What is the Maximum Income Tax I can save for this Year (FY 2018-19)? A
question I am often asked. Tax laws keep changing year on year,
especially in Budget. In this post, we summarize all the tax saving
sections
The table below gives the details of all the tax exemptions available:
S. No.
|
Tax Sections
|
Description
|
Maximum Tax Exemption Limit (Rs.)
|
||
1
|
80C/ 80CCC/ 80CCD
|
Investment
in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS,
SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees,
Stamp Duty.
|
150,000
|
||
2
|
80CCD(1B)
|
Investment in NPS
Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)
|
50,000
|
||
3
|
24 (B)
|
Interest paid on Home Loan for Self occupied homes.
You can claim Tax Benefit on both HRA & Home Loan
|
200,000
|
||
4
|
80E
|
Interest paid on Education Loan. No Limit – Rs 50,000 is just an assumed value
Tax Benefit on Education Loan (Sec 80E)
|
50,000
|
||
Click here to Download Automated Income Tax Form 16 Part B for Financial Year 2018-19 & Ass Year 2019-20 [This Excel Utility Can Prepare at a time 50 employees Form 18 Part B as per latest Tax Slab for A.Y.2019-20]
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5
|
80D
|
Premium payment for medical insurance for self and parents. Includes Rs 5,000 limit for the preventive health checkup
Making Sense of Tax Benefit on Health Insurance u/s 80D
|
60,000
|
||
6
|
80DDB
|
Treatment of Serious illness for self and dependents (Limit of Rs 1,00,000 for Senior Citizens and Rs 40,000 for others)
|
80,000
|
||
7
|
80U
|
Physically Disabled Tax payer (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)
|
125,000
|
||
8
|
80DD
|
Physically Disabled Dependent (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)
|
125,000
|
||
9
|
80G
|
Donation to approved charitable funds like Prime Minister Relief fund, etc (assumed value)
|
50,000
|
||
10
|
80GGA
|
Donations for scientific research or rural development (assumed value)
|
50,000
|
||
11
|
80GGC
|
Donations to political parties (assumed value)
|
50,000
|
||
12 A
|
80TTA
|
Interest received in Savings Account
|
10,000
|
||
12 B
|
80TTB
|
Interest Income for Senior Citizens Only
|
50,000
|
||
12 C
|
10(15)(i)
|
Interest up to Rs 3,500 for single holder account and up to Rs 7,000 for joint account in Post Office Saving Account
|
7,000
|
||
13
|
80GG
|
For Rent Expenses who do have HRA component in salary
|
60,000
|
||
14
|
87 A
|
Tax Rebate Rs. 2,500/- who’s taxable income less than 3,50,000/-
|
2,500
|
||