Tax Planning Guide for FY 2015-16

Tax Planning Guide for FY 2015-16

Tax Planning Guide for FY 2015-16

We are releasing the eBook on Tax Planning for FY 2015-16. This is a short 44 slide power point presentation which gives the details of tax saving sections and investments available to individual tax payers.

The eBook covers the following income tax sections available for individual tax payers:

1. Section 80C/80CCC/80CCD

These 3 are the most popular sections for tax saving and have lot of options to save tax. The maximum exemption combining all the above sections is Rs 1.5 lakhs. 80CCC deals with the pension products while 80CCD includes Central Government Employee Pension Scheme.

You can choose from the following for tax saving investments:

  1. Employee/ Voluntary Provident Fund (EPF/VPF)
  2. PPF (Public Provident fund)
  3. Sukanya Samriddhi Account
  4. National Saving Certificate (NSC)
  5. Senior Citizen’s Saving Scheme (SCSS)
  6. 5 years Tax Saving Fixed Deposit in banks/post offices
  7. Life Insurance Premium
  8. Pension Plans from Life Insurance or Mutual Funds
  9. NPS (New Pension Scheme)
  10. Equity Linked Saving Scheme (ELSS – popularly known as Tax Saving Mutual Funds)
  11. Central Government Employee Pension Scheme
  12. Principal Payment on Home Loan
  13. Stamp Duty and registration of the House
  14. Tuition Fee for 2 children

2. Section 80CCD(1B) – Investment in NPS

Budget 2015 has allowed additional exemption of Rs 50,000 for investment in NPS. We have done a complete analysis and concluded that it would be beneficial for you to discard this benefit and invest after tax money in a good equity mutual fund.

3. Payment of interest on Home Loan (Section 24)

The interest paid up to Rs 2 lakhs on home loan for self-occupied home is exempted u/s 24. There is no limit for home given on rent.

4. Payment of Interest on Education Loan (Section 80E)

The total interest paid on education loan can be claimed as tax exemption. There is no upper limit for the same.

5. Investment in RGESS (Section 80CCG)

Deduction Up to Rs 25,000 (50% of amount invested) is allowed if you make investment in preapproved stocks and mutual funds in Rajiv Gandhi Equity Savings Scheme (RGESS). This is available to first time equity investors subject to certain conditions.

6. Medical insurance for Self and Parents (Section 80D)

You can get tax deduction up to Rs 60,000 by paying medical insurance premium for self, your dependents and your parents. There is also sub limit of Rs 5,000 for preventive medical checkup.

7. Treatment of Serious disease (Section 80DDB)

You can claim deduction up to Rs 80,000 for treatment of certain diseases like AIDS, renal failure, etc for self or dependents

8. Physically Disabled Tax payer (Section 80U)

Physically Disabled Tax payer can get tax exemption up to Rs 1.25 lakhs u/s 80U

9. Physically Disabled Dependent (Section 80DD)

You can claim deduction up to Rs 1.25 lakhs for maintenance and medical treatment of Physically Disabled dependent

10. Donations to Charitable Institutions (Section 80G)

Deduction up to Rs 40,000 is allowed for Donation to certain charitable funds, charitable institutions, etc.

11. Donations to Charitable Institutions (Section 80GGA)

Deduction up to Rs 1 lakh is allowed for donations for scientific research or rural development

12. Donations to Charitable Institutions (Section 80GGC)

Deduction up to Rs 60,000 is allowed for donations to political parties

Along with the tax saving options, it also has details about all the common salary components and their tax treatment. This section can help you to plan your salary components in case your company offers such facility.

We hope that this eBook would help you in understanding, planning and saving taxes.

Please give us your feedback and help us improve!

41 thoughts on “Tax Planning Guide for FY 2015-16

  1. whether interest income from post office savings account is exempted u/s 10(15)? if yes, to what extent ?

  2. Hi ..If A senior citizen puts his money in FD.n he doesnt have any other source of income thn does he need to pay tax fr FD int above 10,000 ?

    • Irrespective of age of tax payer, they need to pay tax on interest received on fixed deposit (in case their total annual income crosses taxable limit). The Rs 10,000 exemption is only for interest earned in saving bank account across all accounts of the tax payer.

  3. Thanks a lot Amit Sir. May God Bless you with all the success.

  4. rakesh kumar bansal says:

    sir i am a punjab govt employee .i contributed under cpf scheme of amt.rs.45000 and invest in sbi insurance of amt. rs.150000.sir can i take benefit of amt.rs.45000 under new nps scheme.

  5. I wanted NPS additional tax benefits copy of central government. So I produced my ddo.so i get this benefit. I contributed in NPS tier 1 account.

  6. Subrata Bandyopadhyay says:

    Very good reference book. Thank you Sh. Amitji.

  7. Whether Medical Checkup Rs 5000 is still available for FY 201516?

  8. Thank you Amitji,a very helpful ebook created by you.

  9. Great Guideline Amitji..
    Thanks for help…

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