Tuition Deduction The Maximum Subtraction For: Fill & Download for Free

10 best tips of tax saving.1. Save Tax Through Salary RestructuringThere may be many expenses which you are doing because of your job. If you leave your job today, many of your expenses will end. Such as you wear a uniform just for the sake of your job. You travel to the office daily only for the job. You may be entertaining clients and spending over them to fulfill your job. You must be reading certain newspapers, magazines or books for your job purpose.If you leave the job such expenses would end. It means, these are forced expenses and your employer should pay for them. Such expenses should go to the account of employer expense. Since you are only medium of such expense this should not be part of your income.Talk to your employer and ask to restructure your pay. You should get perks and allowances for such expense. This should not be part of your salary.These perks and allowances or non taxable if incurred actually. However, you need to give proof of these expenses to avail tax-free allowances.Some Allowances Which Save TaxConveyanceDriverNewspaper, Books and MagazineMedical TreatmentUniformTelephone and MobilePersonality DevelopmentOffice EntertainmentHowever, these allowances are given according to the grade. You can’t ask all of them. Your employer will decide the eligibility of allowances. You can only demand.The professional tax you pay every month is also eligible for tax deduction.2. Save Tax On Rent PaymentWe get a job in a different city or place. We go there to do our job. If the company does not give us accommodation we have to rent out. We live in rented house because of our job. Therefore, expense of rent should be deducted from the taxable income.Employers do give some part of your remuneration as House Rent Allowances (HRA) You subtract this HRA from yourgross income. However, you cannot take full benefit of HRA for tax saving. There is a formula for the HRA tax benefit.You can deduct the lowest of these fromgross income.Actual HRA given by the employer50% of the basic salary plus DA if the employee is situated in Delhi, Mumbai, Kolkata and Chennai. Else, 40% of the basic salary plus DA.Actual house rent paid by you, minus 10% of basic salary+DA.You can also use a HRA calculator to find out the tax benefit.HRA gives you big tax saving. Ask your employer to keep the provision of HRA in your salary structure.Also, Don’t forget to take rent receipts from your house owner. If your total rent of a financial year exceeds 1 lakh then you need to give copies of registered lease agreement and copy of the homeowner’s PAN card.You can also give the rent to your parents. But you have to complete all the formalities of lease as stated above.3. Leave Travel Allowances and Medical ExpenseSome personal expenses are also eligible for exemptions. These Expenses are deducted from your gross salary. Your employer may give you part of your salary as medical allowance. Check with the HR department.If you produce an actual bill of medical expenses, this allowance becomes tax-free. So, Start collecting medical bills. However, it is limited to Rs 15,000 in a financial year. You can give receipts of medical expense of your dependents as well.Your employer can give you leave travel allowance as well. You are entitled to tax-free leave travel allowances.It is also limited to two times in a block of 4 years.The travel should occur while you are on the leave.It should be within India.Travel should be from the shortest route.You can claim the maximum for AC-I of the train journey and economy class of air travel.4. Invest And Reduce Taxable IncomeCertain investments give your tax rebate. These investments come under section 80C deductions. The amount invested is deducted from your taxable income. Many of such investments come under EEE category. It means you need not to give tax at the time of investment, earning and redemption. However, There is a maximum limit for 80C deductions. It has become 1.5 lakhs after budget 2014–15.List of Investments Which Saves TaxContribution to EPF accountEmployee Provident Fund is a retirement saving instrument. Contribution to the EPF is mandatory for the employees of organised sector if their bic salary is less than Rs 15000/month.he employer also contributes equal amount in the EPF account of employee. The contribution to EPF by employer is tax exempt, while contribution by the employee is tax deductible under section 80C.Deposit in PPF accountPPF account is also a long term saving scheme by the government. Anyone can open the PPF account in SBI, post office or other banks. The PPF account gives tax deduction under section 80C.Investments in tax saving mutual funds i. e. Equity Linked Saving Scheme (ELSS)Equity linked saving scheme are diversified mutual fund scheme which have lock-in period of 3 years. The ELSS invests in share market. It has potential of highest return.Sukanya Samriddhi AccountThis is a government saving scheme for the girl child. It gives highest return among all the small saving schemes. The investment is locked till your girl child turns 18. The investment and maturity amount is tax-free.Tax Saving Fixed DepositTax saving Fixed deposit is like any other fixed deposit of bank. The only difference is the lock in period of 5 years. The interest earning of tax saving FD is subject to tax.National Saving Certificate (NSC)It is post office small saving scheme. The national saving certificate is issued for 5 years. The interest rate of this scheme is 8.5%. the NSC gives tax benefit under section 80C. The interest is subject to tax.Senior Citizen Saving SchemeThis is also an small saving scheme by the government. It is designed for senior citizens. This scheme gives regularincome. The interest rate of senior citizen saving scheme is better than NSC or PPF. The retired defence personnel can subscribe this scheme at any age.There are some expenses which also give a deduction for tax saving.5. Expenses Eligible For Tax SavingUnder the limit of 1.5 lakh deduction there are some expenses as well.Tuition fees for self and childrenInsurance scheme premiumHome loan principal payment- Home loan EMI has two-part, principal and interest. Principal part gives tax saving benefit under section 80C. Know more about the tax benefit of home loanThese expenses and above mentioned investment in aggregate should not exceed 1.5 lakh limit.6. Medical Insurance DeductionMedical Insurance expense gives you the deduction, over and above the 1.5 lakh limit. You can save tax for the health insurance premium of your family and dependent parents. Also, health checkup can also give you tax saving. You candeduce these expenses from your total taxable income.Up to Rs 25,000 for the health insurance of self and family. You can also include health checkups of up to Rs 5,000 within this limit.Up to Rs 25,000 for the health insurance of parents. If they are above 60 years, This limit goes up to 30,000.7. Enjoy Tax Benefit On Home Loan Interest PaymentHome loan interest payment enjoys separate tax saving. The limit of deduction for home loan interest payment is increased to 2.5 lakhs in the budget 2015. This deduction can give you a very big tax saving. However, the loan amount shouldbe big to get the full benefit. You can also double your tax saving through the joint home loan.8. Set Off Capital Gain, Save TaxSalaried people need to give capital gains tax on their investments. Shares attract only short-term capital gains tax while property and gold attract both short and long term capital gains taxes. However, you can set off your capital gain from an investment with the capital loss of another investment. Note, you can set off short-term capital gain only with short-term capital loss and lng term capital gain with long term capital loss only.You can also carry forward your capital loss up to 8 years. This will give a fairly good chance of tax saving on account of capital loss. Suppose you incur trading loss in shares. This loss can be carried forward up to seven years. In subsequent years your trading profit can be set off with this big loss.9. Giving Away Money For Charity, Why Pay TaxesYou can save tax on your donations. However, not every charity gives you 100% tax saving. Donations to the PM relief fund, some notified NGO and political parties can give you the 100% tax benefit. You can also donate to scientific institutions and religious body and claim tax rebate.10. On Time Tax Declarations And InvestmentsPractically, this is the most important tip of tax Saving. Employers need to pay advance tax every quarter. Therefore, they deduct TDS every month from your salary. The TDS is deducted according to your projected tax liability for that financial year.If you don’t declare your planned tax saving, investment and expenses of the year, the projected tax will be higher. Accordingly, the employer would start deducting TDS every month for the first quarter of the financial year. It may happen that when you declare all of your tax saving instruments, It has become very late. The company may have cut more TDS than required. Of course you can claim tax refund while filing income tax return, but for the time being you pay extra taxes. So, give a tax declaration at the beginning of the year.There is an opposite scenario which is more worrisome. Suppose, initially you declare all the available tax saving option to save the maximum tax. But you avoid tax saving, investment and tax saving expenses till the last quarter. Now in the month of January and February you will have a big burden of investing or Big tax cut. So, it is better to start tax saving investment from the beginning of the financial year.

How To Save Tax In India- 10 Ultimate Tips For SalariedHow To Save Tax In India – 10 Ultimate Tips For SalariedMay 25, 2016 by Chandrakant MishraDo you feel that you are paying excess tax? Do you think that you can save tax? Have you not done proper tax planning? Do you want to know the ways of saving tax? We will learn the most useful tax saving method in this post.Indeed, you or anyone else has the scope of saving tax. There are many ways which can cut your tax outgo. Today I will tell you the 10 best tips of tax saving.1. Save Tax Through Salary RestructuringThere may be many expenses which you are doing because of your job. If you leave your job today, many of your expenses will end. Such as you wear a uniform just for the sake of your job. You travel to the office daily only for the job. You may be entertaining clients and spending over them to fulfill your job. You must be reading certain newspapers, magazines or books for your job purpose.If you leave the job such expenses would end. It means, these are forced expenses and your employer should pay for them. Such expenses should go to the account of employer expense. Since you are only medium of such expense this should not be part of your income.Talk to your employer and ask to restructure your pay. You should get perks and allowances for such expense. This should not be part of your salary.These perks and allowances or non taxable if incurred actually. However, you need to give proof of these expenses to avail tax-free allowances.Some Allowances Which Save TaxConveyanceDriverNewspaper, Books and MagazineMedical TreatmentUniformTelephone and MobilePersonality DevelopmentOffice EntertainmentHowever, these allowances are given according to the grade. You can’t ask all of them. Your employer will decide the eligibility of allowances. You can only demand.The professional tax you pay every month is also eligible for tax deduction.2. Save Tax On Rent PaymentWe get a job in a different city or place. We go there to do our job. If the company does not give us accommodation we have to rent out. We live in rented house because of our job. Therefore, expense of rent should be deducted from the taxable income.Employers do give some part of your remuneration as House Rent Allowance (HRA). You subtract this HRA from your gross income. However, you cannot take full benefit of HRA for tax saving. There is a formula for the HRA tax benefit.You can deduct the lowest of these from gross income.Actual HRA given by the employer50% of the basic salary plus DA if the employee is situated in Delhi, Mumbai, Kolkata and Chennai. Else, 40% of the basic salary plus DA.Actual house rent paid by you, minus 10% of basic salary+DA.You can also use a HRA calculator to find out the tax benefit.HRA gives you big tax saving. Ask your employer to keep the provision of HRA in your salary structure.Also, Don’t forget to take rent receipts from your house owner. If your total rent of a financial year exceeds 1 lakh then you need to give copies of registered lease agreement and copy of the homeowner’s PAN card.You can also give the rent to your parents. But you have to complete all the formalities of lease as stated above.Useful: Top 10 Income Tax Calculators of FY 2016-173. Leave Travel Allowances and Medical ExpenseSome personal expenses are also eligible for exemptions. These Expenses are deducted from your gross salary. Your employer may give you part of your salary as medical allowance. Check with the HR department.If you produce an actual bill of medical expenses, this allowance becomes tax-free. So, Start collecting medical bills. However, it is limited to Rs 15,000 in a financial year. You can give receipts of medical expense of your dependents as well.Your employer can give you leave travel allowance as well. You are entitled to tax-freeleave travel allowance.It is also limited to two times in a block of 4 years.The travel should occur while you are on the leave.It should be within India.Travel should be from the shortest route.You can claim the maximum for AC-I of the train journey and economy class of air travel.4. Invest And Reduce Taxable IncomeCertain investments give your tax rebate. These investments come under section 80C of deductions. The amount invested is deducted from your taxable income. Many of such investments come under EEE category. It means you need not to give tax at the time of investment, earning and redemption. However, There is a maximum limit for 80C deductions. It has become 1.5 lakhs after the budget of 2014.List of Investments Which Saves TaxContribution to EPF accountEmployee Provident Fund is a retirement saving instrument. Contribution to the EPF is mandatory for the employees of organised sector if their bic salary is less than Rs 15000/month.he employer also contributes equal amount in the EPF account of employee. The contribution to EPF by employer is tax exempt, while contribution by the employee is tax deductible under section 80C.Know More about the Employee Provident FundDeposit in PPF accountPPF account is also a long term saving scheme by the government. Anyone can open the PPF account in SBI, post office or other banks. The PPF account gives tax deduction under section 80C.Know More About Public Provident FundInvestments in tax saving mutual funds i. e. Equity Linked Saving Scheme (ELSS)Equity linked saving scheme are diversified mutual fund scheme which have lock-in period of 3 years. The ELSS invests in share market. It has potential of highest return.Know More About Equity Linked Saving SchemeSukanya Samriddhi AccountThis is a government saving scheme for the girl child. It gives highest return among all the small saving schemes. The investment is locked till your girl child turns 18. The investment and maturity amount is tax-free.Know More About Sukanya Samriddhi AccountTax Saving Fixed DepositTax saving Fixed deposit is like any other fixed deposit of bank. The only difference is the lock in period of 5 years. The interest earning of tax saving FD is subject to tax.Know More About Tax Saving Fixed DepositNational Saving Certificate (NSC)It is post office small saving scheme. The national saving certificate is issued for 5 years. The interest rate of this scheme is 8.5%. the NSC gives tax benefit under section 80C. The interest is subject to tax.Know More about National Saving Certficate SchemeSenior Citizen Saving SchemeThis is also an small saving scheme by the government. It is designed for senior citizens. This scheme gives regular income. The interest rate of senior citizen saving scheme is better than NSC or PPF. The retired defence personnel can subscribe this scheme at any age.Know more about the Senior Citizen Saving SchemeThere are some expenses which also give a deduction for tax saving.5. Expenses Eligible For Tax SavingUnder the limit of 1.5 lakh deduction there are some expenses as well.Tuition fees for self and childrenInsurance scheme premiumHome loan principal payment- Home loan EMI has two-part, principal and interest. Principal part gives tax saving benefit under section 80C. Know more about the tax benefit of home loanThese expenses and above mentioned investment in aggregate should not exceed 1.5 lakh limit.6. Medical Insurance DeductionMedical Insurance expense gives you the deduction, over and above the 1.5 lakh limit. You can save tax for the health insurance premium of your family and dependent parents. Also, health checkup can also give you tax saving. You can deduce these expenses from your total taxable income.Up to Rs 25,000 for the health insurance of self and family. You can also include health checkups of up to Rs 5,000 within this limit.Up to Rs 25,000 for the health insurance of parents. If they are above 60 years, This limit goes up to 30,000.7. Enjoy Tax Benefit On Home Loan Interest PaymentHome loan interest payment enjoys separate tax saving. The limit of deduction for home loan interest payment is increased to 2.5 lakhs in the budget 2016. This deduction can give you a very big tax saving. However, the loan amount should be big to get the full benefit. You can also double your tax saving through the joint home loan.8. Set Off Capital Gain, Save TaxSalaried people need to give capital gains tax on their investments. Shares attract only short-term capital gains tax while property and gold attract both short and long term capital gains taxes. However, you can set off your capital gain from an investment with the capital loss of another investment. Note, you can set off short-term capital gain only with short-term capital loss and long term capital gain with long term capital loss only.You can also carry forward your capital loss up to 8 years. This will give a fairly good chance of tax saving on account of capital loss. Suppose you incur trading loss in shares. This loss can be carried forward up to seven years. In subsequent years your trading profit can be set off with this big loss.Also Read: 5 Ways to Save Capital Gains Tax on Sale of Property9. Giving Away Money For Charity, Why Pay TaxesYou can save tax on your donations. However, not every charity gives you 100% tax saving. Donations to the PM relief fund, some notified NGO and political parties can give you the 100% tax benefit. You can also donate to scientific institutions and religious body and claim tax rebate.10. On Time Tax Declarations And InvestmentsPractically, this is the most important tip of tax Saving. Employers need to pay advance tax every quarter. Therefore, they deduct TDS every month from your salary. The TDS is deducted according to your projected tax liability for that financial year.If you don’t declare your planned tax saving, investment and expenses of the year, the projected tax will be higher. Accordingly, the employer would start deducting TDS every month for the first quarter of the financial year. It may happen that when you declare all of your tax saving instruments, It has become very late. The company may have cut more TDS than required. Of course you can claim tax refund while filing income tax return, but for the time being you pay extra taxes. So, give a tax declaration at the beginning of the year.Recommended:Income Tax Slab Rate For FY 2016-17Check Income Tax Refund Status OnlineThere is an opposite scenario which is more worrisome. Suppose, initially you declare all the available tax saving option to save the maximum tax. But you avoid tax saving, investment and tax saving expenses till the last quarter. Now in the month of January and February you will have a big burden of investing or Big tax cut. So, it is better to start tax saving investment from the beginning of the financial year.I hope this post will give you a basic idea of tax saving ways. For detailed information about the individual tax saving method you can read my other detailed posts. Give your opinion about tax saving methods. Do you have any query? Please feel free to ask. I will try my best to reply.(Photo credit: Tax Credits)

The Indian income tax act allows for certain deductions which can be claimed to save tax at the time of filing returns.If an individual has done proper tax planning to save tax such deductions will be subtracted from the gross total income and tax will be calculated on the total income after deductionsThere are 7 most effective ways to save taxes :1. Tax plannings u/s 80C, 80CCC, 80CCD :-To promote savings from common people government allows certain deductions provided the investment should be made in instruments coveredu/s 80C, 80CCC & 80CCD like ELLS, Mutual funds, ULIP, Life insurance Premium, House Loan Repayment, Children's Tuition Fees, PPF, NSC,Notified Pension Scheme, Fixed Deposits (5 years), NPS. The maximum combined deduction allowed under these sections is Rs. 1,50,000/-and there is an additional deduction u/s 80CCD of Rs.50,000/- for the investments done in National Pension Scheme (NPS).2 Tax plannings u/s 80D, 80DD, 80DDB :-Income tax allows deductions if the expense is incurred for medical treatment or Health insurance for self or for blood relatives to save taxes.Section 80D is for the Medical insurance premium of self or spouse or children - Medical insurance for assesses or for wife/husband, dependent parentsor dependent children but in the case of HUF it is for any member of the Family the amount of deduction that can be claimed when the payment ismade for assesses himself, spouse or children is Rs.25000/- but in case if the person insured is senior citizen then it is Rs.30000/-, in case the paymentis made by assesses for his parents irrespective of dependent or not is Rs. 25000/- and if the parents are senior citizen then it is Rs.50000/-, deduction allowed for the preventive health check up is Rs. 5000/-.Section 80DD provides benefits or deductions to the families taking care or incurring medical expenses for disabled dependent, deduction can be claimed by the family member incurring the expense and not by the dependants himself,If the disable dependent has already claimed the deduction u/s 80U then the family member can not claim the deduction u/s80DD. Deduction up to Rs.75000/- is allowed for 40% or more disability and up to Rs.125000/- for 80% or more disability. Disabilities for which deduction can be claimed includes blindness, low vision, leprosy-cured, loco motor disability, hearing impairment and mental retardation. The deductions cannot be claimed by non-resident Indians (NRI). Section 80DDB provides deduction for the medical expenses incurred for the treatment of specified diseases, it is allowed to the individual or HUF who is an Indian resident for that year. The expenses should be incurred by the individual or HUF for himself or for any dependent family member. Amount of deduction can be claimed is the actual amount incurred if the amount is less than Rs. 40000/- and if the expense incurred is more than Rs.40000/- thenthe maximum limit to claim the deduction is Rs.40000/- but if the expenses are incurred for senior citizen & super senior citizen the amount that can beclaimed is Rs.100000/- for F.Y 2018-19. Specified diseases includes Neurological Diseases, Malignant cancers, Full blown acquired immune deficiency syndrome, chronic renal failure, haematological disorder.3. Tax planings through Home Loan :-If you have taken home loan, one of the deduction can be claimed u/s 80C as repayment of home loan moreover deduction can be claimed for the intereston home loan u/s 24(b), the maximum deduction allowed is Rs.200000/-