it is all about tax planning and what steps needs to be taken for tax planning by any individual as well as a business and also an huf

1. TAX PLANNING FOR AN
INDIVIDUAL
BY SAJAL KHANDELWAL

2. Tax planning can be defined as an
arrangement of one’s financial and business
affairs in which an assessee legitimately
takes full benefit of all
deductions.exemptions,allowances and
rebates so that tax liability reduces to
minimum

3. Tax planning is not illegal
Tax planning should not be done with the
intent of fraud is becomes tax evasion then
All transactions with respect to tax planning
should be in correct form
Tax planning is not avoidance to payment of
tax

4. WAYS OF TAX PLANNING FOR AN
INDIVIDUAL
 Tax planning can be done by an individual in the following
ways:-
 1. Utilizing Section 80C
Section 80C offers a maximum deduction of up to Rs. 1,50,000. Utilize
this section to the fullest by investing in any of the available
investment options. A few of the options are as follows:
 Public Provident Fund
 Life Insurance Premium
 National Savings Certificate
 Equity Linked Savings Scheme
 5 year fixed deposits with banks and post office
 Tuition fees paid for children's education, up to a maximum of 2
children

5.  2. Save tax under section 80d, 80dd, 80ddb
 Now 80d allows deduction for medical insurance premium of spouse, self
or children You are allowed to claim a deduction up to Rs. 25,000 per
budgetary year for medical insurance premium installments. The premium
should be for you, your spouse, and dependent children.
 2. Who is it available to?
 Individual (resident or non resident, Indian Citizen or foreign citizen):- In
case an individual is taking the deduction, the medical insurance policy can
be taken in the name of any of the following or jointly in the name of
following:
 – the taxpayer
 -spouse of the taxpayer
 -parents :- Parents need not be dependent on the Assessee and parents of
spouse are also covered.
 -Dependent children (i.e. legitimate or legally adopted children) of the
taxpayer: – Children above 18 years, if employed, can not be covered. Male
children, if not employed, but a student can be covered upto age of 25
years. Female children, if not employed, can be covered until the time she is
married.

6. Under section 80dd-Section 80DD: Deduction
on medical expenses of disabled dependent
 Tax Deduction Under Section 80DD For Disabled
Dependants. ... The income tax deduction which is
allowed, under section 80DD is Rs. 50,000 for what is
defined earlier as severely disabled dependant (80% and over
disability) This limit went upto Rs. 1,25,000 since 2016.


7. UNDER SECTION 80DDB
 Deduction under section 80DDB of the income tax act is allowed to Resident
Individuals or HUFs for a dependent-who is differently abled and– is wholly
dependent on the individual (or HUF) for support & maintenance.
 Some of the diseases are
 a) Dementia
 (b) Dystonia Musculorum Deformans
 (c) Motor Neuron Disease
 (d) Ataxia
 (e) Chorea
 (f) Hemiballismus
 (g) Aphasia
 (h) Parkinsons Disease
 (i) Aids

8. 3. TAX PLANNING THROUGH HOME LOAN
 Under section 24 Tax Benefit on Home Loan. To
explain the Tax Benefit on Home Loan, we would be
dividing the Repayment of Home Loan into 2
components:-
 Repayment of the Principal Amount u/s 80d
 Repayment of the Interest on Home Loan under sec
24

9. REPAYMENT OF PRINCIPALAMOUNT
 Section 80C: Tax benefit on Home Loan (Principal
Amount)
 The amount paid as Repayment of Principal Amount of Home
Loan by an Individual/HUF is allowed as tax deduction under
Section 80C of the Income Tax Act. The maximum tax
deduction allowed under Section 80C is Rs.
1,50,000. (Increased from 1 Lakh to Rs. 1.5 Lakh in Budget
2014

10. Repayment of the Interest on Home Loan under
sec 24
 Tax Benefit on Home Loan for payment of Interest is allowed
as a deduction under Section 24 of the Income Tax Act. As per
Section 24, the Income from House Property shall be reduced
by the amount of Interest paid on Home Loan where the loan
has been taken for the purpose of Purchase/ Construction/
Repair/ Renewal/ Reconstruction of a Residential House
Property.
 The maximum tax deduction allowed under Section 24 of
a self-occupied property is subject to a maximum limit of Rs. 2
Lakhs (increased in Budget 2014 from 1.5 Lakhs to Rs. 2
Lakhs).

11. Quantum of Deduction allowed for Payment of Interest on Home Loan under
Section 24
Type of Property Self Occupied Property Not Self Occupied Property
Completion
Status
Completed
within 5
years
Not
completed
within 5
years
Completed
within 5
years
Not
completed
within 5
years
Deduction
Allowed
Rs. 2,00,000 Rs. 30,000 No Limit No Limit

12. Particulars Section 24 Section 80C
Tax Deduction allowed
for
Interest Principal
Basis of Tax Deduction Accrual basis Paid basis
Quantum of Tax
Deduction allowed
Self Occupied Property:Rs. 2,00,000.
Non Self Occupied Property: No Limit
Rs. 1,50,000
Purpose of Loan Purchase/ Construction/ Repair/
Renewal/ Reconstruction of a
Residential House Property.
Purchase / Construction of a
new House Property
Eligibility for claiming
Tax deduction
Purchase/ Construction should be
completed within 5 years
Nil
Restriction on Sale of
Property
Nil Tax Deduction claimed would
be reversed if Property sold
within 5 years

13. TAX EVASION
 Tax evasion refers to a situation where a person tries
to reduce his tax liability by deliberately suppressing
the income or by inflating the expenditure which
results into showing of income lower than the actual
and resorting to various types of deliberate
manipulations
 An assessee guilty of tax evasion is punishable
under the relevant laws
 Tax evasion is the illegal evasion of taxes by
individuals, corporations, and trusts. Tax evasion
often entails taxpayers deliberately misrepresenting
the true state of their affairs to the tax authorities ...

14. TAX AVOIDANCE
 There is thin line of difference between tax planning
and tax avoidance
 Any planning done according to legal requirements
defeats the basic intention of legislature behind the
statue could be termed as tax avoidance
 Tax avoidance is don in such a manner that no
infringement of taxation laws and by taking full
advantage of loopholes to attract least incidence of
tax
 Earlier tax avoidance was completely legal but now it
may be illegal in certain situations

15. THANK YOU…....