Tax Savings Tips Under Section 80

By: DoYouKnow.IN | Views: 959 | Date: 22-Feb-2013

Here we have provided Tax Savings Tips Under Sections 80C, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGC, 80U, 80CCG.



It’s that time of the year again when one needs to begin calculating their tax liabilities. However before you do so, remember to analyze the various sections of tax deductions under the Income Tax Act as tax planning does not end with Section 80C. Apart from this, there are other tax deductions provided by the Income Tax Act, 1961. Let’s understand them briefly.

Tax Saving Tips Under  80

Tax Savings Tips Under Section 80C

The specified investment schemes under section 80C are:
  • Life Insurance Premiums
  • Contributions to Employees Provident Fund (EPF)
  • Public Provident Fund (PPF)
  • National Savings Certificates (NSC)
  • Unit Linked Insurance Plan (ULIP)
  • Repayment of Housing Loan (Principal)
  • Equity Linked Savings Scheme (ELSS) of Mutual Funds
  • Fixed Deposit (FD) with Banks having a lock-in period of five years
  • Pension Funds 

Tax Savings Tips Under Section 80D

Tax deduction section 80D qualifies for medi-claim policies. The premium, which is paid for medical insurance policy for self and family members to protect them from sudden medical expenses, comes under this section.

The maximum amount allowed for exemption annually for self, spouse and dependent parents/children is Rs 15,000. In case of a senior citizen, the maximum amount extends up to Rs 20,000. If you are paying the premium for your parents (whether dependent or not), you can claim an additional maximum deduction of Rs 15,000.

Tax Savings Tips Under Section 80DD

According to the Income Tax Act, if you are paying a premium to Life Insurance Company (LIC) or any other insurance company (approved by the Income Tax board) for the medical treatment of a ‘dependent’ physically disabled person, you can avail exemption under the section 80DD.

Here, the ‘dependent’ should be none other than your spouse, children, parents or sibling. If the person is suffering from 40% of any disability, a fixed sum of Rs 50,000 can be claimed in a year. Similarly if the disability is 80%, the fixed sum hikes to Rs 1,00,000 per year. For initiating the process of deduction you need to submit the medical certificate issued by a medical authority along with the return of income.

Tax Savings Tips Under Section 80DDB

If you have incurred expenses for the medical treatment of self or your ‘dependents’, you can claim a deduction of up to Rs 40,000 or the actual amount paid, whichever is less, under the section 80DDB. For a senior citizen, the maximum exempted amount is 60,000 or the amount actually paid for medical expenses. To claim a deduction under this section, you need to submit a medical certificate from a doctor working in Government hospital.

Tax Savings Tips Under Section 80E

The interest paid on loan taken for pursuing higher education of self or any dependant is exempted from tax under section 80E. An education loan can be taken for wife, children and minors for whom you are the legal guardian. This deduction is applicable for a period of 8 years or till the interest is paid, whichever is earlier.

The deduction is only approved for higher studies, which means full time graduate or postgraduate courses in engineering, management or applied sciences, pure sciences including mathematics or statistics. However, from 2011 onwards, the scope of this exemption has been extended to cover all fields of studies including vocational studies pursued after completing the Senior Secondary examination or equivalent. No exemption is applicable for part time courses.

Tax Savings Tips Under Section 80G

One often donates a certain amount on philanthropic grounds to help the destitute. Such an amount can be donated to trusts, charitable institutions, approved educational institutions and qualifies for deduction under Section 80G.

The exemptions can be up to 50% or 100% of the donations made. Funds in which the donations are eligible for tax exemptions include the National Defense Fund, Prime Minister Drought Relief fund, National Foundation for communal Harmony, National Children’s Fund, Prime Minister’s National Relief Fund etc.

One needs to attach a proof of donation with their return of income to avail this exemption

Tax Savings Tips Under Section 80GG

If a salaried or self employed person staying in a rented house does not receive any kind of HRA, they can claim a deduction under this section. However, you cannot avail any such benefit if you, your spouse and/or your child owns any residential accommodation in India or abroad.

You can claim the least of the following under Section 80GG:

- 25% of the total income

- Rs 2000 per month

- Excess of rent paid over 10% of total income

Tax Savings Tips Under Section 80GGC

Any monetary contribution to any political party or electoral trust is eligible for tax exemption. Thus, your contribution, as a matter of appreciation for their work, will serve both the purposes.

Tax Savings Tips Under Section 80U

A resident of India suffering from any kind of specified disability is eligible to claim tax deduction under this section. In order to enjoy this opportunity, one should be suffering from not less than 40% of the following diseases:

- Blindness

- Low vision

- Mental illness

- Loco motor-disability

- Mental retardation

- Hearing impairment

The deduction provided is flat Rs 50000, irrespective of the expense incurred. If the disability is severe, the deduction can be up to Rs 1 lakh. One needs to provide a copy of all the certificates issued by a medical authority in order to avail this benefit.

Tax Savings Tips Under Section 80CCG

The Finance Act 2012 introduced a new Section 80CCG to offer 50% tax break to new investors who invest up to Rs 50000 and whose GTI is less than or equal to Rs10 lakhs. It has been introduced for budding investors entering the equity markets for the first time and is a once-in-a-lifetime benefit.

Hence, there are several sections apart from 80(c) that can help an individual benefit from tax exemptions. It is time to start looking beyond 80C for tax savings.


People Searching On This Page:

  • Tax Saving Sections 80DD
  • DEDUCTION UNDER 80 C
  • yhs-fullyhosted_003
  • savings under section 80ccg
  • 80d,80dd,80ddb,80u can claim at a time
  • Tax exemption under various section
  • tax savings under 80G
  • income tax 2014 80c 80d 80dd 80ee
  • Income Tax savings for self education expenses under which section?
  • 80DDB EXCEPTIONS
  • examptions under section 80G
  • deductions under section 80dd/80ddb/80e/80u
  • list of income tax deduction under section 80c, 80ccg, 80d, 80dd, 80e,80g, 80gg to 80u
  • analysis of section income tax act
  • Income tax 80CCD,80CCG, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80U


Post Comments via Facebook Login

 Post Your Comments without Login
Name : (required)

Email : (required)

Website :

Comment : (required)


Special Comment Tags:
New Line :           <br>
Bold Text :           <b>This is bold</b>
Underline Text :    <u>This is underlined</u>

44  + 1   =    

 Related Pages

9 Income Tax Saving Options Other Than Section 80C

Articles | Finance | Taxes    Date: 04-Aug-2013  Views: 488
Before you calculate your tax liabilities, remember to analyze the various sections of tax deductions under the Income Tax Act as tax planning does not end with Section 80C.

Save Tax Beyond Section 80C

Articles | Finance | Taxes    Date: 12-Dec-2012  Views: 592
You can save tax beyond 80C under section 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGC, 80U, 80 CCF etc.

Salaried Employee - Income Tax Saving Tips For Assessment Year 2013-14.

Articles | Finance | Taxes    Date: 12-Dec-2012  Views: 2591
In India, there are various tax slabs for the male and female and as per the annual salary, the tax deduction takes place.

Income Tax Saving Tips for 2012-2013

Articles | Finance | Taxes    Date: 21-Jul-2012  Views: 6944
We know tax planning is a boring and time consuming exercise that you need to do every year. We cannot help you avoid it completely but what we can definitely do is to help you with all the information that you need to plan your tax and save money.

DTC - Direct Tax Code - Income Tax Slabs For Financial Year 2012-13

Articles | Finance | Taxes    Date: 08-Aug-2011  Views: 19955
The New Direct Tax Code (DTC) is said to replace the existing Income Tax Act of 1961 in India. During the budget 2010 presentation, the finance minister Mr. Pranab Mukherjee reiterated his commitment to bringing into fore the new direct tax code (DTC) into force from 1st of April, 2011, but same could not be fulfilled and now it will be applicable from 1st April, 2012.
X
9 Income Tax Saving Options Other Than Section 80C

9 Income Tax Saving Options Other Than Section 80C

Date: 04-Aug-2013  Views: 488

Tax Savings Tips, Tax Savings Ideas, Section 80 Tax Saving Tips, 80C, 80D, 80DD, 80DDB, 80E, 80G, 80GG


Email Subscription



Searched Keywords
Tax Saving Sections 80DD | DEDUCTION UNDER 80 C | Yhs-Fullyhosted_003 | Savings Under Section 80Ccg | 80D,80Dd,80Ddb,80U Can Claim At A Time | Tax Exemption Under Various Section | Tax Savings Under 80G | Income Tax 2014 80C 80D 80Dd 80Ee | Income Tax Savings For Self Education Expenses Under Which Section? | 80DDB EXCEPTIONS | Examptions Under Section 80G | Deductions Under Section 80Dd/80Ddb/80E/80U | List Of Income Tax Deduction Under Section 80C, 80Ccg, 80D, 80Dd, 80E,80G, 80Gg To 80U | Analysis Of Section Income Tax Act | Income Tax 80CCD,80CCG, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80U | Modes Of Investment Under Deductions U/S 80CCD,80CCG, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80U | Section 80 E Of Income Tax 1961 Applicable For Two Children | Savings Under 80CCD,80CCG, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80U | 80CCG: The Finance Act 2012 Introduced A New Section 80CCG To Offer 50 Per Cent Tax Break To New Investors Who Invest Up To Rs. 50,000 And Whose GTI Is Less Than Or Equal To Rs. 10 Lakh. It Has Been Introduced For Budding Investors Entering The Equity Mar | Income Tax Examption On Savings Under Various Sections For 2012-2013 | TEXT |

Search Engine's Visits
Google : 171 times | Yahoo : 7 times | Bing : 138 times |

Terms of Use