Tax planning options for resident Indians u/s 80C & beyond

2. An Investors Education
Initiative
Saving Taxes Through
Prudent Investments
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3. What are the Options Available
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4. Tax Saving Under Sec 80C,
80 CCC, 80CCD
Options Available u/s 80C:
• Public Provident Fund - PPF
• Employee Provident Fund – EPF
• Five year’s Post Office or Bank Tax Saving FDs
• National Savings Certificate – NSC
• Equity Linked Saving Schemes – Tax Saving MF
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5. Tax Saving Under Sec 80C,
80 CCC, 80CCD
Options Available u/s 80C:
• Senior Citizen Saving Scheme – SCSS
• Sukanya Smridhi Account Deposit Scheme
• Life Insurance Premium
• Children’s Tuition Fees
• Principal Repayment of Home Loan
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6. Tax Saving Under Sec 80C,
80 CCC, 80CCD
Options Available:
• u/s 80CCC – Pension plans from any registered
insurance company
• u/s 80CCG – Rajiv Gandhi Equity Saving Scheme –
RGESS – 50% of contribution max Rs.25,000/-
• u/s 80 CCD – New Pension Scheme (NPS)
• Total cumulative exemption of above options
allowed Rs.1,50,000/-
• Additional exemption allowed of Rs.50,000/- for
contribution to NPS u/s 80CCD(1b)
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7. Where you would
Invest to save tax
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8. What Should You
Consider Before
Making Investment Decision
• Your Financial Objectives
• Risk Profile
• Asset Allocation
• Time Horizon
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9. Tax Saving Beyond Sec 80C
Section 80D – Medical Insurance Premium
• Available for self, spouse, parents & children
• Upto Rs. 25,000/- for person below 60 years of
age & Rs. 30,000/- for person above 60 years of
age
• For super senior citizen medical expenses upto
Rs. 30,000/- available as deduction
• Rs. 5,000/- available as deduction for preventive
health check up within overall limits
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10. Tax Saving Beyond Sec 80C
Section 24B – Deduction for Interest on Home Loans
• Upto Rs.2,00,000/- in case of a self occupied property
• Deduction can be claimed throughout the tenure of
the loan.
• In case you are paying higher amount of interest on
home loan, you can claim deduction of total interest
paid under Income from House Property
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11. Tax Saving Beyond Sec 80C
Section 80EE – Deduction for interest for first time
home buyer
• First time home buyers can claim additional deduction
of Rs.50,000/- towards payment of interest on home
loans provided cost of house should be less than Rs.50
lacs, loan taken should be less than Rs.35 lacs and loan
should be taken between 1.4.2016 & 31.3.2017.
Section 80E – Interest on Education Loan
• Available for a period of Eight years
• Can be availed for education loan taken for self or
dependent children.
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12. Tax Saving Beyond Sec 80C
Section 80DD – Deduction on Medical
Expenditure of Dependent Relative
• Available for treatment, training & rehabilitation
of handicapped dependent relative
• Also available for payment or deposit to specific
scheme for maintenance of dependent
handicapped relative
• If the disability is between 40% & 80%, amount
for deduction is Rs.75,000/-
• If the disability is over 80%, amount for deduction
is Rs.1,25,000/-
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13. Tax Saving Beyond Sec 80C
Section 80DDB – Deduction on Medical
Expenditure on Self or Dependent Relative
• Available for actual expenditure incurred on
self or dependent relative for treatment of
specified diseases or ailment
• Diseases specified in Rule 11DD
• Maximum amount allowed Rs. 40,000/-, in
case of senior citizen Rs.60,000/- & in case of
super senior citizen Rs. 80,000/-
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14. Tax Saving Beyond Sec 80C
Section 80U – Deduction Person Suffering
from Physical Disability
• Available to an individual suffering from
physical disability including blindness and
mental retardation
• As specified in Rule 11D
• Fixed deduction of Rs. 75,000/- in case of
normal disability & in case of severe disability
Rs. 125,000/-
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15. Tax Saving Beyond Sec 80C
Section 80G – Deduction for Donation towards
Social Causes
• Deduction available for 100% or 50% of the
amount donated as specified
• Amount donated in excess of Rs.10,000/- in cash
will not be allowed
Section 80TTA – Deduction for Interest on
Savings Account
• Total upto Rs. 10,000/-
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16. Tax Saving Beyond Sec 80C
Section 80GGC – Deduction on Contribution by
Individuals to Political Parties
• Deduction allowed of any amount contributed to
any political parties or an electoral trust
• Deduction allowed for contribution made in any
way other than cash
• Political party means any party registered under
section 29A of the Representation of the People
Act
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17. Tax Saving Beyond Sec 80C
Section 80QQB & 80RRB – Royalty Income to
Author & Patentee
• If you are a author of a book other than textbook
for school and college or
• You have registered your patent after 1 April 2003
• Deduction allowed is Rs. 3,00,000/- if received in
lumpsum or
• 15% of the total revenue in case of book.
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18. Your Questions Please
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19. Mutual Funds investments are
subject to market risk,
Please read the offer document
carefully before investing.
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20. THANK YOU
• Ajay Sharma
• ajay@investmentmitra.com
• # 91 9958447700
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