Idea Behind the Blog!

The general areas of finance are business finance, personal finance, and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money and risk and how they are interrelated. It also deals with how money is spent and budgeted. Here we are planning to write articles that have new dimension of finance

Finance Funda !!

Whether you’re young or old on the job scene, fresh out of college, or even an old-timer who wants to better manage finance, you can find the best and most practical advice on this site. You are provided with handy tips that can help promote your finance goals. It also ensures you get freedom in making a decision to select a financial plan you will absolutely love to do!

Save Your Tax

 

Following is 9 simple ways to save your income tax.

1. 80C


Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans

Mandatory requirements: Payment has to be made before 31 March 2008

Who can avail the deduction: Individuals and HUF (both resident and non-resident)

2. 80CCC


Qualifying products: Pension plans of life insurers

Mandatory requirements: Payment has to be made before 31 March 2008

Who can avail the deduction: Individuals

How much: Within the overall limit of Section 80C (up to Rs 1 lakh)

3. 80D


Qualifying products: Medical insurance policies taken for self, spouse, dependant parents or children, or any member of HUF

Mandatory requirements: Premium should be paid through a cheque out of income chargeable to tax

Who can avail the deduction: Individuals, HUF

4. 80DD


Qualifying products: Expenses on the medical treatment of a dependent who is a person with a disability

Mandatory requirements: Certification by a medical authority

Who can avail the deduction: Resident individual or HUF

How much: Up to Rs 50,000, or up to Rs 75,000 if the dependant is a person with severe disability

5. 80DDB


Qualifying products: Expenses on the medical treatment of a specified disease (cancer, AIDS, neurological diseases, chronic renal failure and more)

Mandatory requirements: Certificate in Form No. 10-I to be submitted along with the income tax return form. Deduction is available if the amount is actually paid for treatment

Who can avail the deduction: Resident individuals or HUF

How much: Rs 40,000 (if the person treated upon is less than 65 years of age), or Rs 60,000 (if the age of the person treated is 65 years or more)

6. 80E


Qualifying products: Payment of interest on loan taken for higher studies

Mandatory requirements: Deduction is available in the year in which repayment starts and only for eight immediately succeeding assessment years

Who can avail the deduction: Individuals

How much: Deduction available on the total interest portion of education loan, the principal repayment gets no tax advantage

7. 80G


Qualifying products: Donations to certain funds and charitable institutions

Mandatory requirements: Not applicable

Who can avail the deduction: Resident individuals or HUF

8. 80GG


Qualifying products: Rent paid for residential purpose

Mandatory requirements: Should not be getting house rent allowance. Actual rent paid is in excess of 10% of the total income

Who can avail the deduction: Self-employed or salaried

How much: Excess of actual rent paid over 10 per cent of GTI, or 25 per cent of GTI, or Rs 2,000 per month, whichever is the lowest

9. 80U

Qualifying products: Expenses incurred on self, if disabled

Mandatory requirements: Certification by a medical authority to be furnished along with the income tax return form

Who can avail the deduction: Resident individuals

How much: Rs 50,000 for a person with disability, Rs 75,000 for a person with severe disability (disability of over 80 per cent)

Click Here to download Tax Calculator sheet.