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Milind

Milind Vadjikar  |672 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 03, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Jun 24, 2024Hindi
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I have taken home salary of 1.41lakhs. I have declared below items under old tax regime. Home loan interest - 2 lakhs HRA - 3.8 lakhs Principle payment of home loan + pf (80 C) - 1.5 lakhs. Medical insurance 80 D - 40k standard deduction - 50k What are all the other options I can take to save tax. Kindly let me know

Ans: Hello;

You may invest 50 K in NPS and claim deduction for the same under Sec. 80 CCD(1B) over and above the 80 C deductions.

Best wishes;
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 Jul 07, 2023

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Dear Mr. Parikh, Are there any tax saving options available, considering I am on new tax regime. Also, I don't have any home/auto/etc. loan, and stay in my own apartment. Regards, Praveen
Ans: Dear Praveen,

Thank you for your question. I understand that you're looking for tax-saving options under the new tax regime. While the new tax regime does limit some of the deductions available under the old regime, there are still a few options you can consider.

Standard Deduction: A fixed amount of Rs. 50,000 is allowed as a deduction from the total income of salaried individuals. Please note that if you claim this standard deduction, you cannot claim any other deduction for the same amount under any other section of the Income Tax Act.
Employer's Contribution to NPS: If your employer contributes to your National Pension Scheme (NPS) account, this contribution can be claimed as a deduction.
Transport Allowances for Persons with Disabilities: If you have a disability, you may be eligible for deductions related to transport allowances.
Gratuity: If you receive a gratuity from your employer, it may be exempt from tax under Section 10(10).
Leave Encashment: If you receive any amount in lieu of leave not taken, it may be exempt from tax under Section 10(10AA).
Please remember that tax planning should be a part of your overall financial planning. It's important to choose the options that best suit your financial goals and circumstances. If you need more detailed advice, I would recommend consulting with a tax advisor who can provide guidance based on your specific situation.

I hope this helps!

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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 16, 2024

Asked by Anonymous - Jul 28, 2024Hindi
Money
I would like to seek your advice on tax-saving options. My yearly income is approximately ?35 lakhs. Every month, ?28,000 is deducted for PF. I have medical insurance with a premium of ?50,000 and I contribute to NPS over 12 months. Additionally, I have a home loan with an annual interest payment of ?2 lakhs. Could you please suggest some ways to save on taxes? Thank you for your assistance.
Ans: With a yearly income of Rs. 35 lakhs, you fall into a higher tax bracket, so it's essential to optimise your tax-saving strategies.

Let's explore various options to help you reduce your taxable income and increase your savings.

1. Utilising Section 80C Deductions
Section 80C offers deductions of up to Rs. 1.5 lakh on various investments and expenses. Given your salary, it's vital to ensure you're fully utilising this limit.

Provident Fund (PF) Contributions:

Your monthly PF deduction of Rs. 28,000 amounts to Rs. 3.36 lakhs annually. However, only Rs. 1.5 lakh of this can be claimed under Section 80C.
National Pension System (NPS):

Contributions to NPS are eligible for an additional Rs. 50,000 deduction under Section 80CCD(1B). This is over and above the Rs. 1.5 lakh limit under Section 80C.
Home Loan Principal Repayment:

The principal repayment of your home loan is also eligible for deduction under Section 80C. Ensure you include this when calculating your total 80C limit.
Other 80C Investment Options:

If you have not exhausted your Rs. 1.5 lakh limit under Section 80C, consider investing in other eligible options such as Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), and life insurance premiums.
2. Leveraging Section 24 for Home Loan Interest
Interest Payment Deduction:
You can claim a deduction of up to Rs. 2 lakh on the interest paid on your home loan under Section 24(b). You've mentioned an annual interest payment of Rs. 2 lakh, which you can fully utilise to reduce your taxable income.
3. Maximising Health Insurance Benefits under Section 80D
Health Insurance Premium:
You are already paying a premium of Rs. 50,000 for medical insurance. Under Section 80D, you can claim a deduction for health insurance premiums up to Rs. 25,000 for yourself, spouse, and dependent children.
If your parents are senior citizens, you can claim an additional deduction of Rs. 50,000 for their health insurance premiums. If they are not senior citizens, the limit is Rs. 25,000.
4. Additional Deductions under Section 80E for Education Loans
Education Loan Interest:
If you have an education loan for yourself, spouse, or children, you can claim a deduction on the interest paid under Section 80E. This deduction is available for up to 8 years or until the interest is paid off, whichever is earlier.
5. Contributing to the National Pension System (NPS)
Additional Deduction for NPS Contributions:

Besides the Rs. 50,000 deduction under Section 80CCD(1B), you can also claim a deduction for your own NPS contributions under Section 80C, as mentioned earlier. This can be part of your Rs. 1.5 lakh limit.
Employer Contribution:

If your employer contributes to your NPS account, it can be claimed as a deduction under Section 80CCD(2). This is an additional deduction and does not fall under the Rs. 1.5 lakh limit of Section 80C.
6. Donations and Charitable Contributions under Section 80G
Eligible Donations:

Contributions to certain charitable organisations and relief funds are eligible for deductions under Section 80G. The deduction percentage varies depending on the organisation and the donation amount.
Claiming Deductions:

Ensure you have valid receipts and the organisation is eligible under Section 80G before claiming the deduction. This can help reduce your taxable income while contributing to a good cause.
7. Claiming Deductions for Savings Account Interest under Section 80TTA
Interest on Savings Account:

If you earn interest on your savings account, you can claim a deduction of up to Rs. 10,000 under Section 80TTA. This deduction is available for individual and HUF taxpayers.
Interest on Fixed Deposits (FDs):

Interest on FDs is fully taxable. However, senior citizens can claim a deduction of up to Rs. 50,000 on interest income from FDs, savings accounts, and post office schemes under Section 80TTB.
8. Avoiding Common Tax Mistakes
Accurate Record Keeping:

Maintain records of all your investments, insurance premiums, home loan statements, and other eligible expenses. Accurate records ensure that you claim all possible deductions and avoid unnecessary tax liabilities.
Tax Planning Throughout the Year:

Tax planning should be an ongoing process, not just something to consider at the end of the financial year. Regularly review your investments and expenses to maximise your tax-saving opportunities.
9. Final Insights
By strategically planning your investments and expenses, you can significantly reduce your tax burden. Ensure you are fully utilising deductions under Sections 80C, 80D, and 24(b) for your provident fund contributions, home loan interest, and medical insurance.

Consider contributing to the National Pension System (NPS) for additional tax benefits and explore other options like charitable donations under Section 80G. With careful planning, you can achieve substantial tax savings and improve your financial well-being.

It's always a good idea to consult with a Certified Financial Planner to tailor these strategies to your specific situation. They can provide detailed guidance based on your financial goals and current tax liabilities.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |1054 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
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Hello, I am 3 yr neet dropper.in 2025 it will be my third attempt... I'm trying my best to crack neet ...i don't know what will happen will i score good marks or not ... please help me in suggesting good career options if not crack neet .....there are many options through neet marks also like bhms , veterinary...etc. i will also give entrance exam also like cuet ,gbpuat ,....but i want that what to choose which course will be best for me ...i want to make my life good and happy... having a good degree, good job ,...
Ans: Hello.
Have you analyzed your failure in 2 successive attempts in the NEET examination? If yes, then the question is what you have done for improvement and not then again the question arises why not? Here, I would like to suggest you focus now only on the NEET examination which is your 3rd attempt. Don't think about any other options right now till May 2025. After the NEET exam is over, you have ample time to explore the options available. Depending on your score in NEET 2025, we will guide you at that time. But yet, if you are confused, then looking towards your question and anxiety, you need personal counseling where you can express yourself face-to-face. Only after the NEET exam is over, you contact a counsellor for one-to-one counseling. Till then, keep mum and focus only on NEET. Take this exam as your mission and project. Work on this project, apply forces from all sides, success is there which is waiting for you eagerly.
Best of luck for your bright future.

Some tips: (1) Analyse separately Phy, Che, Bio (2) Prepare a list of hard topics (3) First focus more on the topics which are easy for you and then try to excel in hard topics (4) Appear more and more online/offline examinations (4) Prepare your short-cut file for all subjects (5) Prepare a file for each subject having only synopsis of all chapters (6) Try to solve the problems at the lightening speed and observe the period on regular basis (7) Create your time table to revise the topics on regular basis (8) Do not hesitate to ask your difficulties to your teachers, if you have joined to offline classes (9) Keep the habit of marking the answers which you know 100%. Don't guess the answers and mark them, as there is -ve marking scheme. (10) Be calm, quite, and smiling all the time to release the tension and always have a healthy chat with your friends.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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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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