Tax planning through prudent investments

An Investors Education

Initiative

Saving Taxes Through Prudent Investments

www.investmentmitra.com

What are the Options Available


Tax Saving Under Sec 80C, 80 CCC, 80CCD

Options Available u/s 80C:

• Public Provident Fund - PPF

• Employee Provident Fund – EPF

• Five year’s Post Office or Bank Tax Saving FDs

• National Savings Certificate – NSC

• Equity Linked Saving Schemes – Tax Saving MF



Options Available u/s 80C:

• Senior Citizen Saving Scheme – SCSS

• Sukanya Smridhi Account Deposit Scheme

• Life Insurance Premium

• Children’s Tuition Fees

• Principal Repayment of Home Loan



Options Available:• u/s 80CCC – Pension plans from any registered

insurance company• u/s 80CCG – Rajiv Gandhi Equity Saving Scheme –

RGESS – 50% of contribution max Rs.25,000/-• u/s 80 CCD – New Pension Scheme (NPS)• Total cumulative exemption of above options

allowed Rs.1,50,000/-• Additional exemption allowed of Rs.50,000/- for

contribution to NPS u/s 80CCD(1b)


Where you would Invest to save tax


What Should You Consider Before

Making Investment Decision

• Your Financial Objectives

• Risk Profile

• Asset Allocation

• Time Horizon


Tax Saving Beyond Sec 80C

Section 80D – Medical Insurance Premium

• Available for self, spouse, parents & children

• Upto Rs. 25,000/- for person below 60 years of age & Rs. 30,000/- for person above 60 years of age

• For super senior citizen medical expenses upto Rs. 30,000/- available as deduction

• Rs. 5,000/- available as deduction for preventive health check up within overall limits



Section 24B – Deduction for Interest on Home Loans

• Upto Rs.2,00,000/- in case of a self occupied property

• Deduction can be claimed throughout the tenure of the loan.

• In case you are paying higher amount of interest on home loan, you can claim deduction of total interest paid under Income from House Property



Section 80EE – Deduction for interest for first time home buyer

• First time home buyers can claim additional deduction of Rs.50,000/- towards payment of interest on home loans provided cost of house should be less than Rs.50 lacs, loan taken should be less than Rs.35 lacs and loan should be taken between 1.4.2016 & 31.3.2017.

Section 80E – Interest on Education Loan• Available for a period of Eight years• Can be availed for education loan taken for self or

dependent children.



Section 80DD – Deduction on Medical Expenditure of Dependent Relative

• Available for treatment, training & rehabilitation of handicapped dependent relative

• Also available for payment or deposit to specific scheme for maintenance of dependent handicapped relative

• If the disability is between 40% & 80%, amount for deduction is Rs.75,000/-

• If the disability is over 80%, amount for deduction is Rs.1,25,000/-



Section 80DDB – Deduction on Medical Expenditure on Self or Dependent Relative

• Available for actual expenditure incurred on self or dependent relative for treatment of specified diseases or ailment

• Diseases specified in Rule 11DD

• Maximum amount allowed Rs. 40,000/-, in case of senior citizen Rs.60,000/- & in case of super senior citizen Rs. 80,000/-



Section 80U – Deduction Person Suffering from Physical Disability

• Available to an individual suffering from physical disability including blindness and mental retardation

• As specified in Rule 11D

• Fixed deduction of Rs. 75,000/- in case of normal disability & in case of severe disability Rs. 125,000/-



Section 80G – Deduction for Donation towards Social Causes

• Deduction available for 100% or 50% of the amount donated as specified

• Amount donated in excess of Rs.10,000/- in cash will not be allowed

Section 80TTA – Deduction for Interest on Savings Account

• Total upto Rs. 10,000/-www.investmentmitra.com


Section 80GGC – Deduction on Contribution by Individuals to Political Parties

• Deduction allowed of any amount contributed to any political parties or an electoral trust

• Deduction allowed for contribution made in any way other than cash

• Political party means any party registered under section 29A of the Representation of the People Act



Section 80QQB & 80RRB – Royalty Income to Author & Patentee

• If you are a author of a book other than textbook for school and college or

• You have registered your patent after 1 April 2003

• Deduction allowed is Rs. 3,00,000/- if received in lumpsum or

• 15% of the total revenue in case of book.www.investmentmitra.com

Your Questions Please


Mutual Funds investments are subject to market risk,

Please read the offer document carefully before investing.


THANK YOU• Ajay Sharma

• [email protected]

• # 91 9958447700


mailto:[email protected]

Tax planning through prudent investments

Economy & Finance

Transcript of Tax planning through prudent investments