What is the Maximum Income Tax You can Save for FY 2015-16?

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• Excellent web site. A lot of useful information here. I’m sending it to a few friends ans also sharing in delicious. And obviously, thank you on your effort!

• Hi Amit,

  Very nice article. I am 40% disabled and I got disability certificate from government doctors in a government hospital. However, the certificate was not signed by civil sugeon/chief medical officer(as mentioned in section 80u). Can I still claim the tax deduction under section 80u or should I still have to get form10-IA signed by civil surgeon/CMO for income tax benefit under section 80u. Please confirm. Awaiting your reply.

  • You need to have signature of any one of the following: Neurologist/Pediatric Neurologist/Civil Surgeon/Chief Medical Officer. If the doctor you talking about is Neurologist then your Form is valid for Tax exemption u/s 80U.

• There s exemtion fr physically dsabld dpndnt ...is there s exemption fr mentally dssbled dpndnt???

  • The tax exemption is applicable for mental disabled dependents too. YOu would need certificate stating the percentage of disability for any of the mentioned authorities:

    A Neurologist with an MD in Neurology
    For children, a Pediatric Neurologist having an equivalent degree
    Civil Surgeon or Chief Medical Officer (CMO) of a government hospital

• I am government employee with GpF scheme.I invested in 80ccD[1B),can I get additional Rs.50000 benefit. Is it compulsory to open account of tier 1 account of nps

  • GPF and NPS are different schemes. For getting benefit u/s 80CCD(1B) you need to invest in NPS Tier 1 account only.

• Given information is very nice.
  I am working as a Consultant in engineering field in monthly basis. So how much I can save for exemption IT.

  • All the exemptions are valid for you. Other than that you can deduct genuine expenses like Mobile/Internet bills, taxi fare, fuel expenses, etc which occur while fulfilling your duty as consultant.

• Very good info.
  Just one question: Is the full principal amount under SCSS exempted from tax?If my deposit amount is Rs.1,50,000,is the whole amount exempted from tax? I do understand that the interest earned is taxable.

  • Yes investment in SCSS is exempted u/s 80C to an extent of 1.5 lakhs

    • Thank You Amit. Is it same for donations made to registered NGO's too? Is the tax benfit on the entire donation amount?

      • There are 23 organization, contributions to which are 100% tax exempted and 10 organizations where the contribution is 50% exempted. You can find the details in Tax Planning ebook - page 41.

• Is investing in NPS and RGESS is worthwhile? suggestions

  • It depends on what would you do with the money if you do not invest in NPS or RGESS! I have my analysis on NPS as tax saving option. Hope it helps in deciding if you want to go for NPS or not?

    • Thanks for your suggestion it was useful, i have another question

      I have missed submitting HRA to my Employer, how can i save it while filling Income tax return.

      • You can still submit to your employer - just talk to them. They might not adjust tax paid but it will reflect in your Form 16. This makes it easier to file income tax return. In case they do not accept Rent receipts now - you can directly deduct the rent as per HRA provisions while filing tax returns. You need not submit any rent receipt etc but should retain it for 7 years - in case you receive any notice or your case is opened for detailed assessment.

• sir,L L
  I am paying Rs. 56000/- under Contribution Pension Scheme in state service and managing to get Rs. 1.5L deduction with other MFs and LIC. Is it possible for me to avail NPS benefit of Rs.50000/- additional to 1.5L. Also I am having Demat account and trading equities from 2008. Is it possible for me to avail RGESS.
  Saravanan, Tamilnadu

  • Defined Contribution Pension Scheme is actually NPS, which means you can get Rs 50,000 additional tax exemption u/s 80CCD(1B) over Rs 1.5 lakh exemption u/s 80C.
    RGESS is for first time equity investors but since you are already trading in equities you would not get tax benefit under RGESS.

• Dear Amitji,
  Thanks for sharing fantastic tax-saving ideas through your website.
  I have 2 points kindly clarify,

  1) If I have sufficient money to buy a house, will there be any advantage of taking home loan, paying interest at much higher rate/processing charges etc. etc., and then claiming tax exemption on interest paid. So as I understand one can actually reducing rate of interest paid (upto 30%) by tax exemption. In this case only if I earn more than this balance interest % then only I am benefited. Correct me if I am wrong.

  2) the Tax planning guide from your links is not getting downloaded fully after several try and stops midway.

  Thanks

  Shib

  • Thanks for your appreciation :)

    1. Your understanding is correct. You only gain if your post tax loan rate is lower than post tax investment return.
    2. Sorry for the inconvenience. It's a 2.4 MB file and so it might not be working. Please try after sometime. In case it does not work I'll email you the presentation on the yahoo address given by you.

• For retail investors what is the maximum exemption available on tax free bonds?

  • There is no limit for amount of interest that is exempted for tax free bonds for retail investors. Retail investor concept is only valid while applying for new issues. To qualify as retail, you should apply for bonds value of less than Rs 10 Lakh. However you can further buy it from secondary market without any limit.