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.
|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.