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Offbeat tax saving avenues for the Indian tax paye
By BankBazaar.com | Strategic Moves 15 hours ago

The importance of planning your savings and understanding tax components that you can utilise to
cannot be stressed upon enough. One of the best ways to plan your taxes is to start well in advance o
the beginning of the financial year and not wait till the end of the financial year, when there are bou
the cash flow and a confusion over what investment route to choose.
It is critical to know all the possible ways one can save tax, to help plan your budget properly. The IT
with big dollops of taxpaying/tax saving information. Ways to save tax have always been an interest
tax payers all across the world, as tax saved is money saved. While some of the tax-saving avenues a
tax payers in the nation, there are some roads to tax saving which are lesser known. Two of them ar
Save tax for your contributions to political parties/charitable organizations
In India, you can enjoy a tax deduction if you have contributions to make to a political party. The IT
amount of money that is donated to an acknowledged political party can be lawfully claimed for ded
80GGC (For corporate it is 80 GGB). This deduction was launched very recently, April 2010, and th
contributions made to electoral trusts as well.
There is no upper limit set for the deduction amount, but it can exclusively be claimed only if the co
party funds.
It is interesting to note here that deduction on donations does not come into play if you are donatin
individual. It is only applicable if you are donating it to specific organizations.
For example, Section 80G of the IT Act says that if you are donating funds to a charitable organizati
get a deduction of 50%-100% for that. However, note that there exists a ceiling here the percenta
restricted to 10% of the donor's (gross) total income. Also, only donations in cash are taken into con
purpose and not donations in kind.
Needless to say that the amount of tax you can save is dependent on the amount that you contribute
You would require a proof to claim this deduction and that's a stamped receipt of the amount donat
the organization to which you have made the contribution.
Save tax for disabilities
The Indian taxman has a heart of gold and it is seen nowhere better than this. Section 80 U of the IT
taxpayer happens to suffer from any of the listed disabilities (see below), he is entitled to a tax dedu

http://in.finance.yahoo.com/blogs/strategic-moves/offbeat-tax-saving-avenues-indian-tax-payer-082609658.html

If the tax payer has a disabled dependent (spouse/parents/children/siblings) to support, Sec 80DD
same.
Disability list includes low vision, blindness, hearing disability, leprosy, loco-motor impediment, m
retardation.
Things to note

This deduction is obtainable only if the disability is 40% at least.

For severe impairments, 80% or above, the deductible amount becomes more 1 Lakh.

The dependent must be fully dependent for upkeep on the taxpayer and must not be claiming d

independently under Sec 80 U.

Proof required to claim this deduction will be a disability certificate from a CMO of a government ai
surgeon.
More of such special deduction news for income tax is available in IT Act, 1961. Check further to kn
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