Look beyond section 80c to cut your tax burden further. Remember, you will have to spend under a specific head to claim these sweet little tax breaks. Charity, Education Loans and Medical Bills; All qualify for a tax break.
Section 80C
Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans.
Mandatory requirements: payment has to be made before 31 March 2008.
Who can avail the deduction: individuals and HUF( Hindu Undivided Family) both resident and non-resident.
How much: Cannot exceed Rs 1 lakh.
Section 80CCC
Qualifying products: Pension plans of life insurers.
Mandatory requirements: Payment has to be made before 31 March 2008.
Who can avail the deduction: Individuals.
How much: Within the overall limit of Section 80C (up to Rs one lakh.
Section 80D
Qualifying products: Medical insurance policies taken for self, spouse, dependent parents or children, or any member of HUF.
Mandatory requirements: Premium should be paid through a cheque out of income chargeable to tax.
Who can avail the deduction: Individuals, HUF
How much: Up to Rs. 15,000; senior citizens can claim up to Rs. 20,000
Section 80DD
Qualifying products: Expenses on the medical treatment of a dependent who is a person with a disability of a dependent who is a person with a disability.
Mandatory requirements: Certification by a medical authority.
Who can avail the deduction: Resident individual or HUF
How much: Up to Rs. 50,000 or up to Rs. 75,000 if the dependant is a person with severe disability.
Section 80DDB
Qualifying products: Expenses on the medical treatment of a specified disease ( cancer, AIDS, neurological diseases, chronic renal failure and more)
Mandatory requirements: Certificate in Form No. 10-I to be submitted along with the income tax return form. Deduction is available if the amount is actually paid for treatment.
Who can avail the deduction: Resident individuals or HUF
How much: Rs 40,000 ( if the person treated upon is less than 65 years of age), or Rs 60,000 ( if the age of the person treated is 65 years or more)
Section 80E
Qualifying products: Payment of interest on loan taken for higher studies.
Mandatory requirements: Deduction is available in the year in which repayment stats and only for eight immediately succeeding assessment years.
Who can avail the deduction: Individuals.
How much: Deduction available on the total interest portion of education loan, the principal repayment gets no tax advantage.
Section 80G
Qualifying products: Donations to certain funds and charitable institutions.
Mandatory requirements: Not applicable.
Who can avail the deduction: Resident individuals or HUF
How much: 50 or 100 percent deduction on the entire donated amount, or 50 or 100 percent deduction subjet to 10 per cent of gross total income.
Section 80GG
Qualifying products: Rent paid for residential purpose.
Mandatory requirements: Should not be getting house rent allowance. Actual rent paid is in excess of 10% of the total income.
Who can avail the deduction: Self-employed or salaried.
How much: Excess of actual rent paid over 10% of GTI, or 25% of GTI(Gross Total Income), or Rs 2,000 per month, whichever is the lowest.
Section 80U
Qualifying products: Expenses incurred on self, if disabled.
Mandatory requirements: Certification by a medical authority to be furnished along with the income tax return form.
Who can avail the deduction: Resident individuals.
How much: Rs 50,000 for a person with disability, Rs 75,000 for a person with severe disability( disability of over 80 %)
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