Best TAX Saving Options and Plans in India for 2017 by Experts

Best TAX Saving Options and Plans in India for 2017 by Experts

Everyone knows that Section 80C offers a maximum deduction of up to Rs. 1,50,000

A few of the options are as follows:

Public Provident Fund

Life Insurance Premium

Tuition fees paid for children’s education, up to a maximum of 2 children

House Loan Principle amount

5 year fixed deposits with banks and post office

National Pension Scheme

Employee Provident Fund

National Saving Certificates and deposit in Sukanya Samriddhi Account

Unit Linked Insurance Plans

Notified units of mutual fund or UTI

Subscription to any notified bonds of NABARD

Five Year time deposit scheme in post office

Amount deposited under Senior Citizens Saving scheme

Deduction in respect of contribution to Pension Fund - Section 80CCC
A deduction to an individual for any amount deposited by him in annuity plan of life Insurance Corporation of India or any other insurer for receiving pension from the fund. The deduction is maximum Rs 1,50,000.

Contribution to pension scheme notified by Central Government -  Section 80CCD
The contributions can be up to 10% of the salary  or Gross total Income and additional tax benefit  of Rs 50,000 u/s 80CCD (1b).
The employee has to contribute to Government Recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals and Gross total income is applicable for non-salaried.
Note: Total deduction under 80C, 80CCC, 80CCD (1) together cannot exceed 1,50,000 for the financial year. Deduction of Rs 50,000 under sec 80CCD (1b) is over and above Rs 1,50,000.

Medical Insurance premium  - Section 80D
Deduction under section 80D on Health Insurance Premium for Individuals/HUF is Rs 25,000 and for senior citizens it is Rs 30,000.Preventive health checks up expenses to the extent of Rs 5,000/- can be claimed as tax deductions.

Self, spouse and Dependent Children

Parent (Dependent or not)

Total deductions

Upto 60 yearsUp to Rs 25,000Up to Rs 25,000
Rs 50,000
Less than 60 years age for other  &  More than 60 years age for parents

Up to Rs 25,000
Up to Rs 30,000
Rs 55,000
More than 60 Years age for other & More than 60 years age for parents

Up to Rs 30,000
Up to Rs 30,000
Rs 60,000

Maintenance Including Medical Treatment of handicapped dependent  - Section  80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) that have 40% disability. The tax deduction limit of up to Rs 1,25,000 lakh in case of severe disability can be availed.

Medical Treatment - Section 80DDB
An individual (less than 60 years of age) can claim up to Rs 40,000 for the treatment of specified critical ailments. This can be claimed on behalf of the dependent and the tax deduction limit under this section for Senior Citizens is Rs 60,000 and for every Senior Citizen (more than 80 years of age) the limit is Rs 80,000.
To claim deductions under Section 80DDB, it is mandatory to obtain Doctor Certificate or Prescription from a specialist working in a Government hospital or Private hospital.

Interest on loan taken for higher education – Section 80E
Amount paid out of income chargeable to tax by way of payment of interest on loan taken from financial institution/approved charitable institution for pursuing higher education is allowed as deduction for Maximum period of 8 Yr’s

Interest on Loan taken for Residential House property – 80EE
The following conditions should be fulfilled
Assessee has taken loan for Residential house property
Loan taken from bank or Housing finance company
Loan sanctioned between 01-04-2013 to 31-03-2014
Loan amount does not exceed 25 Lakhs
House property value does not exceed Rs 40 Lakhs
        Amount of deduction is Maximum of Rs 50,000.

Rent Paid – Section 80GG
The Tax Deduction amount under Section 80GG is Rs 60,000PA from financial year 2016-17. Section 80GG is applicable for all those individuals who do not own a residential house and do not receive House Rent Allowance.
Tax deduction will be limited to the least of the following
Rent paid minus 10 percent the adjusted total income.
Rs 5,000 per month.
25 % of the total income.

Interest on Deposits in savings accounts – Section  80TTA
Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000 in respect of
interest on deposits in savings account with a bank can be claimed under this section.

A person with disability – Section 80U
You can claim up to Rs 75,000 for spending on medical treatments that have 40% disability. The tax deduction limit of up to Rs 1,25,000 lakh in case of severe disability can be availed.

Rebate under - Section 87A 
Tax rebate in case of individual resident in India, whose total income does not exceed five lakh quantum of rebate shall be an amount equal to hundred per cent of such income-tax or an amount of five thousand rupees, whichever is less.

Thank you. Hope you found it useful! If you have questions (or) need help Write to us

Tax saving for Freelancers, Professionals, Trader and Web based agencies

10 mins of consultation. Place a request.

Some of the featured articles from our knowledge center

Business2 13a51fd54d37dfeead10bd04c34a46671e69097acf6d8002d2665eb06b5cf58f
What is the income tax payable on partnership firm

As per section 4 of partnership act 1932, partnership means the relationship between the person who are agreed to share the profits of business car...

Business3 1835184f1312bba0b871fddd223a24dd62299180ed03a78d9e4098813c851963
What is business income on presumptive basis under section 44ad and 44ada

As per section 44AA income Tax act 1962, every person who is carrying on business or profession is required to maintain books of accounts. However,...

Business1 8b8cee9b60a38e9df92fb5b897e7c09195532b3d70b7ec28803a600cf2ce60cd
What is GST and different types of GST forms

The Prime Minister approved “The constitution amendment bill for Goods and Service Tax”(GST) in the Parliament Session (Rajya Sabha on 3 August 201...