This year’s budget had brought in changes in the tax
provisions enabling every taxpayer to have valid tax savings for the current
financial year 2014-15. Tax investments need to be made by 31st March 2015 in
order to avail these tax benefits and save taxes.
Thus, now is the right time to sit back, check your
finances, and plan your tax investment to be made in the next three months. In
this article, we are re-rolling tax saving opportunities announced in this
year’s budget, enabling you to save more for your pocket.
Don’t miss to take
benefit of enhanced 80C investment limit - Limit under section 80C has been
increased from Rs.1 lakh per individual per annum to Rs.1.5 lakh. It gives
additional opportunity to all taxpayers and thus reducing their tax liability
significantly.
Maximum relief would be available to a taxpayer falling
in 30 per cent bracket and total savings works out to be Rs. 15,450. Likewise,
the savings available to the taxpayers falling in 20 per cent would be Rs.
10,300 and Rs. 5,150 for taxpayers falling in 10 per cent bracket.
How about Housing
Loan Benefit: Benefit under housing loan can be availed with payment
of principal component and interest pay-out. The relief that has been provided
in Budget 2014 in relating to same has been explained hereunder –
Income Tax Benefits on Home Loan – Principal Component
Since principal component is covered under Section 80C for the principal
repayment of a home loan.
You can claim deduction up to 1.5 Lakh along with all
other permissible instruments like, life insurance premium, PPF, ELSS, NSC.
Income Tax Benefits on Home Loan – Interest Component There is another good bit
of news for home loan seekers as the interest on loan amount allowed to be
deducted from total income has been increased from Rs.1.5 lakh to Rs.2 lakh
now. Now the deduction available under section 24 is upto 2 Lakhs in a year for
the home loan interest paid. The benefit is for self occupied house. If you are
going for a second house i.e.; not self-occupied property, then the total
interest amount can be claimed as deduction without any limit of 2 Lakhs.
Make use of
Increased PPF limit: Public provident Fund contribution limit enhanced from
1 lakhs to 1.5 lakhs. However, both increments in limit of PPF as well as
principal component of home loan are subject to the maximum limit of 80C. The
total deduction extended under section 80C to 1.50 Lakhs from 1Lakh.
New enhanced basic exemption limit:
The basic exemption limit was enhanced to Rs 2.5 lakh in the 2014 budget. This essentially
means that every taxpayer, irrespective of tax bracket, will have a potential tax saving plans of Rs 5,150
annually or Rs.430 per month. For senior citizens the Basic exemption limit has
been increased from 2.5 Lakhs to 3 Lakhs which is again reducing the tax
liability to some extent.
And these benefits still continues in FY
2014-15: Budget 2014 did not discontinue the relief that has been announced
in last year’s budget. Budget 2014 will continue to give relief of up to Rs.
2,000 to marginal taxpayers above the newly set limit of Rs.2.5 lakh.
This Rebate has been especially introduced for
individuals. Further, Non Resident individuals have been kept outside the purview
of this amendment. Also, rebate benefit is not applicable to a super senior
citizen, since he is already fully exempted up to Rs. 5 lakh.
Similarly, contrary to expectations, RGESS Scheme (Rajiv
Gandhi Equity Saving Scheme) has not been sunset and still continues as an
additional tool for saving tax for first time investors in equity
markets.
[Source: https://taxsavingplansinindia.wordpress.com/2015/07/23/is-your-tax-planning-fully-tax-saving-optimised/]
