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

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

Kisan Vikas Patra - KVP

  Kisan Vikas Patra (KVP) First launched in 1988, the Kisan Vikas Patra (KVP) is one of the premier and popular saving scheme offering from the Indian Postal Department. This product has had a very chequered history- initially successful, deemed a product that could be misused and thus terminated in 2011, followed by a triumphant return to prominence and popular consumption in 2014. The salient features of KVP are as follows- The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months). KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit. KVPs are available at all departmental post offices across India. These certificates can be prematurely encashed after 2 ½ years from the point of issue. KVPs can be transferred from one individual to another and from one post office to another. ----------------------------------------------------- Inve...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
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