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How Much Tax Can You Save

You can Save Tax Upto Rs. 83,945/-*

(A) Save upto Rs. 46350/-* u/s 80C
(B)Save upto Rs. 16995/-* u/s 80D
(C)Save upto Rs. 15450/-* u/s 80CCD
(D)Save upto Rs. 5150/-* u/s 80CCG

*depending on your income-tax slab

(A) Save upto Rs. 46350/-* u/s 80C

Options of Investment Under Sec 80C

The new section 80C has become effective w.e.f. 1st April, 2006. Even the section 80CCC on pension scheme contributions was merged with the above 80C.

The total deduction under this section (alongwith section is limited to Rs. 1.50 lakh .

    Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer
    • Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs. 150,000. The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.
  1. Life Insurance Premium For individual, policy must be in self or spouse's or any child's name. For HUF, it may be on life of any member of HUF.
  2. Sum paid under contract for deferred annuity For individual, on life of self, spouse or any child.
  3. Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
  4. Contribution made under Employee's Provident Fund Scheme.
  5. Contribution to PPF For individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
  6. Contribution by employee to a Recognised Provident Fund.
  7. Contribution by employee to Sukanya Samriddhi Deposit Account. Click to View details of Scheme
  8. Sum deposited in 10 year/15 year account of Post Office Saving Bank
  9. Subscription to any notified securities/notified deposits scheme. e.g. NSS
  10. Subscription to any notified savings certificate, Unit Linked Savings certificates. e.g. NSC VIII issue.
  11. Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
  12. Contribution to notified deposit scheme/Pension fund set up by the National Housing Scheme.
  13. Certain payment made by way of instalment or part payment of loan taken for purchase/construction of residential house property.
  14. Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
  15. Contribution to notified annuity Plan of LIC(e.g. Jeevan Dhara) or Units of UTI/notified Mutual Fund. If in respect of such contribution, deduction u/s 80CCC has been availed of rebate u/s 88 would not be allowable.
  16. Subscription to units of a Mutual Fund notified u/s 10(23D).
  17. Subscription to deposit scheme of a public sector, company engaged in providing housing finance.
  18. Subscription to equity shares/ debenture forming part of any approved eligible issue of capital made by a public company or public financial institutions.
  19. Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children. Available in respect of any two children

Tax Payable / Saving Chart

Maximum Invetment for Rebate U/S 80C = Rs. 1.50 Lac

Here The Column Displays

1 = Your Gross Salary,
2 = Your Tax + E.Cess Liability on 1
3 = Your Investment U/S 80C
4 = Tax Saved By Investment U/S 80C
5 = Net Tax Payable by You after Investment U/S 80C

(B)Save upto Rs. 16995/-* u/s 80D

You can avail tax deduction upto 55,000. & can save tax upto Rs. 16,995 (depending on your income-tax slab) u/s 80D

The total maximum deduction that can be claimed under section 80D is as follows

(C)Save upto Rs. 15450/-* u/s 80CCD

National Pension System (NPS) - NPS is a voluntary contributory pension scheme introduced by Central Government. It helps you accumulate a pension corpus during your work life for a peaceful retired life.

If you have exhausted the tax deduction limit of 1,50,000 (u/s 80C), you can avail tax deduction of additional 50,000 (u/s 80CCD) and save up to 15,450 (depending on your income-tax slab).

(D)Save upto Rs. 5150/-* u/s 80CCG

In addition to deduction available under section 80 C, all individual tax payers with income under 12 lakhs who are first time investors and can benefit from the Rajiv Gandhi Equity Savings Scheme (RGESS).

A maximum of 50,000 can be invested in approved stocks and mutual funds and the tax payer can claim 50 per cent of the amount as tax deduction under Section 80CCG. A maximum amount allowed for deduction is 25,000. The maximum tax saving possible under the RGESS will be 5,150/- , in addition to the allowable deduction under section 80C.