CA Sagar Khubchandani
Act before March-end, so that you don’t have to regret in July! So many clients put their palms on their head, when it is the time to pay taxes and file return, in July. Taxes have already fired at them, they have done nothing to save themselves against the tax shots.
They could have saved pretty good amount of taxes, but their lethargy proved to be costly for them. Now is the time! Financial year is about to end, build up your weapons. If you make appropriate investments, you can save a lot of tax.
This section is your strongest weapon. It gives you maximum deduction of Rs 1,50,00 in combination with Section 80CCC and Section 80CCD, if invested in specified instruments. Most popular of those specified instruments are:
The above bullet aginst taxes can be further strengthened under section 80CCD. An additional deduction of Rs 50,000 is allowed under this for investment in National Pension Scheme.
This is your weapon that not only attacks the taxes, but also protects your health. This is deduction for mediclaim premium. Deduction for mediclaim of self, spouse and dependent children is available up to Rs 25,000. The deduction for senior citizens is Rs 30,000, which is inclusive of health insurance premium and medical bills.
Section 80DD is for disabled persons. Persons with disability are allowed a deduction of Rs 75,000, while persons with severe disability are allowed deduction of Rs 1,25,000.
Section 80DDB allows deduction for specified diseases. Rs 40,000 are allowed for medical treatment expenses on self, or dependent relative. For senior citizens, lower of Rs 60,000 or actual expenditure incurred is allowed. For very senior citizens, maximum deduction is allowed Rs 80,000.
Interest paid for education loan of himself, spouse or children or the student of whom he is a legal guardian, is allowed under this section. There is no maximum limit for claiming deduction on interest on education loan.
This section fetches you deduction for donations made. Donation for charity, social or philanthropic motive, or contribution towards National Relief Fund, this donation can be allowed under this section.
But, do remember, for cash payment, deduction only till Rs 10,000 is allowed. For deductions over Rs 10k, donations have to be made through cheque.
These investments need to be made before March 31, so that you can avail benefits of saving tax. So, build up your defense base against taxes. When taxes start firing at you, shoot back with these deductions.