Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: articles on VAT and GST in India :: list of goods taxed at 4% :: empanelment :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT RATES
News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

This is how you can save tax this year
January, 22nd 2016

With the end of financial year just around the corner, it is time to save certain amount of taxes by investing in prescribed instruments which are eligible for deductions. Chapter VI-A of the Income-tax Act primarily provides for deduction on certain payments and deduction on certain incomes. Individual taxpayers are eligible to claim these deductions and have a wide range of tax preferences available to them. Details of deductions which are available to an individual not carrying out any business or profession are as under:

The limit of deduction on account of contribution to a pension fund of LIC or IRDA approved insurer is Rs. 1.5 lakhs.

Deduction under section 80CCD

•Under section 80CCD (1) of the Income-tax Act, 1961 if an individual, employed by any other employer (other than the Government), has paid or deposited any amount in a previous year in his account under a notified pension scheme [only the National Pension System (NPS) has been notified by the Ministry of Finance], deduction is allowed up to 10% of his salary.
•Further, with effect from Financial year 2015-16, under section 80CCD (1B) an Individual employee can claim additional deduction up to Rs.50000 by contributing towards NPS.
•Besides, under Section 80CCD(2) employee shall also get deduction in respect of employer's contribution towards his NPS account up to limit of 10% of his salary.
•For this purpose, ‘salary’ includes dearness allowance having regard to the terms of employment but excludes all other allowances or perquisites.
•Limit of deductions under sections 80C, 80CCC and 80CCD(1) is restricted to Rs.1,50,000. Please note that the Individual’s contribution under section 80CCD(1B) and employer’s contribution under section 80CCD(2) is not subject to the overall limit of Rs.1,50,000.
Exemption from Capital Gains Tax

Individual may also earn income by way of capital gain arising upon sale of any long term capital asset on which taxes are applicable at the rates 20% (plus applicable surcharge and education cess). Income tax law allows taxpayer to claim certain exemption from paying such capital gain tax provided certain conditions are fulfilled.

List of exemptions available in relation to Capital Gain is as follows:

The aforesaid deductions are provided under the existing law and the tax payer can opt based on facts, circumstances and their risk appetite.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions