What are different tax planning sections, tax saving sections? Daria, 22 Oct 2012

Hello I am working in Chandigarh earning R.s 5.5 lacs per annum. I have recently taken home loan and paying EMI of Rs. 13K per month since Jul 10. Apart i have opted for the 50K Life Insurance which is to support the home loan in case of the accidental death. I have Another insurance policies running since few years counting to Rs. 16K and 24 K as well . I want to know different acts in relation to saving tax

Fintotal Answer

There are various sections for tax saving. Sec 80 C: You can claim your existing investments /payments under section 80C (up to 1 lakh combined limit):   Home loan principal amount payment (only if you have got possession of house) Life insurance  If your employer is deducting EPF from salary, then that contribution will also be counted under 80-C savings. Apart from these you can also invest in tax saving mutual funds, 5-year tax-saver bank Fixed deposits, PPF, NSC, New Pension Scheme  etc. Sec 80DD: Deduction of 50,000 for maintenance of a disabled dependent. If the disability is severe, the deduction amount will be 100,000. Sec 80E: Tax relief on interest payments on education loan taken for higher studies for self, spouse or child. Sec 80G: The eligibility is 50% or 100% of the donation amount subject to overall ceiling of 10% of your gross total income to certain funds and charitable institutions. Sec 24: The maximum limit is of 1.5 lakh on interest payments of a home loan for a self-occupied house. There is no ceiling on the amount of deduction if the house is let out or deemed to be let out. Sec 80D: Maximum deduction of up to 15,000 under mediclaim or health insurance offered by life insurers. An additional deduction of up to 15,000 for buying cover for dependent parents. Senior citizens can claim deduction up to 20,000. For more check http://www.tax.fintotal.com/Sections/68

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