Skip to main content

Saving Tax for 2018 beyond Section 80C

Save Tax Get Rich

Here are a number of ways by which you can save taxes other than the Rs 2 lakh permitted under Section 80C (including additional 50000 under 80CCD (1b) for NPS)


Most tax payers in India must be aware of Section 80C of the Income Tax Act which allows tax benefits of up to Rs 2 lakh. But there are a few other lesser-known sections of the Income Tax Act that can provide additional tax benefits to people. Of course, not all the sections will be applicable to everyone. So, let's take a look at the sections, their eligibilities, and the limits of the available deductions.


Section 24(b): Deduction of interest on housing loan
Under this section, interest on housing loan is eligible for tax deduction. Self occupied property will give you Rs 2 lakh. However, if it is not self occupied, then the full deduction is available. However, it won't be available until the property is fully constructed.


Section 80D: Payment of medical insurance premium
Under this section, premiums paid towards medical insurance qualify for tax deductions. Individuals can claim deduction on premiums paid up to Rs 25000. You can claim additional deductions up to Rs 25,000 under this section if the premiums paid are for a policy for your parents and Rs 30,000 if your parents are senior citizens.

80DD: Expenditure on the health of disabled dependent : 

Under this section, expenses towards medical treatments incurred on dependent children or spouse or parents can be claimed up to Rs 75,000, which goes up to Rs 125,000 in case of severe disability under this section.


Section 80DDB: Expenditure on a specified disease
Under this section, expenses incurred towards curing specified diseases such as cancer, chronic kidney failure among other listed diseases qualify for deduction up to Rs 40,000, which goes up to Rs 60,000 in case of senior citizens and Rs 80000 if age is 80 or more.


Section 80E: Payment of interest on education loan
Under this section, interest paid on education loan taken for self, spouse or children can be claimed as deduction which is the actual amount as there is no limit. This deduction is available for eight years, starting from the year in which the interest payment began.


Section 80EE: Payment of interest on home loan
This deduction is available to an individual purchasing a house for the first time, the deduction is for the amount paid as interest on loan taken. The maximum deduction that can be claimed under this section is Rs 50000 p.a.


There are many conditions one has to fulfil to avail this deduction:

  • The loan must be taken between 1.4.2016 and 31.3.2017.
  • The loan amount should be below Rs 35 lakh.
  • The value of the house should be below Rs 50 lakh.
  • The said house property should be the only one in the individual's name.

This deduction is over and above the limit under section 24(b) of the Income Tax Act.


Section 80G: Donations made to certain funds, temples
Under this section, donations to funds and charity would be eligible for deduction of the amount donated, but it should not exceed 10 per cent of the adjusted gross total income. Some of these charitable trust/organisation qualify for 50% deduction, some for 80% and few others qualify for 100%, hence that has to be kept in mind.


Section 80GG: Rent paid for accommodation :Under this section, HRA deduction is available for the least of the following:
1. Rs 5000 per month
2. 25% of total income
3. Rent paid less 10% of total income
However, this exemption is not applicable if the HRA is part of your salary package.


Section 80GGA: Donation to specified institutions
Under this section, donation to an institution carrying on scientific research or to a university or college which is approved by the government (under 35(1)(ii), 35(1)(iii), 35CCA, 35CCB) for the time being. However, deductions over and above Rs 10000 can be claimed only if the contribution has been made by any mode other than cash. This deduction is not available to the taxpayer who has income from business or profession.


Section 80GGC: Donations to political party
Under this section, political donations qualify for tax deductions and there is no limit on the sum donated.


Section 80TTA: Interest on savings account Under this section, interest earned upto Rs 10000 can be claimed as deduction.


Section 80U: Under this section if an individual is suffering from disability, she can claim for deduction of Rs 50000 and upto Rs 100000 in case of severe disability. This section is available for the taxpayer and will not be eligible for dependents.


SectionDeduction (in Rs)
80D: medical insuranceSelf: 25000
Parents: 25000 or 30000 (senior citizen parents)
80DD: Expenditure on the health of disabled dependent75000 (40% disability)
125000 (disability of 80% and more)
80DDB: Expenditure on a specified disease40000
60000 (age 60-80)
80000 (age 80 & above)
80E: interest on education loanNo limit
80EE: Payment of interest on home loanMaximum 50000 per annum
80G: Donations made to certain funds, templesMaximum 10% of the adjusted gross total income
80GG: Rent paid for accommodationLeast of the following:
1. 5000 per month
2. 25% of total income
3. Rent paid less 10% of total income
80GGA: Donation to specified institutionsAbove 10000 per annum
80GGC: Donations to political partyNo limit
80TTA: Interest on savings accountUpto 10000 per annum
80U: On self disability50000 and upto 100000 in case of severe disability.


Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300



 

Popular posts from this blog

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...
Read more

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...
Read more

Financial Planner - Do Integrity & Dependability Check

How does one can find value proposition when it comes to financial planning, which is a new area? There is nothing to benchmark it with. So, how does one figure what is the right fee to pay? Look at what you want. You probably want to hire a financial planner to get a blueprint for your life ahead and want to know how to achieve your goals. For creating a tailor-made financial plan, our experience is that it takes 25-30 man-hours in all. Taking an average of Rs 500 per hour for hiring the services of a qualified financial planner like one who has a CFP(CM) certificate, the fee would come to Rs 12,500 to Rs 15,000. But the per-hour rate can be higher or lower depending on the process adopted, the experience and expertise of the planner, etc. That's how planners arrive at their fee. Now, is that value for money? For that you need to find out what benefits you would derive by engaging them. The financial plan will give you clarity, direction and pathway to achieve your goals. Th...
Read more

Mutual Fund Review: ING Dividend Yield

  ING Dividend Yield's small assets enable the fund manager to churn in impressive returns… Strategy The aim of the fund is to invest in stocks which offer a high dividend yield. This fund deploys a value based strategy which aims to gain from investing in fundamentally strong and free cash flow generating businesses. The scheme focuses not only on growth but also on the cash generated by the business, which mostly leads to stable returns even in volatile markets. This fund has a low volatility because of its investment in high yielding stocks. The scheme tries to include stocks that yield dividend above the dividend yield of the Nifty and stocks with liquidity, which throws up a universe of 150 stocks.   Our View Launched in October 2005, this fund invests at least 65 per cent of its assets in high dividend yield stocks. The fund has consistently maintained a mix of stocks across varying market capitalisation, with a higher tilt to mid caps compared to small caps. Howev...
Read more

About CRISIL IPO Grading

CRISIL IPO (Initial Public Offering) Grading is an opinion on the fundamentals of the graded issue that reflects CRISIL's independence and expertise. This opinion is expressed as a relative assessment in relation to other listed equity securities in India. The assessment is based on a grading exercise carried out by industry specialists from CRISIL Research. A CRISIL IPO Grade 5/5 indicates strong fundamentals and a CRISIL IPO Grade 1/5 indicates poor fundamentals. CRISIL IPO Grading reflects its assessment of the graded company's equity fundamentals as distinct from an assessment of debt fundamentals. A CRISIL IPO Grade should not be construed to mean a comment on the price of the graded security nor is it a recommendation to invest or not to invest in the graded security. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, or a comm...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now