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. 2019
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
|
50,000
|
3
|
24
|
Interest paid on Home Loan for Self occupied homes.
|
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
|
5
|
80D
|
Premium payment for medical insurance for self and parents.
Below 60 Years Rs. 25000/ & above 60 Years Rs.30,000/-
|
55,000
|
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 Taxpayer (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)100% Or 50%
|
50,000
|
10
|
80TTA
|
Interest received in Savings Account
|
50,000
|
11
|
80GG
|
For Rent Expenses who do have HRA component in salary
|
60,000
|
12
|
87A
|
Maximum Rebate Rs. 5,000/- who’s Taxable Income Less than 5 Lakh
|
5,000/-
|
13
|
Revised Standard Deduction U/s 16(ia)
|
Revised Income Tax Standard Deduction from 40,000/- to 50,000/- U/s 16(ia) by the Finance Budget 2019 ( Only for Salaried Persons)
|
50,000/-
|
Tax Saving Sections Summary:
Below is the recap of all tax saving sections for FY 2019-20:
Section 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 (Best Tax Saving Investments u/s 80C)
Section 80CCD(1B): Investment in NPS (Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?)
Section 24: Interest paid on Home Loan for Self occupied homes. Budget 2017 has capped the limit to Rs 2 Lakhs for both rented and self-occupied house. You can claim Tax Benefit on both HRA & Home Loan – Know How?
Section 80EE: Additional exemption on Home Loan Interest for First time home buyers. (Budget 2016)
Section 80E: Interest paid on Education Loan. No upper/lower Limit! (Tax Benefit on Education Loan (Sec 80E))
Free Download Automated Income Tax Form 16 Part A&B for F.Y. 2018-19 [ This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B ]
Section 80D: Premium payment for medical insurance for self and parents. Below 60 Years Rs. 25000/- and Above 60 Year as Sr.Citizen Rs.30,000/-
Section 80DDB: Treatment of Serious illness for self and dependents (Limit of Rs 80,000 for the person above 80 years, Rs 60,000 for the person above 60 years and Rs 40,000 for rest)
Section 80U: Physically Disabled Taxpayer (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)
Section 80DD: Physically Disabled Dependent (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)
Section 80G: Donation to approved charitable funds like Prime Minister Relief Fund, etc
Section 80TTA: Interest received in Savings Account Rebate Rs. 50000/-
Section 87 A: Income Tax Rebate Rs. 5000/- who’s taxable income less than Rs. 5,000/-