How to Save Income tax in india

By trp555

For savings income tax on your taxable income the Income Tax Law provides for various deductions.

Steps

Deduction in respect of contributions to certain pension funds

A deduction upto Rs. 100,000 is allowed to an individual in respect of any contribution made towards a personal-cum-family pension scheme of LIC. The amount of pension received in the hands of the contributor or the nominee shall, however, be taxable but the commuted amount received on maturity of the scheme would be totally exempt from income tax.

Payment of medical insurance premium by cheque upto Rs. 15,000 or Rs 20,000 (in case of senior citizens).
Interest paid on loan taken for higher education from any financial institution or approved charitable organization. Deduction would be allowed for 8 assessment years.
Donations made to charitable organizations, certain funds like Prime Minister’s National relief fund, National Defence Fund etc.

Tax Deductions in India for Other Investments:

Apart from investments in pension plans, the Income Tax Act of 1961 also provides for tax deductions in India for a substantial number of other investments. As per section 80L of this act, individuals are entitled to receive tax deductions on their interest or dividend incomes and the maximum amount of such deduction is provided for, as Rs. 15,000. Some of the prominent investments that are entitled to receive tax deductions comprise:

Investment in under monthly income scheme of the post office
Investment in Debentures or Bonds of an institution/ authority/ public sector company/ cooperative society or other such organization notified by central government.
Investment in with banking institutions
Investment in under other schemes which are notified by central government like national saving schemes, time deposit schemes, recurring deposit schemes.
Investment in units of UTI and Mutual Funds (under Section 10(23D) of the Income Tax Act)
Investment in such authorities which are working for planning & development of cities and village
Investment in financial institution working for Industrial Development of India
Investment in co-operative societies
Investment in under National Deposit Schemes as notified by Central Government

Tax deductions in India for physically challenged persons:

Physically challenged persons whose disability has been endorsed by a qualified medical practitioner of any government hospital are entitled to receive tax deductions in India. In case the persons are subjected to permanent physical disability or suffering from mental retardation, they are allowed tax deductions of a maximum of Rs. 40,000. The Income Tax Act, 1961 provides for the different kinds of disability in a person that will entitle him/her to tax deductions as per section 80DD and 80U of the Income Tax Act. The sections certify a person with either permanent or 50%-60% disability in the limbs as physically challenged. The criteria also include people with permanent blindness or those who have lost their voice.

Special Tax Deductions in India:

Section 80 RR of the Income Tax Act, 1961 covers Indian residents who earn foreign currency are subjected to tax deductions. The category includes prominent individuals like:

Film directors
Sports persons
Authors
Musicians

Such individuals are allowed tax deductions of 75% of the income received in the form of foreign currency and this deduction will be effected within 6 months of the receipt of the income. The time of rebate may however be decided by the Chief Commissioner of the Income Tax Department in special cases. However, section 80 RRA of the Income Tax Act governs the tax rebates allowed to any person who is employed outside India and receives income in the form of foreign currency. Such an individual is entitled to receive tax deduction as high as 75% on his income. The time of tax deduction in this case also will be within 6 months of the receipt of income or vary as per the decision of the Chief Commissioner of the Income Tax Department.

Caution

Aggregate deductions under Section 80C, 80CCC and 80CCD (contribution to pension fund of central government) should not exceed Rs 100,000.

Links

Pay Taxes Online

Comments

tax u/s 80L

On February 23th, 2009 - sharma Rajeev said:

is M.I.S. iNTERSET tAXABLE ( INDIAN POST )

80 RRA

On September 25th, 2009 - Anonymous said:

Sir
I would like to know whether Tax deduction is available for the financial year under section Section 80 RRA for the person defined as Techenisian

Sir, TAX DEDUCTION IS

On September 25th, 2009 - Anonymous said:

Sir,

TAX DEDUCTION IS AVAILABLE FOR THE PERSON DEFINED AS TECHENISIAN UNDER SECTION 80 RRA FOR THE FINANCIAL YEAR 2008-09

YOUR RESPONSE ON THIS MATTER IS HIGHLY APPRECIATED

REGARDS

JANARDHANA

80 RRA Income tax

On September 25th, 2009 - Janardhana said:

any deduction s are available under 80 RRA for techenisian

Good one. Also see how to

On October 26th, 2009 - Anonymous said:

Good one. Also see how to utilize 80C and housing loan for tax exemption here
http://www.toolsbysk.com/skforums/forum/Blah.pl?m-1255505943

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