Tax planning: Don’t follow the herd
The New Pension Scheme (NPS) is also, what tax experts say, a “fantastic” avenue to put in your money for tax saving purpose as up to 10 per cent of an employee’s basic salary put in the NPS is tax deductible. However, you can avail of the benefit only if the employer has included this benefit in the CTC (cost to company).
Aggarwal says that people often ignore the tuition fee component while working on their tax saving plans. “Those who don’t have enough cash to invest in 80C schemes can easily use this if they have children studying. There is no ceiling on the fee. It is allowed up to Rs 1 lakh”. The benefit is available for maximum of two children. The principal repayment on a home loan is eligible for a deduction of up to Rs 1 lakh per annum.
Medical claims: Under Section 80D, if you have a medical insurance, a deduction of Rs 15,000 per annum on premium is allowed while an additional deduction of up to Rs 15,000 per annum is allowed for premium payment made for parents. In this year’s Budget, within the existing limit for deduction for health insurance, the government has allowed a deduction of up to Rs 5,000 for preventive health check-up. You will be able to claim this as well this fiscal year.
Home Loan Interest repayment: Individuals
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