Hi all,
Based on the information in this forum and other references, I have drafted a tax structure for my organization. I have attached a copy of the same. I hope it will be useful. Please let me know if there are more provisions and any corrections.
Regards,
Madhuri
From India, Bangalore
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Based on the information in this forum and other references, I have drafted a tax structure for my organization. I have attached a copy of the same. I hope it will be useful. Please let me know if there are more provisions and any corrections.
Regards,
Madhuri
From India, Bangalore
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Hi Madhuri,
This is a very useful document you have prepared. However, there are a few corrections, which I am noting below:
1. Sec 88 is abolished now. All the tax-saving instruments earlier a part of Sec 88 are now covered under Sec 80C.
2. The maximum deductible limit under Sec 80C + 80CCC + 80CCD is Rs. 1 lakh.
3. There are no instrument-specific caps on the individual investments in different instruments. This means you can invest the full Rs 1 lakh under 80C in either one instrument or spread it across all the investment options.
4. Briefly, the instruments that are covered under 80C are the same as those you have mentioned, minus the individual caps.
5. The benefit under NSCs will include accrued interest if reinvested for the first 5 years.
6. In the case of money-back insurance policies or those where bonuses will be paid, the insurance premium amount eligible will be restricted to 20% of the assured amount only, excluding the premium to be returned or bonuses to be paid, etc.
Keep in mind that whenever you invest for the purpose of tax-planning under Sec 80C, always check carefully whether that particular instrument is approved for the IT deduction. The most widely used word in Sec 80C is 'notified.' Usually, the approval will be printed on the instrument itself; otherwise, the issuer will give a declaration to that effect.
Apart from all this, you can get a deduction of Rs. 10,000 on a Mediclaim policy. So the total deduction from gross salary is Rs. 1,10,000. Beyond this, there are donations to certain scientific and charitable organizations, again only the 'notified' ones.
The rest of the info in your chart is OK.
Warm regards,
Devjit
From India, Gurgaon
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2This is a very useful document you have prepared. However, there are a few corrections, which I am noting below:
1. Sec 88 is abolished now. All the tax-saving instruments earlier a part of Sec 88 are now covered under Sec 80C.
2. The maximum deductible limit under Sec 80C + 80CCC + 80CCD is Rs. 1 lakh.
3. There are no instrument-specific caps on the individual investments in different instruments. This means you can invest the full Rs 1 lakh under 80C in either one instrument or spread it across all the investment options.
4. Briefly, the instruments that are covered under 80C are the same as those you have mentioned, minus the individual caps.
5. The benefit under NSCs will include accrued interest if reinvested for the first 5 years.
6. In the case of money-back insurance policies or those where bonuses will be paid, the insurance premium amount eligible will be restricted to 20% of the assured amount only, excluding the premium to be returned or bonuses to be paid, etc.
Keep in mind that whenever you invest for the purpose of tax-planning under Sec 80C, always check carefully whether that particular instrument is approved for the IT deduction. The most widely used word in Sec 80C is 'notified.' Usually, the approval will be printed on the instrument itself; otherwise, the issuer will give a declaration to that effect.
Apart from all this, you can get a deduction of Rs. 10,000 on a Mediclaim policy. So the total deduction from gross salary is Rs. 1,10,000. Beyond this, there are donations to certain scientific and charitable organizations, again only the 'notified' ones.
The rest of the info in your chart is OK.
Warm regards,
Devjit
From India, Gurgaon
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Tax & investment planning .pps
Tax structure.xls