Save Taxes



Mangla Consulting

Saving Taxes as per Income Tax Act.

As per Income Tax Act few investments can be used to save the taxes. It also has an maximum limit up to which the amount invested in exempted from the income tax.

Section 80C

  • Life Insurance Premiums
  • Contributions to Employees Provident Fund/GPF
  • Public Provident Fund (maximum Rs 70,000 in a year)
  • NSC
  • Unit Linked Insurance Plan (ULIP)
  • Repayment of Housing Loan (Principal)
  • Equity Linked Savings Scheme (ELSS)
  • Tuition Fees including admission fees or college fees paid for Full-time education of any two children of the assessee (Any Development fees or donation or payment of similar nature shall not be eligible for deduction).
  • Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC, and NHAI.

In totality under Section 80C an individual can invest maximum amount of Rs.100,000/- (from tax point of view) which results a maximum savings of Rs.33,990/- in the income tax.

Mediclaim Premium (Section 80D)

Any individual or HUF (for self and family) can avail the benefit of Mediclaim upto a maximum of Rs.10,000/- in case of senior citizen the limit is Rs.15,000/-. One can now get the benefit of both if the parents are dependents on that individual.

Donations to the Charitable Institution (Section 80G)

One can avail the benefit of Donation to certain charitable institutions approved by Income Tax authorities This deduction will be 50% of the amount or if the donation is given to Prime Minister Relief Funds, National Foundation for Communal Harmony, Blood Transfusion Council, The Africa Fund, Earth-quake Relief Fund will get a deduction of 100%.

House Rent Allowance (Section 10(13A)

This is an allowance given by the employer to the employee to meet the expenses of rented accommodation which an employee might have to take. This is taxable under the salary income but exemption can be claimed in this upto an extent.

Medical Treatment of Disabled Dependents (Section 80DD)

This deduction will be allowed to Individuals and HUF resident in India in respect of maintenance including medical treatment of disabled dependent. The limit allowed upto Rs.75,000/-.

Medical Treatments (Section 80DDB)

This deduction is allowed to Individuals and HUF resident in India for the medical treatment of self and family the maximum deduction allowed is Rs. 60,000/- in case of senior citizen and for others Rs.40,000/-. (Treatments covered for specified diseases and ailments.)

Deduction for Disabled Person (Section 80U)

This is a deduction from the income of resident individual who has some disability. The amount specified is Rs.50,000/- but in case of severe disability the amount allowed is Rs.75,000/-.

Repayment of Loan for Higher Education (Section 80E)

his is a deduction in income tax in respect of repayment of loan taken by an individual from a bank or any other financial institutions for higher education in India or worldwide either for self, spouse or children. Only the interest paid on the loan is eligible for deduction under this section.

Interest on Housing Loan (Under section 24(b)

Under this section, Interest on borrowed capital for the purpose of buying a house or for constructing a house is deductible from taxable income up to Rs. 1,50,000.

Infrastructure Bonds (Section 80CCF)

Under this section one can invest upto Rs.20000/- in infrastructure bonds.