Kindly suggest me IT savings options

Hello Abhishek,

I am writing this query on behalf of my wife, her taxable income is Rs.5,74,240 and she has investments u/s 80C, 80CCC & 80CCD is Rs.1,58,543. Since Rs.1,50,000 is the limit under these sections and they have been reached already, it will be helpful if you could suggest what are the other tax saving options here.
Asked 3 months ago in Income Tax from Chennai, Tamil Nadu
Dear Sir,

Your wife can invest in NPS to get additional deduction of INR 50000. 

If you give donation under section 80G, you can avail deduction. Donation to political parties are also deductible. However, these are not very popular considering the cash out go.

further, please let me know whether your wife is a salaried person or non salaried. After that we will require some more detail and guide you for tax saving.

Please feel free to revert in case of any doubts.

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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Hi Sir,

You can consider the following options :-

1) Mediclaim Policy which will give you a further deduction of Rs. 25000/- under section 80 D
2) You have an option of Investment under Rajiv Gandhi Equity Savings Scheme for which you can claim deduction to the extent of Rs. 25000/- in case of investment in Equity shares, subject to conditions
3) You can make an Investment in New Pension Scheme (NPS) to the extent of Rs. 50000/- and this additional amount is also allowed as deduction under Section 80CCD. In total you can claim deduction of Rs. 200000/- (Section 80C , CCC, CCD)
4) If you are residing at a rented premises, you can claim deduction under section 80 GG to the extent of Rs. 60000/- subject to other conditions.

Thanks & regards

- CA B S Sridhar M.Com., FCA. DISA
Chennai
sridharca@gmail.com
B S Sridhar
CA, Chennai
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Hi,
Vishakha Here,
other saving options are,
if there is home loan and it is in joint name:,

Tax Benefit on Home Loan for payment of Interest is allowed as a deduction under Section 24 of the Income Tax Act. As per Section 24, the Income from House Property shall be reduced by the amount of Interest paid on Home Loan where the loan has been taken for the purpose of Purchase/ Construction/ Repair/ Renewal/ Reconstruction of a Residential House Property.

The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs (increased in Budget 2014 from 1.5 Lakhs to Rs. 2 Lakhs).

In case the property for which the Home Loan has been taken is not self-occupied, no maximum limit has been prescribed in this case and the taxpayer can take tax deduction of the whole interest amount under Section 24.

Additional tax benefit  of 50000u/s 80CCD- new pension scheme
there is an additional tax exemption of Rs 50,000 for investing in NPS. For someone in the 30 per cent tax bracket, this is a clear benefit of Rs 15,000 over and above the Rs 1.5 lakh allowed under Section 80 C. 

Medical insurance Premium u/s 80 D
You can get a tax deduction of maximum Rs 25,000 on the health insurance premium for self and family. If you are a senior citizen, you can claim tax deduction on the premium of up to Rs 30,000.

Donations u/s 80G
Under section 80G deduction is available to any tax payer (may be individual, company, firm or any other person) making donation to the company. 50% and or 100% of the donation made is allowed to be deducted from the taxable income and consequently tax is calculated.
Vishakha Agarwal
CA, Bangalore
213 Answers
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Sorry as the question was asked to abhishek I would also like to reply

Sir apart from the above you can have mediclaim for self and your dependent parents. 
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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Hello Abhishek Ji
She can contribute to NPS Scheme u/s 80 CCD and can avail additional deduction of Rs. 50000, 80 D medical insurance is also good and can get deduction upto  Rs. 25000 for herself and upto Rs. 30000 for her parents , in last if you are looking for New Home u can get benifit of Home Loan Intt upto Rs. 200000 
Lalit Bansal
CA, New Delhi
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it doesnt matter under which tax bracket you are in.
Tax savings :The extra deduction of Rs 50,000 on NPS can help those in the highest tax bracket of 30 per cent save an additional Rs 16,000 in taxes. Those in 20 per cent tax bracket can save over Rs 10,000 while those in 10 per cent can save over Rs 5,000.
yes , she can make use of it.
only requirement to invest in NPS is that:
assessee should be individual.
Eligible for tax deduction upto 10% of Salary (Basic + DA) under sec 80 CCD (1) within the overall ceiling of Rs. 1.5 Lac under Sec. 80 CCE.

Further w.e.f. FY 2015-16, in addition to the deduction u/s 80 CCD (1), deduction of Rs. 50,000 has been on contribution in NPS. (U/s 80CCD(1B))

It is to further clarify that if an corporate has not opted for the corporate plan and employees are making investment under the all citizen model i.e. on their individual basis, even in that case investment made by them can be claimed by the employee and the employer is liable to provide deduction u/s 80CCD (1) and u/s 80CCD (1B) to the employee under form 16.

In other words, it can be mentioned that an employee can claim overall deduction of Rs. 2,00,000/- (i.e. Rs. 1,50,000/- u/s 80 C/80CCC/80CCD(1) and Rs. 50,000/- u/s 80 80CCD(1B))
Vishakha Agarwal
CA, Bangalore
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Yes even salaried persons can make use of NPS

U/s 80CCD (1B) applicable from AY 2016-17, any contribution made by an individual upto Rs 50000 is allowed as deduction over and above deductions u/s 80C , 80CCC, 80CCD.

Thanks & Regards

Ria Nagpal
Ria Nagpal
CA, Ahmedabad
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You can invest in NPS irrespective of the tax bracket in which you fall.
Abhishek Dugar
CA, Mumbai
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Hello Sir,

You can very well claim benefit under NPS. 

Any deduction is most beneficial for the 30% slab because where a 10% slab person saves Rs.10/- for every Rs.100/- the 30% saves Rs.30/- on the same amount.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP. 
Rohit R Sharma
CA, Mumbai
719 Answers
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