Tax Planning for Salaried Individual For FY 2015-16

Tax Planning for Salaried Individual CAknowledge

Tax Planning for Salaried Individual For FY 2015-16. This article help in tax planning for salaried person. Check 5 Tax Saving Strategies. In this article you an find complete details for how to Planning for Tax Savaing for Salaried Employees like – 5 Tax Planning Strategies, Tax Planning U/s. 80C, U/s. 80CCC and U/s. 80 CCD, Tax Planning Sec 80D – Mediclaim, Tax Savings on Home Loan, Tax Planning through 80CCG – RGESS etc. Now you can scroll down below n check more details for Tax Planning for Salaried Individual For FY 2015-16

Tax Planning for Salaried Individual For FY 2015-16

Tax Planning for Salaried Individual CAknowledge

Tax Planning for Salaried Individual

  • —There are no. of ways being within the purview of the Indian income tax act for salaried individual to save taxes.
  • —Lets discuss few of the most popular strategies for FY 2015-16 to save taxes

5 Tax Planning Strategies

  • —Save Tax u/s. 80C, u/s. 80CCC and u/s. 80CCD
  • —Save Tax u/s. 80D – Mediclaim Policy
  • —Save Tax u/s. 80DD and u/s. 80DDB
  • —Tax Planning through Home Loan
  • —Tax Planning through RGESS: u/s. 80CCG

Tax Planning U/s. 80C, U/s. 80CCC and U/s. 80 CCD

  • —An individual can invest in an instrument as specified U/s. 80C, U/s. 80CCC and U/s. 80 CCD
  • —Maximum Combined deduction allowed under these section is Rs.150000
  • —An additional investment of Rs.50000 over and above this limit is allowed, if an individual invest in NPS
  • —In total, an individual can claim Rs.200000 under these 3 section
  • —Most popular investment choices u/s. 80C is
  • —u/s 80CCC one can invest in a pension policy of an insurance company
  • u/s 80CCD an individual can invest in National Pension Scheme (NPS)

Tax Planning Sec 80D – Mediclaim

  • —u/s. 80D, An individual is allowed claim deduction on expenditure if a premium is paid towards mediclaim policy for self & family and mediclaim policy for parents.
Policy for Age Deduction allowed Total deduction allowed
Self and Family < 60 25000 50000
Parents <60 25000
Self and Family < 60 25000 55000
Parents >60 25000
Self and Family > 60 25000 60000
Parents >60 25000
Self and Family > 60 30000 30000
Self and Family < 60 25000 25000

Must Read –

Sec 80 DD and Sec 80 DDB

—u/s. 80DD Deduction is available on

  • —Expenditure incurred on medical treatment, training and rehabilitation of handicapped dependent relative
  • —Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

—u/s. 80DD medical expenditure can be claimed

  • —Where disability is 40% or more but less than 80% – fixed deduction of Rs 75,000
  • —Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1,25,000.

—u/s. 80DDB Deduction is available on

  • — Expenditure actually incurred by individual on himself or dependent relative for medical treatment of specified disease or ailment

—u/s. 80DD Amount of deduction will be lower of amount actually paid on medical treatment or

  • —Individual <60 of Age – Rs.40000
  • —Individual >60  but <80 Age – Rs.60000
  • —Individual >80 Age – Rs.80000

Tax Savings on Home Loan

  • —Indian income tax law gives opportunity to individual investor to build wealth in the form of residential house
  • —An individual can  leverages tax while building his own home
  • —Buying House property on a home loan could cut down your tax bill significantly
  • —As per Indian tax law, an individual is allowed to claim maximum deduction of Rs.
    • —2,00,000 p.a. against interest component of your Housing loan
    • —1,50,000 p.a. of principle paid for the housing loan against u/s. 80C

Tax Planning through 80CCG – RGESS

  • —Under Rajiv Gandhi Equity Saving Scheme (RGESS) you are allowed to invest in direct equity share or eligible MF scheme.
  • —Investors whose gross total income is less than Rs. 12 lakhs p.a. can invest in this scheme
  • —For first time investor in the equity market
  • —Deduction is lower of
    • —50% of amount invested in equity shares or
    • —Rs 25,000

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