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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
General »
 Where to invest money for the short term
 Statistics ministry seeks GST data to improve national accounts
 Country of residence may tax you on global income
 Country of residence may tax you on global income
 SC denies income tax exemption to local authority
 Composition Dealers need not furnish data in serial number 4A of Table 4 of FORM GSTR-4
 I-T Dept may probe tax evasion through F&O trades
 IL&FS crisis: ICAI seeks explanation from audit firms
 Arun Jaitley pushes for more tax filing in FY19
 Are you filing Income Tax Return (ITR)? This is where you are trapped! Know what is Form 16 , Form 16A, Form 26AS, TDS statement
 Officials handling GST can assess all No centre-state wall

Income tax rebates: Salaried can cut their outgo drastically
June, 11th 2014

Some salaried individuals would have already started their tax planning for the year. At this point, it is important to be informed about some lesser known provisions in Chapter VI-A of the I-T Act, 1961, under Section 80C. An individual in the highest tax bracket of 30% can save about R30,000 every year if he exhausts the full limit. Section 80C entitles an employee to certain deductions from the gross total income, up to a maximum limit of R1 lakh per year.
Yearly savings made in Public Provident Fund (PPF) subject to a maximum limit of Rs 1 lakh, premiums paid for life insurance, national savings certificates (NSCs), employee's contribution to provident fund (PF), tax-saving mutual funds, five-year fixed deposits in banks or post office, and pension plans all come under the purview of Section 80C. Moreover, tuition fees paid for two children will be deducted from your income under Section 80 C of the Act. The law states that the deduction will be on the actual payment of fee and not on books, bus fare etc.

Tuition fees include money paid whether at the time of admission or thereafter, to any university, college, school or other educational institution in India, for the purpose of full-time education of any two children of the salaried employee. Full-time education includes any educational course offered by a university, college, school or other institution to a student who is enrolled in a full-time course. Money paid as ‘development fees’ or donation or capitation fees or payment of similar nature will not be eligible for deduction. The law clearly mentions that full-time education includes play-school activities, pre-nursery and nursery classes. Salaried employees, however, cannot claim tax exemption under tuition fees if their child is studying abroad.

Under 80C, taxpayers can claim deduction on the amount paid as stamp duty when they buy a house. In fact, many taxpayers are not aware of this provision — the law clearly underlines that the amount paid towards stamp duty, registration fees and other expenses for the purpose of transfer of house property to the owner also qualifies for exemption. This is over and above the principal payment that qualifies under 80C. But one should note that the deduction under 80C for total amount, including principal loan repayment, stamp duty and registration charges, cannot exceed R1 lakh.
Inclusion of registration and stamp duty fees

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

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