Tax Planning for Salaried Individual5 Tax Saving Strategies To know more about tax planning strategies visit www.financialhospital.in

1. Tax Planning for Salaried
Individual
5 Tax Saving Strategies

2. Tax Planning for Salaried Individual
There are no. of ways being within the purview of the Indian income tax
act for salaried individual to save taxes.
Lets discuss few of the most popular strategies for FY 2015-16 to save
taxes

3. 5 Tax Planning Strategies
Save Tax u/s. 80C, u/s. 80CCC and u/s. 80CCD
Save Tax u/s. 80D – Mediclaim Policy
Save Tax u/s. 80DD and u/s. 80DDB
Tax Planning through Home Loan
Tax Planning through RGESS: u/s. 80CCG

4. U/s. 80 C, U/s. 80CCC and U/s. 80 CCD
An individual can invest in an instrument as specified U/s. 80 C, U/s.
80CCC and U/s. 80 CCD
Maximum Combined deduction allowed under these section is
Rs.150000
An additional investment of Rs.50000 over and above this limit is
allowed, if an individual invest in NPS

5. U/s. 80 C, U/s. 80CCC and U/s. 80 CCD
In total, an individual can claim Rs.200000 under these 3 section
Most popular investment choices u/s. 80C is
◦ Equity Linked Savings Scheme (ELSS)
◦ Life Insurance Policies
◦ Public Provident Fund
◦ 5 year tax saving Bank FD
◦ National Savings Scheme (NSC)

6. U/s. 80 C, U/s. 80CCC and U/s. 80 CCD
u/s 80CCC one can invest in a pension policy of an insurance company
u/s 80CCD an individual can invest in National Pension Scheme (NPS)

7. Sec 80 D – Mediclaim
u/s. 80D, An individual is allowed claim deduction on expenditure if a
premium is paid towards mediclaim policy for self & family and
mediclaim policy for parents.

8. u/s. 80 D – Mediclaim
Policy for Age Deduction
allowed
Total deduction
allowed
Self and Family < 60 25000 50000
Parents <60 25000
Self and Family < 60 25000 55000
Parents >60 25000
Self and Family > 60 25000 60000
Parents >60 25000
Self and Family > 60 30000 30000
Self and Family < 60 25000 25000

9. Sec 80 DD and Sec 80 DDB
u/s. 80DD Deduction is available on
◦ Expenditure incurred on medical treatment, training and rehabilitation of
handicapped dependent relative
◦ Payment or deposit to specified scheme for maintenance of dependent
handicapped relative.
u/s. 80DD medical expenditure can be claimed
◦ Where disability is 40% or more but less than 80% - fixed deduction of Rs
75,000
◦ Where there is severe disability (disability is 80% or more) – fixed deduction
of Rs 1,25,000.

10. Sec 80 DD and Sec 80 DDB
u/s. 80DDB Deduction is available on
◦ Expenditure actually incurred by individual on himself or dependent relative for
medical treatment of specified disease or ailment
u/s. 80DD Amount of deduction will be lower of amount actually paid on
medical treatment or
◦ Individual <60 of Age – Rs.40000
◦ Individual >60 but <80 Age – Rs.60000
◦ Individual >80 Age – Rs.80000

11. Tax Savings on Home Loan
Indian income tax law gives opportunity to individual investor to build
wealth in the form of residential house
An individual can leverages tax while building his own home
Buying House property on a home loan could cut down your tax bill
significantly

12. Tax Savings on Home Loan
As per Indian tax law, an individual is allowed to claim maximum
deduction of Rs.
◦ 2,00,000 p.a. against interest component of your Housing loan
◦ 1,50,000 p.a. of principle paid for the housing loan against u/s. 80C

13. Tax Planning through 80CCG - RGESS
Under Rajiv Gandhi Equity Saving Scheme (RGESS) you are allowed to
invest in direct equity share or eligible MF scheme.
Investors whose gross total income is less than Rs. 12 lakhs p.a. can
invest in this scheme
For first time investor in the equity market
Deduction is lower of
◦ 50% of amount invested in equity shares or
◦ Rs 25,000

14. Happy investing!
To know more about tax planning
strategies visit
www.financialhospital.in