Tax Planning – How to save tax in FY 2013-14 (AY: 2014-15)

March 2, 2013Save Money

67 Comments

How to save tax

The latest article on tax planning I have written after the Union Budget in Feb 2014 can be found here. The new article has the tax slabs for 2014-15 and all the investments you can make and provisions you can use to save tax. It is a comprehensive list beyond which you can’t do much to save tax 🙂

First, let me explain what exactly has changed in terms of taxation from last year (i.e. 2012-13):

  1. No change in tax slabs 🙁
  2. If your annual income is less than or equal to Rs. 5 lac, you get a tax relief of Rs. 2000. Let me explain this with an example: Suppose a person named Neerav earns Rs. 4,50,000 next year. Neerav does not make any tax saving investments. Hence, his total tax liability will come to Rs. 25,000. Now according to this provision, Neerav will get a tax relief of Rs. 2000 and will have to pay only Rs. 23,000 as tax 🙂
  3. The benefit under section 80CCG could earlier be claimed only by persons whose annual income was upto Rs. 10 lacs. Now the ceiling has been raised and persons whose annual income is upto Rs. 12 lacs qualify for this deduction.
  4. An additional surcharge of 10% will be applicable on persons whose annual income is above Rs. 1 crore. This surcharge will be applicable for only one year.
  5. Additional deduction of Rs. 1 lac will be applicable to persons taking first home loan of up to Rs. 25 lacs for property worth upto Rs. 40 lac. For such persons, the total deduction will be Rs. 2.5 lacs (Rs. 1.5 lac available under section 24(1)(vi) and Rs. 1 lac available under this new section 80EE). More details about this here.
  6. There will be 1% TDS on transfer of immovable property above Rs. 50 lac (not including agricultural land).

Check out income tax calculator for 2013-14

How to save tax in 2013-14

The question that I am asked most often is that my income is Rs. XXXXXXX, what all can I do to save tax? The rest of this article is dedicated to answering that question on tax planning. I have created a comprehensive list of all the provisions that you can utilize to reduce your taxable income.

Tax Slabs

1) In Case of General Assesses (Both Male & Female):

Income Bracket Rate
0 to Rs. 2,00,000 0   %
Rs. 2,00,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 10,00,000 20 %
Above Rs. 10,00,000 30 %

2) In Case of Senior Citizens (Age above 60 years but below 80 years):

Income Bracket Rate
0 to Rs. 2,50,000 0   %
Rs. 2,50,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 10,00,000 20 %
Above Rs. 10,00,000 30 %

3) In Case of Very Senior Citizens (Age 80 years and above):

Income Bracket Rate
0 to Rs. 5,00,000 0   %
Rs. 5,00,001 to Rs. 10,00,000 20 %
Above Rs. 10,00,000 30 %

* On final tax amount, a surcharge of 3 %
**No surcharge above 10 lacs.
***An additional surcharge of 10% will be applicable on persons whose annual income is above Rs. 1 crore. This surcharge will be applicable for only one year

Tax Exemptions: 

1) Section 80 C Limit Unchanged (Rs. 1,00,000)

  • Deduction on life insurance policy, taken after 1 April 2012, will be allowed only if yearly premium is less than 10% of sum assured.  If its more than 10% then not eligible for deduction u/sec. 80C
  • ELSS
  • PPF
  • EPF
  • FD for 5 years
  • Pension Plans
  • NSC
  • Post Office SB
  • Infrastructure Bonds
  • Expenditure on Children Education (For upto 2 children only for full time education)
  • Tuition fees (Only Tuition fees excluding Development Fees, Donations, etc.)
  • Housing loan principal (details here)
  • Deferred Annuity
  • Approved Super Annuation Fund

2) Section 80 CCF – Additional Rs. 20,000 on investments towards approved Infrastructure bonds  (withdrawn)

 

3) Section 80CCD

Deduction under this section can be claimed only if the contribution to your NPS account is made by your employer and the deduction is limited to a maximum of 10% of your basic salary. Returns on NPS are tax free, but withdrawal is still taxable. The deduction under sec 80CCD is over and above the deduction available under sec 80C.

4) Section 80 D

Deduction under section 80D

  • Deduction of Rs. 15000/- is allowed if the same is paid as premium for Medical Insurance taken for self / dependents or towards preventive health check-up (max Rs. 5000). In case any of self / dependents is a senior citizen, the deduction allowed is Rs. 20000/-
  • Additional Rs. 15000/- is allowed as deduction if the same is paid as premium for Medical Insurance taken for parents. In case the parent is a senior citizen, the deduction allowed is Rs. 20000/-
Age profiles Premium paid for medical insurance Total Deduction under Sec. 80D
Yourself, your spouse and kids, if any Parents
Every one is under 60 years 15,000 15,000 30,000
You and your family are less than 60 years & parents are above 60 years 15,000 20,000 35,000
You and your parents are of 60 years and above 20,000 20,000 40,000

 

5) Section 80DD

Deduction under section 80DD

  • Exemption given for Expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid towards maintenance of such dependant.
  • Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1 Lakh in case of severe disability.

6) Section 80DDB

Deduction under section 80DDB

  • Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids.
  • Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens, maximum deduction allowed is Rs. 60,000/-

List of ailments covered:

(i) Neurological Diseases where the disability level has been certified to be of 40% and above,

  1. Dementia ;
  2. Dystonia Musculorum Deformans ;
  3. Motor Neuron Disease ;
  4. Ataxia ;
  5. Chorea ;
  6. Hemiballismus ;
  7. Aphasia ;
  8. Parkinsons Disease ;
(ii) Malignant Cancers ;
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
(iv) Chronic Renal failure ;
(v) Hematological disorders :
  1. Hemophilia ;
  2. Thalassaemia.

7) Section 80E

Deduction under section 80E
Deduction is allowed for repayment of interest component of Higher Education loan. All education after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government.

8 ) Section 80G

  • Contribution to exempt charities – 25/50/75/100% depending on the charity and as per approval
  • 100% exemption on donation to political parties 😉

9) Section 80U

  • Deduction upto Rs. 50,000/- is allowed in case of Permanent Disability.
  • In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs. 1,00,000/-.

10) Section 24(1)(vi) & Section 80EE

  • Housing loan interest. Maximum Investment Limit – Rs. 1,50,000 (for loans taken after 1 April 1999, for loans before that Maximum Investment Limit 30,000).
  • Additional deduction of Rs. 1 lac will be applicable to persons taking first home loan of up to Rs. 25 lacs for property worth upto Rs. 40 lac. For such persons, the total deduction will be Rs. 2.5 lacs (Rs. 1.5 lac available under section 24(1)(vi) and Rs. 1 lac available under this new section 80EE).
    More details here.

11) Superannuation

Any contribution made by a company to superannuation fund upto Rs. 1,00,000 tax free in the hands of the employee.

12) Conveyance/Transport Allowance

Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 9,600 /- (No Supporting Bills required).

13) Medical Allowance

Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /- (Supporting Bills required).

14) HRA

Any House Rent Allowance given to an employee is tax free upto the minimum value of the following conditions (subject to – when an employee can produce rent paid receipts from landlord for the period and if the employee has not availed of tax exemptions for home loan interest / principal repayment):

  1. 50% of Annual Basic (40% of Annual Basic in case of non-metros)
  2. Actual HRA received
  3. Rent Paid – (10% of Annual Basic)
    More details about HRA here.

15) Professional Tax

Any Professional Tax deducted from an employee’s salary can be reduced from the annual salary income to arrive at taxable salary.

16) Provident Fund

Provident Fund contributions (under section 80 C and subject to an overall investment limit of Rs. 1,00,000 ) deducted from an employee’s salary are tax exempt.

17)80CCG – Direct Equity Investment

Under ‘Rajiv Gandhi Equity Savings Scheme‘ – a new equity investor will be able to claim 50% of his investment in direct equity as deduction subject to maximum investment of Rs. 50,000 and provided his taxable income is below Rs. 10 lacs. The investment will be subject to 3 years lock-in.  

Government has notified this scheme (RGESS). Mutual funds and ETFs that invest in BSE100 or CNX 100 stocks or PSUs which are Navratna, Maharatna and Miniratna will qualify under this scheme. These investments can be traded over stock exchange after 1 year of investment. New equity investor has been defined as someone who has opened a Demat account but has not bought any securities till date of notification of this scheme (22 Sep 2012). More information here.

18) Section 80TTA – Savings Bank Interest

No tax will be charged on interest earned on balance in savings bank account subject to a maximum of Rs. 10,000 per year.

You can save money by reducing your taxes and you can also save money by spending less. Spending less does not mean no shopping 🙂 It just means ‘smart’ shopping. Smart shopping involves shopping when there is a sale going on or when you have discount coupons and offers to buy stuff at less than MRP! I love to collect all the discount coupons and offers available for shopping online. Check the navigation at the top of this page to find coupons for your favourite online store. All the discount coupons have been listed based on stores (like Flipkart CouponsSnapdeal CouponsJabong CouponsMyntra Coupons, Makemytrip Coupons, Cleartrip Coupons, etc.) and categories (like Travel CouponsMobile phone couponsAccessories Coupons, etc.). Hope these discount coupons help you save some additional bucks. You can also subscribe your email (form is on top right side of this page) so that you receive the best coupons and offers every week in your inbox  🙂

Any queries? Have I missed anything? Do you know any other way to save tax/money? Let me know in comments below.

Do share this blog with your friends on Facebook, Twitter and Google+ (buttons given below) if you have found it helpful. Thanks in advance 🙂

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About Naimisha Parekh

Online shopping addict, personal finance advisor, mother and a loving wife :)


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67 Responses to “Tax Planning – How to save tax in FY 2013-14 (AY: 2014-15)”

  • Divya March 2, 20135:29 pm

    Hey Naimisha, another useful and timely article from you 🙂

    I have a small query – For people earning more than Rs. 5 lacs per annum, do we get Rs. 2000 tax relief? I think not, but still wanted to confirm

    Thanks for this all in one article 🙂

    • Naimisha March 2, 20135:34 pm

      Divya, your guess is unfortunately right. Tax relief of Rs. 2000 not applicable for persons earning more than Rs. 5 lac pa 🙁

      Am happy to see you read this article within minutes of me writing it. Thank you for all the appreciation 🙂

      • Nagulan February 13, 20144:29 pm

        hi Naimisha, Tax relief of Rs. 2000 is admissible when the taxable income is below Rs. 5 lacs after deductions made for 80C and others from the gross salary. It means not depends on gross income. Kindly verify the income tax dept website and confirm.

  • Umesh March 3, 20132:24 pm

    Dear sir,

                My name is Umesh V Shirsat, Pune team ( UMVS- employee ID 2462 ), there has been hefty amount been deducted from my feb month salary ( Rs. ~ 28,000 ) and the pay sleep suggests more ( Rs. 18,000 ) is supposed to get deducted.

               Though I have not submitted any investment proofs, still this much amount getting deducted is difficult to understand. As per increase in my salary ( from 1.89 to 2.30 ) total 30% tax deducted 3,008 rupees & 10% of incentives i received 50k which is 5,001 I understood. But I didn’t understand other 46,000 being deducted.

               Please explain me what has gone wrong. If in next month further 18k will be deducted I will be in great financial trouble

  • KK March 6, 201311:46 am

    Hi,
    “Additional deduction of Rs. 1 lac will be applicable to persons taking first home loan for property worth upto Rs. 25 lac”

    I guess it is 40L and loan borrow amount should be >=25L.

    Correct me if am wrong.

    • Naimisha March 6, 201312:40 pm

      Hey KK, you are absolutely right. I have corrected the error and updated the article. Thanks for taking the time to point it out 🙂

  • KK March 6, 20131:28 pm

    Your welcome, also pls correct the same in 10) Section 24(1)(vi).

    I thank you for providing valuable information by simply understandable way. Please continue this gr8 work and will share and support

    • Naimisha March 6, 20132:27 pm

      Done and thanks for sharing 🙂

  • D March 6, 20131:43 pm

    Hey nice article 🙂
    I have a query regarding Conveyance allowance. Our company provides us with the transport facility (cab). I am getting a certain amount of conveyance allowance per month as perks.
    Is the tax free limit of Rs 9600 valid in my case?

    • Naimisha March 6, 20132:29 pm

      Strictly speaking No. But..

  • S.Ramachandran March 6, 201311:52 pm

    Can I contribute Rs.1.0 lakh ( in FY 2013-14) towards PPF for availing the entire Rs.1.00 lakh exemption under 80C.

    Sofar I used to invest in Tax Saving FD only

    • Naimisha March 7, 201310:11 am

      You can claim deduction of only 70k even if you invest 1 lac in PPF. You will need to invest the remaining 30k in some other option.

      • Rahul Mehta March 7, 20132:24 pm

        Nice Article, It was really useful, i was able brush my so called ” Taxation ” knowledge today, however one thing struck while I was reading it – Expenditure on Children Education (Upto Rs. 200 per month for upto 2 children) – i still remember reading it back 5 years ago when I was giving my TYBCom exams

        Seems nothing has changed in education allowance field over these many years not even Inflation affected that number!!

        • Naimisha March 7, 20134:08 pm

          In fact, a part of it has changed. You can claim upto Rs. 1 lac for education of 2 children combined. I have updated the article accordingly.

          And thanks for the compliments 🙂

      • S.Ramachandran March 7, 20138:50 pm

        Thank you so much for clarification.

      • S.Ramachandran April 3, 20137:41 pm

        I contacted my bank, where my PPF a/c is maintained. They say that at present the entire one lakh can qualify for deduction under 80C.

        May I have reconfirmation from you

        Thanks & Regards

        Ramachandran

  • KK March 12, 201310:15 pm

    10) Section 24(1)(vi) & Section 80EE
    I think if house is not fully occupied that is one portion given for rent then we can show upto 3 lakhs under this section. For example if one paid home interest of 4L
    if fully occupied 1.5L eligible

    if rented the house for 6000/month then rental income is 72000 , but eligible amount in this section is 3L, so he get additional tax saving of 1.5L-72000=78000.
    Please correct if am wrong, if am right please explain in your style for readers to get benefit.

    By humble request you to register http://www.firstplanet.in and post your blogs to contribute job seekers, job providers, executives, colleges.

    Thanks
    KK

    • KK March 16, 20131:14 pm

      Can you please reply to this?

      • Naimisha March 16, 20135:08 pm

        KK, I am not sure about it.

  • Suma S March 16, 20139:10 pm

    Hello,
    I’m an employee in CTS, and i joined in last August. My salary per month is 21,000. And my package announced was 3lacs. Should i also pay tax for this year? And for this 2013-14 financial year, I’m planning to invest 50K in Fixed deposit, 20K in Post office SB and 30K as Life insurance premium. Will i be completely exempted from tax for next year?

    Thanks in advance.

    • Naimisha March 18, 201310:26 am

      If you have no income prior to Aug’12, then you won’t have any tax liability this year.

      For next year, only 30k invested in life insurance will qualify for exemption. FD and Post office SB will not.

  • CP Sharma March 21, 20134:50 pm

    Hi, I was searching for tax saving schemes & see what i got.
    Best simplified information. Kudos.

    Nice work there.
    Thanks.

    • Naimisha March 21, 20136:34 pm

      Thanks CP !!

      • Krishnan April 2, 201312:16 pm

        Hi,

        My salary is 4.8 lakhs per annum. I am planning to invest 38,000 in LIC, 24000 as child educational expenses and 40,000 on FD for 5 years, so that the 1 lakh limit tax exemption under Section 80c, would this be the best way to save tax, if not please suggest what other alternate way i can invest to save tax the best way.

        Thanks in advance

        • Naimisha April 2, 20134:38 pm

          Nothing wrong in what you have planned.

          • Krishnan April 3, 20131:29 am

            Thanks Naimisha !!

  • Vijay April 16, 201311:17 am

    Hi I have home loan for which I’m claiming 90000 as intrest exception 60000 as principle. But this house is I’m my native, and my parents are staying. In Bangalore I ve taken a house loan jointly with my wife & the loan amount 28L , in the second loan can I share my tax exception from intrest amount. Example intrest on my first loan 90000 I’m claiming but still I can go for 60000. In second house loan intrest amount is about 250000. But my wife is eligible for 1.5L only so out of 1L balance can i claim 60K for tax exemption.

    • Naimisha April 16, 201311:32 am

      Not so sure. I think you can claim provided you are showing income from your other house. Please take a second opinion.

  • Ishteyaq Ahmed Quadri April 20, 201312:51 pm

    Hi,
    I am really felt good reading your article,very nicely clearly explained everything,and the way you write reflects your personality very well.Thank you so much for you kind contribution.
    could you tell me as how much maximum limit I need to invest is I am earning 7.5 Lac annually.
    and what if my company don’t consider HRA when calculation my TDS. please help.

    Thanks and Regards

    I would be happy to include in my Linked_in contacts.

    Ishteyaq

    • Naimisha April 21, 20133:27 pm

      If your company does not consider HRA, then you may look at Housing loan deduction if you have one.

      You can invest in 80C, 80CCD and 80D. Also check if any of the other section mentioned above can be utilized.

      And thank you for your appreication 🙂

      • nikhil singh April 26, 201310:21 pm

        I get around 4000rs as conveyance and 20000rs as house rent every month from my company. The tax calculation is not done on any of these perks. Can I claim tax exemption from these perks even though its not originally added to my gross salary on which the tax is calculated. I’m confused myself hence the confusing question.

        • Naimisha April 29, 201310:27 am

          Your employer may or may not add Conveyance reimbursement to your taxable income but House rent allowance has to be added. Anything that is added by your employer to your taxable income, you can claim deduction on it if applicable.

      • Ishteyaq Ahmed Quadri June 6, 201311:30 am

        Dear Maimishaji,
        Thanks for the response,as of now I haven’t taken any House loan,
        A).my company don’t consider HRA while calculating TDS,can I include house rent Receipt while filing IT returns?the rent amount is 38,850/month.
        B)>please tell me as how much HRA it could be for annual income of Rs.7,5000.
        3).Recently I have won Rs.1 lac for my animated film,they have deducted 30,000 as tax(the tax Document they will send me),can there be anything(bill or investment) shown while IT Returns so the some of the amount payed as tax can reimbursed.

        I would be looking forward for your kind help.
        Thanks for helping.
        Take Care
        Best Regards
        Ishteyaq

        • Naimisha June 9, 20132:48 pm

          A) No
          B) Depends on how your salary is structured
          3) This income has to be added in your total income and tax has to be calculated on overall income as stated in the article above.

  • priyanka May 12, 20136:29 pm

    Hi,

    I read your article and honestly speaking it cleared all most all my doubts.
    Just need your help in my case. My income is 3.5 lacs. So the taxable income will be 1.5 lacs… i have investment of around 2 lac so it will help me reducing the taxable amount by 1 lacs.

    So now the taxable income is 50,000… I am planning to take insurance for me of 15000 so now finally it comes to 35000. Can you please suggest me better way on using this 35000 which will help in tax saving….any option other than loan…i had kept loan option on hold for some personal reasons.

    • Naimisha May 13, 20138:53 pm

      I am assuming 15000 you will invest in insurance will be medical insurance as life insurance is covered under 80C 1 lac limit. You will need to look at salary structure to see if you are getting any allowances like HRA, Medical, Conveyance, Attire, etc. If you are getting these allowances, you can claim deduction for actual expenses made under these categories.

  • Dayan May 14, 20131:43 pm

    Hi thanx for such a resourceful article. I am a PSU employee.My investment structure is as following :
    CPF deducted from salary = 4800 rup/month
    LIC premium = 3500 rup/month
    PPF in SBI = 3000 rup/month
    I am availing tax exemption of 1 lac under sec 80c. My taxable salary is 5.58 lac. Please tell me how should i save more tax as I paid 45k as tax last year.

    • Naimisha May 14, 20132:35 pm

      Refer to my previous reply. You’ll need to check which exemptions can be applied in your case depending on your salary structure.

  • Sidharth June 5, 20138:56 pm

    The article was very informative. But I have 1 clarification. The total limit for 80C and 80CCD together is Rs. 1,00,000. Please correct me if I am wrong.

  • Sandeep June 11, 20134:55 pm

    Hi Naimisha,
    I’m little late to say thanks for your simple and easy to understand article on tax planing, I have gone through it last year article and cross checked this year as well. I really appreciate your effort to write this and like to thank for it.
    Only one thing I would like to point is that, you have corrected some facts after some user pointed them, if this would have been cross checked before then other (who read before) might not have get wrong info. I know I’m expecting too much but just wanted to mention it.

    Thanks again,
    Sandeep

    • Naimisha June 13, 20137:05 pm

      Hi Sandeep, I am no qualified tax advisor or Chartered Accountant. Hence, please pardon errors that I’ve made (and later corrected). I know a lot of such qualified people. The jargons they speak can hardly be understood by normal people. Hence, I made an attempt to explain complex finance stuff in easy to understand language and made a few errors in the process.

      I appreciate your kind words 🙂

  • Sikander August 11, 20132:07 am

    Hi,
    Very useful detailed informations in layman words. Normally I have seen most of the articles are in financial terms. Thank you very much. Please keep doing. All the best.
    My doubt is in the point no.4 Section D. If i have to take a medical insurance for my parents, maximum how much I can(exempt from tax). I understand from ur article is 30,000. Am I right?

    • Naimisha August 11, 201312:39 pm

      No, you are not right. If you are taking medical insurance for your parents, then the maximum deduction allowed is Rs. 20,000 if one or both of your parents are senior citizens. Otherwise maximum deduction allowed is only Rs. 15,000.

      In case you are taking medical insurance for yourself (and wife, kids) then you can additionally claim a deduction upto Rs. 15000 if you are below 60 years and Rs. 20,000 if you are above 60 years.

      There are multiple permutations and combinations possible. Hence, I have added a table explaining all possibilities under sec. 80D right in the article above. Hope it helps.

      And thank you Sikander for all your sweet words 🙂

      • sikander August 11, 201312:54 pm

        Thanks for your swift & appropriate response Naimisha… Just one small suggestion. Could you please make it as an excel sheet with formulas, so that everyone can calculate theirs easily.

        But one small condition, same layman understanding methodology to be used.. 🙂

        • Naimisha August 11, 20131:56 pm

          I’ll give it a try when I get time 🙂

  • SWAPNIL KORTIKAR August 16, 20131:33 pm

    Dear Naimisha,

    Thanks for sharing such good information. I am looking for CFP for my financial planing. Can you please suggest?

    • Naimisha August 16, 20131:40 pm

      Thanks Swapnil. Where are you based out of? I am sure, we will have a few CFPs among our readers who will be happy to help you 🙂

      • SWAPNIL KORTIKAR August 16, 20131:58 pm

        Aurangabad (Maharashtra) 431001.

        • Naimisha August 16, 20132:58 pm

          Any reader from Aurangabad who wants to service Swapnil?

  • SWAPNIL KORTIKAR August 16, 20131:57 pm

    I want to purchase mediclaim floater policy for myself+spouse & Mother+ father (61 years). Which are the better options available in market?

  • Sikander August 16, 20132:57 pm

    Hi,

    I am in need of your support to get exempted from IT.My salary income total 8.75L per annum. In this 92,000 is allocated for Performance bonus, it will be credited yearly once. I have investments only under 80C. I am getting deduction of 2659 rs as IT every month. Your support is highly appreciated to get completely exempted from IT. Thanks.

    • Naimisha August 17, 201311:52 am

      Sikander, it will be difficult for you to get yourself completely exempt from Tax. However, do read all the provisions above and see where all you are eligible.

      One thing you can definitely do is to get Medical Insurance for yourself and family.

      • Sikander August 17, 20133:57 pm

        Hmm. Thats y i am confused. Anyway thanks for your suggestion.

  • R. N. Sharma October 1, 20138:50 am

    Dear sir/madam,

    I consider Tax as burden on our head. Why we should pay tax? Does our government is weak or not getting supports from IMF or World Bank or is there no business to earn money and pay us ? I consider Income Tax as begging or donations with ‘Dadagiri’. I do not like to pay tax if the government has so many source of income from other businesses. If it is genuine to pay, most of the part of IT is kept in the pocket of authorities working at top levels in the form of higher salary, perks, etc.

    • Naimisha October 2, 20134:58 pm

      Mr. Sharma, I fully understand your frustration with our current government and all the corruption cases it has got itself into. However, that is no reason to not pay our taxes. Money is definitely required to build infrastructure and run social schemes to keep our country going. Corrupt politicians and officials do take away a part of our hard earned money but on the positive side, the remaining part of our money is invested in the growth of our country 🙂

  • Prateek Parimal October 24, 201312:24 pm

    Hi maam,

    I have started my job this year and and am paying the ULIP premium of INR 50,000 annually which was earlier being paid by my father but is on my name. What amount can be deducted from my taxable income ??

    • Naimisha October 24, 20131:01 pm

      Full 50k can be deducted from your taxable income, provided your total investments under 80C don’t exceed 1 lac.

  • mksingh December 16, 20137:43 pm

    Hi,

    Could you explain about Equity Savings Scheme (80-CCG)? And all the process like how to invest and from where i should to contact.

    Thanks,
    mksing

  • Nagulan January 21, 20147:16 pm

    hi Naimisha!

    The article is simple and more informative. Your response is also very appreciable. kindly clarify my doubt. I got my first home loan for Rs. 22 lakhs for buying an apartment for a total cost of Rs. 36 lakhs. The loan was sanctioned on 18.03.2013. First installment of Rs. 21 lakh was dispersed as cheque dated 30.03.2013 on 09.04.2013 in the name of the builder. The cheque only encashed after 09.04.2013. Second installment of Rs. 1 lakh was dispersed in May’2013. My question is: am I eligible to avail additional Rs. 1 lakh home loan interest to be deducted in my source of gross income since the loan amount was encashed during April’2013 only. Thank You.

    • Naimisha January 21, 20147:29 pm

      Nagulan, you can definitely claim up to Rs. 1 lac under sec 80C and up to Rs. 1.5 lac under sec 24. All you need to do is ask for a break-up of principal part and interest part of the EMIs paid during the financial year from the company you have taken the housing loan. You can only claim what you have paid or the upper limit whichever is lower. Hope I am making sense 🙂

      • Nagulan January 22, 201411:49 pm

        sorry, in addition to principle part of home loan, LIC premium and PF totally accumulated more than Rs. 1 lakh for me. This will be deducted under sec 80C. I have paid Rs. 32000 as principle part and Rs. 220000 as interest part for my home loan. So, I’ll deduct Rs. 1.50 lakh under sec.24. Shall I avail the balance interest part of Rs. 70000 under sec 80EE since my loan amount was encashed during April’2013. Kindly note that the home loan was sanctioned dated 18.03.2013 only. By the mean time the home loan first installment cheque dated 30.03.2013 was handed over to me on 09.04.2013.

        • Naimisha January 27, 201410:30 am

          Yes, you can claim that.

          • Nagulan January 27, 201412:17 pm

            thank you

  • Biby Michael February 17, 201410:07 am

    I’ve an RD in Post office; depositing Rs.1000/ month. Will I get any tax exemption for that?

    Thank you for your help.

    • Naimisha February 20, 20143:57 pm

      No Biby. However, the interest upto Rs. 9000 is exempt from tax.

 
 

67 Responses to "Tax Planning – How to save tax in FY 2013-14 (AY: 2014-15)"

 

 
 
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