Post Budget 2020, what are the NPS Tax Benefits 2020
under Sec.80CCD(1), 80CCD(2) and 80CCD(1B) and particularly on the off chance
that you picked the new tax regime? Let us understand the adjustments in
detail.
Showing posts with label Tax Planning. Show all posts
Showing posts with label Tax Planning. Show all posts
Saturday, 8 August 2020
Sunday, 27 January 2019
Friday, 10 August 2018
During the Budget 2018, Finance
Minister inserted a new Section 80TTB. This allows a tax deduction of up to
Rs.50,000 with respect to interest income from FDs held by senior citizens. Let
see the features of this section.
FDs or fixed instruments are the major backbones of
many of the senior citizens. However, the majority of these fixed instruments
are not so tax efficient. Hence, to give some relief to senior citizens Finance
Ministry introduced this new Section 80TTB.
This amendment is effective from Financial Year
2018-19 or Assessment Year 2019-20.
Who is eligible to claim the deduction under Section 80TTB?
Senior Citizen who is holding the FDs with Banks,
Co-operative Banks and also in Post Offices and earning the interest income
from such deposits are eligible to avail the deduction under Section 80TTB.
Here, the meaning of senior citizen is an
individual resident in India
Firms, an association of persons or a body of
individuals are not allowed to claim the deduction under Section 80TTB.
Also, if a senior citizen claimed the deduction under
Section 80TTA (all individuals can claim up to Rs.10,000 deduction against the
interest income received from a savings account), then they are not allowed to
claim the deduction under Section 80TTB.
Thursday, 9 August 2018
Thursday, 2 August 2018
Tax Benefit on NPS Tier 1 and/or 2?
NPS has two Tiers – 1 and 2.
NPS
Tier 1 is the long-term investment, which has restricted withdrawals
and meant primarily for retirement planning. On maturity, you can
withdraw a maximum of 60% of the corpus as lump sum and rest has to be
used for annuity purchase.
Monday, 10 July 2017
Wednesday, 5 July 2017
Monday, 12 June 2017
Tax planning has always been the test of efficiency for people along with being a test of their cunningness such that they can save their taxes in a lawful manner. Here are some of the tips that can help you to plan your taxes for the F.Y. 2017-18 & A.Y. 2018-19.
1) Invest in policies U/S 80C
Policies are a prominent way to save a handful amount of tax. Up to Rs. 1, 50, 000 (A.Y.2018-19) can be saved by way of investing PPF, EPF, Fixed Deposit for 5 years, Pension Plans, etc. as specified u/s 80C, 80CCC and 80CCD.
2) Divide Income to various family members
Avail the basic exemption limit of Rs. 2.5 Lakh (A.Y.2018-19) in the various family members as possible. Prefer senior citizens like parents and women as then can avail higher exemption limit.
3) Contribute to NPS U/S 80CC
NPS stands for New Pension Scheme was has recently been initiated by the Government under which investors can claim a deduction as a have a Tax free NPS return, however, withdrawal under such system is till taxable.
4) The aid of Medical Insurance U/S 80D
A deduction of Rs. 25, 000 is available for people who wish to invest in medical insurance for self. This deduction increases to Rs. 30, 000 when it is done by senior citizens. More about medical insurance deduction
5) Expenditure towards disabled dependent U/S 80DD
When a certain amount is spent inform medical insurance for a disabled dependent, the deduction up to Rs. 75, 000 is available where the disablement is normal in nature. The same can be extended up to 1,25,000 is the disablement is of the severe type. More about deduction u/s 80DD
7) Repayment of Higher Education Loan U/S 80E
When repayment is carried out for higher education loan, the same is also allowed as a deduction and hence can reduce ample amount of tax liability. More about Deduction 80E: Interest on Loan Taken for Higher Education
· Download Automated All in One TDS on Salary for Non-Govt Employees for F.Y.2017-18
· Download Automated All in One TDS on Salary for Govt. & Non – Govt. Employees for F.Y.2017-18
· Download Automated All in One TDS on Salary for Central & All State Employees for F.Y.2017-18
8) Donate U/s 80G
Donation to charitable trusts and organizations have always been regarded as an auspicious event, therefore, 100% deduction is available in such context. The same rate is also applicable in a situation where contribution is made to a political party.
9) House loan interest U/s 24B
People who are liable to pay house loan interest can also claim deduction up to Rs. 2, 00, 000 (the figure represents the maximum investment limit)
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