TechnoparkToday.com : At the end of every financial year, We, the tax payers frantically make investments to minimize taxes, without adequate knowledge of the various available options. The Income Tax Act offers many more incentives and allowances, apart from the popular 80C, which could reduce tax liability substantially for the salaried individuals . Here we, technoparktoday.com gives some smart tips and details to help you save more and reduce taxes.
Deduction U/S 80 C
This section provides for a deduction of up to Rs. 100,000 for certain investments/ expenditures incurred during the financial year such as:
1. Contribution to Provident fund/ Public provident fund
2. Investment in Equity Linked Savings Scheme, National Saving Certicates and Senior citizens’ Savings Scheme
3. Five year term deposit with the Post Ofce, ve year term deposit with banks
4. Premium paid on life insurance, Unit Linked Insurance Plans of self, spouse and /or children
5. Contribution to Annuity (Pension) plans of life insurance companies on self/spouse and /or children
6. Repayment of the principal portion of housing loan
7. Payment of tuition fee for full time education in any school, university, college etc of a maximum of two children
Deduction u/s 80 D
As per section 80 D, deduction can be claimed for medical insurance premium paid up to a maximum of Rs.15000 for self/spouse/dependent children. Additional claim of Rs. 15000 is allowed for medical insurance premium paid for parents (Rs 20000 if the premium is paid for senior citizens above 60 years)
Deduction u/s 80 E
This section allows deduction of interest paid on higher education (all post schooling courses) loan of self/spouse/children
Deduction u/s 80 G
As per section 80 G deduction can be claimed for contribution to certain eligible funds, charitable institutions etc.
Deduction u/s 24
Tax benet on Home Loan for payment of interest (maximum 1.5 lakhs) is allowed under section 24
Deduction u/s 80 EE
Union budget 2013-14 introduced a new section 80 EE for additional deduction of interest of upto Rs 1 lakh on housing loan. This will be allowed only for assessment year 2014-15 for new loan sanctioned (not exceeding Rs 25 lakhs) on property value not exceeding Rs 40 lakhs.
Deduction u/s 80 CCG
Rajiv Gandhi Equity Saving Scheme (RGESS) Under this scheme, first-time stock investors earning less than or equal to 1.2 million rupees a year would be eligible for a 50 percent tax break on stock investments of upto Rs 50,000. Investments made in top 100 listed stocks (BSE 100 and CNX 100) and PSUs (Navratnas, Maharatnas and Miniratnas) would be eligible under the scheme. Mutual funds and Exchange Traded Funds with these stocks as the underlying will also be eligible. This tax break can be availed for 3 years.
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