Tax Planning - How To Save Tax in FY 2012-13 (AY - 2013-14)

3/20/13
Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

Login
COUPONS & OFFERS
TIPS WALA BLOG
Search for coupon codes
Tax Planning How to save tax in FY 2012-13 (AY: 2013-14)

April 2, 2012 HOW TO, SAVE MONEY
537 COMMENTS
COUPONS FOR TOP SITES

Indiatimes Shopping Coupons (224) Snapdeal Coupons (171) Flipkart Coupons (152) Jabong Coupons (126) Myntra Coupons (122) Makemytrip Coupons (53) Fashionara Coupons (43)
Like
172
357
The latest article on tax planning I have written after the Union Budget in Feb 2013 can be found here. The new article has the tax slabs for 2013-14 and all the investments you can make and provisions you can use to save tax. It is a comprehensive list beyond which you cant do much to save tax
Want to save on Tax?

sundarammutual.com A Doosra Advantage of tax benefits Only with Sundaram Mutual Funds
BabyOye Coupons (42) Rediff Shopping Coupons (37) Homeshop18 Coupons (36) Cleartrip Coupons (29) Yebhi Coupons (25) Infibeam Coupons (22) Starcj Coupons (19) Indiaplaza Coupons (17)
2 BHK Garia Only 38 Lacs

PropTiger.com/ 2/3 BHK Near Hindustan More Garia 2 BHK@38 Lacs, 3 BHK@50 Lacs
IRS-1040 tax return form

hrblock.in/US_Tax_Experts H&R Block-U.S. tax experts now in India. File From Anywhere!
Hassle Free Tax Filings

myuniverse.co.in/E_Filing Know Everything About Taxes In One Place. Plan & File Taxes Now!
(Last updated: 22 September 2012) We know tax planning is a boring and time consuming exercise that you need to do every year. We cannot help you avoid it completely but what we can definitely do is to help you with all the information that you need to plan your tax and save money. The following is the necessary information that you need to know to do your tax planning properly for financial year 2012-13 and Assessment year 2013-14 :
Firstcry Coupons (14) Globus Coupons (12) Expedia Coupons (12) Zovi Coupons (12) 21 Diamonds Coupons (12)
Tax Slabs
1) In Case of General Assesses (Both Male & Female):
Looking OF Saving Tax?

Buy Health Insurance & Save Tax Over & Above sec 80C. Free Quote! ICICILombard.com/Health_Insurance
GET COUPONS AND POSTS BY EMAIL

Like our coupons? Enter your email address and we'll send you the best coupons.
Income Bracket
Rate
howtobuybest.in/tax-planning-how-to-save-tax-in-fy-2012-13-ay-2013-14/#data
1/122
3/20/13
0 to Rs. 2,00,000 Rs. 2,00,001 to Rs. 5,00,000 Rs. 5,00,001 to Rs. 10,00,000 Above Rs. 10,00,000

0 %
Enter First Name Enter Email Address
10 % 20 % 30 %
Subscribe
LET YOUR FRIENDS KNOW

2) In Case of Senior Citizens (Age above 60 years but below 80 years):
Income Bracket 0 to Rs. 2,50,000 Rs. 2,50,001 to Rs. 5,00,000 Rs. 5,00,001 to Rs. 10,00,000 Above Rs. 10,00,000
Rate 0 %
172
Like
20
10 % 20 % 30 % Subscribe
357
3) In Case of Very Senior Citizens (Age 80 years and above):
ADD US TO YOUR CIRCLE

Rate 0 %
Follow
Income Bracket 0 to Rs. 5,00,000 Rs. 5,00,001 to Rs. 10,00,000 Above Rs. 10,00,000
+7
20 % 30 %
* On final tax amount, a surcharge of 3 % **No surcharge above 10 lacs.
SPECIAL OFFER 1
Tax Exemptions:
1) Section 80 C Limit Unchanged (Rs. 1,00,000) Deduction on life insurance policy, taken after 1 April 2012, will be allowed only if yearly premium is less than 10% of sum assured. This is a new change from c.y. earlier it was 20%. If its more than 10% then not eligible for deduction u/sec. 80C ELSS PPF EPF FD for 5 years Pension Plans NSC Post Office SB Infrastructure Bonds Expenditure on Children Education (Upto Rs. 200 per month for upto 2 children) Tuition fees (Only Tuition fees excluding Development Fees, Donations, etc. Maximum allowed: Rs. 24,000/-) Housing loan principal Deferred Annuity Approved Super Annuation Fund 2) Section 80 CCF Additional Rs. 20,000 on investments towards approved Infrastructure Babyoye Get up to 50% off on Benetton Kids apparels and Indiatimes Shopping Coupon Get HTC Desire mobile at amazing price - 0 comments Globus Get flat 50% off on ethnic kurtis - 0 comments
POPULAR COUPONS
2/122
3/20/13
bonds (withdrawn) 3) Section 80CCD:

accessories - 0 comments Globus Shop for Rs.2000 & more and get Rs.250 off - 0 comments Myntra Get assured gift of Rs.999 and more on purchase of Rs.3999 and above - 0 comments Babyoye Buy cloths from Babyoye of Rs. 500 and above and get apparels donated - 0 comments Indiatimes Shopping Get up to 39% off on home appliances and electronics - 0 comments Flipkart Get up to 40% off on books like Lee child, Meluha, Gate 2013 and more - 0 comments
Deduction under this section can be claimed only if the contribution to your NPS account is made by your employer and the deduction is limited to a maximum of 10% of your basic salary. Returns on NPS are tax free, but withdrawal is still taxable. The deduction under sec 80CCD is over and above the deduction available under sec 80C. 4) Section 80 D Deduction under section 80D Deduction of Rs. 15000/- is allowed if the same is paid as premium for Medical Insurance taken for self / dependents or towards preventive health check-up (max Rs. 5000). In case any of self / dependents is a senior citizen, the deduction allowed is Rs. 20000/Additional Rs. 15000/- is allowed as deduction if the same is paid as premium for Medical Insurance taken for parents. In case the parent is a senior citizen, the deduction allowed is Rs. 20000/5) Section 80DD Deduction under section 80DD Exemption given for Expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid towards maintenance of such dependant. Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1 Lakh in case of severe disability. 6) Section 80DDB Deduction under section 80DDB Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids. Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens, maximum deduction allowed is Rs. 60,000/List of ailments covered: (i) Neurological Diseases where the disability level has been certified to be of 40% and above, 1. 2. 3. 4. 5. 6. 7. 8. Dementia ; Dystonia Musculorum Deformans ; Motor Neuron Disease ; Ataxia ; Chorea ; Hemiballismus ; Aphasia ; Parkinsons Disease ;
Myntra Get up to 50% off on jeans wear from Wrangler, Derby, Benetton and more - 0 comments Rediff Shopping Get stylish watches at up to 76% off 0 comments
RECENT COMMENTS
Naimisha on Tax Planning How to save tax in FY 2013-14 (AY: 2014-15) Suma S on Tax Planning How to save tax in FY 2013-14 (AY: 2014-15) Naimisha on Tax Planning How to save tax in FY 2013-14 (AY: 2014-15) Naimisha on Save 5k using Rajiv Gandhi Equity Savings Scheme (RGESS) Sec 80CCG KK on Tax Planning How to save tax in FY 2013-14 (AY: 2014-15)
TOP COMMENTERS
Ami
304 comments
Kirti
18 comments
(ii) Malignant Cancers ; (iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ; (iv) Chronic Renal failure ; (v) Hematological disorders : 1. Hemophilia ; 2. Thalassaemia. 7) Section 80E Divya
Dimple
13 comments
Priya Ranjan Prakash

12 comments
Nishant Agarwal
10 comments
6 comments
3/122
3/20/13
Deduction under section 80E
Deduction is allowed for repayment of interest component of Higher Education loan. All education after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government. 8 ) Section 80G Contribution to exempt charities 25/50/75/100% depending on the charity and as per approval 100% exemption on donation to political parties 9) Section 80U Deduction under section 80U Deduction upto Rs. 50,000/- is allowed in case of Permanent Disability. In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs. 1,00,000/-. 10) Section 24(1)(vi) Housing loan interest.Maximum Investment Limit Rs. 1,50,000 (for loans taken after 1 April 1999, for loans before that Maximum Investment Limit 30,000). 11) Superannuation Any contribution made by a company to superannuation fund upto Rs. 1,00,000 tax free in the hands of the employee. 12) Conveyance/Transport Allowance Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 9,600 /- (No Supporting Bills required). 13) Medical Allowance Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /- (Supporting Bills required). 14) HRA Any House Rent Allowance given to an employee is tax free upto the minimum value of the following conditions (subject to when an employee can produce rent paid receipts from landlord for the period and if the employee has not availed of tax exemptions for home loan interest / principal repayment): a) 50% of Annual Basic (40% of Annual Basic in case of non-metros) b) Actual HRA received c) Rent Paid (10% of Annual Basic) 15) Professional Tax Any Professional Tax deducted from an employees salary can be reduced from the annual salary income to arrive at taxable salary. 16) Provident Fund Provident Fund contributions (under section 80 C and subject to an overall investment limit of Rs. 1,00,000 ) deducted from an employees salary are tax exempt. 17)80CCG Direct Equity Investment Under Rajiv Gandhi Equity Savings Scheme a new equity investor will be able to claim 50% of his investment in direct equity as deduction subject to maximum investment of Rs. 50,000 and provided his taxable income is below Rs. 10 lacs. The investment will be subject to 3 years lock-in. Update 23 Sep 2012: Government has notified this scheme (RGESS). Mutual funds and ETFs that invest in BSE100 or CNX 100 stocks or PSUs which are Navratna, Maharatna and Miniratna will qualify under this scheme. These investments can be traded over stock exchange after 1 year of investment. New equity investor has been defined as someone who has opened a Demat account but has not bought any securities till date of notification of this scheme (22 Sep 2012). More information here. manoj
6 comments
Santosh
6 comments
Amit
5 comments
KK
4 comments
4/122
3/20/13
18) Section 80TTA Savings Bank Interest - No tax will be charged on interest earned on balance in savings bank account subject to a maximum of Rs. 10,000 per year. There is only so much you can do to save money by optimizing your taxes. However, you can also save money by cutting down on your shopping bills. One way to do that is by shopping less. The other more exciting way is by using discount coupons and offers to reduce the cost of shopping. This is a free site that collects all discount coupons and deals. All the discount coupons have been listed based on stores (like Flipkart Coupons, Snapdeal Coupons, Jabong Coupons, Myntra Coupons, etc.) and categories (like Travel Coupons, Mobile phone coupons, Accessories Coupons, etc.). Hope these discount coupons help you save some additional bucks. You can also subscribe your email (form is on top right side of this page) so that you receive the best coupons and offers every week in your inbox :) Any queries? Have I missed anything? Do you know any other way to save tax? Let me know in comments below. Update (21Jul2012): I am overwhelmed at the response this post has received. I am happy that it has helped so many people save on their taxes. A lot of you have also added your comments appreciating the work (thank you!) and asking further questions. Though I try to answer all the questions, I am no tax expert. I am just an investment advisor with my expertise more in investments and less in accountiModal Dialogng. Hence, if you ask me questions that are too specific or for which the law is ambiguous, I will not be able to answer them. I suggest, you consult a certified tax consultant or a Chartered Accountant. I will still try to answer to the best of my abilities Do share this blog with your friends on Facebook, Twitter and Google+ (buttons given below) if you have found it helpful. Thanks in advance
Related Posts
Tax Planning How to save tax in FY 2013-14 (AY: 2014-15)
All the ne ce ssary inform ation that you ne e d to k now to do your tax planning prope rly for financial ye ar 2013-14 and Asse ssm e nt ye ar 2014-15...
Save 5k using Rajiv Gandhi Equity Savings Scheme (RGESS) Sec 80CCG
W e e x plain R ajiv Gandhi Equity Saving Sche m e (R GESS) in sim ple language and te ll you how you can save an additional R s. 5000 in tax e s this ye ar...
Best current account bank in India

W e e valuate IC IC I Bank , HDFC Bank , IDBI Bank , SBI, Bank of India, C itibank and HSBC to se e which bank offe rs the be st curre nt account in India...
Company Reports Free research reports for listed companies in India

Download fre e com pany re ports for com panie s liste d on Indian stock e x change s. The se re ports are publishe d by le ading brok e rs and update d he re re gularly....
Best Demat Account Providers In India

C he ck the charge s of various de m at account provide rs in India. W e te ll you which is the be st de m at account provide r in India base d on charge s and se rvice ....
Zemanta Like 172 357
Tags: personal finance, tax planning
94440 total views, 6 today
5/122
3/20/13
Author
About Naimisha Online shopping addict, personal finance advisor, mother and a loving wife :) Other posts by Naimisha Google+ Profile
Leave a comment
537 Responses to Tax Planning How to save tax in FY 2012-13 (AY: 2013-14)
Prateek
April 4, 2012
12:26 pm
Will the interest earned on FDs, less than 5 years come under, interest earned in SB A/c not more than 10K clause?
Reply
Colonel Zaysen
November 15, 2012
11:51 am
Prateek, This Savings Bank Interest Clause is only meant for those who have only Salaried Income and Savings Bank Interest. Tax on their Salary is Deducted at source by their employer and so to give them relief of not filing IT Returns this clause was introduced to make their taxable income nil. FD Interest is not eligible for deduction under this section and is fully taxable.
Reply
Naimisha
November 15, 2012
12:20 pm
1Thanks for sharing Colonel Zaysen!
Reply
manoj
January 21, 2013
11:48 am
Hi Naimisha, Thanks for this wonderful post. I
6/122
3/20/13

want know, as a salaried employee(income tax payable) and having a savings bank account, is the interest taxable? thanks.
Reply
Naimisha January 21, 2013 12:37 pm
Yes.
Reply
sumit
December 29, 2012
2:06 pm
but i read that this sec. is not for salaried persone, as per book of vinod gupta and bare Act, this is for Individual and Huf (Karta Accounts) (whatever source of income), whos gross total income is less then 10 lakh . if they are recive interest on saving a/c then they are eligible for ded. up to rs10000
Reply
sumit December 29, 2012 2:10 pm
sorry,, in the above repply i write a condition of rs 10 lakh,,,,,this is not for above Exemption this is wrongly quoted
Reply
Patole Daniel
December 10, 2012
11:53 am
lat me know 80ccf for F.Y. 2012-13
Reply
Naimisha
December 10, 2012
12:04 pm
80CCF is not available in 2012-13. It has been withdrawn.
7/122
3/20/13
Reply
Ami
April 4, 2012
6:53 pm
Prateek, the Rs. 10000 SB interest clause has not yet been defined clearly. However, in all probability, interest earned on FD will not qualify for deduction under this clause. By the way, interest earned on 5 year tax saving FD is also taxable
Reply
B.C.Balasubramanian
September 11, 2012
5:38 pm
iF THE SBA/C interest exxceeds 10K, willthe excess over 10K only will be taxable OR the entire amount. . Though you have stated that the position is not fully spelt out,do you have anyfurther views
Reply
Ami
September 11, 2012
11:13 pm
I think interest amount above 10k will be taxable.
Reply
Nishant Agarwal
October 1, 2012
12:03 am
Sir, as per the provisions of TDS defined us/ 194A , if the amount of tax during the previous year over saving bank account exceeds Rs 10,000/- , TDS shall be deducted over the whole amount and not the amount exceeding over and above Rs 10,000/-.
Reply
Ami
October 1, 2012
1:52 pm
Hey Nishant, thanks for correcting!
Reply
8/122
3/20/13

vikram r November 20, 2012 2:05 pm
ya ya ur right
Reply
Divya
April 7, 2012
1:56 pm
Is ELSS still allowed under 80C?
Reply
Ami
April 7, 2012
2:01 pm
Yes Divya, ELSS is still allowed under 80C. At least for one more year before the direct tax code gets implemented.
Reply
Pankaj
April 8, 2012
2:50 pm
this is best article i searched for Tax Planning and also up to date but Ami.. Do you Sure such a limit of 24000/- on tution fee as shown in your article. Please Make me sure. Please give any reference if Possible for you
Reply
Ami
April 9, 2012
10:56 am
The deduction of Rs. 24000 towards tuition fee is allowed to the best of my knowledge. You can cross check the facts on Income Tax India website (http://incometaxindia.gov.in). And thank you for your appreciation. Certainly boosts my motivation to write more helpful articles
Reply
Manish Kamdar
August 23, 2012
10:37 am
9/122
3/20/13
Rs.100000/-.

Deduction for tuition Fees is available up to
Reply
Ami
August 23, 2012
10:39 am
I dont think so Manish
Reply
ketki October 19, 2012 1:59 pm
80C limit is restricted to rs 100000/-. This includes Tution fees alsoand entirely Tution fees can be Rs 100000/- and it is not restricted to Rs 24000/-
Reply
Rajeev October 20, 2012 5:08 pm
Tution fees for 2 children ( per parent) is allowable u/c VIA u/s 80C for 1 lakh rupees
Reply
Nishant Agarwal
October 1, 2012
12:22 am
Dear Ami, stating the fact of Rs 24,000/- is not correct , tuition fees covered u/s 80C is bounded by the limit prescribed for 80C, 80CCC & 80 CCD which is combinedly Rs 1,00,000/-. Thus tution fees can be claimed for exemption paid for the children (upto two children only) of assessee can be allowed as deduction upto Rs. 1,00,000/-. You can cross verify by searching for details u/s 80 C over google or income tax site. There might be some confusion regarding the limits of tution allowance in case of salary head in your mind. Kindly check the same.
10/122
3/20/13

Reply
Prabhakar
July 20, 2012
9:36 pm
i think there is no such limit .
Reply
Prem Kumar Goyal
April 9, 2012
1:06 pm
Agriculture Income is also tax free .Pl. Arrange to mention.
Reply
Ami
April 9, 2012
1:18 pm
Prem, the objective behind this article is to help readers save money on their taxable income. Agriculture income, as you rightly said, is tax free and hence is outside the purview of this writeup. But thanks for pointing it out.
Reply
Avijit Guha
April 10, 2012
1:35 pm
Thank You Ami, This is best article Published on Tax planning till date. Can you tell me more about Medical Checkup and Interest on Bank SB account.
Reply
Ami
April 10, 2012
1:48 pm
Hon. Finance Minister, Pranabda, in his budget speech, announced exemption of additional Rs. 10,000/- under section 80D for preventive health checkup. Before this announcement, any check-ups were not covered. Only premium towards health insurance policies was exempted subject to limits. But with this provision, we can now go ahead and get our health check up done and claim exemption on the expense, again subject to Rs. 5000 limit. Another announcement made by Pranabda was about interest earned on savings bank account. Till last year, any interest you earn from your savings bank account was added to your total
11/122
3/20/13

income and taxed accordingly. However, from this year on ward, interest earned up to a max limit of Rs. 10000 will not be added to your taxable income. With interest rates on savings account increasing in the last few months (Kotak & Yes bank are giving 6%-7% per annum vs others at 4%) this is a welcome exemption. I hope to have answered your queries. Do write back if I can help you further. And thanks for your kind words
Reply
vishal
June 1, 2012
12:43 pm
Hi Ami, Wanted to know how do I claim deduction under sec80D for preventive healthcare. Do I have to specifically go for such packages or can I claim for individual check-ups? eg:- say I spend Rs 200/- for blood sugar test for my mom. Can I claim deduction for that under preventive health care? Also which are the various tests that are allowed under preventive health care?
Reply
Ami
June 1, 2012
12:57 pm
Vishal, you can claim expenses for preventive health checkup for your own self. All you need to do is preserve the bills. However, I am not sure if you can claim expenses for check-up of your mom. Can any of our readers help?
Reply
vishal June 1, 2012 2:41 pm
Most of the websites say that preventive health check-up expenses can be claimed for self,spouse,children and parents,max upto Rs 5,000/- but there is no info as to what
12/122
3/20/13

kind/nature of tests are allowed. Also do we have to do the tests only at govt. authorised labs or could be at any lab. I see many labs offering preventive heath check-up packages. Is it mandatory that we have to opt only for such packages or can we get the individual tests done at any lab and preserve the bills? Can any one pls help with the some info. on this.
Reply
yogi
June 6, 2012
11:00 pm
200000+100000 nsc that is free but i want mor how pls tel me
Reply
Ami June 7, 2012 10:15 am
Dil always maange more.. read the article above and see which all sections you can take additional benefit from.
Reply
khushi February 28, 2013 2:07 pm
can any body tell me is there any tax saving in form of deprecation of four wheeler vehicle?
Reply
david
July 27, 2012
7:04 pm
Hi Ami, Can you please tell, that if I have earned an interest of
13/122
3/20/13

say 12000 Rs on my savings bank account, then while filing my IT do I need to show the interest as Rs 12000 or Rs 2000 (since interest above Rs 10000 is taxable, so should i deduct 10000 from my total interest earned) ?
Reply
guna
September 17, 2012
9:53 pm
you have to show the entire amount and deduction ofRs.10000/- under sec80TT.
Reply
Jayanta
April 10, 2012
1:56 pm
Please eloborate on Direct Equity Investment Procedure how to invest in this Is there any scheme so that we can start investing Is the old ELSS on tax saving mutual funds applicable.
Reply
Ami
April 10, 2012
2:33 pm
Hi Jayanta, There isnt much information available on Direct Equity Investment as of now. Awaiting more details from the Finance Ministry. Will keep this post updated. Exemption on ELSS under 80C is applicable for this year (at least).
Reply
Jayanta
April 10, 2012
2:45 pm
Thanks Ami
Reply
Jayanta
April 25, 2012
11:48 am
14/122
3/20/13

Ami, Do you have any updates on Direct Equity Investment already a month has passed and delay in this can affect our tax planning
Reply
Ami April 25, 2012 12:06 pm
Jayanta, Still no information on Rajiv Gandhi Equity Scheme. The last that I heard was AMFI pitching to manage this scheme. No other details yet.
Reply
Ajay November 5, 2012 4:23 pm
And yes, that conclusion has come.You can visit this site : http://www.finmin.nic.in/press_room/2012/FM_RGESS_investors.pdf
Reply
Naimisha November 5, 2012 4:27 pm
Thanks for sharing Ajay
Reply
Tarak Krishna Ray
April 10, 2012
2:47 pm
Dear Ami, I have a home loan of 4 lakh taken 2007 and I am claiming the tax benefit. Naturally I dont claim tax benifit fromHRA. Now if I prepay the balance house loan principal and take another house loan to buy another
15/122
3/20/13
situation. Regards, Tarak

flat at same city. Can u suggest some idea how to save tax in this
Reply
Ami
April 10, 2012
5:18 pm
Hi Tarak, There are exemptions available under two different sections for Housing loan. Sec 80C allows deduction of upto Rs. 1 lac for payment of PRINCIPAL part of your EMI whereas Sec 24 allows a deduction of upto Rs. 150000 for INTEREST part of your EMI. You cannot claim deduction under sec 80C for your second house if you are not staying in it. This deduction can be claimed only if you are living in a city, different from where your house is located, for occupation/job purpose. In all other circumstances, no deduction is allowed. However, you can claim deduction under sec 24 for the interest part even if you are not staying in that house. However, the maximum exemption stays at 1.5 lac. So even if you are paying EMI on 3-4 different properties, you will be allowed exemption only up to Rs. 1.5 lac combined.
Reply
Hari
October 24, 2012
11:00 am
Dear Ami, Interest on housing loan is allowed for aquistion or construction for a self occupied house
Reply
babu
January 29, 2013
10:17 pm
i have an annual income from business rs 200000 plus interest income of 200000 and my spouse (housewife),s interest income of 200000.how can we save tax by financial planning?
Reply
Naimisha
16/122
3/20/13

January 30, 2013 11:11 am
Please read the article above for all the tax saving opportunities available to you.
Reply
Nishant Agarwal
October 1, 2012
11:35 am
For equity investment u/s 80CCG , the type of equity in which investment can be made will be: refer to the circular issued by the CBDT ; link is provided below http://law.incometaxindia.gov.in/DIT/File_opener.aspx? page=CIR&schT=&csId=84b915e5-4283-4d35-88bc98f7d636b7ce&crn=&yr=ALL&sch=post%20office&title=Taxmann%20%20Direct%20Tax%20Laws
Reply
Ankur
May 21, 2012
11:33 pm
Hey Ami, Please elaborate more on NSC and FD for 5 Years, my question is Will the NSC/FD amount forms part of deduction or it is only Interest amount that forms part of deduction? Thanks!!
Reply
Ami
May 22, 2012
10:27 am
The amount you invest in NSC/FD forms part of deduction and not the interest.
Reply
Deepak kadam
May 22, 2012
6:17 pm
Namiksha thanks for your valuable inputs. Its very importance information and i found it very handy.
Reply
17/122
3/20/13
Ami

May 22, 2012 6:51 pm
Thanks Deepak for the kind words
Reply
Venu
May 26, 2012
5:38 pm
Can u give a best tax planning to save tax, my salary take home is taxable 8L, i am 25. i am having lic 40K no housing lone. give me you valuable suggestion to me So I can follow
Reply
Ami
May 27, 2012
11:05 am
Hey Venu, you have shared very little information to do detailed tax planning. However, with whatever youve shared, the following can help you save tax: Since you are salaried, your employer must be deducting PF. That will add up as a deduction under 80C. 1,00,000 40k(lic) PF = what you need to invest in ELSS or any other scheme mentioned under 80C. Get a health insurance for yourself (not just for tax saving purpose off course) Deduct conveyance allowance part of your salary up to 9,600 (Bills reqd) Deduct medical allowance part of your salary up to 15,000 (Bills reqd) If you are staying in rented premises, check point 14 above. Point 17 above will also help but the process is not yet clear.
Reply
Akshay M Page
May 29, 2012
1:11 pm
Ami, I think new national savings Certificates (N S C) are issued by post offices for 10 years, but i think they are not allowed as deduction u/s 80 C. Please clarify so that readers get a clear idea.
Reply
18/122
3/20/13
Ami

May 29, 2012 3:31 pm
Akshay, we are reasaonably sure that the investment in NSC is allowed as deduction, under sec 80C, up to a max limit of Rs. 1 lac. You may still want to clarify with your CA. The interest is taxable.
Reply
Raghav
May 31, 2012
5:44 pm
What is the Max limit for Petrol Conveyance to the Employees ?
Reply
Ami
June 1, 2012
10:41 am
There is no max limit to petrol conveyance provided you file all the bills.
Reply
Meena Semwal
August 23, 2012
9:49 am
Hi Ami, It was amazing to read all your replies, need a help from you in one of your thread about petrol exemption. My father in law is a taxi driver but can we claim his petrol bill for exemption.
Reply
Ami
August 23, 2012
9:59 am
Hey Meena, one word answer to your question: NO
Reply
Krish
June 1, 2012
1:35 pm
19/122
3/20/13
need

Great article! Thanks for taking the time. For people like me, this is all I
Reply
Ami
June 1, 2012
3:54 pm
Hey Krish, am glad it was of help to you
Reply
Subhasis
June 2, 2012
12:52 pm
Hi Ami, I have taken a home on my name but if the loan(45lacs) is on the name of me and my wife, will it be possible to save taxs for both of us.
Reply
Ami
June 2, 2012
1:02 pm
Yes, both of you can claim deduction provided both of you contribute towards the EMI. The deduction will be to the extent of individual contribution and subject to caps mentioned above.
Reply
surendra
June 4, 2012
9:54 pm
this year i got rs 9500 /- different saving banks accounts. Whether i need to pay tax on this?
Reply
Ami
June 6, 2012
10:29 am
This exemption is applicable starting from FY 2012-13. Assuming, youve received Rs. 9500/- in this financial year across your savings accounts, the amount will be exempt from tax. However, interest above Rs. 10,000/- will be taxable.
Reply
20/122
3/20/13
Amit
June 5, 2012
2:47 pm
Pls include/explain LTA as well
Reply
Ami
June 5, 2012
9:56 pm
LTA is Leave Travel Allowance. This exemption can be claimed for expenses made on your travel in India (only). The travel should be made using the shortest route or cheapest mode. You need to maintain all bills and tickets. LTA can be claimed only twice in 4 years.
Reply
Sriram
June 9, 2012
10:58 am
Hi Ami, The blog is too nice. You are doing a very good job and thank you. Could you pls let me know the saving in other than 80C section.
Reply
Ami
June 9, 2012
6:44 pm
Hello Sriram, there is savings possible under each of the sections mentioned above. Depends on what all is applicable to you. Do read each one of them in detail and see if you can take advantage of it. And thanks a lot for your sweet words
Reply
Shoaib
June 10, 2012
3:55 pm
You are ossum Ami.. Ofcourse, I am talking about your blog..
Reply
21/122
3/20/13
Ami

June 10, 2012 8:03 pm
You are ossum too.. Ofcourse, I am talking about your comment
Reply
himanshu
December 8, 2012
12:00 am
hi naimisha , thanks for enlighting me and adding to my knowledge of income tax my ques. is tat i do make many FD online for different time interval with cumulative intrest option , so i made many FD inthis year too , and many fd in previous years which are getting mature in this financial year , kindly tell me how to calculate intrest for it
Reply
Ramesh Mojidra
June 13, 2012
12:21 am
I am a Permanant Physical Handicapped person with 55% disability & Certificate issued by Civil Hospital,Ahmedabad . I want to know how much Rs. I get deduction under Clause 80 U of Income tax Act.
Reply
Ami
June 13, 2012
10:01 am
You can claim a deduction of Rs. 50,000/- under sec 80U.
Reply
Rajesh
June 13, 2012
8:31 pm
hello ami, ur blog is very simple and easy to understand. keep up the good work !! i have a doubt about medical health insurance. i had purchased a two year policy and paid consolidated premium. how would the premium be taken in to account for exemption in 80D ?
Reply
22/122
3/20/13
Ami

June 13, 2012 8:39 pm
Its a tricky call. You should ideally consult your CA on this. If youve paid a consolidated premium and claimed a deduction on the whole amount last year, you will not be able to claim it this year is what I think. But not very sure. Do re-check. And thanks for your kind words
Reply
NAGESH SUMANT
June 16, 2012
10:04 am
If in Payment Slip not mentioned traveling Allowance then is it possible to deduct 9600/- from income
Reply
Ami
June 16, 2012
10:20 am
No. If your employer is not giving you travelling allowance, you will not be able to claim a deduction for the same.
Reply
Rakesh
June 20, 2012
4:23 pm
Thanks for such nice article Naimisha, it is very helpful. BTW, if possible could you please write an article where how much one has to pay tax? I have categorized it in the following: 1. Those who have home-loan 2. Those who dont have home-loan Also, please give us more idea on how to save tax give us all possible ways or areas where we can save tax. I know more people will be happier to know this and I am sure it would help a lot of people. For instance, I get benefit only for home-loan, medical, & 80C nothing else, I am just trying to see are there any other area where I could have saved my tax. Thanks.
Reply
Ami
July 19, 2012
10:24 am
23/122
3/20/13
Rakesh, This article is meant to help in exactly what you are asking for. There are many permutations and combinations of sources of income, expenses and investments. Hence, it is difficult to give exact tax liability and savings.
Reply
Abhay
June 22, 2012
4:21 pm
I just want to know that to which extent fuel reimbursement is tax free. (A person have company provided Car & maintenance charges also beared by company. He is getting Rs. 7000/- as Fuel Reimbursement in such case perrks amount is Rs. 1800/month. I just want to that is this right way or not.
Reply
Ami
July 19, 2012
10:26 am
Abhay, Fuel expense reimbursement (full amount) is tax free (provided it is supported by bills) as far as I know. I am not too sure about its treatment as perquisite
Reply
Shruti
June 25, 2012
2:54 pm
Thanks for your blog. It makes the process very simple. I need guidance on Section 80 D. Under that section you specified two points, i didnt get the difference b/w both. Both sounded same to me. Apart from that, i would like to know whether i am eligible to take this benefit for my parents, considering i am married now. However, since my parents have two daughters and i am owning full medical expenses for my parents. My parents are retired now starting from july.
Reply
Ami
July 19, 2012
10:30 am
Shruti,
24/122
3/20/13
parents.

The first point is for self and dependents. The second point if for
Since you claim deduction on payment of up to Rs. 15000 for health insurance premium for your parents. In case they are senior citizens, you can claim up to Rs. 20000
Reply
Munish
June 25, 2012
7:55 pm
Good Article. I have a question. For loan taken over under construction property we cant claim interest and principal deduction. Any other way where we can save tax. Also if we sell property withing 5 years of purchase then it comes under perview of tax and we have to reverse the deduction claims in previous years. Is this correct? Please clarify.
Reply
Ami
July 19, 2012
5:39 pm
Munish, I am not sure. Please check with a Chartered Accountant.
Reply
ravinder singh rawat
June 26, 2012
11:40 am
very good informative article. Is there any substitute of 80ccf for the fy 1213?
Reply
Ami
July 19, 2012
5:40 pm
Hey Ravinder, There is no substitute for 80CCF.
Reply
Aman
June 26, 2012
2:29 pm
25/122
3/20/13

please confirm w/c is correct of the below. 1. Preventive Health Check Up (Parents) and Preventive Health Chec k Up (Self) with limit up to 5000 each. Total for 2 items 10000. 2. Preventive Health Check Up (Parents) and Preventive Health Chec k Up (Self) with limit up to 5000 combined, therefore total is 5000.
Reply
Ami
July 19, 2012
7:11 pm
Aman, I think the deduction for preventive health check is valid for individual and only up to Rs. 5000
Reply
ami
June 27, 2012
5:18 pm
Those who are drawing double Transport Allow (disabled persons) are eligible for double deduction of Transport Allow i.e. 9600+9600=19200 or only Rs.9600/-. Please clarify
Reply
Priyesh
July 4, 2012
12:34 am
Hi Ami, Its nice and handy article for the current year, but I still have a few questions as follows. 1- Maximum limit of interest paid on education loan, nowhere defined on web . Does it have any maximum limit for interest paid on education
loan or it is on actuals ? 2- Section 80CCF is completely withdrawn or we have something new this year in this section? 3- Is it correct that the maximum tax can be saved by a normal salaried person this year is 1,35,000 as => 1,00,000(80C) + 15,000 (80D) + 15,000 OR 20,000 (80DD, 80DDB) 1,35,000/(Note: Not considering any donation and interest paid on education loan
26/122
3/20/13

as dont know the maximum limit) Regards
Reply
Ami
July 19, 2012
7:17 pm
Hey Priyesh, My answers are as follows: 1. I assume it is on actuals but not sure. 2. 80CCF is completely withdrawn 3. Donation to political parties is 100% exempt. Hence, you can save 100% of your tax if you plan to donate it to our politicians
Reply
raghav
March 1, 2013
8:54 pm
nice reply,thanks
Reply
Santosh
July 5, 2012
8:56 am
Hi, Thanks for easy, helpful & good blog. Keep it up! I would like to know the new updates for home loan tax exemption. Regards,
Reply
Ami
July 19, 2012
7:18 pm
Santosh, thanks for the kind words. The home loan info on this page is up to date.
Reply
Anand
July 5, 2012
9:11 pm
27/122
3/20/13
Deduction under section 80DDB

Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids. What are the documents required to claim deduction under 80DDB?
Reply
Ami
July 19, 2012
7:19 pm
Hey Anand, I dont know what documents are required. Please check with a CA or some reputed doctor.
Reply
Raghavendra
July 6, 2012
2:21 am
I have a question regarding the savings bank interest for tax computation. It is clear that if the interest is upto 10000 there is no tax. However if the interest is lets say 15000 then does that mean the first 10000 is not taxed and tax should be paid only for the remaining 5000 ?
Reply
Ami
July 19, 2012
7:20 pm
Yes, as far as I know
Reply
yusuf ali
July 6, 2012
9:21 am
what about intrest from NSC ? is it tax free under sec 80(c)? i invested purchased NSC of rs 1 lakh . my intrest from NSC i purchaesd is rs 21787.this intrest will be calculated under income from other sourse? my salary income is 450000. how much i will pay tax? can you pls COMPUTE for me?
Reply
28/122
3/20/13
Ami

July 29, 2012 2:13 pm
Hi Yusuf, The interest on NSC is taxable. It is not possible to compute tax on basis of information youve provided. Besides, I am not authorised to calculate tax.
Reply
virendra
July 6, 2012
8:18 pm
good article.
Reply
Ami
July 29, 2012
2:15 pm
Thanks Virendra!
Reply
satya jyothi
July 7, 2012
4:31 pm
you mentioned that only the amount invested in FD for 5 years is eligible for deduction under 80C. What about the interest deemed to be accrued to the investor is o be treated in the next year?this situation occurs in a cumulative tax saving deposit for 5 years. i had a feeling this accrued interst amount could be claimed for deduction under 80C. please clarify. BTW your blog is well written. By googling only i discovered you. keep up the good work. you may reply to me by email if time permits. A senior citizen 70+ from Bangalore.
Reply
Ami
July 29, 2012
2:16 pm
Hello Satyaji, Interest accrued on tax saving FD is taxable. and thanks for your kind words!
Reply
29/122
3/20/13
Sharad
July 9, 2012
2:09 pm
Thank you Ami, This article is of big help for Income Tax newbies like me.
Reply
Ami
July 29, 2012
2:17 pm
Happy that it helped you Sharad!
Reply
Vandan
July 10, 2012
11:08 pm
Hi Ami, Nice & useful post. I want to ask u about whether we can claim tax-rebate for home loan principal amount and interest amount even if house is under-construction. or we can claim only principal amount under 80C. Plz explain.
Reply
Ami
July 29, 2012
2:18 pm
Hi Vandan, I am not sure. Please consult a CA.
Reply
yadav
July 11, 2012
11:35 pm
nice article..learned a lot as a newcomer in this field.
Reply
Ami
July 29, 2012
2:18 pm
Thanks Yadav
30/122
3/20/13

Reply
Pawan Sharma
July 12, 2012
10:23 am
Thanks for sharing valuable information, its really helpful for all.
Reply
Ami
July 29, 2012
2:19 pm
Thanks Pawan!
Reply
RK
July 12, 2012
12:19 pm
thanks Amiit has been a very useful artical @ computing the tax of FY 2012-13. I have just few query on subject to said artical. could you plz clarify for mine knowledge-* 1) can we consider the deduction u/s 80ccd at salary tax computation from employer, if yes then what is the actual limt over & above u/s 80c (i.e. 1 lac) 2) At same time we can include the 80g exemption on salary tax computation from employer please be clarify my above query. thanks in advance Regards, RK
Reply
Ami
July 29, 2012
2:49 pm
Hello RK, 1. The contribution to NPS is deductible over and above 1 lac limit underc 80C 2. yes.
Reply
Nitin
July 12, 2012
4:34 pm
31/122
3/20/13
Dear Ami,
V good informative article, easy to understand,really nice ,,,,,,one of the best on this topic,,,,, Keep the good work on Nitin
Reply
Ami
July 29, 2012
2:50 pm
Thanks Nitin!
Reply
ganesh ji dixit
July 13, 2012
3:04 pm
Dear Ami, Please elaborate on a point relating to second housing loan taken jointly with father and son the interest applied on this loan account can be shared by both 50% each and what procedure is to be followed for the same Please advise
Reply
Ami
July 29, 2012
2:51 pm
Dear Ganeshji, I am not sure with respect to tax treatment of second housing loan. Besides, it is also jointly help. You should consult an expert.
Reply
Prateek
July 16, 2012
6:07 pm
Would like to know, what includes the definition of preventive health check up. What test are included in such health check up. Can we go for any test and claim a sum of 5000 per assese
Reply
32/122
3/20/13
Ami

July 29, 2012 2:53 pm
Hello Prateek, What is included under preventive health checkup is not clearly specified.
Reply
ARUNABHA
July 17, 2012
8:48 am
Hi Ami, Your blog is the best ! I have home loan and I am claiming the tax exemption for that, but now I am trasferred to a different city and I am staying in a rented house. I can not claim for the principal part as I am not staying there. But can I claim the interest part and HRA part both ?
Reply
Ami
July 29, 2012
3:05 pm
Hi Anurabha, You can claim all 3, HRA on rent paid, deduction on principal part and on interest part as well.
Reply
PANKAJ SHARMA
July 20, 2012
3:39 pm
Dear Ami, IN ITR 1 Sahaj under which head I will have fill up the amount of Interest on housing loan for gettin g rebate. Is it in the column of 80 C.
Reply
Ami
July 29, 2012
3:06 pm
under Section 24(1)(vi) and not under 80C
Reply
33/122
3/20/13
Unmai
July 21, 2012
12:53 am
Hi, Great work. I am contract employee working as a consultant. So, 10% of salary will be deducted at source. I do not know where to fill in my conveyance/telephone/medical expenses in ITR4 Right now it is carry forward loss(CFL). How can I include this to claim refund? Thanks, Unmai.
Reply
Ami
July 29, 2012
3:07 pm
As far as I understand, a consultant earning consultation fee under contract is not considered salaried and hence those provisions do not apply. However, you can claim all expenses under business expenses.
Reply
P.H. Suvarna
July 21, 2012
12:41 pm
I think in case of senior citizens between 60-80 years the tax rates above Rs. 5 Lacs are as under: Rs. 5,00,001 to Rs.10,00,000 20 % Above Rs.10,00,000 30 %
Reply
Ami
July 29, 2012
3:08 pm
I dont think so
Reply
HARSHAD
July 21, 2012
1:38 pm
interest on saving bank upto Rs. 10000/- is exempt under which section?
Reply
34/122
3/20/13
Ami

July 29, 2012 3:09 pm
sec 80TTA
Reply
kash
July 23, 2012
3:45 pm
What about interest on NPS scheme, is it taxable? if not, exempt under which section?
Reply
Ami
July 29, 2012
3:24 pm
Interest on NPS is taxable on withdrawal. It comes under Exempt, Exempt, Taxed (EET) regime
Reply
Vincent JOhn Robert
July 23, 2012
10:19 pm
I am a tax assesse havinc paid excess taxes and need to get a refund of about Rs. 30,000. for the AY 2012-2013. pertaining to FY 2011-2012 what happens if I file the returns, [a]. after the deadline of July 31st 2012, [b]. between 31st July 2012 and 31st March 2013, [c]. after 31st March 2013 ? Please do clarify my querry Regads & thanks Vincent
Reply
Ami
July 29, 2012
3:26 pm
You will get the excess tax paid as refund. Returns should be filed before 31st July. Dont know what is the penalty for delay.
Reply
vijay
July 25, 2012
12:25 am
35/122
3/20/13

Hi Ami Thank u vey much for the blog as it is help full to many guys who are afraid from tax planning, Its a great work done by you Excellent informative article Keep it up. I am a tax assesse and want to know whether i can claim the excess tax deducted in the financial year 2008-2009 & AY 2009-2010 as i got arrears for previous 3 years and despite of filling the IT return and form 10E within the stipulated time I could not get the refund of excess Tax Deducted at Source.
Reply
Ami
July 29, 2012
3:27 pm
Hi Vijay, Excess tax paid by you will be refunded separately. It generally takes some time (which runs in years) for the refund to arrive.
Reply
Naren
August 24, 2012
3:07 pm
The refund process has been quite faster now, I generally get my refunds in around 6 months time, all you need to ensure is complete documents are submitted.
Reply
Amit Sharma
July 25, 2012
9:54 pm
My salary is 5 lakh per annum what is the maximum tax that i can save in f.y, 2011-12
Reply
Ami
July 29, 2012
3:28 pm
Depends on your income breakup, investments and expenses.
Reply
baacha
July 26, 2012
12:17 am
36/122
3/20/13

This is a practical problem but still no one is raising this issue-Why? People dont have faith that nothing will happen in this country?Only people in power will do things as they like?This is only a Pseudo democracy ?I am placing this before you so that you can take this forward. I am aged above 50 years.I am finding it difficult to reach my office using either thru public transport(due to poor transport system and infrastructure not in tune with the the demand) or two wheeler( due to neck pain and diabetes and poor road conditions).So I started using my own car and incurring fuel costs alone Rs. 5000/- per month aproximately for a distance of 30 km a day for 20 days in a month.This is no way near the statutory exempted amount of Rs. 800/- per month without any proof. Under the circumstances can I calim this actuals (Petrol/diesel bills) to office commutation showing my credit card debits thru my employer or at the time of filing return attaching the credit card statements highlighting the fuel bill debits each month .What is the solution for this?Company HR department is not entertaining any restructure of other allowances and permitting fule Bills reimbursements only for senior management staff.Why not Income Tax act/rules or Finance Act is amended to accept this as uniform polcy for all the employees with respect to office commutation.To force the Income tax department to accept this view with immediate effect what are the options availble to us.Can the ruling party memebers opposition parties , press and media play meaningful role in this regard. Pranab Mukhejee without looking into these kind of peoples /employees problems has become president of this country.It is really a shame such an experienced person never acquainted himself with these kind of peoples problems and drive the officials in Finance and Taxation departments to find an amicable and logical solutions for this . He is a waste to the country.At least let us see whether this message goes into the head of the next finance minister and whther he can come out with a good statutory solution directing the employers to check the credentials of individual employees claims and allow necessary tax exemption as they are doing for certain senior cadres.Cant they do this simple job for the benefit of the tax abiding citizens of their company and this country. The corporate HR departments are simply turning a deaf ear to our requests to represent to the government and get the necessary justice. Even though so many cars are plying on the roads no one is raising this issue in a big way and no article by the news paper editors or media persons in this regard.May be most of the people are enjoying a free ride in this country like Ministers,MPs MLAs and top level management excutives in the Industries and we are a minority in this regard? Best regards Baacha
Reply
Prabal Mukherjee
July 27, 2012
4:52 pm
37/122
3/20/13
Dear Sir,
I agree with you whole heartedly. Basically this country is going towards no-where, media & we are talking everyday of India Shinning- but if you see the gloomy face of common man, you will find India Crying. Nothing in this country is mend for common man; if you are good, honest, hard working then you either cheated or if not yet get ready for the day. A common mans routine begins from the first light of the day and ends at late night, this hard earned money is taxed by Government of India/ Ministers as per their budget of expenses!! See all the sections the limits are not feasible at all as per todays scenario and you are bound to pay tax (Eg: Education Limit: Rs. 200 pm * 2 child?? Transport Allowance/ Conveyance: Rs. 800 pm?? even our savings are taxable beyond Rs. 10000/-), but see the Section 80G Contribution to exempt charities 25/50/75/100% depending on the charity and as per approval 100% exemption on donation to political parties???????????? Really very hard to cope up with the increasing prices. Thanks Prabal
Reply
amit
July 26, 2012
11:50 am
over and above Rs.100000 under 80c should i purhase infra bond or Rs.20000 to get benefit?
Reply
Ami
July 29, 2012
3:31 pm
If you have already invested 100000 under sec 80C, investment of additional 20000 in infra bonds will not be deductible.
Reply
Ravi
July 27, 2012
12:04 pm
Add-on: Rajiv Gandhi Equity Savings Scheme is under 80CCG. I guess, it will be helpful. Max we can save is 25000/-
38/122
3/20/13
Reply
Ami
July 29, 2012
3:35 pm
Yes. Thanks!
Reply
Ramharsh Yadav
July 27, 2012
2:03 pm
political party ko income tax ke rebete kish dhara me milti hai. plese poora tareka batayin.
Reply
Ami
July 29, 2012
3:37 pm
Dear Ramharshji, Political party to dia hua donation dhara 80G ke andar 100% exempt hai.
Reply
Karan Batra
July 27, 2012
3:56 pm
Thanks Ami for these useful tips Has any clarity been announced by the Govt on Rajiv Gandhi Equity Savings Scheme regarding the amount of investment to be made and the lock in period ?
Reply
Ami
August 1, 2012
4:27 pm
Lockin period is 3 years. No further clarity yet. AMFI is pitching to allow mutual fund schemes under this scheme.
Reply
nida
July 27, 2012
9:12 pm
39/122
3/20/13
dear Ami, I have jus got a job n need to start investion to save tax.my doubt is that is the maximum limit under 80c applicable individually to each item or all items combined?? this doubt arises as my employer pays epfso dat itself comes to 1lac a yrcan i opt for other item under 80c or no?? pls reply urgently on my mail id..as i am totally confused what to do. thanks a ton !!!
Reply
Ami
July 29, 2012
3:39 pm
Hello Nida, Congratulations on your first job maximum limit of 1 lac is applicable to all items under 80C COMBINED. If the EPF contribution by your employer is already 1 lac, you cannot claim further exemption under sec 80C.
Reply
Anand D
July 29, 2012
6:46 pm
Thank you for such a grreat article Veryyyy helpful.
Reply
Ami
July 30, 2012
1:12 pm
You are welcome Anand
Reply
RAJIV
July 30, 2012
2:41 pm
VERY GOOD AND EFFECTIVE JMD
Reply
40/122
3/20/13
Ami

July 30, 2012 2:44 pm
Thanks Rajiv!
Reply
RAJIV
July 30, 2012
2:44 pm
PL INTIMATE WHAT MUTUAL FUND I CAN TAKE UNDER RAJIV GANDHI EQUITY SAVING SCHEME
Reply
Ami
July 30, 2012
3:41 pm
It has not been decided yet whether mutual funds will be allowed under Rajiv Gandhi Equity Scheme
Reply
HK Singh
July 30, 2012
10:12 pm
Hi Ami, I am a Govt. salaried employee, I got spine surgery during this FY. total expenditure about Rs.70000/- can I claim Income tax rebate and upto what amount, under medical allowance or some other or not at all. please guide me as soon as posible, as last date of return filing is ahead. thanx
Reply
Ami
July 30, 2012
10:14 pm
Hello Mr. Singh, You need to claim medical expenses of 70k from your medical insurance provider (I hope, you were insured). You cannot claim it as a deduction from your income.
Reply
ADS
July 30, 2012
10:59 pm
ami plz forgive me if my hurt u but i wanna speak truth that i fell in
41/122
3/20/13

love with ur beautiful face srry if it hurt u ADS
Reply
Ami
July 31, 2012
9:54 am
flattered.. but i am happily married with a cute daughter
Reply
Vatz
August 1, 2012
4:00 pm
Hello Ami You look beautiful, but I like your answer that you are married and have a cute daughter. Your post is even better easy to comprehend. Here is my question:Whats the allowable deduction under 80D: is it 40K or 30K? assuming parents are senior citizens. 20K for parents and 20K for self, spouse, dependents. What is covered under: 80D Parental Insurance Premium Salary Deduction? Thanks for your answers Vatz , simple to understand and
Reply
Ami
August 1, 2012
4:25 pm
In case parents are senior citizens and the rest are not, the maximum deduction allowed will be 20k+15k=35k
Reply
Sandesh
July 31, 2012
10:35 am
No Surcharge on above 10 lacs ?
42/122
3/20/13

Reply
Ami
July 31, 2012
11:04 am
Surcharge has been abolished completely.
Reply
Santosh
August 1, 2012
1:43 pm
AMi, I am planning to buy Medical Insurance for my MOM (15k) and for me as well(15K). ne advice on the best medical insurers.Basically to avoid tax.. kindly advice if u knw.
Reply
Ami
August 1, 2012
1:55 pm
My personal health insurance is from Royal Sundaram. I like their service. There are other good options as well. But none which I have experienced personally.
Reply
Adhithya
August 1, 2012
12:56 pm
Dear Ami! Great job of compiling the deduction list. Please check the deduction u/s 80U. I think it has been increased to 100000/- for people with with severe disability. This is just a suggestion to what is other wise a neat compilation. Thanks
Reply
Ami
August 1, 2012
1:39 pm
Thanks Adithya for pointing it out. I have updated the article.
Reply
43/122
3/20/13
Vishal
August 1, 2012
3:13 pm
Hi Namisha, I would like to know wether we can avail Tax benefit for insurance paid for vehicle?? Regards, Vishal
Reply
Ami
August 1, 2012
3:21 pm
No Vishal, no deduction allowed on vehicle insurance.
Reply
Vishal
August 1, 2012
3:25 pm
Thanks for the quick response. Can you help me with my tax planning. I am about to change job and according my CTC will be 11,70,000/- What savings should I do to save my earnings..
Reply
manjiri
August 1, 2012
11:58 pm
THANKS FOR SHARING VALUABLE INFO. I wanted to know sec. Wise deduction benifit and i got it thank u very much
Reply
Ami
August 2, 2012
10:13 am
you are welcome
Reply
Roby
August 2, 2012
10:34 am
Hi Ami, This is an amazing work! Thanks for your time & efforts.
44/122
3/20/13

I require some suggestions for tax planning for FY 2012-13; my total income (before tax) is around 18L and I have already fulfilled the requirements of 1Lakh (PF & LIC), 1.8L (HRA), 15K (medical Bills), 9.6K (TA) & 5K (health insurance) deductions. I dont have a Home Loan now, but i am planning for purchasing a flat. But is that really beneficial (since am already saving 1L (th 80C) & 1.8L (th HRA), as i assume i cant claim HRA if i am claiming for Home Loan Interest? Is there any other ways of doing it? Can you suggest me more on the possibilities of saving tax? Many Thanks, Roby
Reply
Ami
August 2, 2012
10:48 am
Roby, you are right. You cant claim both HRA and Housing loan deduction together.. unless you have your own house (on which youve taken the loan) in one city and you work in another city and stay on rent there..
Reply
Roby
August 2, 2012
1:02 pm
So at this stage, can u suggest me some ways to save the taxes?
Reply
Roby
August 3, 2012
8:28 pm
Hey Ami, Could you advice me with some tips on this case?
Reply
Jish
August 2, 2012
12:34 pm
Hey Ami.
45/122
3/20/13

I happened to stumble upon this blog of yours and I have to really say, its a marvellous job you are doing. This information on tax exemptions is priceless and all under one roof. Really helpful for the first timers too. Keep up the good work.
Reply
Ami
August 2, 2012
12:45 pm
Thanks for the kind words Jish!
Reply
R.G.Tiwari
August 3, 2012
6:22 pm
1.Slab for senior citizons also changed as 2.5 Lac tax nil,2.5lac to 5.00 lac 10%tax ,5.00 lac to 10.00 lac 20% tax. 2.No cap for tution fee like Rs.24000.00. It can be claimed upto Rs.1.00 lac for two children. 3. good effort, good help.
Reply
C. Rajani Kumar
August 4, 2012
12:54 pm
Thank u Ami. Bahu saras info che. Lot of doubts are cleared. This is excellent.
Reply
Ami
August 4, 2012
7:27 pm
Thank you! Vakhaan sambhli ne ek litre lohi chadhi gayu
Reply
Ramesh
August 4, 2012
2:09 pm
Sure I have seen many blogs with orphaned questions & requests. One of the rare who answered politely to even appreciations and tease. Glad some body like me still out there,, lol. Good job, Keep it up. It appears deductions for individual I think. There are more good options available for HUF & others. I cant recall but sure 1 eg; Husband, wife
46/122
3/20/13

together making a trust and contributing something like that is also exempted (2004-05 memory). Hope u can dig out.
Reply
Ami
August 4, 2012
7:38 pm
Hey Ramesh, sincere thanks for your appreciation of my work. There are plenty of ways to make money and I am surely using some of them to make enough myself. But this blog allows me to give back. I like to share my knowledge and help others through this blog. Tax rules for individuals and huf are similar if not same as far as I know. I have heard about tax benefits of making a trust. But for some reason, have not been able to dig out credible info which I can share. If you can help, I will certainly add it to this post.
Reply
Tuhin Gangopadhyay
August 6, 2012
12:37 pm
I am a salaried employed staying in company,s acommodation at construction sites. My wife stays at other city in a rental acommodation. I am not availing any home loan. Should I claim HRA tax exemtion by producing rent receipts to my present employer? If yes then Last year (FY2011-12) I did not claim any HRA tax exemtion so it does not reflect in my Form 16. Now I am yet to file my return for the FY 2011-12. Should I claim my HRA tax benefit while efiling my return? please suggest.
Reply
Ami
August 7, 2012
5:24 pm
No. Since, the company is providing you accommodation, your salary will not have HRA component. You will not be able to claim deduction.
Reply
Sathish
August 6, 2012
4:59 pm
Thanks for all the details on various queries of readers. I am a retired person with income from pension, house rent and interest from various instruments. Please clarify on the following :
47/122
3/20/13

1) Can I can claim exemption under Sec 80D for Medical Insurance premium paid for my son who is 26 years old ? 2) Are there any limits for investments in NPS and RGESS and exemptions thereof ? Thanks Sathish
Reply
Ami
August 7, 2012
5:23 pm
Answers: 1: Yes 2: No
Reply
Prakash Bhattacharya
August 7, 2012
1:34 am
Thank you very much for making an excellent publication. As I am working in the area of Personal Investment and Tax Planning, it is very much helpful for me. Please write whether gains from the balanced mutual funds are taxable or tax free in the hands of the recipients. As per my knowledge in concerned, gains from equity mutual funds are tax free, if the same is held for more than one year. While any gains from debt mutual funds are taxable.
Reply
Ami
August 7, 2012
5:09 pm
Hello Prakash, Yes, gains from equity mutual funds are tax free. The definition of equity fund is a fund which invest 65% or more of its corpus in equity instruments. To take advantage of tax free status of equity funds, fund houses have redesigned balanced funds to have 65% equity and rest 35% in debt and liquid instruments. Hence, you need to get into details of each fund to understand its asset allocation which will determine its tax status.
Reply
CA Priyanka Bhandari
August 7, 2012
12:07 pm
48/122
3/20/13

This is very useful and knowledgeable article.. A very sincere thanks to Ami.
Reply
Ami
August 7, 2012
2:56 pm
Thanks Priyanka!
Reply
Bhagwati Pai
August 7, 2012
4:54 pm
Ami, effective & one of the best 7 simple blog. thanq very much:)))
Reply
Ami
August 7, 2012
4:58 pm
Thanks Bhagwati
Reply
Bhagwati Pai
August 7, 2012
5:03 pm
Ami, if i am getting HRA Rs.10221/- per month & 122652 per yr. whole amount is exempted from Tax under 80E? Pease clarify. TQ.
Reply
Ami
August 7, 2012
5:26 pm
There are rules that define exemption amount. Please check the clauses given in the post.
Reply
Rajaraman
August 8, 2012
12:51 pm
49/122
3/20/13

Very use information. Thanks a lot
Reply
Ami
August 8, 2012
3:17 pm
Thanks Rajaraman
Reply
Yash Pal
August 8, 2012
4:01 pm
A very good article and a lot of healthy discussion taking forward the subject and exploring the niche areas. Please keep up the good work.
Reply
Ami
August 8, 2012
4:03 pm
Thanks Yash!
Reply
Prasanna
August 9, 2012
1:12 pm
Hi thanks for meaningful information.
Reply
Ami
August 9, 2012
2:59 pm
You are welcome Prasanna!
Reply
Anji
August 11, 2012
1:47 am
A very good article and discussions. I have learnt a lot about tax savings
50/122
3/20/13

Reply
Ami
August 12, 2012
11:12 am
Thanks Anji!
Reply
Jitendra
August 11, 2012
5:44 pm
Thanks for your valuable efforts I want to know tax slab define by total anual income or on taxable income.
Reply
Ami
August 12, 2012
11:07 am
Taxable income
Reply
Jitendra
August 17, 2012
6:14 pm
Thanks.. Two more ques; If am declaring tax exemption under 80DD ,is any proof or certificate required for dependent declaration. If yes please assist how can i get. Can i declare my uncle as a dependent. he is physically 100% handicapped as per CMO certificate. Thanks for your valuable time and suggestion. Regards Jitendra Sharma
Reply
Ami
August 18, 2012
10:21 am
Jitendra, I am not sure about the answers to both the questions that youve asked
Reply
51/122
3/20/13
CA Anish Rastogi
August 11, 2012
11:41 pm
The life insurance premium should not be more than 10% or the sum assured add that this is a new change from c.y. earlier it was 20% if its more than 10% then not eligible for deduction u/sec. 80C
Reply
Ami
August 12, 2012
11:11 am
Hey Anish, I had already mentioned this in the article. Though, now i have also added the earlier 20% part
Reply
ramesh
August 12, 2012
10:16 am
Sir want to knw abt 80TTA MAM normally interest earn on saving bank a/c is taaxble under the head IFOS.. how saving bank interest exemption??? confuse??? jst clear mam
Reply
Ami
August 12, 2012
11:12 am
Interest on bank savings account is deductible up to Rs. 10000 p.a. This is a new addition from CY.
Reply
sudhir singh parihar
August 12, 2012
8:12 pm
dear amisha kudos to for bringing out such valuale info on your blog i shared your blog with a lot of my colleagues and yes shared it on the facebook as wellkeep up the good work ihave a query . iam already booked to the hilt for the 80c section and yes 80ccf has been abolished and i have reasnably claimed 80g exemtion .IS IT TRUE THAT contribution
52/122
3/20/13

to the NPS is exempt over and above Rs 1lac iam working for last 23 yrs in a psubank.What is the criteria for claiming additional 10%of basic exemption.How can my organisation join the NPS bandwagon..
Reply
Ami
August 13, 2012
10:20 am
Hi Amisha, Contribution to NPS is exempt over and above 1 lac 80C limit. However, the gains are taxable when you withdraw them. All government organisations are bound to contribute to NPS. Your bank would already be doing it. Do check. And thanks a lot for sharing this post with your friends and on Facebook.
Reply
SHEKHAR
August 13, 2012
3:30 pm
Hi Ami, This is best article i searched for Tax Planning and also up to date. I want information that can i get TAX saving benefit from my current Education SAP Delphi computech having fees 1.68 Lakh
Reply
Ami
August 13, 2012
3:41 pm
Shekhar, the exemption can be claimed only on interest component of the loan taken for education and only if the institute is recognized by government. If youve not taken a loan to fund your education, then you will not be be able to claim exemption
Reply
Ashok
August 14, 2012
12:00 am
Really good one.. nice points on tax saving plan
53/122
3/20/13

Reply
Ami
August 14, 2012
10:19 am
Thanks Ashok!
Reply
niju
August 14, 2012
2:26 pm
Thank u madam for ur post.
Reply
Ami
August 14, 2012
2:49 pm
Thank you Sir for your comment
Reply
Santosh
August 14, 2012
5:39 pm
more on Infrastructure Bonds please.. is it available in 2012-13 fin year? if yes how to buy these bonds..kindly guide
Reply
Ami
August 14, 2012
5:45 pm
Exemption for investment in infrastructure bonds under sec 80CCF has been withdrawn this year (2012-13).
Reply
Santosh
August 14, 2012
7:02 pm
OK.. i have invested 1 lac in PPF / 25k+22k in LIC/HRA around 10k monthly for 2012-13.. wher else do u think i should invest. I fall in category below 10 lacs /annum..
54/122
3/20/13

Reply
Ami
August 14, 2012
7:54 pm
Oh.. you are earning less than 10 lacs?? poor you.. Just joking.. Please dont mind. You should definitely buy yourself some medical insurance. You may also consider donating some money to our political parties
Reply
Santosh August 14, 2012 8:05 pm
ya.. pooor me indeed..:( hey ami.. i already have insurance which my company provides for me and my dependent (mom). should i still go for private self medical insurance for 15k? (for tax benefit) if yes..I am 26 years old.. how much should i invest in this insurance /annum at this age? help me wid ur advice..
Reply
Ami August 14, 2012 8:17 pm
You should never rely on company provided insurance. What will you do when you change the company? Medical insurance does not cover all diseases for the first few years after you take it. Hence, the more you delay taking the policy in your name, the higher is the possibility that you will be denied claim for some illness as you grow older.
55/122
3/20/13

I suggest take a policy in your own name. You can take a cover of 2 lacs to start with. PS: I like helping poor people. It gives me tremendous sense of satisfaction
Reply
Santosh
August 15, 2012
7:11 am
well thnx on pooor thing note.. if i get my private medical insurance done , what would happen in case of claims? i meant ideally i would be covered by 2 insurance companies ryte? n tell me more about ur royal sundaram coverage pleeeej .
Reply
Ami
August 15, 2012
10:53 am
Depends on which company you claim your bills from. You can claim from either. I have taken medical insurance for my family from Royal Sundaram. I have a good experience with them in terms of claim settlement and service.
Reply
Santosh
August 21, 2012
1:33 pm
thnx a lot..
Reply
malekar deepak
August 16, 2012
3:39 pm
Under section 80G political party payment is 100 % exempted, but what is definition of political party under income tax act
Reply
Ami
August 16, 2012
3:47 pm
56/122
3/20/13
Deepak, the definition of political party is available on http://www.incometaxindia.gov.in
Reply
Accountant Girl
August 16, 2012
4:47 pm
http:// taxbymanish.blogspot.in/2012/08/tax-planning-how-to-save-taxin-fy-2012.html Your article plagiarized here
Reply
Ami
August 16, 2012
8:24 pm
Hey Sindhuja, so nice of you to have pointed this out. Unfortunately, with the Indian law system, you cant do much about such copy-cats. By the way, imitation (or copying in this case) is the biggest form of flattery.. and I am flattered
Reply
aam admi
August 19, 2012
8:06 pm
madarchodas want to eat in crores and for cmon man they have limits sale chutiye do baap ke harami pile FMs
Reply
Ami
August 20, 2012
11:05 am
Hey Aam admi, please refrain from using such language. I understand your frustration but bad mouthing does not help.
Reply
vinod
August 20, 2012
1:04 am
Hi Ami, I want to know about Section 80TTA. Is this applicable for FY 2011-12 and Assessment year 2012-13 as i m going to file return for Assessment year
57/122
3/20/13

2012-13 and i m deducting Rs 10000 from my whole interest earned during FY 2011-12 while calculating Taxable income. I m also confused about Rs 10000 limit. Is it only Saving bank balance interest or Saving bank balance interest + FD interest. Pls help me out. Thanks Vinod
Reply
Ami
August 20, 2012
11:09 am
80TTA is applicable for FY 2012-13 and not 2011-12. 10000 limit is applicable for only savings bank balance interest and not FD interest.
Reply
Mukesh
August 20, 2012
10:33 am
Very Good Article Slab for Senior Citizen above 60 shown in this article is Tax Free 2.50L, 2.50L to 5L @ 10%. 5.00L to 8L @20% (general people slab is 5L to 10L @ 20%) and above 8L @ 30% . (general people slab is above 10L @ 30%) I have one query, when general peoples slab for 20% is upto 10L why senior citizen higher slab starts at 8 lacs instead of 10L?
Reply
Ami
August 20, 2012
11:12 am
My mistake. I have corrected it.
Reply
P R Mallick
August 20, 2012
11:24 pm
I was surching for a complete list of Tax Exemptions Items(Saving Item). Lot of people posted IT slabs an calculatior but without showing a list of IT Exemption Details. Thanks.
58/122
3/20/13

Reply
Ami
August 21, 2012
10:13 am
Thanks a lot!
Reply
Raghavendra
August 23, 2012
2:18 pm
Thank you very much. All information, at a glance and in detail. wishing you have a bright future. raghavendra.
Reply
Ami
August 23, 2012
2:30 pm
Thanks Raghav!
Reply
MAHENDRA GAUR
August 21, 2012
11:44 am
I am a retired senior citizen(67) and approximted TDS for 2012-13 is Rs.5000, How much amount should I save and under which scheme so that the TDS is not deducted or, if deducted , I can get the refund ?
Reply
Ami
August 21, 2012
11:58 am
By default, TDS of Rs. 5000 would mean that you are taxed at 10% slab and an investment of Rs. 50000 would suffice to save the tax. However, in some cases, TDS is deducted as per law even though your income may not come under taxable bracket i.e. less than Rs. 250000. In such case, you just need to file your returns to claim the refund.
59/122
3/20/13

Reply
MAHENDRA GAUR
August 21, 2012
5:00 pm
Thanks.Wish you a very successful career.
Reply
vinod
August 22, 2012
6:29 pm
Hi Ami, Thanks for my earlier reply. But now i want to know about TDS deducted by banks on FD interest earned. Is it inclusive of education and Higher secondary education cess? What if it is not included? if i have to deposit it by my own during ITR filing after calculating my payable tax and cess on it or Is it bank interest TDS is exempted from education and HSE cess? As my employer has already deducted education cess in TDS certificate of my salary income. Thanks and regards, vinod
Reply
Ami
September 10, 2012
11:51 am
You need not bother about cess and other deductions. The bank has to take care of it.
Reply
Meena Semwal
August 23, 2012
10:02 am
Hi Ami, I have heard from one of my friend that now we can invest more than 1L in fds and can get the full exemption, is it so?
Reply
Ami
August 23, 2012
10:03 am
60/122
3/20/13
No again.
Reply
vinod
August 23, 2012
4:36 pm
Hi Ami, Thanks for earlier reply. But now i want to know about TDS deducted by banks on FD interest earned. Is it inclusive of education and Higher secondary education cess? What if it is not included? if i have to deposit it by my own during ITR filing after calculating my payable tax and cess on it or Is it bank interest TDS is exempted from education and HSE cess? As my employer has already deducted education cess in TDS certificate of my salary income. Thanks and regards, vinod
Reply
pankaj
August 24, 2012
4:03 pm
Hello Vinod, 3 Very simple steps to solve your problem. 1) Calculate your income tax including FD interest income with education cess and interests. 2) Deduct from TDS (whether on FD or on any income). 3) Pay remaining tax or refund (if excess deposit). It is not your duty to rectify banks mistakes. It is the duty of bank fixed by government. So dont worry about that. Follow the above steps and file your return without any worry. thanks
Reply
Anupam
August 25, 2012
12:21 pm
Hi Naimisha, My CTC for 2011-12 was 12 lacs (basic is 40000 per month). No PF deduction. All take home. I live on rent (24000/month). I have no saving scheme but have paid 8000 for medical insurance policy. How can I save the tax and how much? Thanks Anupam
61/122
3/20/13
Reply
Ami
August 25, 2012
1:39 pm
You can save tax on 1 lac of your income if you invest the same under sec 80C. Various options under sec 80C are listed above.
Reply
anuj
August 30, 2012
10:54 pm
HI ANUPAM.. U CAN ALSO SAVE TAX BY INVESTING UR MONEY UNDER SECTION 80CCG (RAJIV GANDHI EQUITY SAVING SCHEME) FURTHER U CAN PURCHASE MEDICLAIM POLICY FOR YOUR PARENTS BY PAYING PREMIUM FROM UR BANK( NOT CASH) AND ULL GET A DEDUCTION UNDER SECTION 80D APART FROM UR OWN MEDICLAMI PREMIUM.
Reply
Avijit
August 26, 2012
10:48 pm
Hello, My question is what is the upper limit for 80 ccd and is it over 80c ?
Reply
Avijit
August 26, 2012
11:18 pm
My company doesnt offer NPS they offer EPF. So if I open a individual NPS account . what is the maximum deduction that I can get over 80C. I was researching over net couldnt able get anything on the tax benefit on the individual accounts.
Reply
Ami
August 27, 2012
11:00 am
For you to get deduction under sec 80CCD, your employer needs to make contribution to your NPS account. If your employer does not have this provision, then you by yourself cannot invest and claim. The
62/122
3/20/13

maximum limit is 10% of your basic salary.
Reply
Ami
August 27, 2012
10:58 am
According to the latest information available, tax deduction under sec 80CCD is allowed if the contribution is made by the employer to your NPS account. The maximum limit is 10% of your basic salary. And yes, this deduction is over and above the deduction under sec 80C.
Reply
HARI
August 27, 2012
1:36 pm
Its known that one can claim combined 80 C deduction upto 1 lac , Can an individual deposit 1 lac in his own ppf a/c and 1 lac in his minor son ppf a/c.
Reply
Ami
August 27, 2012
2:04 pm
For PPF, the limit is Rs. 70000 under sec 80C. You cannot claim deduction for investment made in your sons ac.
Reply
HARI
August 27, 2012
2:10 pm
Ami, its 1 lac only and one can claim 80 c deduction in the name of minor child ppf a/c. My ques was can one deposit 1 lac each in his and his minor son a/c.
Reply
kumar
August 28, 2012
10:18 am
The company didnt give HRA for me. How can I claim my HRA and How much eligible to claim the HRA.
Reply
63/122
3/20/13
Ami

August 28, 2012 10:20 am
If your company does not give you HRA, you cannot claim it. You need to approach your company and ask them why are they not giving it. It is a standard part of salary.
Reply
anuj
August 28, 2012
11:02 pm
u missed a deduction u/s 80ccg
Reply
Ami
September 10, 2012
11:52 am
Hi Anuj, It is mentioned in the post.
Reply
Arun
August 29, 2012
1:01 pm
I have a home loan for own house where my parents are living and i am living at rented place.Company gives HRA. Possible to claim both home loan and rent in TDS??
Reply
Ami
August 29, 2012
1:44 pm
Yes, provided both your homes are not in the same city.
Reply
Gaurav Mittal
August 29, 2012
9:45 pm
Hi Ami Please let me know if I can avail the benefit on Home Loan interest when Loan availed on my name but property bought in my spouses name. Please suggest
64/122
3/20/13
Reply
Ami
September 10, 2012
11:54 am
Slightly tricky but I think you can claim the deduction.
Reply
Free Singh
August 31, 2012
12:39 am
Ami ji, you said tds will be deducted from saving a/c interest from 12-13 year onwards..can u plz elaborate????
Reply
Ami
September 10, 2012
11:55 am
I never said that. What I have said is that from 12-13, saving interest up to 10000 will not be taxable.
Reply
MANOJ KUMAR BRIJWASI
August 31, 2012
12:19 pm
IS POST OFFICE RD ACCOUNT IS REBAIT UNDER SECTION 80C
Reply
Ami
September 10, 2012
11:55 am
No
Reply
Jose Prince
September 2, 2012
11:18 am
Dear Ami, Last financial year I claimed about 75000 rupees as medical reimbursement. Is of it taxable???? Please advise.
65/122
3/20/13

Reply
Ami
September 10, 2012
11:56 am
It will not be taxable if you have valid bills. Double check with your CA.
Reply
satya
September 3, 2012
9:39 pm
What is the tax exemption limit for salaried employees ? 2 lac or 5 lac?
Reply
Ami
September 10, 2012
11:57 am
2 lacs
Reply
anuj
September 3, 2012
10:29 pm
hi Ami May u plz tel me abt d list of equity shares notified u/s 80ccg?
Reply
Ami
September 10, 2012
11:57 am
No detail yet.
Reply
adhiraj
September 4, 2012
10:10 pm
Nicely put togetherits quite helpful..i have even bookmarked this page thankyou
Reply
66/122
3/20/13
Ami

September 10, 2012 11:58 am
you are welcome Adhiraj!
Reply
Vijay
September 5, 2012
3:04 pm
Dear Ami, Great work u have done by posting all this. I have a question:I am resinding in a rented house at 7000 PM till sept-12. After that I move in to my house purchaged on a loan. Can I claim HRA (for Apr-Sept) as well as Principle (Under 80C) & Interest for house property for remaining period of financial year? Thanks in anticipation
Reply
Ami
September 10, 2012
12:00 pm
Yes, you can Vijay.
Reply
Harish Sethi
September 6, 2012
11:11 am
Is the exemption of Rs 10,000/- on S/Bank a/c interest in Banks apart from the exemption of Rs.3,500/- for intest in a Post Office Savings Bank a/c(single holder a/c)?
Reply
Ami
September 10, 2012
12:01 pm
Not sure Harish
Reply
Shubhangi
September 6, 2012
1:07 pm
Hi Ami..Fantastic blog..thanks for putting this up..
67/122
3/20/13

My question for your comments is that, I have two houses (in joint names ..me and my husband). One is let out fully and in second house I myself stay along with my son. My son pays me rent so that he can benefit from HRA policy. What is my tax implication, particularly for the second house (since I too reside). The house is in joint name (me and my spouse). Thanks in advance
Reply
Ami
September 10, 2012
12:03 pm
Shubhangi, you cannot claim HRA on owned property. Additionally, the rent paid by your son will be added to your taxable income.
Reply
Shubhangi
September 12, 2012
1:05 pm
Hi Ami, I am not claiming HRA as I am not in service. What I would like to know is that is there any kind of benefit I could get for the house where I personally reside but also am getting rent on from my son. Do I have to add both rents for income from house property or is their some rebare I can get since I too reside in the same house.
Reply
Nishant Agarwal October 1, 2012 11:16 am
The planning you have done is good , but it share some consequences , only portion let out to your shall be treated as rented property and distinction has to be made(although segregation not done). Thus your second house has to be segregated into two portions , one is self occupied and another is let out. So benefit of SOP & let out both can be availed. Also you have the option to choose among the houses to treat as SOP, depending upon the facts of your case. Secondly the rent received will be added to
68/122
3/20/13

your income from house property. Thirdly , although generally does not happen , but AO can upon the assessment of your sons return may disallow the benefit of HRA treating it as a colorable device to avoid the tax implications.
Reply
Ashish
September 6, 2012
2:57 pm
I am working on contractual basis. Employer asks to raise invoice every month. 10% of my salary is deducted as TDS. In my salary, there is no clarification of Travel/HRA/Medical Allowance. Its like I am working as a consultant for my employer. How can I claim Travel/HRA/Medical Allowance deductions?
Reply
Ami
September 10, 2012
12:06 pm
Ashish, since you are working and hence getting paid as a consultant, you will not be able to claim benefits like travel/HR/medical. However, you can show some of these expenses as business expenses and claim deduction
Reply
Vijay
September 7, 2012
6:37 am
Infomative article, good one
Reply
Vijay
September 7, 2012
6:38 am
Good one
Reply
Ami
September 10, 2012
12:07 pm
Thanks!
69/122
3/20/13
Reply
Vijay
September 7, 2012
6:40 am
Leave travel assistance is taxable or not ,clarify
Reply
Ami
September 10, 2012
12:07 pm
No. provided you meet the conditions stated above.
Reply
Ashwani
September 7, 2012
9:53 am
I recieved my pension backlog of five years from 2005-2010. From 2005 to 2008 I had no income as this money was held up. In 2008 I started to get rental income and my pension from 2010. Since the return is being filed for 2011 2012 I have tp pay tax on my total salary payment. For the year 2005-2008 when I had no income do I still pay slab of 30% or can it be staggered
Reply
Ami
September 10, 2012
12:11 pm
Hi Ashwani, would suggest you check with a qualified CA for this. I am not sure. Sorry.
Reply
Nishant Agarwal
October 1, 2012
11:05 am
Ashwini ji Income Tax which is the price to live in a civilized society we pay, is sometimes very harsh. As per the provisions given under sec 15 , Salary is charged to tax on due or receipt basis which ever is earlier , hence in your case arrears of salary has been received , which was not due earlier , thus it shall be taxable only in the year in which it is received ; although it can relate to any previous year.
70/122
3/20/13

Also to part off the burden some tax portion , relief can be sought u/s 89 , by consulting to CA with full details of your returns and documents as called up.
Reply
Ami
October 1, 2012
1:54 pm
Thanks Nishant
Reply
Colonel Zaysen November 15, 2012 12:16 pm
Ashwini ji Income Tax which is the price to live in a civilized society we pay, is sometimes very harsh. I couldnt agree with u more. Look at a Draconian law which the IT Deptt has created to enrich themselves. I have a friend who lives only of his investments and earns Rs 3,05,000/- as Interest annually. Before the start of each FY he puts Rs 1,00,000/- in PPF and during the FY he pays Rs 6000/- as Mediclaim premium for himself. He is single with no family no liability own house. His Income gets reduced to Rs 1,99,000/- for which no tax is payable. As per the law he cannot give Form 15-G to the bank to avoid TDS since his gross income exceeds Rs 2,00,000/-. Every year a huge portion of his income gets deducted as TDS which is refunded by the IT department next year with interest. When the govt is trying to make things simple for the tax payer why cant they fix this bug in the law.
Reply
Raghavendra G November 17, 2012 3:38 pm
Still you can submit form 15G or H. It is assuming that applicaant will adjust the tax appropriatetly
Reply
71/122
3/20/13
Mani
September 8, 2012
1:22 am
Nice article. i was searching for tips on tax planning. This came across and it helped me a lot. Keep up the good work. If you post any such useful article on personal finance, just mail it across.
Reply
Ami
September 10, 2012
12:12 pm
Thanks Mani!
Reply
Gnanamurugan
September 10, 2012
8:08 am
HI ami, I am salaried employee and studied MBA in distance education. Is it possible to claim tax exemption for my college tution fee?
Reply
Ami
September 10, 2012
12:13 pm
No Gnanamurugan
Reply
HIMANSHU
September 10, 2012
1:42 pm
PL TELL ME IF IM PAYING MY HIGHER EDUCCATION FEES IN CASH TO UNIVERSITY BY MYSELF THEN SHOULD I GET TAX BENIFIT IF SO UNDER WHICH SECTION I CAN CLAIM IT
Reply
Ami
September 10, 2012
4:26 pm
Refer sec 80E above.
Reply
72/122
3/20/13
krishna
September 10, 2012
8:53 pm
very good
Reply
Ami
September 10, 2012
10:14 pm
Thanks Krishna!
Reply
prasad
September 12, 2012
2:59 pm
Hi Ami, i have two lic premiums, both are 5 lacs sum assured and premiums are 50 thousand and 18,500 each respectively. does it calculate like this 5 + 5 = 10 lacs and premium comes to 68,500 rupees and i will be benefited based on current year 80 c section ? Please clarify . regards, prasad ss
Reply
Ami
September 13, 2012
10:39 pm
Hi Prasad, you can claim 68500 deduction under sec 80C.
Reply
Deepu
September 13, 2012
3:08 pm
Hi Ami, Thank you for the info. I am working as a Consultant. Appreciate if you could help me with these queries 1. Assuming that the yearly remuneration is 30 Lakhs. What will be the applicable TDS ? 2. Is CESS and Education CESS applicable on top of the TDS?
73/122
3/20/13
Thank you Deepu
Reply
Ami
September 13, 2012
10:39 pm
TDS will be applicable at the rate of 10% + cess
Reply
Nishant Agarwal
October 1, 2012
2:27 pm
Dear Ami There isnt a straight forward rate for deducting TDS in case of salary u/s 192, it shall be computed on slab basis and average rate of tax for a every single previous year & for each assessee has to be determined for deducting TDS , average rate of tax includes Cess & H.Cess. Tax shall be levied over Net taxable Income with some filthy long procedural calculations, and need to done by a professional for accuracy and escape from default.
Reply
Jalpa
September 15, 2012
10:40 am
Request you to help in getting the information on paper gold , and also need to knw that paper gold is exempted,if invested in that With Redgs Jalpa
Reply
Ami
September 22, 2012
2:08 pm
Jalpa, there is no exemption for investment in GOLD ETFs (Paper Gold)
Reply
74/122
3/20/13
Vaidehi Kulkarni
September 16, 2012
10:32 pm
Dear Ami Liked your efforts very much, would like to know how should we plan our Investments apart from Tax planing i.e. after the investment of 80C etc..which are the safe and best returns giving schemes ?
Reply
Ami
September 22, 2012
2:10 pm
Safe and best returns dont go together. Your investment can either be safe but give low returns (PPF, Tax saving 5 year FD) or riskier (ELSS) but (may) give better returns. You have to decide based on your risk appetite.
Reply
Prashanth
September 19, 2012
10:30 pm
Hi Ami, I ahve a question abt PPF. Does it comes under tax saving? I know that yearly we can invest from 500 to 1Lakh.My question is , is there any restriction that we have to invest same amount for the next year as we paid in previous year? For ex: Assume that I have invested RS 10,000 this year. And next year can i invest more ot less than 10,000? Pls suggest me which is better If I choose FD or PPF to save tax. If I chhose FD, does it applicable to next year also? Very much appriciate that you are suggesting people to plan their savings. Thank you.
Reply
Ami
September 22, 2012
2:15 pm
Prashanth, youve asked a lot of questions. Here are my answers: 1. PPF comes under 80C for tax saving 2. Under PPF you can claim a deduction of maximum Rs. 70000
75/122
3/20/13
per annum.

3. There is no rule that you should invest the same amount next year 4. PPF is a better option than FD as returns are not taxable. However, lock-in is longer. 5. If you invest in FD, deduction will be applicable for the year of investment. No deduction for next year.
Reply
Prashanth
September 24, 2012
12:34 pm
Thank you Ami. Really I appreciate U and your patiancy that u r answering all questions from all coreners of people. Regards: Prashanth
Reply
Loknath
September 20, 2012
12:46 am
Hi Ami, This is an excellent illustration of Tax Saving Schemes I have ever seen. Thanks a ton for sharing such a useful information !! Regards, Loknath
Reply
Ami
September 22, 2012
2:15 pm
Thanks Loknath!
Reply
Prashanth
September 21, 2012
12:29 pm
Hi Ami. Could you pls tell me which is the best option (FD or PPF) for showing tax saving?
76/122
3/20/13
account? Pls advise me. Thank you.

If we opt PPF,can we pay Rs 10,000 this year and 15000 next year in PPF
Reply
Ami
September 22, 2012
2:17 pm
Prashanth, as I have replied earlier, I prefer PPF over FD as returns are not taxable though the lock-in is higher. There is no rule to keep investing the same amount every year in PPF. Hence, you can invest 15k next year.
Reply
nitin kapoor
September 21, 2012
11:51 pm
i am spending $150000 in my spouse education will i be able to save my tax in education expence in section 80 c
Reply
Ami
September 22, 2012
2:17 pm
Dont think so. Please cross-check.
Reply
Nishant Agarwal
October 1, 2012
1:59 am
hello From the amount shown in $ , we presume that you are paying the money abroad for your daughters education , thus from that presumption , deduction section 80C for tuition fees is not eligible as it allows for payment for education only in India that too from defined institutions. Secondly if you have taken loan to pay off for education , then the interest portion is eligible for deduction u/s 80E unlimited for next 8 year from the year in which the loan was taken. Thirdly if you have a business income , then after consulting your financial adviser and looking to the other facts , the whole
77/122
3/20/13

amount can be claimed under business expenditure.
Reply
Ravi Bansal
September 25, 2012
4:37 pm
Good post..i ask one question can person avail benefit of parents LIC policy if he/she paid the premium instead parents?
Reply
Ami
September 26, 2012
2:47 pm
I dont think so though I am not sure.
Reply
Nishant Agarwal
October 1, 2012
2:03 am
Mr. Bansal LIP paid for parents is not eligible for deduction u/s 80C , however if ** you have a HUF formed with your father , then in that case LIP deduction can be availed.
Reply
Milton
September 26, 2012
10:20 am
Ami..thanks for the above.. they are very helpful to mei need a help Last Dec I took a NSC for 10,000, i understand that the interest earned is taxable (but can be declared under 80c) i would like to know what is the amount i need to declare every year.. First year it will be around 816(assuming 8.16) , Year 2 is it 8.16 of 10,816 or 8.16 of 10,000 ?
Reply
Ami
September 26, 2012
2:48 pm
I dont know this in detail. Can any of our fellow readers help?
Reply
78/122
3/20/13
Nishant Agarwal

October 1, 2012 2:07 am
Mr. Milton Interest accrued on NSC savings are reinvested and eligible for deduction u/s 80C , as the word reinvested is used , which signify the compound of interest yearly, thus interest shall be calculated over 10,816/- as in your given fig.
Reply
Milton
October 2, 2012
9:27 am
Thanks Nishanth
Reply
Hatim Ali
October 3, 2012
11:14 am
Yes you are correct. Their is a Chart displayed on Income Tax website for calculation of Interest on NSC. You can use that chart for your reference for calculation
Reply
Ummar Muhammad
September 28, 2012
12:19 am
Dear Ami, 2012-09-27 Thanks for rendering the service to the needy. My annual salary is Rs. 425700 and I contribute Rs. 39804 in NPS and my employer also contributes the same amount of Rs. 39804 annually. 1. Will my contribution of Rs. 39804 be deducted from taxable income and, 2. Will the employers contribution add to my income and if so is there any tax benefit for this amount? God bless you! Sincerely, Ummar Muhammad
Reply
Ami
September 28, 2012
4:23 pm
79/122
3/20/13

1. Your contribution will not qualify for deduction 2. Employer contribution will be added to your income and you can claim deduction on it.
Reply
Hatim Ali
September 28, 2012
1:47 pm
Gud working.. Keep it up.
Reply
Ami
September 28, 2012
4:21 pm
Thanks
Reply
Srinivas
September 28, 2012
5:03 pm
In general, the more number of PANs one can legally utilise, the better can the tax planning. Let me explain. There are legal ways in which one can utilise more than one(his own) PAN for tax planning. They are HUF, adult children, wife etc. 1. HUF For Hindu married males, HUF is an option for tax planning. One can divert familt gifts etc to HUF(which is a seperate tax entity under IT act) and Karta of HUF can invest the funds on its behalf. 2. Adult children(between 18- job) Investments by adult children can save tax as he/she will be a new tax entity and pay tax at lowest level. Thus one can say adult unemployed children also can contribute to family income. 3. Wife Same as above.
Reply
Ami
September 29, 2012
2:51 pm
Hey Srinivas, this is awesome info. I should have shared this,
80/122
3/20/13

but it completely skipped my mind. Thanks a lot for sharing it with everyone
Reply
Nishant Agarwal
October 1, 2012
2:25 am
For saving capital gains : u/s 54B , capital gains arising from the sale of agricultural land is exempt ; if the amount of gain is reinvested in any other agricultural land. Now agricultural land can be classified under two : Rural & Urban , so if the new agricultural land purchased is rural agricultural land and afterwards its sold , although it attracts violation of sec 54B which instates not to transfer such land for 3 years after the purchase otherwise the exemption previously allowed shall be deducted from the cost of acquisition of newly owned land , but also u/s 54 sale of agricultural land is not treated as transfer , thus impacting the over all tax zero , this could be planned in big linkups and a large scale tax planning can be done. Its one of the ways by which builder lobby is saving their taxes there are many more.
Reply
Ami
October 1, 2012
2:01 pm
Thanks for sharing Nishant!
Reply
Anonymous
October 4, 2012
11:47 am
Dear Ami I want to file income tax first time. kindly help me My Basic Pay Rs 82240/- yearly, Received HRA Rs 12336 yearly, Education Allowance Rs 6168 Yearly, Telephone Allowance Rs 6168/- yearly. Received PF Rs 9867/- yearly and equal amt PF paid by employer. I invested in Post office FD Rs 48000/-
Reply
Gajendra
October 4, 2012
3:12 pm
81/122
3/20/13

Does the limit of 1.0 lac under 80C is split in pension schemes and general insurance products; eg; like only 50,000 could be invested in gen. insurance products or likewise.
Reply
Naimisha
October 4, 2012
7:59 pm
There is no split. You can decide the break-up.
Reply
hari
October 5, 2012
10:53 am
Conveyance/Transport Allowance Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 9,600 /- (No Supporting Bills required). is this amount Rs.9600/- for a month or for a year
Reply
Naimisha
October 5, 2012
11:13 am
Rs. 9600 for a year
Reply
sankar
October 5, 2012
11:33 am
Hi Naimisha, till now i had a doubt, whether HRA exemption will come under 80C or not. Now i got a more clear picture that it wont come under 80C, Thanks for your article.
Reply
Naimisha
October 5, 2012
11:36 am
Reply
82/122
3/20/13
N.S.GARG
October 7, 2012
7:31 pm
EXCELLENT JOB, APPRECIABLE CONTRIBUTION.
Reply
Maruti Nandan jha
October 8, 2012
8:15 am
Ami I am confused regarding surcharge So pls. Clear it You have mention that surcharge is 3% And above1000000/- no surcharge So i want i want to know that 3% is e.cess or surcharge And also u give the details of surcharge. Becoz i have find that whos income crossea 1 crore,surcharge will be charged 2 and 5% respectively.
Reply
ashish
October 11, 2012
11:18 pm
i have 1 simple question.. can i take tax exemption by following ways,, 1-ppf=700000 investment 2-five year fd=100000 total tax saving money=170000 pls reply,,,i am so confused about what is maximum amount for tax exemption?
Reply
Naimisha
October 14, 2012
4:47 pm
even if you invest 170000, you will be able to claim a max deduction of 100000 only.
Reply
ashish
October 15, 2012
2:48 pm
tthankx namisah for ur kind information,,,,
Reply
83/122
3/20/13
Satish
October 12, 2012
4:45 pm
Please clarify, if a person is 60 Year in Dec 2012. When he file the tax return for F.Y. 2012-13, can he calculate the tax as a Senior Citizens (Age above 60 years but below 80 years) or not.
Reply
Dinesh
October 12, 2012
9:51 pm
Hi I have already have Demat account since last three years If now I am trade in any notified investment for the purpose of claiming dedcution u/s (80CCG Direct Equity Investment) , Is that was available to me Regards Dinesh
Reply
Naimisha
October 14, 2012
4:45 pm
If you already have a demat account since 3 years and if you have already invested even once, you will not qualify for deduction.
Reply
Nilesh Chaudhari
October 17, 2012
6:52 pm
Sir, For saving Income tax How much amount to be invest in Fix Deposite for 5 years. How much deduction are allowable. Please clearify the point with the examples.. i am little bit confuse on that point
Reply
Naimisha
October 17, 2012
8:13 pm
You can invest any amount but you will get deduction on only upto Rs. 1 lac.
Reply
84/122
3/20/13
Kunal
October 18, 2012
5:43 pm
Hi, I need clarifictaions for: 1. I have a NPS Tier1 Account and I pay towards it annually to accumulate pension. Under which section can I claim exeptiom for this payment made? 2. Did the Fin Min introduce any new plans to save tax as Infra bonds under sec 80CCF is withdrawn? Regards, Kunal
Reply
Naimisha
October 18, 2012
7:25 pm
1. Explained in the post and comments above 2. No.
Reply
Ani
October 23, 2012
8:32 pm
Hello, As i got a new job and my ctc is 3 laks PA so could you pease tell ow can i save my tax on 300000-200000=100000 on 100000 lak the tax is 10000 ,i want to save that tax so please guid me ?
Reply
Naimisha
October 24, 2012
8:06 pm
Invest your money in ELSS (Mutual Funds) / Insurance / 5yr Fixed deposit. Refer sec 80C above.
Reply
chethan
October 25, 2012
7:18 pm
@Ani,
85/122
3/20/13

You said your CTC is 3 l/a. Based on your calculation you say 1,00,000 is taxable. You still not included HRA, PF, health insurance (If your company provides). After considering these facts you can plan your saving to avoid tax. Of course saving money is not bad at all.
Reply
sandy
October 27, 2012
6:55 pm
sir, my wife and myself are in the 30% tax bracket. we have a joint home loan on a property jointly owned by us.can we both avail tax benefit on interest payment of upto 150000 each. thanks
Reply
Naimisha
October 27, 2012
7:53 pm
you both can avail benefit of upto Rs. 150000 and additional under 80C provided both contribute towards paying the EMI.
Reply
CA Prabhash
October 29, 2012
4:04 pm
Nice and Handy!!!!
Reply
Amit Rathi
October 31, 2012
2:36 am
hi Thx for giving the details, i wanna ask two things. 1.PF contribute by me is 4100 and by company is 4100 i.e. 4100+4100. Now in PF how much amount i can invest more. ie 100000 (8200*12) or 100000 (4100*12) if second is the case then, will company reduce the amount deposited by them to my pf or not? 2. what ever the PF amount i will get at retirement will be tax free or not.? what ever the PPF amount i will get after maturity will be tax free or not ? Pls reply me. and once again thx a lot to shear that with us
86/122
3/20/13

Reply
Naimisha
October 31, 2012
10:27 am
Answers: 1. 100000 (8200*12) (deduction can be claimed on 70k max) 2. Yes and Yes.
Reply
Amit Rathi
October 31, 2012
6:59 pm
what do u mean by : (deduction can be claimed on 70k max) pls makeit clear to me.
Reply
Naimisha
October 31, 2012
7:05 pm
You can claim a max deduction of 70k on PF in one year.
Reply
santosh
November 1, 2012
11:54 am
Thanx for updating Naimisha.Its great that u r spending ur valuable time in giving inputs. Regarding house loan if i pay principal of 100000 and interest of 150000 will i get a Tax Exemption of Rs 250000??? or the Tax exemption will be 150000??. I purchased that flat in Vizag,currently i am staying in Bangalore. Can i show the House Rent for Tax exemption as the house rents are very high in Bangalore. once i wil travel to vizag in flight ,can i show this flight expenses as a tax exemption for my LTA?? Waiting for ur reply. Thankks very much
Reply
87/122
3/20/13
Naimisha
November 1, 2012
12:01 pm
Answers: 1. If you pay principal of 1 lac and interest of 1.5 lacs, you can claim deduction for both. Principal under sec 80C up to 1 lac and interest under sec 24 up to 1.5 lac 2. You can claim both HRA and Housing loan deduction if you live in a different city to where your purchased property is which in your case is true. 3. Not sure.
Reply
sam
November 1, 2012
11:03 pm
I have 2 things to clarify/ ask here1) Tution fees Does it also include fees paid by husband for wifes education? 2) Section 80DDB what all special diseases are covered under this exemption? Thanks in advance! Sam
Reply
Amit Rathi
November 2, 2012
7:05 pm
one more thing i want to ask, can i avail all without limit , like: ppf (1,00,000) + pf (4100*12) + HRA (pls tell the limit of that also), + Home loan principle amount (1,00,000) + Home loan interest (1,50,000) + conveyance exempt (9600). and at what limit there is no need to show/submit the rent slips. thanks a lot to provide us the valuable feedback.
Reply
Naimisha
November 2, 2012
8:24 pm
You cannot claim deduction on each of them individually. Most of the ones youve discussed come under 80C where the combined
88/122
3/20/13
detail.

limit is 1 lac. Do read through the article again to understand in
Reply
RV Singh
November 3, 2012
2:06 pm
hi Naimisha, this is Ram. your article is surely very good.i would request you to suggest me to save the income tax. firstly, i will brief you about the situation. i am a captain in Army.My total taxable pay as being reflected is Rs 648296. i am currently paying tax to the tune of Rs 39659 i am investing Rs 5000 pm in hdfc top 200 and Rs 2000 in hdfc equity. i am also investing Rs 6000 quaterly in aegon religare pension plan and these are not reflected in payslip. however, monthly PLI worth Rs 5350, monthly contribution to Army group insurance fund worth Rs 4000 and monthly contribution to Provident fund is Rs 5000 are reflected in montly payslip. i have taken a home loan of Rs 23,80000 from the Army Group of insurance fund at 9% fixed interest rate. the emi of Rs 21414 pm is to start from 01 may 2013. the building will be possessed by me on 14 Feb 2013. how can i go about saving the tax now, with the above things in view please elaborate in detail under with IT section can i save . hoping for early response from your side.
Reply
Naimisha
November 3, 2012
2:30 pm
Yours is a slightly different case as you belong to the Army and are under a few Army schemes. You should check with a CA.
Reply
P.V.V.RAGHAVACHARY
November 4, 2012
12:15 am
WHETHER INVESTMENT THROUGH SIP IN HDFC TOP 200(G) AND HDFC EQUITY FUND(G) ARE ELIGIBLE FOR TAX EXEMPTION UNDER ANY SECTIONS OF INCOME TAX.
Reply
Naimisha
November 4, 2012
11:43 am
89/122
3/20/13

No. You can look at SIP in HDFC Tax Saver Fund instead to claim deduction up to Rs. 100000 under sec 80C
Reply
Pradeep Palakkal
November 4, 2012
12:10 pm
Hi Naimisha A very informative blog, answering nearly all the quetions. Like to ask that, during retirement I had contributed to ECHS sum of 15000/-, is it exempt under section 80D. Secondly, my employer pays me HRA and I live in a house owned by my Mom & Dad who do not earn and are dependant on me. The monthly maintenance charges are paid my me and it contains a Municipal Tax element. Can I take exemption on the HRA??
Reply
Naimisha
November 4, 2012
1:15 pm
1. What is ECHS? 2. You can give rent to your Dad for staying in his house. Do remember to collect rent receipts. You can show rent paid for claiming HRA.
Reply
Pradeep Palakkal November 6, 2012 7:42 pm
Hi Naimisha ECHS means (Exservicemen Contributory Health Scheme). Like to ask that, during retirement I had contributed to ECHS sum of 15000/-, is it exempt under section 80D. Believe rent receipts are not required below Rs. 3000 for claiming HRA, so can I claim HRA< 3000, while staying in my Dads house without rent receipts.
Reply
Dhawaj
November 5, 2012
4:00 pm
90/122
3/20/13
Planning and which Rule

I Want to Make Cash Gift to my Parents. How Can this Saving in My Tax
Reply
Naimisha
November 5, 2012
4:17 pm
You cannot claim tax benefit on gift to your parents.
Reply
Ajay
November 5, 2012
4:39 pm
Great write up with deep understanding at-least for newbie like me
Reply
Naimisha
November 5, 2012
8:25 pm
Thanks Ajay!
Reply
Pradeep Palakkal
November 6, 2012
7:47 pm
Hi Naimisha, I have paid my LIC premium of 10454/- on 29/02/2012 and the due date for the same was 05/03/2012. Can I claim rebate under section 80C for FY 2012-13. The premium was not claimed in FY 2011-12 and this is the last premium of the policy.
Reply
aziz
November 7, 2012
3:40 pm
No u cant claim this for fy 12-13
Reply
Joydip
November 8, 2012
12:11 pm
91/122
3/20/13
Dear Sir,

My contribution towards New Pension Scheme for the FY2012-13 will Rs.78398/-, which is more than 10% of Basic Salary, as some arrears NPS contribution has deducted. So, will the total amount stated above tax free ???
Reply
govindbhutani
November 8, 2012
9:52 pm
i am paying tution fee rs 50000/-in the the current year of daughter who is studying in m.tech. how much amount will be treated as investment for the rebate to save my income tax
Reply
HARIRAMAKRISHNA.J
November 10, 2012
11:03 am
U/S 80 C OF IT MAX RS.100000 EXEMPTION FOR TWO CHILDREN. THEREFORE YOU CAN CLAIM FULL RS.50000/-
Reply
lakshmi
November 11, 2012
11:08 am
Hi Naimisha, First would like to appreciate your work. I have confusion on my investments to save tax. NSC & 5 yr FD Interests are taxable (Good,safe one) PPF Interests on maturity is nontaxable, period is for 15yrs (still a very good one). Pls correct me if I am wrong. 1. Which one do you suggest. I agree it depends upon the commitment if someone can wait for 15yrs, but would like to know your suggestion. 2. I have invested 30000 in NSC last year, can I show the interest amount gained in the 1 yr in this year 80C investment. How do I calculate this, please help Thanks, Lakshmi
Reply
Naimisha
November 11, 2012
5:42 pm
92/122
3/20/13
1. I suggest PPF. 2. Yes.
Reply
Vijay
November 14, 2012
5:00 pm
Hi Naimisha, This blog is very informative and simply written. I had a query. I have an housing loan for which have taken insurance coverage too. I am paying the EMI for the insurance now. Can this be claimed for tax deducton? If so under which section? The house is still under construction and so think cant claim the House Loan interest being paid now. Thanks Vijay
Reply
Naimisha
November 14, 2012
5:34 pm
Loan insurance cover is an insurance cover on borrowers life. Hence, it qualifies as life insurance under sec 80C
Reply
Amit
November 14, 2012
7:27 pm
Hi, I have purchase house on Sep 2010 and its under construction and possession is on June 2013, EMI is starting from this month itself (Nov) & in the past only interest part is paid. The best thing is that i have taken only 5 Lacks of Loan (approval is for 30 L) , right now I am claming HRA ~14,000 PM , the home is on the name of me & my wife (she is also working) so i want to know what is the best possible calculation so that i can save my tax for next year . In addition my father is suffering from Kidney disease which is under 80ddb (CKD) how can i take tax benefit from that as per year the cost of medicines > 1 Lakh. Please suggest ! Thanks for the nice blog !!
Reply
93/122
3/20/13
nikhil
November 16, 2012
9:42 pm
this is the best information i read @tax savings..!!!
Reply Save 25k using Rajiv Gandhi Equity Savings Scheme (RGESS) - Sec 80CCG
sabiha zari luqmani
November 17, 2012
5:32 pm
Thanks 4 ur co-operation. Ur Article has been no doubt very clear to understand I have just started my Tax Consultancy but was in service for last 12 yrs. in the same work. Pls do let us gain more knowledge on tax Planning bi-fuctg on business basis & salaried person. Thanks once again .
Reply
Pradeep Palakkal
November 17, 2012
8:19 pm
Hi Naimisha Like to ask that, during retirement I had contributed to ECHS (Exservicemen Contributory Health Scheme), sum of 15000/-, is it exempt under section 80D. Believe rent receipts are not required below Rs. 3000 for claiming HRA, so can I claim HRA< 3000, while staying in my Dads house without rent receipts. Read more: http://howtobuybest.in/tax-planning-how-to-save-tax-in-fy2012-13-ay-2013-14/#ixzz2CUXNZmBi Follow us: @howtobuybest on Twitter | howtobuybest on Facebook
Reply
Milton Louis
November 19, 2012
9:50 am
Hi Ami, Hi All, Last weekend my friend ask me a question on 80G and as i do not have much data..pls are you able to advise ? Q- Currently my friend pays a income tax which comes upto 10,000 for the year (FY 12-13)..He now wants to donate 10,000 to a NGO(they have 50% exemption). So when he gets a refund from the dept does he get 5,000 back ??
94/122
3/20/13

Reply
Naimisha
November 19, 2012
10:12 am
Yes, provided all other numbers are computed properly.
Reply
Milton Louis
November 19, 2012
2:27 pm
Thank you superstars !
Reply
November 20, 2012
1:29 pm
Hi Ami, I have taxable income around 1 lacs (after deducting all the tax exempted allowances, and tax free slab). I read your article and could find only that almost all the tax saving investments are long terms (like 5-years lock-in). I had some plans in next 1-2 years, so i dont want to lock my money for 3 or 5 years. Can i do some short term investments which can save my tax and keep my money available for next 1 or 1.5 years as well. Even I wont mind if it doesnt give much returns because saving 10000 bucks as tax itself would be a good return Please sugeest me if any such thing is possible. I can at maximum lock in money for next 1.5 years..:(
Reply
Naimisha
November 20, 2012
3:28 pm
No tax investment has such a short lock-in. I suggest you look at taking the HRA benefit if possible.
Reply
Priya Ranjan Prakash November 20, 2012 3:54 pm
Thanks Naimisha for reply; I already have deducted my HRA amount.
Reply
95/122
3/20/13

As per my knowledge, if I am not wrong, trading in the stock market doesnot help. Right? And some of my friends said showing savings in your Saving Account saves tax. I know it sounds silly. But can you confirm it
Reply
1. Investing in stock market does help you save money. Please refer my post on RGESS here: http://howtobuybest.in/save-25kusing-rajiv-gandhi-equity-savings-schemergess-sec-80ccg 2. No. You do not get any benefit for showing savings in your bank account. Only your bank benefits out of that money
Reply
Thanks a lot Its cool. Got something which I can think of doing. Now please post some stock names which are going to double/ triple in coming years (just joking)
Reply
That list is a top secret list only shared with my
96/122
3/20/13

internal club members On a serious note, you should be looking at large companies with minimum debt and a good business model to invest in. You will not get multi-bagger returns but your money will remain safe and also grow.
Reply
Whats the criteria of becoming an internal club member (on a )
serious note can u add me back on your google+ profile
Reply
Thank you very much for such a informative article and responding to the queries \m/
Reply
Rahul K
November 22, 2012
8:28 pm
97/122
3/20/13

Nimisha I think you are not very clear about the provisions. I guess tax planning is possible only when the provisions are clear. So if you are not sure regarding the provisions then at least stop confusing the people. Rahul K
Reply
Naimisha
November 22, 2012
8:38 pm
Hey Rahul, There are plenty of hardcore finance blogs around explaining the provisions of tax planning in jargon-laden detail. The agenda of this blog is to keep it as simple as possible for the non-finance people to understand. Your comment proves that I have achieved my objective. Thank you for the compliment
Reply
Rahul K
November 24, 2012
1:08 pm
Hi Naimisha, My intention was not to hurt you. If I have done so, I truly apologies but when I was reading various discussions, I found there are many suggestions which are incorrect and if somebody invests his/her money relying on these suggestions may not really be benefited. But I appreciate some of your comments. Actually I was searching for some amendments on google n I got the link of your article on amendments. But still I think one should b specific while giving any financial advice. Wish you all the very best!!!!!!!
Reply
Naimisha
November 24, 2012
7:54 pm
Chill Rahul. I take feedback constructively. I appreciate you taking the effort to write back. If you find any information incorrect, please do point out. The whole community will benefit.
Reply Save 5k using Rajiv Gandhi Equity Savings Scheme (RGESS) - Sec 80CCG
98/122
3/20/13
Kamal Kant Gupta
November 30, 2012
8:46 pm
I am a KVS Employee joined after 2004 , We have NPS managerial share of Rs. 42000 annually ( i.e 10 % of Basic Salary). Whether this amount is excluded from the Rs. 100000 limit of 80CCE ? or it has to be included within Rs. 100000 ?
Reply
Naimisha
December 2, 2012
11:56 am
You can claim deduction under sec 80CCD for NPS. This deduction is over and above Rs. 100000 under sec 80C
Reply
Aamir
December 3, 2012
10:59 am
hiii i want to deposit 1cr in FDs and i have housing loan of 60 lacs can u please tell me how can i save tax on my FDs.and how should i make FDs to save tax..without investing in securities n insurancezi am business man and i want recuring monthly income generated from FD intrest
Reply
Naimisha
December 3, 2012
11:10 am
Max you can claim deduction on is Rs. 1 lac when you invest in 5yr tax saving FD. The remaining 99 lacs cannot be claimed as deduction and you will need to pay tax on interest income as well.
Reply
Aamir
December 3, 2012
1:16 pm
Thanks naimisha what if i will deposite this amount by different names of my siblingsand tell me the procedure how can i save the tax.
Reply
99/122
3/20/13

Naimisha December 3, 2012 1:21 pm
This is not the right place to discuss this. Consult a CA or a tax consultant before moving ahead.
Reply
M.L.AGRAWAL
December 6, 2012
11:55 am
I WANT TO INVEST IN RAJIVE GANDHI EQUITY SAV`INGS PLAN PL. ADVICE
Reply
Naimisha
December 6, 2012
11:58 am
Please read the article above for advice
Reply
Kiran
December 11, 2012
6:44 pm
Hi Naimisha, First of all appreciate your efforts for this blog Any updates on Tax Saver Funds (Under 80C) for FY 2012-13.
Reply
Naimisha
December 11, 2012
8:10 pm
There are plenty of good tax saver funds viz. Fidelity (Now L&T) Tax Advantage, HDFC Tax Saver, Reliance Tax Saver, etc.
Reply
December 11, 2012
11:50 pm
Hi Naimisha, Is it safe to have fixed deposits in Jaiprakash Associates Limited or DHFL Ltd. Because I came to know these offer better interest rates even on
100/122
3/20/13
short term deposits like 1 year.
I know this is bit out of context, but if you can just put some light on their credentials.
Reply
Naimisha
December 12, 2012
10:28 am
Company deposits are never as safe as bank deposits where there is an insurance. Therefore, the interest rate offered by them is always higher. Higher risk, higher gain. Both the companies you have listed are decent companies. You may invest in them for 1 year.
Reply
Jeeth
December 17, 2012
12:00 pm
hi Naimisha. .. hw about food coupons .. what is the amount that can be used for exemption ? per annum?
Reply
nayan
December 17, 2012
5:15 pm
how to save tax planning after section 80c cleard
Reply
amarendra
December 21, 2012
10:33 am
If suppose i am doing FD for 1 year then can we claim that amount for tax benefit
Reply
Naimisha
December 25, 2012
4:30 pm
No.
Reply
101/122
3/20/13
amarendra
December 21, 2012
10:36 am
We can do saving up to 1 lac for tax saving. Is there any other way so that we can have some more tax saving benefit (means to say apart from PPF,LIC,Medical claim)
Reply
Naimisha
December 25, 2012
4:31 pm
Yes, there are. Please read the article above for all the options.
Reply
Aashish Raj
December 26, 2012
12:19 pm
Is any Loan taken for Two wheeler/Four wheeler as consider in Tax Benifit?
Reply
Santhosh
December 29, 2012
3:49 pm
Hi, I am working in software company and getting dearness allowances(DA). is have to pay tax for DA. Please send me if you get any related link. Regards Santhosh
Reply
venkata basaveswara rao
January 1, 2013
10:58 am
Dear Madam , I am repaying two home loans one is 39000 interest +20000 principal which is self occupied . second one rs:3900000/- interest and 150000/principal , same was rented the rent was Rs 50000/- per Annam. Shall i claim rebate on both interest components ? If yes how much and how to claim ?
Reply
102/122
3/20/13
Naimisha

January 1, 2013 2:36 pm
You will be able to claim deduction for your own home only. Besides, 2000012=240000 is greater than 150000 deduction available under sec 24. (I am assuming that the figures mentioned by you are monthly figures)
Reply
Sunil D M
January 2, 2013
12:02 pm
Dear, really nice blog, Helped me a lot Have few questions will be great if you can help. 1. Can you suggest any saving scheme which would get my money back i in another 2 years 2. I have purchased a flat which is under construction and I am paying 30k EMI every month, The possession is still 2 years. Can I show this as investment ? 3. I has tds deducted form my bank for 2k, Can I show it as a investment ? really appreciate your work
Reply
Naimisha
January 2, 2013
3:08 pm
1. You should look at investing in FDs or debt Mutual Funds if you want your money back in 2 years. 2. No 3. You can adjust the TDS when you file your returns and if it is excess, youll get a refund. But you cannot show it as investment. Thank you for your kind words
Reply
Sija
January 8, 2013
4:42 pm
Hello, Under Section 80 C Limit the maximum limit is 1 lakhs. Is that included
103/122
3/20/13

LIC,PPF,ULIP etc or each one has a limit of 1 lakh?
Reply
Naimisha
January 8, 2013
9:17 pm
1 lakh is all inclusive limit.
Reply
KK
January 9, 2013
12:52 pm
Can I claim Tax benefits for LIC policy taken after April/2012. The premium amount I pay is Rs 1,11,000.00 and sum assured is Rs 15 lakhs. Thanks
Reply
Naimisha
January 12, 2013
7:00 pm
Yes, you can claim benefit of this policy for FY 2012-13
Reply
jitendra
January 12, 2013
12:27 pm
Hi Namisha, One point I want to add regarding Home loan, ALL the STAMP DUTY and registration fee cost can be claim under 80C deduction clause. For more information : http://law.incometaxindia.gov.in/DIT/Income-taxacts.aspx With Regards Jitendra
Reply
Naimisha
January 12, 2013
7:03 pm
Thanks for sharing Jitendra!
104/122
3/20/13

Reply
Muru
January 12, 2013
1:43 pm
Hello Madam, Need clarification regarding the HRA and home loan interest for the below scenario +++ 1) I own only one house and it is in city A, I stay in rented Accommodation in city A (because my own house is far from workplace) I can claim HRA for my stay in city B. I can claim Principal and Interest of home loan. Case A) if it is rented out: I need to consider the rental income and compute Annual value while deciding the income from house property I have to consider the Annual Value of my rented house in city A Annual value= Rental income- Municipal Taxes Income from house property= Annual value- 30% annual value- Housing Loan interest. Case B) if it is lying vacant/my parents stay: I need to consider the Notional Rental Income and consider the property deemed to be let out (Even if I dont receive income from it as rent) while deciding the income from house property. This house is considered as self occupied property and i can claim max. 1.5 lakh interest on housing loan. If so, how can I declare a property as self occupied and still show notional rental income. It isnt logical right? The basic underlying fact is if a house is said to be self occupied, There is a cap imposed on Interest on housing loan-1.5 lakh. if it is rented out/ deemed to be let out(If the 2nd property is in same city as of the 1st property), there is no cap on interest on housing loan. Please +++ In case A > is the calculation is correct .. and what you mean by standard rent ? and is there any limitation on the home loan interest (like 1.5 Lakhs cap) ? In case B > what do mean by notational rent and how to calculate with example may be useful ? Thanks and Regards, Muru
Reply
Naimisha
January 12, 2013
7:06 pm
105/122
3/20/13

Can someone answer Muru? I suggest you speak to a CA.
Reply
Tb
January 14, 2013
3:57 pm
Could you please tell me whether Bye-pass surgery will come under Section 80DDB
Reply
Arvind
January 15, 2013
12:03 am
Hi Naimisha, Regarding income tax exemption for preventive health checkup, could u please clarify would sonography tests during pregnancy come under the purview of preventive health checkup?
Reply
Naimisha
January 15, 2013
12:19 pm
Dont think it will qualify. Please take a second opinion.
Reply
jitendra
January 15, 2013
10:12 pm
hi Namisha, Can we claim membership fee of any professional society (related to working field of assesses) for tax deduction like Donation given to these societies ..?
Reply
Naimisha
January 16, 2013
4:05 pm
I dont think so.
Reply
106/122
3/20/13
Amit Rathi
January 16, 2013
2:22 am
Hi Pls help me out, if i purchase a plot and its financed by LIC housing finance and i am paying EMI (Actual mount + Interest). under Section 24(1)(vi), can i clam that interest for tax relief. Thanks With Regards, amit rathi
Reply
Naimisha
January 16, 2013
4:05 pm
I dont think so
Reply
sheo shankar prasad
January 16, 2013
5:02 pm
Dear Ami I appreciate the way u replied back all the quires. I am working in Merchant Navy, & my salary is exempted but under which section or article i dont know.. Can u help me ? At same time dont know what to fill up in ITR DO u ve some idea ?
Reply
Naimisha
January 17, 2013
12:31 pm
Sorry Sheo, I am not aware of the provisions in your particular case
Reply
sheo shankar prasad January 18, 2013 11:15 am
Anyways thanks for ur effort.. I will try to find out.
Reply
107/122
3/20/13
Bachi

January 17, 2013 4:56 pm
Is EPF is included in the tax limit of 2,00,000/- or not.
Reply
Naimisha
January 17, 2013
6:51 pm
EPF comes under 80C which has a max limit of 100000/-
Reply
CA vikash sharma
January 17, 2013
9:39 pm
If Tds deducted on winning from game shows then again this income will be taxable under individual hands according slab rate applicable
Reply
Madhu
January 21, 2013
6:51 pm
It is missing a main component. If you declare the house bought as Let out, then there is no limit on the interest paid.
Reply
Naimisha
January 22, 2013
10:56 am
Thanks for sharing Madhu
Reply
amarsingh
January 22, 2013
8:50 am
tell me the transport allowance calculated rs800 p.m. or rs 9600.00 yearly. if the amount of t/a is receive rs 1600.00p.m.for 11months in f/y2012-13.
Reply
manoj
January 24, 2013
3:48 pm
108/122
3/20/13

Hi Naimisha, I want to know the tax implications for equity holdings(short term), around 2 Lakhs as it swings between profit and loss. Another thing is the divedends, though small gets credited directly to my savings bank ac-are the subject to tax? BTW, I am a salaried person in the i-tax bracket of 10%.
Reply
Naimisha
January 24, 2013
4:36 pm
You need to worry about tax implication only when you sell your equity holdings. Till then chill Dividends are taxed at source and are free in the hand of investor. Hence, no tax implication on dividends that are getting credited in your account.
Reply
manoj
January 24, 2013
8:26 pm
Thanks for your reply. Actually I trade in short terms even intraday, so quite a few buying and selling done in last 1 year, some at profit and some at loss. In that case how will i-tax be applied?
Reply
Naimisha January 25, 2013 10:21 am
Simple: Taxable income = Total Short Term Gains Total Short Term Loss
Reply
manoj January 25, 2013 11:55 am
Thanks a ton Naimisha. You have been really helpful. Take care and wish you all the best. Regards, Manoj
109/122
3/20/13

Reply
Naimisha January 25, 2013 1:09 pm
Reply
Nagulan
January 26, 2013
3:55 pm
hi ami very good work youve done. Till I confused regarding 80DD. Six months back I took treatment for pulmonary embolism. Many medical checkups have done including angiogram. Ive spent about Rs. 1,00,000/- for my treatment and medical tests. Also, I have not taken any health insurance so far. Is it possible to claim as refund from paid tax.
Reply
Naimisha
January 26, 2013
3:57 pm
Sorry but you will not be able to claim any deduction as you have not taken any medical insurance policy.
Reply
Nagulan
January 26, 2013
7:29 pm
thnx for your reply. what r the diseases covers under 80DDB. Shall I get the deduction up to Rs. 40000/- for my PE.
Reply
Naimisha January 27, 2013 11:25 am
I do not understand the medical terms. However, I have added the list of diseases covered under sec 80DDB above.
110/122
3/20/13

Reply
shaji
January 27, 2013
6:05 pm
Hi Naimisha, I am contributing for NPS (section 80CCD). As per your article, this deduction is over and above the deduction under section 80C(Rs 100000).Does it mean that NPS contribution can be directly deducted from taxable income?
Reply
Naimisha
January 28, 2013
10:18 am
Yes provided all the conditions are met as stated above.
Reply
sheo shankar prasad
January 28, 2013
4:46 pm
Hi Naimisha, i need ur guidance: I purchased a house of 10 lac in year 2002 and now i am selling it in 60 lac, The circle rate has appriciated from 8 lac to 45 lac. Means the purchaser will pay stamp duty on 45 lac. But my questions are :a. How much i need to pay tax on 15+45 (B & W) ? b. Is there any formula or law to calculate tax on property selling ? c. How much should i pay tax ? and what to show in filing ITR ??? Thanks in advance for ur help
Reply
Ramesh
January 31, 2013
6:12 pm
Hi, I would like to what is the house rent amount we can claim under HRA upto which we dont need to submit the PAN card of the owner. Is it 15000 per month or 16500 per month?
Reply
PRADIP ROY CHOWDHURY
February 1, 2013
10:13 am
Dear Sir,
111/122
3/20/13

I invested a sum of Rs 40,000/- on Post Office one year Term Deposit Scheme on 10 January 2013. Can I get a tax exemption for the yr 20122013 on this purchase. regards, pradip
Reply
Naimisha
February 4, 2013
11:29 am
No
Reply
Sarveswaran M
February 4, 2013
11:22 am
Do investments in ULIP qualify for 80 C tax exemption? It is not listed under the Tax Exemptions section in article.
Reply
Naimisha
February 4, 2013
11:29 am
Yes. ULIP is a type of life insurance and is covered under 80C.
Reply
manoj
February 5, 2013
7:04 pm
Hi Naimisha, When can I file for tax returns on the savings I made between 1st April 2012 and31st March 2013?
Reply
Naimisha
February 5, 2013
8:03 pm
After 31 Mar 2013 before July 2013.
Reply
manoj
February 6, 2013
12:15 pm
112/122
3/20/13
Thanks
Reply
Utkarsh
February 6, 2013
1:17 am
A lot of thanks for such a nice post I need a valuable suggestion. i have already deposited 60k to PPF and 40k to NPS (my contribution) (and the same amount by govt.). Now looking for additional saving as i have reached the limit for 80C. Is CHSS contribution can be used to take rebate under HEALTH CARE clause.. Please suggest and do provide if any other solution can be explored Thanks and well appreciate ur efforts
Reply
Naimisha
February 6, 2013
10:24 am
Deduction for NPS is over and above 1 lakh allowed under 80C. Hence, you can invest 40k more under 80C. What is CHSS?
Reply
Utkarsh
February 6, 2013
2:02 pm
CHSS: Contributory Health Service Scheme ..
Reply
Naimisha
February 6, 2013
2:05 pm
I am not sure if you can consider contribution to CHSS as Medical Insurance.
Reply
janardan panday
February 6, 2013
2:03 am
Very good post to improve knowledge and save tax.It is not clear that the remuneration received by the retired pensioners appointed as consultants
113/122
3/20/13

in the different departements for a fixed period of six months or one year will be treated as salaried income or income from profession?Although the designation for these Rtired people is consultant but many of them are not professionally qualified like doctor engineer advocate etc.These so called consultants are also bound to follow all the rules for attendance time punctuality etc except leave and liable for proportionate deduction in contracted remuneration for their absence from office in which they are appointed consultants.Thish need to be clarified as now a days it has been almost essential to run the day to day show with the consultants aken from the retired personnel due to ban on fresh recruitemens.Non availability of sanction for new posts and man power escarcity.
Reply
Naimisha
February 6, 2013
10:28 am
A person being reimbursed as a consultant will be considered as a consultant only even if he/she is treated like a normal employee.
Reply
uma
February 14, 2013
9:22 am
Hi naimisha Thanks for you post as this helped me a lot but i have a concern if the annual income is above 30L what would be the ideal things i can save my tax to ..as i have to do my declaration next week could you help me on this
Reply
uma
February 14, 2013
9:24 am
i have insurance upto 1L and medical insurance of 20,000 R.s..but what can i invest on to save the tax thanks
Reply
Naimisha February 14, 2013 10:31 am
114/122
3/20/13

You cant do much except for the provisions listed above. Unfortunately, in our system, hard/smart workers are taxed more
Reply
Surekha Khandekar
February 20, 2013
5:48 pm
I am permanent physically handicaped with one hand and one leg(both right side). I have also been issued 50% disability certificate from Ahmedabad Civil Sergon. Pl specify what amount I can claim as deduction?
Reply
Naimisha
February 20, 2013
6:14 pm
Under sec 80U you should be able to claim a deduction of Rs. 50,000/- But do consult a chartered accountant for opinion.
Reply
Kanchan Gupta
February 21, 2013
3:25 am
will interest earned on GPF account taxable? is there are any limit for this?
Reply
Naimisha
February 21, 2013
12:15 pm
I am sorry, but what is GPF account?
Reply
Anu
February 22, 2013
11:49 am
Hi Ami, My whole hearten appreciation for the work you are doing months for the readers. Here my question is I am a salaried employee having taxable income and also a short term share trader. If I have loss in the share trading, can I adjust the same with the salary income ? if the loss is more than that of the taxable income, can I carry forward the loss to next year ?
115/122
3/20/13

For example I have a taxable salary income after all deductions will be 2,00,000 and TDS has deducted by the employer. At the same time I have a loss of Rs. 3,00,000 from the share trading business. Can I adjust the same loss in the ITR and claim for the refund ? I request you to kindly spend your valuable time to reply my query, thanks.
Reply
Naimisha
February 22, 2013
12:07 pm
You cannot adjust your trading loss against salary income. Though, you can carry forward your loss to the next year. Thanks for your kind words
Reply
Anu
February 22, 2013
5:17 pm
Thanks madam
Reply
kewal
February 23, 2013
10:07 am
good &hard work thanks
Reply
Naimisha
February 24, 2013
1:01 pm
Thanks Kewal
Reply
Anoop
February 27, 2013
12:31 pm
Hi Naimisha Thnks for your wonderful writeup. As per IT rules, any interest earned by minor or non earning wife is added to donors income. Recently i read in TOI dt 25.2.13 that it is possible to save tax by investing in minor childs name (16-17 years old) through 500-700 day FMP. could you please give
116/122
3/20/13

some details of what is FMP and how it works. Is it like FD or equity linked where risk are more?. Is FMP operated by banks?
Reply
Naimisha
February 27, 2013
1:03 pm
FMP (Fixed Maturity Products) are not the same as FDs. They are products that have a fixed maturity date and they invest in company deposits and not bank depostis. You can invest in 1 yr, 2yrs, 3yrs, etc FMPs and these FMPs have risk grade based on type of company deposits they are investing in.
Reply
Anoop
February 27, 2013
2:12 pm
Thanks Naimisha, Could you pls inform from where to buy these FMP. Is there any other better option available to save tax on interest of FDs without holding money for long term like PPF or tax saving bonds etc.
Reply
Gurpreet
March 1, 2013
3:00 pm
hii, im gurpreet singh employed in private sector and my gross annual salary 3lakh, i have no LIC or nor any saving details, then how can i save myself from Income tax.
Reply
Vip
March 2, 2013
2:53 pm
Helo M working with defence and my motnhly salary is 29535 . Including Basipc pay 9900 rs, x group pay 1400 rs , class pay 120, DA 11880 , Hygien allownce 75 rs , LRA 422 RS , military service pay(2000 RS) , TPTL(800 RS) , Grade pay 2400 . I wana to knw frm all above pay and allownce which r nt come under taxble income ? And i got ration allownce(rs 2000 pm) and house rent(rs 3000 pm ) in every six month .is it also comes under taxable income. Plz help me hope u r nt irritiating by my way of asking !
Reply
117/122
3/20/13
Naimisha

March 2, 2013 3:21 pm
Vipin, I am not so sure about provisions for defense personnel
Reply
Vip
March 2, 2013
3:49 pm
U can see it as central govermen employee and atleast tel abt rent allownce and ration allownce
Reply
Naimisha
March 2, 2013
5:31 pm
Rent should be allowed under HRA but not sure about ration allowance.
Reply
Savio
March 4, 2013
5:37 pm
My mom is a Sr. citizen and she underwent an operation of the heart where in we had to pay 1 lac. My question is that can she claim that 1 lac in her income tax returns? if yes under what head.
Reply
Naimisha
March 4, 2013
6:00 pm
IF she has a medical insiurance, she can claim this amount from the company she has taken medical insurance from. Otherwise, she cannot claim it.
Reply
Savio
March 4, 2013
6:16 pm
She does not have medical insurance. Can she put the amount in the head Medical in the IT return?
118/122
3/20/13

Reply
Naimisha
March 4, 2013
6:19 pm
She can put it under Medical Expenses provided her employer provides her Medical allowance. That too is capped at Rs. 15000
Reply
Amar
March 6, 2013
4:36 pm
Hi, i already have one home which is rented out & am showing its income. and for second home i have taken a loan. so can i get max benefit ?
Reply
Naimisha
March 7, 2013
10:14 am
You can if you are staying in the second home and the second home is in a different city than your first home.
Reply
Satish Bhosale
March 7, 2013
7:07 pm
Hey Thanks
Reply
Naimisha
March 8, 2013
4:28 pm
Reply
Harshal
March 11, 2013
12:49 am
Hi Naimisha, Great blog.Keep up the great work!! I have couple of question regarding 15000 deduction under Medical
119/122
3/20/13
Expenses

1.Can any one claim this 15000 under Medical Expenses? What if my company gives me a medical allowance of Rs.1000 per month? Can I still claim 15000? 2.What is procedure to claim? I have to submit the bills to my company and get taxable Income reduced or have to mention at the time of filing returns? Thanks
Reply
Naimisha
March 11, 2013
9:53 am
Thanks for the complement Harshal. The answer to your queries is as follows: 1. In your case, you can claim a max of Rs. 12000/- as that is what you get as Medical Allowance 2. Your company needs the bills as proof to reduce your TDS. However, the same needs to be mentioned even when you file your returns though you dont need to submit any proof there.
Reply
Harshal
March 12, 2013
4:03 pm
Thanks a lot for the reply. The issue is I have changed my job this January.Now my new company says Since your income for Jan-March does not exceed 2Lakh we will not cut any TDS from your salary. I am not sure whether they will accept my medical bills and approve them.What should I do? My total income from current and past employer exceeds taxable income hence I will have to show the total income from both the employers,Right?
Reply
Naimisha
March 12, 2013
8:11 pm
Simple. No need to submit the bills to your new employer. Just file your returns as per your actual income in the whole year and declare the medical expenses youve made. Dont need to submit bills anywhere. Preserve them with you so that you can show them in case there is an enquiry from IT department.
Reply
120/122
3/20/13
samir
March 13, 2013
12:13 pm
i would like to know rgess is over and above 80c and is it applicable to the old mutual fund investors or share holders
Reply
Naimisha
March 13, 2013
12:40 pm
RGESS is over and above 80C. Old mutual fund investors will be eligible only if they have never invested in stocks earlier.
Reply
537 Responses to "Tax Planning How to save tax in FY 2012-13 (AY: 201314)"
Login with:
Powered by OneAll Social Login
Name:
Email:
Website:
Submit
Notify me of followup comments via e-mail. You can also subscribe without commenting.
121/122
3/20/13
This webpage is not available

Google Chrome could not load the webpage because www.s2d6.com took too long to respond. The website may be down, or you may be experiencing issues with your Internet connection. Here are some suggestions: Copyright 2013 | Coupons n Offers Reload this webpage later. Check your Internet connection. Restart any router, modem, or other network

Google Chrome could not load the webpage because www.s2d6.com took too long to respond. The website may be down, or you may be experiencing issues with your Internet connection.

Google Chrome could not load the webpage because www.s2d6.com took too long to respond. The website may be down, or you may be experiencing issues with your Internet connection.
Here are some suggestions: Here are some Home suggestions: Coupons About Tips to save money Write Unsubscribe Terms Of Use Privacy Policy Contact Reload this webpage later. Reload this webpage later.
Check your Internet connection. Restart any router, modem, or other network
Check your Internet connection. Restart any router, modem, or other network
122/122

Tax Planning - How To Save Tax in FY 2012-13 (AY - 2013-14)

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Tax Planning - How To Save Tax in FY 2012-13 (AY - 2013-14)

Загружено:

Авторское право:

Доступные форматы

3/20/13

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

COUPONS & OFFERS

TIPS WALA BLOG

Search for coupon codes

Tax Planning How to save tax in FY 2012-13 (AY: 2013-14)

COUPONS FOR TOP SITES

Want to save on Tax?

2 BHK Garia Only 38 Lacs

IRS-1040 tax return form

Hassle Free Tax Filings

Looking OF Saving Tax?

GET COUPONS AND POSTS BY EMAIL

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

LET YOUR FRIENDS KNOW

3) In Case of Very Senior Citizens (Age 80 years and above):

ADD US TO YOUR CIRCLE

* On final tax amount, a surcharge of 3 % **No surcharge above 10 lacs.

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

Priya Ranjan Prakash

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

Best current account bank in India

Company Reports Free research reports for listed companies in India

Best Demat Account Providers In India

Zemanta Like 172 357

Tags: personal finance, tax planning

94440 total views, 6 today

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

November 15, 2012

November 15, 2012

1Thanks for sharing Colonel Zaysen!

January 21, 2013

Hi Naimisha, Thanks for this wonderful post. I

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

Naimisha January 21, 2013 12:37 pm

December 29, 2012

sumit December 29, 2012 2:10 pm

December 10, 2012

lat me know 80ccf for F.Y. 2012-13

December 10, 2012

80CCF is not available in 2012-13. It has been withdrawn.

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

September 11, 2012

September 11, 2012

I think interest amount above 10k will be taxable.

Hey Nishant, thanks for correcting!

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

Is ELSS still allowed under 80C?

August 23, 2012

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

August 23, 2012

I dont think so Manish

ketki October 19, 2012 1:59 pm

Rajeev October 20, 2012 5:08 pm

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)

July 20, 2012

i think there is no such limit .

Prem Kumar Goyal

Agriculture Income is also tax free .Pl. Arrange to mention.

April 10, 2012

April 10, 2012

Tax Planning - How to save tax in FY 2012-13 (AY: 2013-14)