Download Income Tax Preparation Excel Based Software for Govt & Non Govt employees for Financial Year 2015-16 as per the Budget 2015 [ Prepare at a time Tax Compute Sheet + Automatic Arrears Relief Calculator + Form 10E + Automatic HRA Calculation + Automatic Form 16 Part A and B + Automatic Form 16 Part B for F.Y.2015-16]
This an attempt to focus on tax saving instruments, which helps to the tax
payer even without professional or specialized knowledge in tax related, can
also plan properly for hard earning money. This helps to understand a basic tax
saving avenues to the tax paying individuals in India and save tax.
All tax payers know that they can claim deduction up to Rs 1,50,000/- under
section 80C of the income tax. Along with the known investment options , here
are some more extended list which can offer deductions under 80C in the
financial year 2015-16(AY 2016-17). By understanding properly about U/s 80C, a
taxpayer plan their deductions accordingly for their hard earning money
The maximum deduction under 80C combining all
investment all investment deduction is Rs 1,50,000/-.
Provident fund(EPF/VPF):
For salaried employees EPF one of
the deduction. If a company have twenty employees, Under EPF rules of Govt. of
India, you need to contribute 12% of your basic Pay including DA to EPF. The
interest earned on EPF/VPF is tax free. Can take loan against EPF and also do
partial withdrawal under certain conditions. This is the best convenient option
to invest as the amount is deducted from salary.
Public Provident Fund (PPF):
Salaried employee and self-employed
person, PPF is one of the good option. The best long term saving options which
assured good returns. This can get from post offices, 24 nationalized banks and
ICICI Bank with mandatory locking tenure of 15 years and can be extended
further 5 years at a time. Maximum investment under this is allowed Rs:1.5 lakh per year. For keep the account active
minimum investment Rs:500 is required every year . PPF interest is tax free. It
cannot be attached by court orders. Highest safety backed by Govt. of India.
National Saving Certificate
(NSC):
NSC is TAX saving fixed deposit
scheme which you can get from Post offices. These NSC is available with period
of 5 years and 10 years tenure. The interest on NSC is varied every year. Tax
payer can avail deduction is only maximum 1lakh. This NSC can be kept as
collateral security to get loan from varies banks. Highest Safety and backed by
Govt. of India.
TAX Saving FD from
Banks :
There is big differences in Tax
saving FD and normal FD, both are alike except the label. The normal FD will
not entitled for tax saving. These tax savable FD has minimum mandatory tenure
of 5 years and is stamped by bank authorities on top of the page regarding five
years lock-in period. The interest earned on this is taxable and cannot
withdraw prematurely. By keeping this FDs as collateral security can get loan
from the banks.
Five years Post Office Time
Deposit(POTD) :
Post Office Time Deposits are quite
similar to bank fixed deposits. These fixed deposits are available for varying
time duration. Only five years Post Office Time
Life
Insurance Premium
The product you should consider
from life insurance companies is Term Plan and suitable for salaried employees.
The premium paid for life insurance for Self, Spouse and Children can avail tax
deduction under section 80C. Only premium equal to 10% of sum assured will be
allowed for this.
New
Pension Scheme(NPS)-80CCD
The employee who joined after April
2009 came under this New Pension Scheme. In NPS has two types of accounts
Tier-I and Tire-II. The contributions made under Tire-I account is eligible for
tax deductions. Salaried employees who is under NPS can claim deduction up to
10% of their salary, which comprised Basic Pay + DA , which is treated of tax
deductions. NPS can invest maximum of 50% in selected stocks. On death the
entire amount is paid to the nominee.
Tax
Saving Mutual Funds(ELSS):
The acronym of ELSS is Equity
Linked Saving Scheme. These type schemes specially created for tax savings.
This is popularly known as ‘Tax Saving Mutual Fund’ .The ELSS is carries the
some market risks as any other equity fund. The fund with tenure 3 years is
considered for tax deductions. The gains on ELSS Fund are not taxable.
Pension Plans from Insurance Companies-80CCC
The premium paid towards any
Pension Fund annuity plan is eligible for deduction under Sec 80CCC and will
give you tax relief in that financial year. This deduction made under section
80CCC is part of section 80C. There were few launchers in Pension Plan this
year from life insurance companies. Tax payer can choose LIC or private insurer
as their option . This is not good investment option and might give bad
returns. They generally have assured a very low returns in the range of 1-2%
per annum, which is very low return. This is not suggestible as tax saving
options.
Unit linked Insurance
Plan(ULIP):
ULIP acronym is Unit Linked
Insurance Plan which is combination of life insurance and equity investments.
For hefty commissions (70% in first premium) in the ULIP the agents were
pushing the scheme to the people. There are other investment options which can
yield the same gains.
Tuition Fee:
Tuition fee expenses for maximum of
two children is deductible u/s 80C. Maximum Deduction Rs 1,50,000/- is
permutable. For full time courses this deduction is applicable not for tuition
fee to coaching classes or private tuitions.
Stamp
Duty and Registration Cost of the House:
The Stamp duty and registration
charges on purchasing new house up to Rs.1.5 lakh is tax deductible u/s 80C.
The payment made in the same financial year is considered to deductible and
cannot be carried forward to the next year. The house should be in the name of
assesse claiming deduction and stamp duty, registration cost should made from
own funds.
Sukanya Samriddhi Account :-
New Incorporated this deduction U/s 80C by this Finance Budget 2015
which
Max
Limit Rs.1.5 Lakh.
Home loan
Principal
An individual having home loan, can
claim the principal repayment as deduction under section 80C. The deduction up
to Rs 1,50,000/- is allowed on the principle repayment of the housing loan is
self-occupied or vacant.
