Plan your taxes well in this New Year.

Wish you and your family a very happy and prosperous New Year! It is a new calendar year but there are still three months for Financial Year 2015-16, to end! So let us together plan for Tax savings.

The Income-tax department, in a bid to encourage investments provides tax benefits for certain investments.We have identified some of the new investment options available with taxpayer for saving Income-tax.

  • Sukanya Samriddhi Scheme: If you are bestowed with a girl child who is less than 10 years of age, then opening a Sukanya Samriddhi Account in her name will be a proud step. This option is available within overall ceiling limit of Rs 1,50,000/- u/s 80C. Cost of education is increasing these days, the taxpayer can utilize the proceeds received on the maturity for the higher education of his girl child or even for her marriage. In addition to this, interest credited to this account and the maturity proceeds are also exempt from tax.

  • National Pension Scheme (NPS): To boost the habit of savings among the taxpayers, Income-tax department introduced a new section 80CCD(1B) for contribution to National Pension Scheme with increased limit. So the taxpayers who are already claiming full benefit of Rs. 1,50,000/- U/s. 80C of the Income-tax act for investments in Life insurance, ELSS, PPF, PF, NSC etc. can invest in National Pension Scheme so that they will be able to claim the additional deduction upto Rs. 50,000.

  • Health insurance: It causes very much trouble to you if your loved ones are facing any health issue. Hence getting the health of your whole family covered by mediclaim policy may erase financial scarcity issue. Considering the increasing cost of medical facilities, Income-tax department has increased the limit for deduction of health insurance premia upto Rs. 25,000/-. Also if you are paying the health insurance premia of your parents who are senior citizens, you can claim a deduction upto Rs. 30,000/-.

  • Contribution to Pension Funds: We always seek various schemes and funds offering adequate inflows that will help us survive happily after our retirement. Pension funds of Central Government serve this purpose. From financial year 2015-16, Income-tax department has increased the limit of deduction for contribution to such Pension Funds from Rs.1,00,000 to Rs. 1,50,000/- U/s. 80CCC (within overall ceiling limit of Rs 1,50,000/- u/s 80C) of the Income-tax act.

  • Donations: As good citizens we should do our bit by contributing to the society, to encourage this sentiment the Income-tax Department offers deductions on Donations made. If you contribute any sum of money to various funds raised by Government for aid of victims, for e.g Chennai Flood Victim Fund, Uttarakhand Relief Fund, Prime Minister’s National Relief Fund etc. you will get a 100% deduction of the amount of contribution U/s. 80G of the Income-tax act.

Recently, Prime Minister Narendra Modiji appealed to the citizens to keep India clean “Swachh Bharat”. For this purpose, two new funds were founded viz. Swachh Bharat Kosh and Clean Ganga Fund. If you wish to optimize your tax saving and contribute to a National Mission, donate any sum and get 100% tax benefit U/s. 80G.

You should always remember that investments should not be made only to save taxes, but the core purpose for making the investment should be for getting your life covered with adequate returns. The pattern of investment differs considering various factors viz. age, salary and in hand savings, personal need of funds, etc.

In this New Year let’s make a resolution to optimize investment along with saving tax.

 

P.S. Have you tried our new android app for Income-tax. You can file your Income-tax return or check your Income-tax status. Download from Google Play: download here

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Plan your taxes well in this New Year.
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Wish you and your family a very happy and prosperous New Year! It is a new calendar year but there are still three months for Financial Year 2015-16, to end! So let us together plan for Tax savings. The Income-tax department, in a bid to encourage investments provides tax benefits for certain investments.We have identified some of the new investment options available with taxpayer for saving Income-tax.
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myITreturn
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