Various Tax Planning Options
Section 80C: Allows deduction on a host of avenues including PPF, life insurance premium,
ELSS, Fixed deposit, children’s tuition fee and NPS. Here deduction limit is Rs 1.5 Lakh.
One of the most preferred avenues for investment, life insurance has long been considered a tax-saving tool.
But the primary objective has been neglected and investors end up buying the wrong product.
Life insurance is the most cost-effective tool when you have to provide financial protection to your family
in case of uncertainty. What amount of life insurance one should have depends on many factors such as income,
expenses, liabilities, goals etc. Pure life insurance i.e. Term Insurance is the right instrument to buy
high life insurance coverage. The tax benefit is the inherent advantage that comes with all products.
Section 80CCD (2): The employer’s contribution to the NPS, too, is entitled to tax relief.
Here deduction limit is up to 10% of the employee’s salary including dearness allowance.
Section 80CCD: Additional deduction for investment in the NPS, over and above the 80C limit.
Here deduction limit is Rs 50,000.
Section 80TTA: Interest earned on savings deposits with banks and post offices can be claimed
as a deduction. It provides a deduction for interest income.
Here deduction limit is Rs 10,000.
Section 80GG: Provides relief to employees who do not get HRA as well as to self-employed
professionals. Here deduction limit is Rs 5,000.
Section 80E: Interest paid on education loan for funding higher education of self, spouse
and children. Here deduction limit: Interest paid up to 8 consecutive years.
Section 80D: Medical emergencies always take us by uncertainty, it is always to be safe
than sorry. It covers health insurance premiums, health expenses, incurred for parents without cover allowed.
Deduction limit: Rs 25,000 and in case of senior citizen Rs 50,000.
Similar to this many more sections to be needed to know, so contact us we will be glad and happy to help you.
