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Income Tax Ready Reckoner - Part III

 

 

Here's a ready reckoner on how to calculate your tax dues so that you can plan your investments accordingly
 

B. Calculate Non Sec. 80 C Deductions

  • Medical insurance (Sec 80D) Premiums paid for self, spouse, kids and parents qualify for deduction up to Rs 40,000.
    Tip Consider a family floater plan.
  • Interest on home loan (Sec 24) Maximum deduction of Rs 1.5 lakh as interest payment on home loan for self-occupied property, unlimited for let-out property.
    Tip Rent out second property, even if not for full year.
  • Interest on educational loan (Sec 80E) Entire interest paid on education loan for full-time studies for any graduate or PG course. No benefit on principal repayments. Deduction available in the year when repayment starts and only for eight succeeding assessment years.
    Tip You may take loan even for spouse.
  • Donations (Sec 80G) For donations to funds and charities, 50 or 100 per cent of the donated amount, depending on the charity, is deductible from income. But this shouldn't exceed 10 per cent of the gross total income.
    Tip: Collect all receipts and certificates for donations and the donee.
  • Other non-80C 80DD—Expenses on the medical treatment of a dependent with a disability. Certification by a medical authority is a must. Up to Rs 50,000, or up to Rs 75,000 if the dependant is a person with severe disability.

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