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Anil

Anil Rego  |377 Answers  |Ask -

Financial Planner - Answered on May 31, 2021

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
MD Question by MD on May 31, 2021Hindi
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I am a salaried person and my monthly salary is around 1.5Lakhs - 1.80 Lakhs.

I want to save income tax by availing some deductions. Can you please help me in choosing the right investment? 

Ans: There are different investment avenues which help you save tax under old tax regime. The main deductions are captured below:

You can invest Rs 1.5 lakh under Section 80C of the Income Tax Act

Public Provident Fund (PPF)

National Savings Certificate (NSC)

Equity-linked savings schemes (ELSS)

80CCD Additional 50,000 for National Pension Fund

80D helps to claim deduction of 25,000 for health insurance premium paid for self and family. You can claim upto 50,000 for senior citizen parents.

Under section 24, you can claim a deduction on interest on home loan up to a maximum of Rs 2 lakh per annum

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Hardik

Hardik Parikh  | Answer  |Ask -

Tax, Mutual Fund Expert - Answered on Aug 22, 2023

Asked by Anonymous - Aug 21, 2023Hindi
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I work for a private company with annual CTC of Rs 17.6 lakh, What are the investments which I must do in order to save the tax, Currently I have 4 Life Insurance policies with premium Rs 1 lakh Senior Citizen health insurance of Rs 25k I have a 3 year old daughter, this year I m planning for Sukhanya Samruddhi of Rs 1.5 lakh
Ans: Hi,

Given your annual CTC of Rs 17.6 lakh and your current investments, here are some tax-saving investment options you can consider for the financial year 2023-24:

1. Equity Linked Savings Scheme (ELSS): This is a type of mutual fund that not only helps you save tax but also gives you an opportunity to grow your money. They have a lock-in period of 3 years.

2. Public Provident Fund (PPF): You've mentioned planning for Sukanya Samriddhi for your daughter, which is a great choice. In addition to that, you can also consider investing in PPF. It's a long-term investment option that offers tax-free interest.

3. Unit Linked Insurance Plan (ULIP): Since you already have life insurance policies, you might want to look into ULIPs. They offer both insurance and investment under a single integrated plan.

4. National Savings Certificate: This is another safe investment option that you can consider.

5. New Pension Scheme (NPS): It's a voluntary, long-term retirement savings scheme designed to enable systematic savings. It is a mix of equity, fixed deposits, corporate bonds, liquid funds, and government funds.

6. Fixed Deposits: Some fixed deposits offer tax-saving benefits. However, the interest earned might be taxable.

7. Senior Citizen Saving Scheme (SCSS): Since you've mentioned senior citizen health insurance, if you or your family members qualify, SCSS can be a good option. It offers a good interest rate.

Remember, the key is to diversify your investments and not put all your money into one basket. It's also essential to keep in mind the lock-in periods, returns, and tax implications of each investment option.

I hope this helps!

..Read more

Ramalingam

Ramalingam Kalirajan  |7012 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 22, 2024

Asked by Anonymous - May 18, 2024Hindi
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Money
Hello Sir, I am not sure if you will be able to answer my query. This is with regards to Income tax deductions. My gross salary is around Rs.1 lakh per month. Have done investment declaration mentioning the investment in NPS 50 K, 80 C upto Rs.1.5 lacs. 80D mediclaim insurance for self Inspite of the same there is a tax of around 7000 every month's it's getting deducted. Pls advise if there are any other investments which I can do to save on tax deductions.
Ans: You seem to be on the right track with your tax-saving strategies! Here's a breakdown and some suggestions to potentially reduce your monthly tax deduction:

Current Deductions:

NPS (Section 80CCD(1B)): This allows an additional deduction of up to Rs.50,000 on top of the Rs.1.5 lakh limit under Section 80C.
Section 80C Investments: Great! You're utilizing the full Rs.1.5 lakh limit for deductions on various investments like PPF, ELSS Mutual Funds etc.
Medical Insurance (Section 80D): This covers premiums paid for health insurance for yourself.
Potential Additional Deductions:

House Rent Allowance (HRA): If you pay rent, check if you can claim an HRA exemption. This can significantly reduce your taxable income. The exempted amount depends on your rent payment, city type, and your salary structure.
Leave Travel Concession (LTA): If your employer provides Leave Travel Allowance (LTA), ensure you utilize it for travel and submit the necessary proofs to claim exemption.
Interest on Home Loan (Section 24): If you have a home loan, you can claim deductions for the interest paid on the loan amount.
Here are some additional tips:

Review your Investment Choices: Ensure your Section 80C investments are spread across different options to balance risk and return.
Professional Tax (PT): Since you mentioned monthly deductions, it's possible a part of it might be Professional Tax (PT). PT varies depending on your state and salary.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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