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Tax saving beyond the Section 80C limit

Save your hard earned money with the best tax savings schemes. Avail dual benefits of tax savings under section 80C, of the income tax act, 1961 on investments & life insurance cover with tax-free returns. <br>https://www.bajajallianzlife.com/save-tax.jsp

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Tax saving beyond the Section 80C limit

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  1. Tax Saving Plans

  2. Tax saving beyond the Section 80C limit

  3. Introduction Section 80C of Income Tax Act allows tax payers to claim deductions from their taxable income (up to Rs 1 Lakh) by investing in certain instruments. However, many tax payers are not aware that, there are other sections of the Income Tax Act that allows tax payers to claim further deductions from their taxable income, beyond the 80C limit of Rs 1 lakh. In this article, we will discuss ways to save taxes beyond the Rs 1 lakh of Section 80C.

  4. Premium paid for Medical Insurance:  Medical insurance premium for self, spouse, dependent children and parents are eligible for deduction under Section 80D of the Income Tax Act. The maximum allowable deduction is Rs 15,000 for self, spouse and dependent children. The applicable deduction for senior citizens is Rs 20,000. If an individual pays for medical insurance of parents who are senior citizens, then he or she can claim an “additional” maximum deduction of Rs 20,000. However, if the parents are not senior citizens, then a maximum of Rs 15,000 can be claimed as additional deduction. Therefore the total amount of the deduction the individual claim for medical insurance for self, spouse, dependent children and senior citizen parents is Rs 35,000. Treatment of specified diseases:  Medical treatments for specified serious diseases, like cancer, AIDS, Parkinson’s disease, chronic kidney failure etc, either for self or dependents are eligible for deduction under Section 80DDB. For clarification on specified diseases, you should refer to the relevant section (80DDB) of the Income Tax Act or consult your tax consultant. Actual expenses or Rs 40,000, whichever is lower, is eligible for deduction under this section. For senior citizens the upper limit is Rs 60,000.

  5. House Rent Allowance:  If you are paying rent for your accommodation, you should claim house rent allowance from your employer, if allowed under your company’s policy. This will reduce your taxable income and your tax obligation. If you are self employed or a salaried individual who does not receive House Rent Allowance (HRA) from the employer, do not despair. Leave Travel Allowance:  If allowed within your company’s policies, use your Leave Travel Allowance for your holidays, which is available twice in a block of four years. If you do not avail of the Leave Travel Allowance, your employer will be pay it to you in your monthly pay cheque as part of your salary, after deducting tax at source at your applicable Tax Saving Plans slab rate. To claim deduction on taxes, you will be required to furnish copies of tickets as proof to claim the tax deduction. If you are been unable to claim the benefit in a particular four year block, you could carry forward one trip to the succeeding block of 4 years, but make sure you claim it in the first calendar year of that block.

  6. Conclusion we have discussed various tax-saving opportunities beyond the 80C limit of Rs 1 lakh. You should ensure that you understand the different provisions of tax saving in the Income Tax Act, and see if these provisions apply to you. If the Government announces new tax benefits in the upcoming Budget, you should go through them carefully, so that you can maximize your tax savings. Maximising tax savings puts more cash in our hands that we can use to invest in our future. However, we should be careful in interpreting the various provisions under the different sections of the Tax Saving Plans and in case of any confusion consult a chartered accountant or tax consultant. Source:http://bit.ly/2dr600v

  7. Follow us on https://www.facebook.com/bajajallianzlifeinsuranceltd https://www.linkedin.com/company/bajaj-allianz-life-insurance-co-ltd- http://plus.google.com/+bajajallianz/posts https://twitter.com/bajajallianzLIC https://www.youtube.com/user/jiyobefikar https://instagram.com/bajajallianzlifeinsurance

  8. Click to know more on Investment Plans : https://www.bajajallianzlife.com/investment-plans/investment-insurance-plans.jsp Thank You…

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