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| Personal Tax (Income Tax, Capital Gains,Wealth Tax) |
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| Cost Inflation Index |
| Understanding Capital Gains On Shares/ Securities |
| Income Tax Exemptions to Individuals / Hindu Undivided Family (HUF) |
| Ways to save on capital gain tax |
| Deduction Allowed to Individual & HUF from Gross Total Income |
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Deduction Allowed to Individual & HUF from Gross Total Income
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Income Tax Act allows deductions from Gross Total Income of an Individual or HUF (Hindu Undivided Family), amount not exceeding Rs.100000/- in respect of amount deposited in the specified savings covered under section 80C(2). The aggregate amount of deductions u/s 80c, 80CCC & 80CCD is limited to Rs.100000/-
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List of Savings qualifying for deductions from Gross Total Income under section 80C (2)
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- Life Insurance Premium Paid - Amount of premium paid for any insurance policy is eligible for deduction up to 20% of the sum assured.
- Contribution to any provident fund to which the Provident Funds Act 1925 applies
- Contribution to Public Provident Fund Scheme 1968
You can invest up to Rs.70000/- in PPF A/C and lock in period is 15 years.
- Contribution to National Saving Certificates (NSC VIII)
- Unit Linked Insurance Plan 1971 of Unit Trust of India (UTI) or LIC Mutual Fund.
- Investment in any Equity Linked Savings Scheme 2005 of a Mutual Fund referred to in Section 10 (23D)
- Tuition fees for any two children for fulltime education to any university, college, School or other educational institution in India.
- Payment for the purchase or Construction of a residential house
- Amount deposited into a Notified Scheme of Term Deposit for a fixed period of 5 years or more
- Subscription to notified bonds of NABARD (National Bank for Agriculture and Rural Development)
- Deposit into account under the Senior Citizens Savings Scheme 2004
- Deposit into Past office Time Deposit 1981 for 5 years
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One must check details about the investment scheme before taking any decision.
Points to check..
- Lock in period.
- Rate of Return
- Maximum Amount allowed as deduction.
- Maximum Amount allowed to be invested.
- Return on Investment like interest, dividend, bonus are taxable or exempt.
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It is better to plan investment in the start of the year and invest every month. This can make your future secure and give you high returns.
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