8/13/2019 Tax%20Planning%20Tips.docx

1/4

Tax Planning Tips

Tax planninghas always been the test of efficiency for people along with being a test of

their cunningness such that they can save their taxes in a lawful manner. Here are

some of the tips that can help you to plan your taxes.

1 Invest in policiesPolicies are a prominent way to save a handful amount of tax. Up to Rs. 1, 00, 000 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 Divide Income to various family membersAvail the basic exemption limit of Rs. 2 Lakh in the various family members as possible.

Prefer senior citizens like parents and women as then can avail higher exemption limit.

3 Contribute to NPSNPS 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.

4 The aid of Medical InsuranceA 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. (65 years or above for A.Y. 2012-13).

5 Expenditure towards disabled dependentWhen 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.

http://lessmytax.com/15-tax-planning-tips-a-y-2012-13/http://lessmytax.com/15-tax-planning-tips-a-y-2012-13/http://lessmytax.com/15-tax-planning-tips-a-y-2012-13/

8/13/2019 Tax%20Planning%20Tips.docx

2/4

6 Expenditure for severe diseasesExpenses made for severe diseases such cancer and aids can also provide a deduction

of Rs. 40, 000.

7 Repayment of Higher Education LoanWhen 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.

Apart from this, see articles on tax planning and how to save tax?

8 DonateDonation 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.

9 House loan interestPeople who are liable to pay house loan interest can also claim deduction upto Rs. 1,

50, 000 (the figure represents the maximum investment limit)

10 Contribute to superannuation fundContributing to superannuation fund of can save you upto Rs. 1, 00, 000 as the same is

tax free in the hands of the employee.

11 Transportation allowanceA 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.

12 Using medical allowance

8/13/2019 Tax%20Planning%20Tips.docx

3/4

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.

13 Use House Rent AllowanceUsing house rent allowances allow people to adjust a sum from their total tax liability.

14 Professional TaxPeople often pay professional tax to the professionals and the same is available for

deduction.

15 Investment in Direct Equity Investment is also very helpful in tax planning as itdetermines a 50% deduction in the amount of investment.

Above all be honest in your means and that is the prime principle for tax planning.

Tax Planning for Women Assessee (A.Y.2012-

13 & A.Y.2013-14)

The Indian Taxation Structure is designed in such a manner that it promotes protection of theminor groups along with maintaining equilibrium in operations. The tax payer is mainlyallocated into three major forms which involve Men, Women and Senior Citizens and Very

Senior Citizens (A.Y.2013-14) . Today, we shall take an insight into the taxation structure for the

women and should develop an idea about their taxation basis. In this article we will discuss about

tax planningtips for resident women/female assessee/women income tax payers.

Basic Exemption for A.Y.2012-13 for Female Assessee

A resident women in India is currently enjoying an exemption upto Rs. 1, 90, 000. This

exemption rate is applicable to only those women who are below the age of 65 and continues to

hold office or any source of income. For resident women who are above the age of 65 but belowthe age of 80 are known as senior citizens, they enjoy an exemption upto Rs. 2, 50, 000.

Additionally, resident women who are above the age of 80 have also been brought under the

purview of taxation and are known as very senior citizens. They enjoy an exemption upto Rs. 5,00, 000.

http://lessmytax.com/15-tax-planning-tips-a-y-2012-13/http://lessmytax.com/15-tax-planning-tips-a-y-2012-13/http://lessmytax.com/15-tax-planning-tips-a-y-2012-13/

8/13/2019 Tax%20Planning%20Tips.docx

4/4

Apart from this basic exemption, the essence of tax panning is such that resident women can also

save some additional amount by way of deductions which shall further reduce their tax liability.

The whole structure can be broadly categorized into two distinct factors such as:

Deduction u/s 80 C

Deduction u/s 80 D to U

Deduction u/s 80 C

The section 80 C is a very powerful area of operation which provides people to save a handfulamount of tax liability by way of investment. The schemes are distributed among various

channels which includes investment in:

Public Provident Fund (PPF): Here people are free to invest according to their desire and canobtain a maximum deduction of Rs. 70, 000 from this section.

National Savings Certificate (NSC): This is another option to ensure that funds are channelizedinto productive interest that provides high return along with being available for deduction.

A 5- year Fixed Deposit Life Insurance Corporation policies (LIC) Equity Linked Savings Scheme (ELSS) Pension Plans Employees Provident Fund (EPF), etc.

In this context, it should be noted that only a gross amount of Rs. 1, 00, 000 would qualify as

maximum deduction form this section as this is the overall permissible limit from this section as

per taxation rules of the Indian economy.

Deduction u/s 80 D to U

These are the remaining sections which jointly provides various threshold limits for assesses toensure that they can save some further amount from their tax liability. This includes investment

in various forms of sources such as:

Health Insurance:Investment in health insurance plan is exempted upto Rs. 15, 000 under thesection 80 D. The limit is raised upto Rs. 20, 000 for senior resident women.

Education loan: The benefit of repayment of education loans are available under the section 80E where one can claim exemption for the expenditures made for repayment for education loans.

Donations to research and development programme along with donation to political parties areexempted under section 80 G which can range from 50% to 100% of the donations made.