Tax planning
Tax planning in a lawful manner.
Here are some of the tips that can help you to plan your taxes for the A.Y. 2015-16 & A.Y. 2014-15.
1) Invest in policies : Policies are a prominent way to save a handful amount of tax. Up to Rs. 1, 50, 000 (A.Y.2015-16) can be saved by way of investing PPF, EPF, Fixed Deposit for 5 years, Pension Plans, etc. as specified u/s 80C, 80CCC and 80CCD.
2) Contribute to NPS : NPS stands for New Pension Scheme was has recently been initiated by the Government under which investors can claim a deduction as a have a Tax free NPS return, however, withdrawal under such system is till taxable.
3) The aid of Medical Insurance : A deduction of Rs. 15, 000 is available for people who wish to invest in medical insurance for self. This deduction increases to Rs. 20, 000 when it is done by senior citizens.
4) Expenditure towards disabled dependent : When certain amount is spent in form medical insurance for a disabled dependent, deduction up to Rs. 50, 000 is available where the disablement is normal in nature. The same can be extended upto 1 lakh is the disablement is of severe type.
5) Expenditure for severe diseases : Expenses made for severe diseases such cancer and aids can also provide a deduction of Rs. 40, 000.
6) Repayment of Higher Education Loan: When repayment is carried out for higher education loan, the same is also allowed as a deduction and hence can reduce ample amount of tax liability.
7) Donate : Donation to charitable trusts and organizations have always been regarded as an auspicious event, therefore, 100% deduction is available in such context. The same rate is also applicable in situation where contribution is made to a political party.
8) House loan interest : People who are liable to pay house loan interest can also claim deduction upto Rs. 1, 50, 000 (the figure represents the maximum investment limit)
9) Contribute to superannuation fund : Contributing to superannuation fund of can save you upto Rs. 1, 00, 000 as the same is tax free in the hands of the employee.
10) Transportation allowance : A sum of Rs. 9, 600 can be claimed as a deduction for transportation and conveyance, additionally, no bill supporting such an event is required to be presented.
11) Using medical allowance : A person has the liberty of claiming Rs. 15, 000 by way of medical allowance , however, for such, a valid bill is required to be presented as a support.
12) Use House Rent Allowance : Using house rent allowances allow people to adjust a sum from their total tax liability.
13) Investment in Direct Equity Investment is also very helpful in tax planning as it determines a 50% deduction in the amount of investment
