10 Tax Planning Tips for A.Y.

2016-17
As the new Assessment Year approaches, all tax payers need to start focusing upon tax
planning.Section80oftheITActofIndiahasbeenservingasaboonforthetaxpayers.This
section offers numerous forms of deductions which a tax payer can claim while filing his
returnforaparticularAY.
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Listedbelowaresomeofthebestwaystominimizeyourpayabletaxandcreateapoolof
savingsforyourself.Thetop10taxplanningtipswhichwillhelptogaininAY201617are:

Consider deductions Under 80C

Thesection80Cmainlydealsinofferingdeductionstotaxpayerswhoinvestinsectorslike
FixedDeposits(5years),PFF,Pensionplans,EPF,etc.Thescopeofthisdeductionwillallow
thetaxpayerstoclaimdeductionsuptoINR1,50,000fortheAY201617.

Use NPS Under 80CC

The term NPS represents New Pension Scheme. The Government of India has recently
introduced this scheme with a view to create better saving habits amongst tax payers.
InvestingintheNPSwillallowthetaxpayerstoclaimadeductionofINR1,50,000inthe
AY201617.However,ifataxpayerwithdrawsfromsuchinvestmentplan,thenthesame
willbecometaxable.

Medical Insurance Under 80D

Your concern for health can increase your wealth! The IT Department offers a deduction of
INR25,000fortaxpayerswhoinvestinMedicalInsurance.Ifyouareaseniorcitizen,then
thisbenefitisextendedtoINR30,000.
Note:Deductionformedialinsurancepremiaetc.u/s80DraisedtoRs.25,000(Rs.30,000
incaseofseniorcitizensforA.Y.201617)

Help Disabled Dependents Under 80DDB

Takingcareofadisabledpersonathomecanbecomeaburden.However,theGovernmentof
IndiaisofferinganassistancetoyoubyallowingyoutoclaimadeductionofINR80,000per
AYinrespectoftheexpenditurebornefortakingcareofthedisabledperson.

Repay Higher Education Loans Under 80E

Areyoustillcarryingtheburdenofyourhighereducationloan?UndertheSection80E,theIT
DepartmentallowsyoutoclaimadeductionuptoINR1,00,000towardsloanrepaymentin
respectofhighereducation.

Charity Under 80G

Charity can be a good area for you to claim deductions. Various charitable organizations
acceptdonationsfromcommonmenanddonatingmoneytooneofsuchorganizationscan
allowyoutoclaim100%deduction.Allthatyouarerequiredtodoismaintainaproofofyour
donation.
Note:Deductionu/s80Gupto100%fordonationtoSwachhBharatKosh,CleanGangaFund
andNationalFundforControlofDrugAbuse.

Payment of Interest for House Building Loans Under 24B

The significance of this section is mammoth! Under this section, a tax payer is eligible to
claimadeductionofINR2,00,000asinterestonhouseloan.Additionally,thepurviewof
section 80C can also be combined here, which offers an additional deduction of INR 1, 50,
000forHouseBuildingLoansprincipalamount.Intotal,youcanclaimadeductionofINR2,
50,000forthepurposemeetingyourhouseacquisitioncosts.

Transportation Allowance Under 10

OneofthelesserknownareasofdeductionisSection10.Underthissection,ataxpayercan
easily claim a deduction of INR 19, 200 as his transportation charges. If a person is
physicallydisabled,thenthebenefitofthisamountincreasestoINE38,400.

Know your taxable income

Apart from searching deductions and making adjustments in your expense column, you
should also plan to compute your right taxable income. Collect all your revenue and
expenditure sources and figure out the correct tax amount which you will be paying for AY
201617.Incaseyouneedhelp,feelfreetocontactanexpert.

Pay your taxes on time

Last,butnottheleast,payyourtaxesontime.Itisimportanttopayyourtaxesbeforethe
duedateasithelpsyoutogetrefundsfaster.Ifyouarenotpayingyourtaxesontime,then
issuessuchasinterestonrefundsandpenaltiesmayincreaseyourtaxliabilities.
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