As the new Financial Year begins, now is the best time to save. From ways to claim maximum tax benefits to various avenues of personal savings that earn attractive income tax rebates, this guide will help you make informed choices.
During his Budget speech, Finance
Minister Arun Jaitley said an individual tax payer can claim tax benefits for
up to Rs. 4,44,200 in addition to the tax exemption.
No change in tax slabs for individual payers
Increased exemption limits on
health insurance premium and transport allowance were announced in the Union
Budget for 2015.
Public provident fund
This dependable small saving
scheme offers 8.7 per cent interest per annum and comes with a lock-in period
of 15 years. Part withdrawal and loan is also possible. Maturity is also
exempted from IT.
Sukanya-Samriddhi
A small savings scheme through
India Post for the welfare of girl child, it presently yeilds 9.2 per cent per
annum. Being a long-term corpus fund, the amount matures when the
daughter turns 21. Till then, you can enjoy IT exemption under Sec. 80(C).
Employee Provident Fund
The Employee Provident Fund Act is
likely to be amended this year. The big change on this front is that the
pension option has been withdrawn for new employees. The entire EPF corpus will
be given at the time of retirement without tax deducations.
National Pension Scheme
Budget has granted an additional tax deduction of Rs.50,000 for investment in
the New Pension Scheme. So start to save early, for a financially-independent
post-retirement life.
Home loans
Repayment of the Principal amount
in entitled for income tax rebate under Section 80 (C). Tax deducation upto a
maximum of Rs. 2 lakh can be availed if the property is self-occupied. Whole
interest is tax deductible incase the property is not self-occupied.
Insurance
Premiums paid on ULIP, pension
plans, endowment and pure terms are exempted from tax upto Rs. 1.5 lakh under
Section 80(C).
Health
Under Section 80(D) premiums paid
on health insurance for self, spouse, children are tax deductible upto Rs.
35,000. Additional rebate of Rs. 20,000 for senior-citizen dependent parents.
Small Saving Schemes
The once-popular Kisan Vikas Patra
is back through India Post. Small contributions in denominations of Rs. 1000,
5000, 10,000 and 50,000, with no upper ceiling on investment, will double in
100 months.
