1/14
It's that time of the year when your company HR asks for your investment proofs.
Does this tax planning stress you?๐ฅต
It won't any more๐
10 powerful tax saving tips for salaried employees. A thread๐งต๐
#taxplanning #icicidirect
It's that time of the year when your company HR asks for your investment proofs.
Does this tax planning stress you?๐ฅต
It won't any more๐
10 powerful tax saving tips for salaried employees. A thread๐งต๐
#taxplanning #icicidirect
2/14
First get basics in place before you think of exotic solutions.
A. 80C investment upto โน1.5L can save up to 46,800/-
๐ถ PPF
๐ถ Employee's Contribution to PF
๐ถ Equity Linked Savings Scheme (Tax Saver MF)
๐ถ Endowment/Term /ULIP Insurance Policies
๐ถ Home Loan Principal etc
First get basics in place before you think of exotic solutions.
A. 80C investment upto โน1.5L can save up to 46,800/-
๐ถ PPF
๐ถ Employee's Contribution to PF
๐ถ Equity Linked Savings Scheme (Tax Saver MF)
๐ถ Endowment/Term /ULIP Insurance Policies
๐ถ Home Loan Principal etc
3/14
80C/ What to choose for investment?
Here are basic differences b/w ULIP policies, PPF, ELSS to know๐
Factors you should consider are return expectation, variability of return, lock-in period and tax implication.
๐ข Good; ๐ด Not so good
80C/ What to choose for investment?
Here are basic differences b/w ULIP policies, PPF, ELSS to know๐
Factors you should consider are return expectation, variability of return, lock-in period and tax implication.
๐ข Good; ๐ด Not so good
4/14
B. Dual Home Loan Deduction
If you purchase a house & avail home loan with another earning member of your family,
You can claim the following deductions in both members' ITR:
A. Section 24: โน2L for interest
B. Section 80C: โน1.5L loan repayment
to the extent incurred.
B. Dual Home Loan Deduction
If you purchase a house & avail home loan with another earning member of your family,
You can claim the following deductions in both members' ITR:
A. Section 24: โน2L for interest
B. Section 80C: โน1.5L loan repayment
to the extent incurred.
5/14
C. Car Expenses
You can reduce your taxable income on the following car expenses:
- Lease
- Insurance
- Maintenance
- Driver's salary
Employer will ask for the proofs of these expenses. Subject to limits mentioned in Income Tax Act and Rules.
C. Car Expenses
You can reduce your taxable income on the following car expenses:
- Lease
- Insurance
- Maintenance
- Driver's salary
Employer will ask for the proofs of these expenses. Subject to limits mentioned in Income Tax Act and Rules.
6/14
D. National Pension Scheme - Deduction under 80 CCD
๐ถ It's a retirement planning tool
๐ถ Mix of Debt & Equity (flexible to an extent)
๐ถ Stringent withdrawal conditions
๐ถ Min. 40% of corpus at age 60 will be used towards pension
How much can I contribute? Keep reading๐
D. National Pension Scheme - Deduction under 80 CCD
๐ถ It's a retirement planning tool
๐ถ Mix of Debt & Equity (flexible to an extent)
๐ถ Stringent withdrawal conditions
๐ถ Min. 40% of corpus at age 60 will be used towards pension
How much can I contribute? Keep reading๐
7/14
/NPS
Maximum allowable deduction under NPS each year:
A. Own contribution: โน50,000
B. Employer Contribution:
- Private Employees: 10% of basic salary & DA
- Government Employees: 14% of basic salary & DA
These limits are in addition to 1.5L limit under Section 80C.
/NPS
Maximum allowable deduction under NPS each year:
A. Own contribution: โน50,000
B. Employer Contribution:
- Private Employees: 10% of basic salary & DA
- Government Employees: 14% of basic salary & DA
These limits are in addition to 1.5L limit under Section 80C.
8/14
E. Health Insurance Deduction (80D)
A. Up to โน25,000 for self, spouse, kids
B. Up to โน50,000 for senior citizen parents
If parents are not Sr. citizens, up to โน25,000 for them
Medical inflation is rising at 14% in India. Very important to get a health insurance โ๏ธ
E. Health Insurance Deduction (80D)
A. Up to โน25,000 for self, spouse, kids
B. Up to โน50,000 for senior citizen parents
If parents are not Sr. citizens, up to โน25,000 for them
Medical inflation is rising at 14% in India. Very important to get a health insurance โ๏ธ
9/14
F. House Rent Allowance (HRA)
If you live on rent, you're allowed to claim a deduction of lowest of the following:
A. Actual HRA Component
B. Actual Rent Paid (-) 10% of Basic Salary
C. 50% of Basic Salary if living in DL/Mum/Kol/Chennai. Otherwise 40% of Basic Salary
F. House Rent Allowance (HRA)
If you live on rent, you're allowed to claim a deduction of lowest of the following:
A. Actual HRA Component
B. Actual Rent Paid (-) 10% of Basic Salary
C. 50% of Basic Salary if living in DL/Mum/Kol/Chennai. Otherwise 40% of Basic Salary
10/14
G. Enjoyed Huge Capital Gains๐ and buying a House?
As per Sec 54F, you can avail deduction of capital gains if you purchase a house:
A. 1 yr before or 2 yrs later
B. Construct within 3 yrs
of transfer of assets
No capital gains if,
Cost of House > Net Consideration
G. Enjoyed Huge Capital Gains๐ and buying a House?
As per Sec 54F, you can avail deduction of capital gains if you purchase a house:
A. 1 yr before or 2 yrs later
B. Construct within 3 yrs
of transfer of assets
No capital gains if,
Cost of House > Net Consideration
11/14
H. Leave Travel Allowance
Love travelling?
Govt allows you to claim deduction of Travel cost twice in a block of 4 years
Conditions:
- Domestic Travel
- Nothing for stay, food etc.
- Travel Fare Allowed: Economy Air/ Rail AC First Class Fare
Subject to other conditions
H. Leave Travel Allowance
Love travelling?
Govt allows you to claim deduction of Travel cost twice in a block of 4 years
Conditions:
- Domestic Travel
- Nothing for stay, food etc.
- Travel Fare Allowed: Economy Air/ Rail AC First Class Fare
Subject to other conditions
12/14
I. Hindu Undivided Family (HUF) Planning: Married folks take note.
Under Tax laws, a legal entity HUF can be created by:
- Hindu
- Jain
- Sikh
- Buddhist families
Income from certain family biz. or assets can be transferred here to enjoy 5L slab rebate - Consult your CA.
I. Hindu Undivided Family (HUF) Planning: Married folks take note.
Under Tax laws, a legal entity HUF can be created by:
- Hindu
- Jain
- Sikh
- Buddhist families
Income from certain family biz. or assets can be transferred here to enjoy 5L slab rebate - Consult your CA.
13/14
Miscellaneous savings:
J. Mobile Bill and Books / Periodicals Reimbursement
On account of the above expenses, an employee may claim deduction of the lower of:
- Bill amount
- Amount provided in the salary package
Miscellaneous savings:
J. Mobile Bill and Books / Periodicals Reimbursement
On account of the above expenses, an employee may claim deduction of the lower of:
- Bill amount
- Amount provided in the salary package
14/14
Summary:
1. 80 C investment up to 1.5L
2. Dual home loan deduction
3. Car expenses
4. NPS: up to 50K
5. Health Insurance (80D)
6. House Rent Allowance
7. Capital Gains and buying house
8. Leave Travel Allowance
9. HUF
10. Miscellaneous.
/end
#taxplanning #icicidirect
Summary:
1. 80 C investment up to 1.5L
2. Dual home loan deduction
3. Car expenses
4. NPS: up to 50K
5. Health Insurance (80D)
6. House Rent Allowance
7. Capital Gains and buying house
8. Leave Travel Allowance
9. HUF
10. Miscellaneous.
/end
#taxplanning #icicidirect
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Please note that we have covered the Income Tax provisions in brevity due to word limit. Kindly refer a CA / Investment Adviser before taking any tax / investment decision.
1. Follow us (@ICICI_Direct)
2. Retweet this to help others
Please note that we have covered the Income Tax provisions in brevity due to word limit. Kindly refer a CA / Investment Adviser before taking any tax / investment decision.
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