CORPORATE TAX

PLANNING (CTP)
ASSIGNMET 3rd AND 4th
Submitted by
Rakesh kumar Rai - P61074
Section-2, NICMAR, PUNE


80C section

Section 80C of the Income-tax Act provides for a deduction of up to Rs. One lakh to an
individual or a Hindu undivided family (HUF) for:-
(i) making investments in certain savings instruments; or
(ii) incurring expenditure on tuition fee and repayment of housing loan.
The total limit under this section is Rs 1 lakh. Included under this heading are many small
savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums
and investment in specified government infrastructure bonds are also eligible for deduction under
Section 80C
Most of the Income Tax payee tries to save tax by saving under Section 80C of the Income Tax
Act. However, it is important to know the Section in to so that one can make best use of the
options available for exemption under income tax Act. One important point to note here is that
one can not only save tax by undertaking the specified investments, but some expenditure which
you normally incur can also give you the tax exemptions.
Besides these investments, the payments towards the principal amount of your home loan are
also eligible for an income deduction. Education expense of children is increasing by the day.
Under this section, there is provision that makes payments towards the education fees for
children eligible for an income deduction
Sec 80C of the Income Tax Act is the section that deals with these tax breaks. It states that
qualifying investments, up to a maximum of Rs. 1 Lakh, are deductible from your income. This
means that your income gets reduced by this investment amount (up to Rs. 1 Lakh), and you end
up paying no tax on it at all!
This benefit is available to everyone, irrespective of their income levels. Thus, if you are in the
highest tax bracket of 30%, and you invest the full Rs. 1 Lakh, you save tax of Rs. 30,000.
the investments that fall under Section 80C.
Provident Fund
Public Provident Fund
Life insurance premium
Pension plans
Equity Linked Saving Schemes of mutual funds
Infrastructure bonds
National Savings Certificate




80 D section

Besides the investments of 1 Lakh under Section 80C, there are other options for saving tax.
Section 80D: Investments made towards medical insurance premium paid qualifies for deduction
under section 80D from your income up to a defined limit.
How much can you save?
As per Section 80D, the premium paid for medical insurance is deductible from your income up
to Rs. 15,000 per year. However, if you are a Senior Citizen (56 years and above) the limit
increases up to Rs. 20,000 per year.
If you are paying the medical insurance premium for your parents, an additional deduction of Rs.
15,000 per year can be claimed under section 80D. Again, if your parents are Senior Citizens,
you can claim an additional amount of Rs. 20,000.
Thus, you can deduct up to Rs. 35,000 from your taxable income for medical insurance
premiums paid. The premiums paid for self, spouse (dependent or not dependent), parents
(dependent or not dependent) and children are considered for deduction under section 80D.
(Note: You cannot claim premiums paid for your in-laws).
Sec 80D and Hindu Undivided Family (HUF)
Even when you file the Income Tax return as an HUF, the medical premiums paid for any
member of the HUF can be claimed for deduction under section 80D as per the above limit. In
this case, the deduction can be claimed only if the premium is paid by the HUF.
Section 80D and Private Insurers
There is no restriction on who you can buy the medical insurance from. Irrespective of whether
you buy medical insurance from a Public Sector Undertaking (PSU) insurer or from a Private
Insurer, you can claim deduction under section 80D.
Mode of Payment
Any mode of payment, except cash, is acceptable for claiming deduction under Section
80D.Other Factors You must remember that the medical insurance premium has to be paid from
your taxable income of that year only if you want to claim the deduction under section 80D. You
should not have paid the premium from your savings or gifts received by you.



Section 80CCF Infrastructure Bonds

From April, 1 2010, a maximum of Rs. 20,000 is deductible under section 80CCF provided that
amount is invested in infrastructure bonds. This is in addition to the 100,000 deduction allowed
under Section 80(C). Infrastructure Development Finance Company (IDFC) has launched its
second tranche of public issue of long term infrastructure bonds, under section 80CCF. Section
80CCF provides tax payers an additional tax deduction to the extent of Rs 20,000 for
investments in long term infrastructure bonds. This deduction would be over and above the Rs. 1,
00,000 existing under section 80C. The interest received on these bonds shall be treated as
income from any other source and shall form part of the total income of the assesses in that
financial year in which they are received. A minor is not eligible to apply for subscription to
these bonds.
80CCF Infrastructure Bonds in 2011-12
Here is a list of the new infrastructure bonds and its issuing authority
LIC Infrastructure bond
L & T Infrastructure bond
IDFC Infrastructure bond
Infrastructure bond PFC.










Aviva Life Shield Plus

Life Shield Plus provides the benefit of payment of the life cover in the event of your unfortunate
death, to your nominee. It also has a provision for paying a sum double to the life cover in case
of your unfortunate death in an accident, to your nominee. This is immediately done if you have
opted for the Accidental Death Benefit rider.

Aviva Life Shield Plus has a provision for the immediate payment of the life cover in the case
you are critically ill or you are permanently or totally disabled, even though life cover continues
until the end of the policy term. This is indeed a welcome provision for your family at such a
critical time.
Aviva Life Shield plus provides comprehensive protection for your family at a nominal cost
through:
Payment of Life Cover (Sum Assured) to your family in the event of your death, with a
provision of double the Life Cover in the case of an accidental death.
Immediate payment of the Life Cover in the case of critical illness or permanent total
disability, while life cover continues till the policy term
Most competitive rates
Benefits:-
1) Death benefit:
Payment of Life Cover (Sum Assured) to your family in the event of your death, with a
provision of double the Life Cover in the case of an accidental death, if you have opted for
Accidental Death Benefit rider
2) Health benefit:
Payment of Life Cover (Sum Assured) to your family in the event of your death, with a
provision of double the Life Cover in the case of an accidental death, if you have opted for
Accidental Death Benefit rider
Specifications:
Entry age: 18-55 years (Maximum age at the expiry of the policy is 65 years)
Policy term: 10 years to 30 years
Minimum Sum Assured: Rs 10 lakh
Premium Payment Frequency: Yearly, Half Yearly, Quarterly and Monthly
Riders: Aviva Dread Disease (DD) Rider and Accidental Death Benefit (ADB) Rider



Easy steps to Plan:

Step 1
Choose the level of
protection you want
Minimum life cover (Sum Assured) is Rs 10 lakh
Step 2
Select riders for
comprehensive
protection
. Aviva Dread Disease (DD) Rider :
(Minimum Rider sum assured : Rs. 2 lacs
Maximum Rider sum assured : Base sum assured maximum of
Rs. 50 lacs)
Accidental Death Benefit (ADB) Rider :
(Equal to Base sum assured provided that ADB Rider premium
does not exceed 30% of the premium of the base product
otherwise, the rider sum assured would be reduced accordingly.)
Step 3
Arrive at the policy
term by choosing the
period for which you
want protection
Policy Term: 10-30 years subject to
Entry Age : 18-55 years
Maturity Age : 28-65 years
Step 4
Select the Premium
frequency based on
your convenience
Single
Regular (equal to policy term) via Yearly, Half Yearly,
Quarterly & Monthly modes
Step5
Work out the
premium payable
along with our
Financial Planning
Adviser
Calculate now premium






Aviva's LifeShield Plus Illustration

For example:-
Date of commencement of policy: 08/12/2011
Date of birth of life insured: 12/01/1983
Ages in yrs: 28
Gender Male
Policy term: 10 years
Premium type: Regular premium
Total sum assured Rs 1500000
Policy coverage Accidental Death Benefit Rider
Premium frequency Annual

The entry age for buying a Life Shield Plus policy ranges from 18-55 years. The policy term ranges from
a minimum of 10 years to a maximum of 30 years. The minimum sum assured at the time of maturity
amounts to around ten lacs.

Life Shield Plus is a policy which is one of its kinds and it takes a leading place in the market for an
insurance policy. Getting a Life Shield Plus Policy is any day the best option since it can suit anyones
pocket.

You need not worry about medical bills or diseases hereafter with the Aviva Life Shield Plus policy in
hand. All you need to do is think of your future life while you are enjoying your present life.
For above policy the premium is calculated: 2130 without service tax
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