Tax Savings for FY 2018-2019

It is the Tax season again and it is the time most of us would be looking for tax saving investments. It is ironic that every year we go through the same cycle, but still don’t plan for our Taxes at the start of the financial year.

Anyways that is a theme for a different day; today let us look whether we are really taking advantage of the tax saving options that we have. Most of us normally avail only the tax saving options provided by our company like Home Loan Interest/Principal, HRA, Medical Insurance, Medical Reimbursement, LTA etc.. There is a lot more to it and you will be surprised to know that there are at least 10 more sections under which one can save tax.

Let us take a look at the sections for Tax Rebate for the Financial year 2018 – 2019.

 

Section Limit Description
24 Upto Rs. 2,00,000 Home Loan Interest Portion
80 C Upto Rs.1,50,000 Life Insurance Premium
Mutual Fund ELSS Schemes
PF, PPF, NSCs
Home Loan Principal Portion
5 Yr Tax Saving FDs
80 CCD 1(B) Upto Rs. 50,000 NPS
80 CCG Upto Rs. 50,000 Investment under Rajiv Gandhi Equity Savings Scheme (RGESS)
80 D Upto Rs. 25,000 Medical Insurance for Family
Upto Rs. 30,000 Medical Insurance for Parents
80 DD Upto Rs. 1,25,000 Expenditure towards Medical Treatment/Training/Rehabilitation of Disabled dependants
80 DDB Upto Rs. 40,000 Expense Incurred on Specific Disease
80 E No Limit Education Loan Interest Portion
80 G 50% – 100% of Amount Donated Donations to Charitable Institutions
80 GG Least of the following:
1) Rs. 2000 per month
2)  25% of total income
3)  Rent paid less 10% of total income
Rent Paid – Applicable to individuals who don’t get HRA
80 GGC All Contributions made to Political Parties All assessee other than Indian Companies
80 TTA Upto Rs. 10,000 Interest from Savings Accounts
80 RRB Upto Rs. 3,00,000 Expendses towards Royalty on Patents
80 U Upto Rs. 1,50,000 Allowed in case of Personal Disability

 

And you thought 80 C is all there is to it; isn’t it? So go ahead and treat your family to a nice Dinner with the additional Tax savings you make. And please don’t delay Tax planning to the last hour next year.

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