding seven years
• Deduction eligible for repayment of education loans made for spouse or children

Its always good to consult with an accountant with a traditional or online accounting degree if you have questions about filing your taxes.