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Monday, December 14, 2015

Total Tax Deductions of Rs 10 lakhs for 2015 - 2016

 

Income Tax Deductions for Individual Taxpayers

The Figure Rs.4.44 lakhs, quoted in the Budget 2015 speech by Finance Minister, drew the huge attention of the Individual Taxpayers. While calculating the available tax deductions, Arun Jaitely has said that an Individual Taxpayers enjoys tax deductions of up to Rs.4.44 lakh a year. But this figure does not include many other tax deductions which are available and commonly utilized by the taxpayers.

Tax Deductions for Individual Taxpayers

 If we summate all the tax deductions available under section 80C to 80U plus other allowances and tax free reimbursements, the tax deductions pile-up to Rs.10 lakhs.
 

Budget 2015: Tax Deductions of Rs.4.44 Lakhs

DeductionAmountRemarks
Tax-Savings investments u/s 80CRs.1,50,000EPF, PPF, SSA, Insurance Premium, NSC, ELSS, Home Loan Principal Repayment etc.
Employee Contribution towards NPS u/s 80CCD(1B)Rs.50,000Separate deduction for contribution towards National Pension Scheme announced in Budget 2015
Home Loan Interest u/s 24(b)Rs.2,00,000Home Loan Interest Paid on Self Occupied House Property
Health Insurance Premium Paid u/s 80DRs.25,000Limit increased by Rs.10,000 in budget 2015
Transportation AllowanceRs.19,200Allowance Doubled in budget 2015.
Total DeductionRs.4,44,200FMs Calculation

PLUS

 

DeductionAmountRemarks
Employers Contribution towards NPSRs.1,00,000Up to 10% of Basic Salary + Dearness Allowance
Tax-Free Medical AllowanceRs.15,000Subject to Submission of Bills
Medical Insurance of ParentRs.30,000Increased by Rs.10,000 un Budget 2015
Leave Travel AllowanceRs.25,000Given Every Two years
House Rent AllowanceRs.84,000Depends on the Basic Salary and city
TotalRs.2,54,000Other Tax Deductions

PLUS

Tax-Free Reimbursements

DeductionAmountRemarks
Phone and Internet BillsRs.24,000Subject to Submission of Bills
Newspapers, Magazines and PeriodicalsRs.14,000Subject to Submission of Bills
Meal CouponsRs.36,000Part of CTC comes around Rs.50 per meal
TotalRs.74,000Tax-Free Reimbursements

PLUS

DeductionAmountRemarks
Employers Contribution towards NPSRs.1,00,000Up to 10% of Basic Salary + Dearness Allowance
Tax-Free Medical AllowanceRs.15,000Subject to Submission of Bills
Medical Insurance of ParentRs.30,000Increased by Rs.10,000 un Budget 2015
Leave Travel AllowanceRs.25,000Given Every Two years
House Rent AllowanceRs.84,000Depends on the Basic Salary and city
TotalRs.2,54,000Other Tax Deductions

PLUS

Tax-Free Reimbursements

DeductionAmountRemarks
Phone and Internet BillsRs.24,000Subject to Submission of Bills
Newspapers, Magazines and PeriodicalsRs.14,000Subject to Submission of Bills
Meal CouponsRs.36,000Part of CTC comes around Rs.50 per meal
TotalRs.74,000Tax-Free Reimbursements
PLUS

Basic Exemption Limit

AssesseAmountRemarks
Individual TaxpayerRs.2,50,000Same tax slab for male as well as for female taxpayer.

Total Tax Deductions available to Individual Taxpayers

Sr. No.ParticularAmount
A.Rs.4.44 lakhs as per Budget 2015Rs.4,44,200
B.Other Tax-DeductionsRs.2,54,000
C.Tax-Free ReimbursementsRs.74,000
D.Basic Exemption LimitRs.2,50,000
Total Tax-Deductions for Individual TaxpayersRs.10,22,200

Please Note that few of the deductions mentioned above like LTA, Employer Contribution towards NPS etc. have no ceiling limit and can be claimed as per actual expenses.

 

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

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