Saving Income Tax

POSTED BY Madhava ram ON July 10, 2012 8:21 pm COMMENTS (13)

Hi,

I belong to the highest Tax Bracket. I have a house Loan so under 80c I can declare upto 1L under 80c deductions (Even though I have term insurance but my House Loan interest covers upto 1L) and under section 24 it is 1,50,000.

I do not have a second house.

Is there anyway I can save more tax.

13 replies on this article “Saving Income Tax”

  1. Madhava ram says:

    Had a chat with Ashal regarding the Mediclaim Insurance premium. Here is the breif story

    Me: As my company and my wife’s company provides the medical Insurance why should we buy another one?

    Ashal:
    Risk 1:say if I change my Job and in between joining the new company
    Risk 2: In future if your company feels its a cost cut and remove the policy

    Me: Those are a very good points and I agree to them and going ahead in buying the Medical policy for my family. Now the other question is, if any of my family members fall sick, from where should I claim, from the company provided one or the self taken?

    Ashal: It is always better to claim from the company rather than self, because claimless policies will get NCB (No Claim Bonus)

    Me: Thanks Ashal for clearing all my doubts.

    Thanks,
    Madhava ram

    1. Dear Madhava, now the real job starts, please go ahead & purchase the policies as per your requirements. This discussion is of no use if there is no action at the end of the day.

      Please feel free to ask in future also. This forum belongs to all of you.

      thanks

      Ashal

  2. Madhava ram says:

    Sorry Ashal, I was writing the reply and could not see your response.

    Thanks for the reply and could you please clarify about the Medical Insurance premium for parents under 80D can be claimed only if parents are above 60 years of age. is that correct?

    If yes should we submit any senior citizenship certificate or so.

    And the other option is buying a second home where we get un-limit tax exemption on Interest component.

    Thanks,
    Madhava ram

  3. Madhava ram says:

    Thanks Ashal for the information.

    I read in an article that the Medical Insurance premium for Parents under 80D can be claimed only if parents are above 60 years of age.

    Could you please give us some information on
    Direct Investment in Equity under RGESS and
    Long Term Infra. Bonds, Tax Saving Bonds (Section 80CCF)

    What is the max limit?

    Thanks,
    Madhava ram

    1. Dear Madhava, as you said both are working, Father & FIl, I knew that both are under 60Y age, hence the eligible prem. amount ‘ll be 15K for their policies.

      Bonds are already out of question.

      Thanks

      Ashal

  4. Madhava ram says:

    Hi Ashal,

    Does that mean myself and my wife can utmost declare 2 and half lakhs for IT. Under 80D for mediclaim we can declare upto 15,000 per annum individually or both together?

    Apart of 80D mediclaim are there anywhere we can save taxes like Infrastructure Bonds, Tax saving Bonds???

    My Father and my father-in-law are still working and they are not dependants on us, so we cannot pay their mediclaims I think.

    Thanks,
    Madhava ram

    1. Dear Madhava, no matter your parents are dependent or not, still you for your own parents & of course your wife for her parents can purchase mediclaim policies.

      For total 4 policies, the combined max. prem. limit eligible for tax benefit ‘ll be 15K self + 15K your parents & similarly 15+15 for your wife.

      Thanks

      Ashal

    2. Dear Madhava, no, the infra bonds or tax saving bonds are not available any more.

      thanks

      Ashal

  5. Madhava ram says:

    Hi Ashal,

    House is self occupied and I am paying 2L towards principal and 3L towards interest.

    Thanks,
    Madhava ram

    1. Dear Madhava, the house is single ownership or joint ownership?

      Thanks

      Ashal

      1. Madhava ram says:

        Hi Ashal,

        It is joint ownership. Myself and my wife, we both have the declarations for Income Tax as 1L towards prinicipal and 1.5L towards interest individually.

        Thanks
        Madhava ram

        1. Dear Madhava, then the scope for both of you lies only beyond 80C & Section 24, like mediclaim prem. under section 80D. For self & parents.

          Thanks

          Ashal

  6. Dear Madhava Ram, the house in quesrtion is on rent or self occupied & what actual interest is being paid by you on this home loan?

    Thanks

    ashal

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