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TAX Saving Tips

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jain01010199

Hi guys, tax season is here and I just want to know how you guys are saving tax:

I think the following are some of the ways:

1. House rent allowance
2. LTA (is there any limit here?)
3. 1.5 lakhs from 80C – PPF/LIC/Tax saving mutual funds, NPS
4. 50,000 from 80CCD NPS
5. 25,000 from Medical Insurance Premium

Are we missing any thing more?

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Deal Cadet Deal Cadet
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Rs 5,000 – preventive health checkups for self, spouse, children or parents [Sec 80D – Over & above 25,000 & It can be incurred in cash]

P.S. – Standard deduction from Salary – u missed to mention.

Deal Subedar Deal Subedar
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LTA is some percentage of basic, but our employer has capped it to 1L

Also NPS by employer contribution can reduce taxable income by 10% basic (with no cap)

Interest on Education loan (i think no max cap)
Also home loan comes under same 80c section

Cool Cool
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jainashish85 wrote:

LTA is some percentage of basic, but our employer has capped it to 1L

Also NPS by employer contribution can reduce taxable income by 10% basic (with no cap)

Interest on Education loan (i think no max cap)
Also home loan comes under same 80c section

1. Thanks, so I think I should ask my employer to restructure my existing salary package so that they contribute 10% of basic to NPS?

2. LTA is already included within our salary package or is it additional money?

Deal Lieutenant Deal Lieutenant
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80C bechara kahan-kahan jaaye, Max cap to 1.5Lac hai joy

And NPS is also under 80C?

Blogger Blogger
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Home loan interest (if loan is there) 

Separate 50k deduction for mediclaim (health insurance) of parents.

Deal Subedar Deal Subedar
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jain01010199 wrote:

1. Thanks, so I think I should ask my employer to restructure my existing salary package so that they contribute 10% of basic to NPS?

2. LTA is already included within our salary package or is it additional money?

If employer chooses to contribute to NPS then it can be shown as expense for employer so it is beneficial to them as well.

Employer has to register with NPS to contribute on employees behalf, employer contribution is out side 80c (1.5L) with no cap subject to 10% max of basic.

Yes, LTA is part of CTC, it is not additional pay, if you submit bills then that part becomes non taxable.

Cool Cool
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Nationalist wrote:

80C bechara kahan-kahan jaaye, Max cap to 1.5Lac hai joy

And NPS is also under 80C?

Nps is considered under 80C which is upto 1.5lakhs + addl. 50,000 under 80CCD
But what I did is I already have enough 80C claims to touch 1.5lakhs
So I made NPS contribution of 50k this year that can be covered under 80CCD

Deal Newbie Deal Newbie
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beingsr wrote:

Rs 5,000 – preventive health checkups for self, spouse, children or parents [Sec 80D – Over & above 25,000 & It can be incurred in cash]

P.S. – Standard deduction from Salary – u missed to mention.

is it for people without health insurance also?

Deal Subedar Deal Subedar
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beingsr wrote:

Rs 5,000 – preventive health checkups for self, spouse, children or parents [Sec 80D – Over & above 25,000 & It can be incurred in cash]

P.S. – Standard deduction from Salary – u missed to mention.

Bruh, care to enlighten more on the 5K preventive health checkup part ? Let’s say I have some 80D of say 10K insurance which I need to show the premium payment receipt, but what about this additional 5K ? any proofs to be shown ? I have already filled my tax proofs and all in office, so we can file while itr returns right ?
P.S: Nevermid, got the info from Google (y); KG for this, never knew about it confused

Deal Subedar Deal Subedar
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One more Avenue. You can claim both HRA and home loan interest benefit considering the flat is in different city. Also I have seen ppl not claiming the HRA fully. you can also claim donations to NGO under 80D.

Deal Cadet Deal Cadet
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There are lots of tax deductible which are specific to employees,eg:- nps,super annuation ,sodexo.which would be beneficial to employees..But most of the employers,including mine,not providing these benefits,eventhough it’s beneficial for them.

Pissed of paying more tax because of this deduction not available.
Deal Lieutenant Deal Lieutenant
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BlueFlash wrote:

Bruh, care to enlighten more on the 5K preventive health checkup part ? Let’s say I have some 80D of say 10K insurance which I need to show the premium payment receipt, but what about this additional 5K ? any proofs to be shown ? I have already filled my tax proofs and all in office, so we can file while itr returns right ?
P.S: Nevermid, got the info from Google (y); KG for this, never knew about it confused

The amount spent on preventive health checkup is not over and above the 80D limits of 25k (non-senior citizen self and family) and 50k (senior citizen parents or self) .

Further, in case you or your parents are senior citizens and do not have medical insurance coverage, u can claim medical expenses incurred on them upto 50k in a year under 80D.

Deal Lieutenant Deal Lieutenant
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Also for those who do not receive HRA, but pay rent, use section 80GG to claim rent expenses of upto 5k per month

Deal Cadet Deal Cadet
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Maverickz wrote:

The amount spent on preventive health checkup is not over and above the 80D limits of 25k (non-senior citizen self and family) and 50k (senior citizen parents or self) .

Further, in case you or your parents are senior citizens and do not have medical insurance coverage, u can claim medical expenses incurred on them upto 50k in a year under 80D.

Is there any provision for people with no insurance if there are all hosp.bills?

Deal Lieutenant Deal Lieutenant
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Yes.. It can be claimed under 80D only for senior citizens without insurance coverage, plus if it is for the treatment of any specified disease, it can be claimed under section 80DDB. Please revert with your case for any specific query.

Deal Lieutenant Deal Lieutenant
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Apart from these you can show donation slips where-ever you have donated. Donation to political parties gives you 100% reduction from taxable salary whereas to NGO will give depending upon NGO registration (upto 50%).
Means if you donate 50k to Political party then you will get 50k rebate in taxable salary and if you donate 50k to any NGO then you will get at max 25k rebate from taxable income.

Deal Cadet Deal Cadet
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Maverickz wrote:

Yes.. It can be claimed under 80D only for senior citizens without insurance coverage, plus if it is for the treatment of any specified disease, it can be claimed under section 80DDB. Please revert with your case for any specific query.

If it is some heart issue without insurance then only can it be claimed? please explain more about this. and for non senior citizens no benefit?

Deal Cadet Deal Cadet
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Tera_Jija wrote:

Apart from these you can show donation slips where-ever you have donated. Donation to political parties gives you 100% reduction from taxable salary whereas to NGO will give depending upon NGO registration (upto 50%).
Means if you donate 50k to Political party then you will get 50k rebate in taxable salary and if you donate 50k to any NGO then you will get at max 25k rebate from taxable income.

who has money here to donate to political parties. sab chor hai.

Deal Lieutenant Deal Lieutenant
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kukdookoo wrote:

who has money here to donate to political parties. sab chor hai.

many people do transfer them for fake receipts and 8-10% of the total money. Just to save on tax.

Deal Cadet Deal Cadet
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Tera_Jija wrote:

many people do transfer them for fake receipts and 8-10% of the total money. Just to save on tax.

apne paas to daal roti ke liye mushkil se jugaad hota hai in choro ko kya de.

Deal Lieutenant Deal Lieutenant
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kukdookoo wrote:

If it is some heart issue without insurance then only can it be claimed? please explain more about this. and for non senior citizens no benefit?

The list of specified diseases (can be claimed for any dependent [whether senior citizen or not] under Section 80 DDB) do not include any heart disease and hence deduction cannot be claimed. The list includes 1. Neurological Diseases where the disability level has been certified to be of 40% and above 2. Malignant Cancers 3. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) 4. Chronic Renal failure 5. Hematological disorders.

The section 80D allows deduction against only against payment of medical insurance premium, however, if an assessee incurs medical expenditure on senior citizen dependent parents or himself / spouse being senior citizen and has no insurance coverage, then section 80D deduction can be claimed for such medical expenditure.

Deal Cadet Deal Cadet
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Political party donation is best if you are in 30% slab
You can easily give 20% of your income as party donation without issues
And get payment slip, also you’ll get back 90% amount in cash, that you cannot put back in bank, just spend it where ever u can

Deal Subedar Deal Subedar
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karanoshan wrote:

Political party donation is best if you are in 30% slab
You can easily give 20% of your income as party donation without issues
And get payment slip, also you’ll get back 90% amount in cash, that you cannot put back in bank, just spend it where ever u can

All rivers of black money ends in the oceans of political parties.

Cool Cool
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karanoshan wrote:

Political party donation is best if you are in 30% slab
You can easily give 20% of your income as party donation without issues
And get payment slip, also you’ll get back 90% amount in cash, that you cannot put back in bank, just spend it where ever u can

Won’t the account books of political parties be audited

Deal Cadet Deal Cadet
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jain01010199 wrote:

Won’t the account books of political parties be audited

You need not worry about that
During note bandi, people’s favourite political party offices were exchanging old notes with new at 30% discount

Deal Cadet Deal Cadet
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Maverickz wrote:

The list of specified diseases (can be claimed for any dependent [whether senior citizen or not] under Section 80 DDB) do not include any heart disease and hence deduction cannot be claimed. The list includes 1. Neurological Diseases where the disability level has been certified to be of 40% and above 2. Malignant Cancers 3. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) 4. Chronic Renal failure 5. Hematological disorders.

The section 80D allows deduction against only against payment of medical insurance premium, however, if an assessee incurs medical expenditure on senior citizen dependent parents or himself / spouse being senior citizen and has no insurance coverage, then section 80D deduction can be claimed for such medical expenditure.

Sir mai aur confuse ho geya
Neurological Diseases where the disability level has been certified to be of* 40% and above*
40% and above ka kya matlab?

Simple basha mein senior and non senior citizens claim kar sakte hai without insurance? What is claim limit? And are the above 4 diseases not covered?

Missing