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Tax planning is an important aspect of
everyone’s investment planning, as investments
are only possible when one has savings and to
have good savings one should follow good tax
planning. Everyone has right to take full
advantages of all the tax deductions which are
being provided by the Income Tax Act and Govt.
Of India.
Deductions Under Section 80C
Under this section a deduction of upto 1 lac is
allowed from taxable income if the same amount
is invested in specified schemes and the popular
once are :
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Premium paid towards any type of Life
Insurance.
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Public provident Fund (PPF) maximum limit
70,000 in one financial year.
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Contributions to Employee provident fund.
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Repayment of Housing Loan ( principal only)
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Unit Linked Insurance plans ( ULIP’s)
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National Savings Certificate ( NSC’s)
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Fixed Deposit with banks having a lock in
period of 5 years.
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Equity linked Savings Scheme ( ELSS) – Tax
Saving Mutual fund schemes with 3 year Lock
in.
One can take deduction advantage upto 1 lac only
by investing in one or combination of these
schemes only PPF has a limit of Rs. 70,000/- in
one Financial Year.
Dividend Income
Any type of Dividend from shares, Equity Mutual
funds and Debt mutual funds are tax free in the
hands of Investor whereas mutual fund companies
deduct dividend distribution tax in case of
dividend declared in Debt Schemes.
Deductions Under Section 80D
Under this section a general deduction of Rs.
15,000/- is provided by taking health insurance
policy for self , spouse and dependent children,
Additional Deduction for parents upto Rs.
15,000/- Per Financial Year |
Mutual Funds
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Fixed Income
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Insurance
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Real
Estate |
