Tax Saving India

Hello sir, I am Gautam Soni. I am from New Delhi. I want you to help me by providing me some information about the tax saving plans in India. Can you help me?

[Raman Vij]

As you have asked about the tax saving plans in India, I am giving you some info about it
Save Tax under Section 80C, Section 80CCC, Section 80CCD
The maximum combined deduction allowed under these 3 sections is Rs. 1,50,000

There are many instruments which are specified by the Govt through which tax planning can be done and these investments can be claimed as a deduction to save tax. The most popular instruments for investing for the purpose of tax planning to save tax are:-

PPF Accounts
5 Year Tax Saving Fixed Deposit
Equity Oriented Mutual Fund
Pension Plans
Contribution to Employee Provident Fund
Life Insurance Policy
National Savings Certificate (NSC)

Save Tax under Section 80D, Section 80DD, Section 80DDB
The Income Tax Act also allows for deductions to save tax if the expenditure has been made by the taxpayer for insuring his own health or the health of his relatives

Section 80D: Medical Insurance Premium of Self or Spouse or Children
Section 80DD: Medical Treatment of Handicapped Dependents
Section 80DDB: Treatment of Specified Diseases

Tax Planning through Home Loan
If you have taken a Home Loan, you are allowed to claim deduction for repayment of principal amount of home loan u/s 80C.
you are also allowed to claim deduction of interest paid on home loan under section 24. The maximum deduction allowed in some cases is Rs. 2,00,000 and in some cases there is no maximum limit of claiming this deduction for payment of interest on home loan.

Save Tax through Education Loan u/s 80E
If a taxpayer has taken an education loan for the higher education of himself or spouse or children or the student of whom he is the legal guardian, he can claim deduction under Section 80E and save taxes.

Tax Planning under Section 80CCG: RGESS
A taxpayer having annual income of less than Rs. 12 Lakhs p.a. is allowed an additional deduction under Section 80CCG for investing in Shares of specified companies and specified Mutual Funds. This Deduction is called the Rajiv Gandhi Equity Saving Scheme.

Tax Planning of Long Term Capital Gains
If any Long Term Capital Gain is arising to a taxpayer from the sale of any Long Term Capital Asset, he can claim exemption from paying such Capital Gain Tax if he invests the amount of gain from sale of property in specified instruments.

Income Tax Deductions for Donations u/s 80G
If a taxpayer makes a donation for charity, social or philantrophic purpose or makes a contribution towards National Relief Fund, then this donation can be claimed as a deduction u/s 80G of the Income Tax Act.

Long Term Capital Gains from the Sale of Equity Shares
To encourage the public to invest in equity shares and mutual funds, the govt has exempted income tax on the long term gains arising from the sale of equity shares, provided that these shares were held for a period of more than 1 year). If the shares are held for a period which is less than 1 year, tax would be levied @ 15%