answersLogoWhite
Taxes and Tax Preparation
Income Taxes
Non-US Taxes
India Law and Legal Issues

How do you save tax in India?


Top Answer
User Avatar
Wiki User
Answered 2010-02-01 07:07:31
Savings In light of Indian Income Tax Deductions in Financial Year 2009-2010

Savings Under Section 80C of Indian Income Tax Deductions in Financial Year 2009-2010 is maximum upto Rs 1,00,000 which can be done through

1. PPF -Any contributions to Provident Fund, Voluntary provident Fund (VPF) or savings made in Public Provident Fund (PPF Account).

2. Life Insurance Premiums: Any Life Insurance premiums (for one or more insurance policies) paid by you for yourself, your spouse or your children.

3. ELSS Equity Linked Saving Schemes: Any investment made in certain Mutual Funds called equity linked saving schemes qualifies for Section 80C deduction.

4. Bank Fixed deposits or Term deposits of >5 years

5. Principal part of EMI on Housing Loan

6. Tution Fees: Amount paid as tution fee for the education of two children of the assessee

7. Other 80C deductions: Amount saved in National Saving Certificate (NSC), Infrastructure Bonds or Infra Bonds, amount paid as stamp duty and registration charges while buying a new home are also eligible for income tax deductions under Section 80C of Indian Income Tax Act.

Savings Under Section 80D of Indian Income Tax Deductions in Financial Year 2009-2010 ican be done by claiming medical and health insurance maximum upto Rs 30,000 (self including family + parents) under the following terms

1. Total amount of premium paid for health insurance of family (meaning spouse + children), or Rs. 15,000 , whichever less.

Total amount of premium paid for health insurance of assessee parents or Rs. 15,000, whichever less.

Savings Under Section 80DD of Indian Income Tax Deductions in Financial Year 2009-2010 can be done by claiming medical expenditure for a dependents who are disabled. Here dependent means spouse, children, brothers, sisters or any one of them. The maximum tax deduction provided by Section 80DD is Rs. 50000 in case of ordinary disability and Rs. 75000 if the disability is severe. The definition of severe disability is as defined in the official page of Indian Income Tax Act.

Savings Under Section24 of Indian Income Tax Deductions in Financial Year 2009-2010 is on the interest payable on this home loan taken for new house or for renovation. Maximum deductible amount, under Section 24 is Rs. 1,50,000

Savings Under Section 24 of Indian Income Tax Deductions in Financial Year 2009-2010 can be claimed on HRA which must be the minimum amount value of the following three conditions

  1. Rent Paid minus 10% of assessee salary.
  2. 25% of assessee gross total income.
  3. Rs. 2000/- per month.

Savings Under Section 80E of Indian Income Tax Deductions in Financial Year 2009-2010 can be claimed for any amount of interest paid on educational loan taken for assessee own higher education or higher education of spouse or children is deductible from assessee taxable income.

Savings Under Section 80E of Indian Income Tax Deductions in Financial Year 2009-2010 can be claimed towards donation maximum upto 50% of donated amount in Prime Minister's Relief Fund, National Children Foundation, any University or educational institution of 'national eminence', etc.

Savings Under Section 80U of Indian Income Tax Deductions in Financial Year 2009-2010 is for person with a disability. An individual who is suffering from a permanent disability or mental retardation as specified in the persons with disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 or the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999, shall be allowed a deduction of Rs 50,000. In case of severe disability it is Rs. 75,000.

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Loading...

Still Have Questions?

Related Questions

What is high seas sales how it benefits?

You save the local sales tax payable in India


What does the government use tax revenue for?

The government uses tax revenue to fund space ships that will save the planet if there was to be an asteroid coming for Earth, and that is what the government mainly does with tax revenue.. by India Graham


What is tax saving?

It means to save tax


What is service tax in India?

The Service Tax in India is an indirect tax on all services, although there are some exclusions. In 2015, it was increased to 14%.


Who is responsible for Income tax in India?

All persons residing in India are responsible for paying Income tax on monies earned. Dollars earned from agriculture are tax exempt. This is imposed by the Government of India.


Who is gives maximum tax in India government?

Income Tax


State Bank of India Service Tax Registration No?

what is service tax no. of state bank of india hingna branch


Who collects the service tax in India?

In india service tax is collected by CBEC (central board of excise and customs)


Who introduced income tax in India?

James wilson in India..


How many taxes are there in India?

service tax , income tax, sales tax, tds tax, excise tax & other taxes


What are some benefits of job outsourcing to India?

One benefit to oursource jobs to India are lower costs of production because the loans in India are much lower than in the United States. Another benefit to oursource to India would be to save tax money or benefiting from the Indian law system.


How long to save income tax documents?

They can go back 3 years into your tax documents. So i would save them for at least 5


Is honorarium is treated as salary in income tax act of India?

Yes. Honorarium is the part of salary for income tax purpose in India.


Which act helped save the east India company from going bankrupt?

The tea act in america. It made colonists to pay tax on tea and only buy tea from east india company otherwise the company was going to be bankrupt.


Can my company save money using T2 tax software?

Yes you can in fact save money by using a T2 tax software. This will prevent you from having to pay the fees which are associate with a tax service.


What is a TAX payer's identification number in India?

It would be the same as for any other country. Each person liable to pay tax in India will be issued with a unique number, by means of which the tax system of India can identify the individual and track that individuals tax liability and payments over their lifetime.


When was expenditure tax introduced in India?

the expenditure tax introduced inIndia 1987


What are the tax saving schemes in India?

Tax Saving Schemes in India:Post your tax queries in http://www.etaxmentor.com/etmc/eTaxMentorPages/Query.aspxfor free............We are happy to help you.http://www.etaxmentor.com


What is cess on tax?

According to Worldwide-Tax.com a CESS is an education tax in India. Site referenced: http://www.worldwide-tax.com/india/india_tax.asp.


Our superintindent at birdville isd told all our custodians that servicemaster could save the tax payersover a million dollarswhat would happen if the tax payers knew this?

Save Tax Payers Millions!Hello!


Best saving schemes in India?

ELSS Funds = Tax Saving + High ReturnsBest tax saving mutual funds to invest in 2018 are here just to mention a few areAditya Birla Sun Life Tax Relief 96Tata India Tax Savings FundKotak Tax SaverAxis Long Term Equity FundDSP BlackRock Tax Saver FundAll of these are ELSS (Equity-Linked Savings Schemes) and right off the bat, you can save Rs.1,50,000 from being taxed by investing in them.


What are Tax implication of high sea sale?

In HIGH SEA SALE THERE WILL NO SALES TAX IS CHARGES SINCE THE SALE IS CARRIED OUTSIDE THE TERRITORIAL JURISDICTION OF INDIA THERE WILL NOT BE SALES TAX LEVIED IN INDIA.


Rates of entry tax in karnataka India for machines?

out of state machine what is entry tax


Does Canada have a double tax treaty with India?

yes. you dont have to pay double tax


What is current service tax in India?

12%