Tax Saving

Take loan for higher studies & save tax

Section 80E- Deduction of interest paid on educational loan If you have taken an educational loan for higher studies (only full time courses) for yourself, spouse or children and paying interest on it, you can avail the deduction for the interest so paid. Entire interest paid would be eligible for deduction for 8 consecutive years, there is no deduction for principal repayment To be eligible under this section, loan must be taken from an approved financial institution like banks or charitable trusts

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Save tax by donating money

Section 80G- Deduction of donations made to notified charitable funds & institutions You might have paid certain donations to charitable institutions, you could save taxes by doing so. Amount of donation that can be availed as deduction depends on the specification of donation in the law. The various donations specified under 80G are eligible for deduction of 50 % & 100 % of the amount of donation made. However, some of these donations provide restricted deduction. The various funds are notified in the [...]

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Sec 80EE: Buying house for the first time can save your tax upto Rs 50000

First time home owners can get an additional deduction of interest expense on home loan of up-to Rs 50000 Section 80 EE gives you an additional deduction of interest on home loan if you have taken loan for buying your first home. However, you need to meet the following condition to be eligible for the same: You should be a first-time home owner The loan should be taken during the FY 2016-17 (i.e. between 1st April 2016 and 31st March 2017) Loan should be taken from [...]

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80 GG provides you deduction on rent paid by you, if you are not getting HRA

Section 80GG- Deduction of house rent in case you do not own a house property and you do not get HRA as well If you or your spouse or children do not own a house in India or abroad and you do not receive HRA (House Rent Allowance) as a part of your salary, you can still claim deduction for the house rent which you are paying. Amount of deduction would be the minimum of the following: 25 % of the total [...]

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Taxability of House Rent Alowance

What is HRA (House Rent Allowance)? House Rent Allowance is a component of the salary given by a company to its employee to meet house renting expenses. HRA is given to meet the cost of a rented house taken by the employee for his stay. It provides employees with tax benefits for what they pay towards accommodations every year, the decision of how much HRA needs to be paid to the employee is made by the employer based on certain criteria like the [...]

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Taxability of Gifts Received by an Individual or HUF for AY 16-17 & 17-18

What is gift? Gift can be defined as receiving any object or thing be in cash or in kind as a token of love, respect, or care from any person being our friends, relative or parents or any other person on some occasion or otherwise. Since gift is a mean of transferring anything to others without consideration, sometimes people use it as a mean of tax evasion, this was the big reason of bringing gift in the decorum of taxation. And hence, if [...]

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Every small business should know this – Presumptive taxation scheme

Here we would discuss about the presumptive taxation scheme under section 44AD and how demonetization had a positive impact on this scheme. Presumptive taxation scheme 44AD This is an optional scheme applicable for small businesses having annual turnover not exceeding Rs 2 Crore Who is eligible? Any resident individual, HUF or partnership firm (not LLP) What are the benefits? No need to maintain books of accounts No need to get the tax audit done Income would be computed on presumptive basis @ 8 % of annual turnover [...]

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Leave travel Allowance: Who doesn’t like travelling and what’s better if it saves taxes for you!

You must have come across a component in your salary structure named Leave travel allowance, it can save your taxes, all you should do is to take leave & travel. Income tax law provides the tax break for holidays to a domestic destination, you can either take a travel holiday alone or with your family i.e. your spouse, children, parents, brothers & sisters You can claim the “travel costs” incurred by you as the LTA exemption and save taxes. This exemption [...]

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Tax saving tips you must know!

In our earlier posts we discussed about how you could save tax through famous Sec 80 C  and how your house could save taxes for you. Now we will have a look at other tax saving options available. Combined together this post would make you tax savvy and come handy while you plan your taxes. Lets see what’s in the store ! A.Section 80 D – Health or Medical Insurance for self/family We commonly call it a medi-claim policy or a health insurance. Apart from [...]

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Learn how can you save taxes through your house !

Saving tax through residential house property! Ever wondered that your house could save taxes for you. Here we have compiled for you the various ways through which your house can help you cut your taxes We had already discussed the repayment of home loan up-to 1.5 lakh can be claimed under section 80 C 1. You can also get deduction of interest paid on home loan If you have self-occupied your house, i.e. you are residing in the house and have not let [...]

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