Tarun is a young professional working in a MNC. Tarun recently got married and he has bought a new flat. He has taken a home loan of Rs 30 Lakhs for 20 years and is paying an Equated Monthly Installment (EMI) of Rs 26,992. Consequences of Interest Rate Hike Tarun is a worried man nowadays. He […]
Exemptions: Certain components of the salary that an individual receives are exempt from income tax. Some of these components are: Medical Allowance: An individual can claim exemption for upto INR 15000 in a financial year for medical reimbursement received from the employer. Transport Allowance: Transport allowance of upto INR 800 a month is exempt from […]
Section 80C: There are various tax saving investment products available in which an individual or Hindu Undivided Family (HUF) can invest for returns and at the same time save tax. The government, in order to encourage savings among people, gives tax benefits for investments made in certain financial products. These financial products are covered in detail […]
Everyone has various financial goals in life. Through proper Financial Planning you can achieve your various financial goals in life like: • Planning and accumulating funds for your children’s higher education and children’s marriage • Building a retirement corpus so that you can enjoy the same existing lifestyle without having to worry about funds for […]
Section 80D: Deduction for health insurance premium Section 80D of the Income Tax Act contains provisions for deductions that can be availed for health insurance premium. 1) Deduction for health insurance premium paid for self and family In a financial year, an individual can avail deduction, up to a maximum of Rs. 25,000, from […]
• An individual staying in a rented accommodation and paying rent can claim HRA exemption, if HRA component is a part of the salary. • HRA is exempt from income tax upto a certain limit. • The amount that can be availed as exemption from taxable income is the lower of the following 3 items: […]
• Leave Travel Allowance is a special allowance which employed people get as a part of their salary. This allowance is given for taking vacations and for availing this facility the employee can claim exemption from his taxable salary. • This allowance can be claimed for vacation related travel expenses within the country. • This […]
• Tuition fees paid for full time education of 2 children qualifies as deduction under Section 80C • This deduction is allowed only for full time education i.e. part time courses or distance learning courses do not qualify for this deduction. • This deduction can be availed for only 2 children. But husband and […]
• An individual can claim income tax benefits on the principal repayment as well as the interest repayment on a home loan. • The principal repayment of upto INR 1,00,000 qualifies for deduction from taxable income under Section 80C. The interest repayment of upto INR 1,50,000 qualifies for deduction from taxable income under Section 24(b) […]
• An individual can claim tax benefits on the principal repayment as well as the interest repayment on a home loan. • The principal repayment of upto INR 1,00,000 qualifies for deduction from taxable income under Section 80C. The interest repayment of upto INR 1,50,000 qualifies for deduction from taxable income under Section 24(b) for […]
• Under Section 80E of the Income Tax Act, the interest paid on an education loan is eligible for deduction from taxable income • There is no upper limit to the amount that can be availed as deduction from taxable income for interest paid on the education loan. In short the entire interest amount is […]
• Senior Citizen’s Saving Scheme (SCSS) product was introduced for senior citizens in the annual budget by the then Finance Minister in the year 2004. It is a part of Section 80C of the Income Tax Act. • All senior citizens can invest in this scheme. • Investments of upto INR 1,00,000 made in this scheme are […]
• The minimum investment is INR 500. • The interest rate payable is 8.40% annually. The investment doubles in 8 years and 7 months. The interest earned is fully taxable. • This account can be opened by individuals. NRIs, corporates, trusts and other institutions cannot invest in KVP. • On maturity of the term, if […]
• Minimum investment is of INR 1000 or in multiples of INR 1000. • The tenure of the investment is 6 years. • The interest rate payable is 8% per annum. The interest is payable monthly. This monthly interest can be directly credit to the savings account, if that is also maintained with the post […]
• Investments of upto INR 1,00,000 made in the 5 year tax saver bank FD are eligible for deduction from taxable income.• Any individual or Hindu Undivided Family (HUF) can invest in the Bank FD under this scheme.• Account can be opened in single or joint names. In case of a joint FD the tax […]
Investments made in life insurance in the form of paying premiums qualify for deduction under Section 80C of the Income Tax Act. • The premiums paid qualify for tax benefits if the premium paid is equal to or less than 20% of the sum assured (SA). For example if the premium paid is INR 20,000 […]