Brief Points on Income Tax Deductions

Deduction from taxable income in respect of certain paymentsSection 80C [Deduction upto Rs 1.5 Lacs]1. Life Insurance PremiumPolicy issued LIP should be restricted toBefore 1/4/12 20% of Actual Capital Sum insuredOn or after 1/4/12 10% of Actual Capital Sum insuredOn or after 1/4/13 for person suffering from disability 15% of Actual Capital Sum insuredAny sum … Read more

Tax Planning Under Section 80C

Introduction In order to tax individuals on basis of their earnings (higher tax bracket for high income group and lower tax bracket for lower income group) income tax department levies income tax on individuals on basis of certain range. This range is known as “income tax slab rates” wherein the individual has to pay tax … Read more

Fixed deposit (FD) Limit Increased to Rs. ₹1,50,000 Under 80C

Fixed deposit (FD) Limit Increased to Rs. ₹1,50,000 Under 80C [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART–II, SECTION 3, SUB‐SECTION (ii)] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE (CENTRAL BOARD OF DIRECT TAXES) Notification New Delhi, the 13th November, 2014. (INCOME‐TAX) S.O. 2906(E).In exercise of the powers conferred by clause (xxi) of sub‐section (2) of  section 80C of the … Read more

80C Savings upto ₹1,50,000

Save Tax via Investments – Section 80C:Sec 80C limit raised from Rs.1,00,000 to Rs.1,50,000.This is a change after long gap. So now you have Rs.50,000 more buffer to invest under Sec.80C and get the tax exemption. So you can invest more in tax saving FDs, ELSS, PPF, EPF, home loan principal and buy life insurance.Section … Read more