Tax planning 2014 for salaried.

TAX PLANNING FOR

SALARIED INDIVIDUALS

Ashish Ramesh Bhave CFPCM

[email protected] (M) : 8862079292.

You can save tax by

Spending as well as

investing.

Take smart way to

manage your personal

finance. Ashish Ramesh Bhave CFPCM


You can save tax by

spending money.

Applicable sections

10(13A), 24 b ,80D,80E,80G



Section : 10(13A) for rent paid

• Rent paid against HRA.

• If you are staying in the rented apartment ,the rent paid gives

you tax deduction



Section : 24 b • Deduction of the interest paid against housing loan, the

interest paid is allowable to be booked as loss from house

property against salary

• This is the only loss allowable against salary.

• If the house is self occupied then the maximum deduction

available is Rs. 1,50,000/-.

• If it is rented then there is no upper limit for deduction.

Note : If you have your own property in different city and you

are staying at rented apartment in other city you can claim for

both

Rental deduction as well as interest on borrowed capital.



Section : 80EE

• Deduction of the interest paid against housing loan, the

interest paid is allowable to be booked as loss from house

property against salary, This is on top of 24b

• This is the only loss allowable against salary.

• If the house is self occupied then the maximum deduction

available is Rs. 1,00,000/-.

• The Loan should not be more than 25 Lac and property price

should not be more than 40 Lac.



Section 80E

• The interest on loans taken for higher education for self,

Spouse or children allowable deduction from your total

income under Section 80E.

• There is no monetary ceiling on the interest you can

claim as a deduction. No deduction on principle.

• The loan must have been taken from a financial

institution or an approved educational institution.



• Expense against medical insurance premium paid (Not

allowed if paid by cash) up to Rs 15,000/- if your parents

are senior citizens then additional 20,000/- per year. So

totals to max 35,000/- per year

• Now from this year Preventive medical checkup expenses

are also included in this. (Up to 5000/-)

• Medical insurance policies are available as medical

reimbursement as well medical benefit plan.

Section 80D



80 G : Charity

• To avail tax benefits under Section 80G, donations must

be made only to specified trusts and for scientific

research.

• The tax breaks vary 50% to 100% according to the trust

to which you have donated.



You can save tax saving

by investing.

Applicable sections

80C, 80CCF,80F,80TTA



Sec 80TTA : Savings a/c interest

• Deduction for interest on savings account

• Deduction upto Rs 10,000 proposed to be allowed in respect

of interest on deposits (not being time deposit) in a savings

account.

• Here if possible switch you’re a/c to auto sweep ac which will

fetch you more interest.



Section 80C

• Limit 1,00,000/- per year.

• Investments covered under 80C are

• Life insurance premium ,PF , VPF ,PPF ,ELSS ,Tax saving FD

,NSC , Registration fees for home, Child’s tuition

fees(Investment in your child’s future), Principal payment of

home loan. etc.

• However it is important to see one more angle in it, saving tax

at the time of maturity is also important.

• Life insurance ,PPF ,PF and ELSS gives you tax free returns

once the lock in period is over.



80C : Children's fees

• Parents can claim a deduction for tuition fees for a maximum

of two children within the overall limit of Rs 1,00,000 comes

under 80C

• However, payment towards development fees or donations to

the institution is excluded.



80C :National Savings Certificates

• Available in Post offices .

• Tenure 5 years and 10 years.

• Interest rate changes every year for this year it is 8.5% for

5 year’s NSC and 8.8% for 10 year’s NSC.

• The interest is entirely taxable.



80C :Equity-linked savings schemes

• These are mutual fund products and carry market risk.

• Good for long term investments.

• Have a lock-in period of three years.

• An ELSS is like any other equity fund.

• The returns at maturity are also tax-free.



80C : Life insurance

• Your life cover premium is eligible for a tax deduction up to Rs

1 lakh under Section 80C.

• If the premium paid in any of the years is more than 20 per

cent of the sum assured, then deduction will be allowed only

up to 20 per cent of the sum assured.

• Note : section 80C will help you to protect your financial

risk by taking good enough insurance protection for you.

• Insurance cover should be 10 times of your yearly

income.



80C : Pension plans

• If any investment is made under this section, then the

qualifying amount under Section 80C stands reduced to that

extent.

• Investment in insurance and mutual fund pension plans also

comes under this section with an overall limit of Rs 1 lakh.



80CCG : RGESS

• Rajiv Gandhi equity saving scheme.

• Available only if your salary is less than 10 lac per year.

• Available once in life time.

• IF you are a new investor in the equity market.

• Half of the investment amount is allowable as deduction.

• Maximum deduction is Rs.25,000/-.



Other deductions

• Sec 80DD : Treatment and maintenance of Handicapped

dependent ( max. limit Rs.1,00,000/-)

• Sec 80U : If assesse is physically disabled. ( max. limit

Rs.1,00,000/-).

• Sec 80DDB : For treatment of certain specified diseases

and aliment.



Happy Tax saving

Ashish Ramesh Bhave.

CERTIFIED FINANCIAL PLANNERCM

Cell : 8862079292

eMail : [email protected]



For financial planning :

Ashish Ramesh Bhave.

Pune, Maharashtra.

CERTIFIED FINANCIAL PLANNERCM

Cell : 8862079292

eMail : [email protected]



Tax planning 2014 for salaried.

Economy & Finance

save tax

life insurance

arbfinancialsgmail

sum assured

section 80c

rented apartment

rs 1 lakh

section 80e