INCOME TAX REBATES ​FOR FY 2022-23  ( AY 2023-24 )
&Â POPULAR TAX SAVING SCHEMES
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The Article on " TAX PLANNING FOR FY 2022-23 CONTAINS 5 PARTSÂ Â
​
PART I: MAJOR CHANGES IN TAX RULES FOR FY 2022-23Â Â CLICK HEREÂ
PART 2: TAX RATES Â / SLABS FOR FY 2022-23Â Â Â Â CLICK HEREÂ Â Â
PART 3: INCOME TAX REBATES Â AND POPULAR TAX SAVING SCHEMES Â Â Â
​                    READ THIS PART BELOW ​     Â
PART 4: ESTIMATE YOUR INCOME TAX/ADVANCE TAX FOR FY 2022-23Â Â CLICK HEREÂ Â
            :                                 Â
PART 5: TAX ON RETIREMENT BENEFITSÂ Â Â CLICK HERE Â Â
​
PART I: MAJOR CHANGES IN TAX RULES FOR FY 2022-23Â Â CLICK HEREÂ
PART 2: TAX RATES Â / SLABS FOR FY 2022-23Â Â Â Â CLICK HEREÂ Â Â
PART 3: INCOME TAX REBATES Â AND POPULAR TAX SAVING SCHEMES Â Â Â
​                    READ THIS PART BELOW ​     Â
PART 4: ESTIMATE YOUR INCOME TAX/ADVANCE TAX FOR FY 2022-23Â Â CLICK HEREÂ Â
            :                                 Â
PART 5: TAX ON RETIREMENT BENEFITSÂ Â Â CLICK HERE Â Â
     FOR INCOME TAX NEWS   CLICK HEREÂ
 HOW TO PAY INCOME TAX ONLINE ? CLICK HEREÂ
  READ OUR ARTICLE "  TDS ON SALARY , PENSION AND PERQUISITES "Â
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AMAZON India : SHOP for today's  DEALS
 As FM has not announced any changes to TAX Structure for Fy 2022-23  , the rebates  enumerated  below is valid for FY 2022-23 ( AY 2023-24 ) alsoÂ
INCOME TAX REBATE FOR FY 2022-23
TAX REBATES AND LONG TERM INVESTMENTS :Â
Dated 04.10.2022 :  Under the old tax regime , you can avail  tax rebates  for various financial transactions  like paying insurance premium , interest received on Fixed deposits from banks , investment in NSC , PPF , ELSS  . You can also claim for the interest you have paid on  Education loans , housing loans etc . Â
Some of  the investments , loans and other financial transactions involve you to a long term commitment of your funds invested now . It may also  require long term regular investment in future . For example , monthly or annual insurance premium payment  .Â
While  your commitments are long term , the tax rebates you get  is only for the current year Financial year 2022-23 .  The rebates may be continued , may be amended or totally abolished in the coming years . Every year government takes its decision on the matter during the Union Budget preparations .  Hence tax rebates  are not guaranteed for the future years , while your long term financial commitments  are fixed .Â
Hence while selecting investment options , do not solely depend upon the benefit of tax rebate alone . If you are  satisfied with the long term profitablity of an investment decision and your ability to fulfil those long term commitment , you may opt for an investment which also offers Tax rebates . Rebates have to be only additional benefit and not the sole purpose of investments .Â
Now you may go on reading   about the tax rebates you can opt in the Financial year 2022-23Â
Dated 04.10.2022 :  Under the old tax regime , you can avail  tax rebates  for various financial transactions  like paying insurance premium , interest received on Fixed deposits from banks , investment in NSC , PPF , ELSS  . You can also claim for the interest you have paid on  Education loans , housing loans etc . Â
Some of  the investments , loans and other financial transactions involve you to a long term commitment of your funds invested now . It may also  require long term regular investment in future . For example , monthly or annual insurance premium payment  .Â
While  your commitments are long term , the tax rebates you get  is only for the current year Financial year 2022-23 .  The rebates may be continued , may be amended or totally abolished in the coming years . Every year government takes its decision on the matter during the Union Budget preparations .  Hence tax rebates  are not guaranteed for the future years , while your long term financial commitments  are fixed .Â
Hence while selecting investment options , do not solely depend upon the benefit of tax rebate alone . If you are  satisfied with the long term profitablity of an investment decision and your ability to fulfil those long term commitment , you may opt for an investment which also offers Tax rebates . Rebates have to be only additional benefit and not the sole purpose of investments .Â
Now you may go on reading   about the tax rebates you can opt in the Financial year 2022-23Â
SPECIAL NOTE DATED 11.01.2022 :  If you opt for old tax regime , you can avail various rebates on the tax payable . There are 12 tax rebates which you can avail without making any new investment in the current financial year . Further you may be having committed payments this year for which you are eligible for tax rebates ( For example PF Contribution , Insurance premium etc . ) .
Along with such rebates , there are various tax saving instruments which you can buy and save on taxes . You may also save taxes by claiming certain expenses like tuition fees paid , health insurance .
Before opting for old or new tax regime , check whether you are eligible for any of such rebates which do not involve any fresh investment or for which you have committed payment . If you are eligible for such rebates , then you can check how much tax you may save using these rebates and whether old or new tax regime is better for you .
Along with such rebates , there are various tax saving instruments which you can buy and save on taxes . You may also save taxes by claiming certain expenses like tuition fees paid , health insurance .
Before opting for old or new tax regime , check whether you are eligible for any of such rebates which do not involve any fresh investment or for which you have committed payment . If you are eligible for such rebates , then you can check how much tax you may save using these rebates and whether old or new tax regime is better for you .
 For the Financial year 2022-23  , just like FY 21-22 & FY 20-21 , We have two options to chose from for making payment of income tax which involves  two sets of Income tax rate slabs  with two different sets  of Tax rebates associated with each of the option . The first one , Simplified optional Individual tax regime , introduced with lower income tax rates for the persons who are ready to forgo many tax rebates .  If you chose the new regime  , the newly introduced   section 115 BAC of the IT Act will be effective for you .  The second option is to utilize the tax regime prevalent in Fy 2019-20 wherein all tax slabs and tax rebates that were available in FY 2019-20 will continue to be operative .Â
TAX REBATES YOU HAVE TO FORGO IN NEW TAX REGIME
If you opt for  income tax option under section 115bac of Income tax act  , you have to forgo the following tax rebates that are available under the old regime for FY 2019-20Â
1. Standard Deduction of  Rs 50,000 allowed for salaried persons / pensioners  .
2. Cumulative deduction  of Rs 1.5 lakhs allowed under Section 80C, 80CCC, and Section 80 CCD for savings/investments, premium for annuity / pension fund Â
3. Deductions allowed for Rs 50,000 / 1,50,000 under  Section 80 EE / 80 EEA for the Interest on Housing loans with certain conditionsÂ
4. Deduction allowed under 80 E  for interest on education loan taken for pursuing Higher Education .Â
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5. Deductions allowed for Rs 2.00 lakhs under  Section 24  for the Interest on Housing loansÂ
6.  Deductions allowed for Rs 1,50,000 under  Section 80 EEB for the Interest on loans taken for purchase of electric vehicles .Â
7. Interest on savings bank accounts allowed up to Rs 10,000  under Section 80TTA  and for senior citizens only if they have not claimed under section 80TTB
8. Interest received by a senior citizen on deposits with banks / co-operative societies / post office   up to Rs 50,000 under section 80 TTB  . Â
​9. Deduction allowed for Health insurance Policies under 80 D up to Rs. 50,000/- for senior citizens and up to Rs. 25,000/- for   others  .Â
TAX REBATES YOU CAN STILL AVAIL IN NEW TAX REGIME
REBATES THAT CANÂ BE USED IN NEW TAX REGIME ALSOÂ
1. Rebate under section 87 A for the Resident Indians with below taxable income of Rs 5.00 lakhsÂ
​2.  CONVEYANCE ALLOWANCE , LFC , TRANSFER  :  Income Tax department amended rules in June 2020 and permitted conveyance allowance , travel allowance , LFC / LTC  and transfer allowance  etc to be  to be under exemption  category of newly 115BAC  as per Gazette notification dated 26.06.2020 .Â
​ Accordingly following  allowances are also exempted  under the new tax regime :
a) any allowance granted to meet the cost of travel on tour or on transfer;
(b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
(c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit Â
To view Gazette Notification , CLICK HEREÂ
1. Rebate under section 87 A for the Resident Indians with below taxable income of Rs 5.00 lakhsÂ
​2.  CONVEYANCE ALLOWANCE , LFC , TRANSFER  :  Income Tax department amended rules in June 2020 and permitted conveyance allowance , travel allowance , LFC / LTC  and transfer allowance  etc to be  to be under exemption  category of newly 115BAC  as per Gazette notification dated 26.06.2020 .Â
​ Accordingly following  allowances are also exempted  under the new tax regime :
a) any allowance granted to meet the cost of travel on tour or on transfer;
(b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
(c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit Â
To view Gazette Notification , CLICK HEREÂ
TAX REBATES YOU GET WITH NO FRESH INVESTMENTS
TAX REBATES THAT DO NOT INVOLVE ​ANY FRESH INVESTMENTSÂ
Without investing your money in any scheme ,you can claim Tax Deduction /rebate in FY 2022-23 by utilizing the following Tax provisions:Â
 All below listed rebates are available only if you opt for old regime except no 1 which is available both in old and new regimes .
​
1. Rebate under section 87 A for the Resident Indians with below taxable income of  Rs 5.00 lakhs  ( Availble both in old and new regimes )Â
2. Standard Deduction of Rs 50,000 for Salaried persons / pensionersÂ
3. Health Insurance premium paid between Rs 25,000 to Rs 1.00 lakh under section 80DÂ
4. Interest on Education Loan paid under section 80E
​5. Deductions allowed Rs 50,000/1,50,000 under Section 80EE/80 EEA for the Interest on Housing loans with certain conditions .Â
​6. Deductions allowed Rs 2.00 lakhs under  Section 24 for the Interest on Housing loans  .
​7. Deductions allowed Rs 1,50,000 under Section 80 EEB for the Interest on loans taken for purchase of electric vehicles ​.
8. Interest on savings bank accounts are exempted by tax up to an amount of Rs 10,000 under Section 80TTA and for senior citizens only if they have not claimed under section 80TTB .Â
​9. Interest received by a senior citizen on deposits with banks / co-operative societies / post office is exempted up to Rs 50,000 under section 80 TTB  ​.Â
10. Rent paid in excess of 10% of total income for furnished/unfurnished residential accommodation (subject to maximum of Rs. 5,000 p.m. or 25% of total income, whichever is less) subject to certain conditions under section 80GGÂ
11. Donations made to certain organizations under sections 80G & 80 GGA,80 GGBÂ Â
12. Total tuition fee paid by a parent for maximum of two children is eligible for tax exemption under 80C .​
​
You may check details of the above rebates below and can utilize while submitting IT ReturnsÂ
 All below listed rebates are available only if you opt for old regime except no 1 which is available both in old and new regimes .
​
1. Rebate under section 87 A for the Resident Indians with below taxable income of  Rs 5.00 lakhs  ( Availble both in old and new regimes )Â
2. Standard Deduction of Rs 50,000 for Salaried persons / pensionersÂ
3. Health Insurance premium paid between Rs 25,000 to Rs 1.00 lakh under section 80DÂ
4. Interest on Education Loan paid under section 80E
​5. Deductions allowed Rs 50,000/1,50,000 under Section 80EE/80 EEA for the Interest on Housing loans with certain conditions .Â
​6. Deductions allowed Rs 2.00 lakhs under  Section 24 for the Interest on Housing loans  .
​7. Deductions allowed Rs 1,50,000 under Section 80 EEB for the Interest on loans taken for purchase of electric vehicles ​.
8. Interest on savings bank accounts are exempted by tax up to an amount of Rs 10,000 under Section 80TTA and for senior citizens only if they have not claimed under section 80TTB .Â
​9. Interest received by a senior citizen on deposits with banks / co-operative societies / post office is exempted up to Rs 50,000 under section 80 TTB  ​.Â
10. Rent paid in excess of 10% of total income for furnished/unfurnished residential accommodation (subject to maximum of Rs. 5,000 p.m. or 25% of total income, whichever is less) subject to certain conditions under section 80GGÂ
11. Donations made to certain organizations under sections 80G & 80 GGA,80 GGBÂ Â
12. Total tuition fee paid by a parent for maximum of two children is eligible for tax exemption under 80C .​
​
You may check details of the above rebates below and can utilize while submitting IT ReturnsÂ
INCOME REBATE UNDER SECTION 87A OF INCOME TAX ACT
SECTION 87A - An assessee, being an individual resident in India, whose total income does not exceed Five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax on his total income with which he is chargeable for assessment year 2022-23 of an amount equal to hundred per cent of such income-tax or an amount of Twelve thousand and five hundred rupees, whichever is less. Â
The above section is applicable only for residents whose total taxable income for the year is less or equal to Rs 5,00,000.Hence to obtain the above rebate ,you may use other tax rebates under various sections like 80C , 80D , 80E etc to see that your taxable income becomes less than Rs 5,00,000  . The rebate under the section is availble whether you opt for section 115 bac or not .Â
​To estimate your current taxable income , CLICK HEREÂ
The above section is applicable only for residents whose total taxable income for the year is less or equal to Rs 5,00,000.Hence to obtain the above rebate ,you may use other tax rebates under various sections like 80C , 80D , 80E etc to see that your taxable income becomes less than Rs 5,00,000  . The rebate under the section is availble whether you opt for section 115 bac or not .Â
​To estimate your current taxable income , CLICK HEREÂ
DEDUCTION UNDER SECTION 80D OF INCOME TAX ACT AVAILABLE UNDER OLD REGIME
Deduction allowed on Health insurance Policies under 80 D is Rs. 50,000/- for senior citizens and up to Rs. 25,000/-Â for others .For senior citizens, if no insurance amount is paid ,hospital expenditure up to Rs 50,000 is allowed .An assessee can claim additional Rs 50,000 for his/her parents if they are senior citizens and Rs 25,000 in other cases .
In case there is no insurance premium is paid for the senior citizens , medical expenditure incurred on behalf of them can be claimed. Overall claim cannot exceed Rs 1,00,000 . All payments should have been made in any mode other than cash .Cost of preventive health check up up to Rs 5,000 can be claimed within the overall limit and it could have been made in cash also . ​ Â
 To know about Health insurance Policies , CLICK HERE andÂ
For List of Health Insurance Companies in India , CLICK HEREÂ
In case there is no insurance premium is paid for the senior citizens , medical expenditure incurred on behalf of them can be claimed. Overall claim cannot exceed Rs 1,00,000 . All payments should have been made in any mode other than cash .Cost of preventive health check up up to Rs 5,000 can be claimed within the overall limit and it could have been made in cash also . ​ Â
 To know about Health insurance Policies , CLICK HERE andÂ
For List of Health Insurance Companies in India , CLICK HEREÂ
INCOME TAX REBATES FOR SENIOR CITIZENS
 DO YOU KNOW ? : Senior citizens can claim Tax Rebate  under section 80D even without  having paid health insurance premium .Â
Under section 80D , senior citizens can claim tax rebate up to Rs 50,000  against payment of health insurance premium . But they also can claim up to Rs 50,000 , even when they don't have health insurance , against their medical bills , provide amount has been paid  by cheques / on-line payment / cards etc . Cash payment only on the bills will not be accepted . However payment of Rs 5,000 for health check will be accepted , even if paid in cash . Â
Further sons / daughters also can claim tax rebates in their income tax returns  for the medical bill payment of their senior citizen parents , provided parents do not have health insurance . Â
Under section 80D , senior citizens can claim tax rebate up to Rs 50,000  against payment of health insurance premium . But they also can claim up to Rs 50,000 , even when they don't have health insurance , against their medical bills , provide amount has been paid  by cheques / on-line payment / cards etc . Cash payment only on the bills will not be accepted . However payment of Rs 5,000 for health check will be accepted , even if paid in cash . Â
Further sons / daughters also can claim tax rebates in their income tax returns  for the medical bill payment of their senior citizen parents , provided parents do not have health insurance . Â
Tuition Fee Exemption in income Tax 2022-23
TAX REBATE UNDER 80C FOR TUITION FEE PAID AVAILABLE UNDER OLD REGIME
UTILISE TUITION FEE PAID FOR REBATE UNDER 80C
DO YOU KNOW ? :  Parents can claim Tax Rebate  under section 80c  for the tuition fees paid for their wards to educational institutionsÂ
Total tuition fee paid by a parent for maximum of two children is eligible for tax exemption under 80C .
"Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children" is eligible  to be deducted under 80C .
Tuition fees paid for self or spouse is NOT eligible under 80C . Â
Fees paid to  educational institutions situated outside India are not eligible .  Only University, college, school or other educational institution must be situated in India though it can be affiliated to any foreign institutes. Tuition fee Paid for children for full time courses  only is eligible. Obviously fees paid for coaching classes will not be eligible .Â
​
Pre-nursery, play school and nursery class fees is also covered under section 80C (circular 9/2008 & 8/2007).
If both husband and wife are tax payers ,both can utilise  the  deduction separately for the individual payments made by them .Â
Not allowable Expenses:-Â
1. Development fees or donation not eligible.Â
2. Transport charges, hostel charges, Mess charges, library fees, scooter/cycle/car stand charges incurred for education are not allowed.Â
3. Late fees is not eligible for deduction.Â
4. Term Fees is not eligible for deduction.
Total tuition fee paid by a parent for maximum of two children is eligible for tax exemption under 80C .
"Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children" is eligible  to be deducted under 80C .
Tuition fees paid for self or spouse is NOT eligible under 80C . Â
Fees paid to  educational institutions situated outside India are not eligible .  Only University, college, school or other educational institution must be situated in India though it can be affiliated to any foreign institutes. Tuition fee Paid for children for full time courses  only is eligible. Obviously fees paid for coaching classes will not be eligible .Â
​
Pre-nursery, play school and nursery class fees is also covered under section 80C (circular 9/2008 & 8/2007).
If both husband and wife are tax payers ,both can utilise  the  deduction separately for the individual payments made by them .Â
Not allowable Expenses:-Â
1. Development fees or donation not eligible.Â
2. Transport charges, hostel charges, Mess charges, library fees, scooter/cycle/car stand charges incurred for education are not allowed.Â
3. Late fees is not eligible for deduction.Â
4. Term Fees is not eligible for deduction.
OTHER TAX REBATES / DEDUCTIONS AVAILABLE UNDER OLD REGIME
  1. Standard Deduction of  Rs 50,000 allowed for salaried persons / pensioners.
2. Cumulative deduction allowed under Section 80C, 80CCC, and Section 80 CCD for savings/investments, premium for annuity / pension fund is Rs. 1.5 lakh.Now under Section 80CCD, a deduction of upto Rs. 50,000 is allowed over and above the limit of Rs. 1.50 lakh under Section 80C in respect of contributions made to NPSÂ
3. Deductions allowed Rs 50,000 / 1,50,000 under  Section 80 EE / 80 EEA for the Interest on Housing loans with certain conditionsÂ
4. Deduction allowed under 80 E  for interest on education loan taken for pursuing Higher Education .Â
Â
'higher education' means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, Board or university recognised by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so.
5. Deductions allowed Rs 2.00 lakhs under  Section 24  for the Interest on Housing loansÂ
6.  Deductions allowed Rs 1,50,000 under Section 80 EEB for the Interest on loans taken for purchase of electric vehicles.Â
7. Interest on savings bank accounts are exempted by tax up to an amount of Rs 10,000  under Section 80TTA  and for senior citizens only if they have not claimed under section 80TTB
8. Interest received by a senior citizen on deposits with banks / co-operative societies / post office  is exempted up to Rs 50,000 under section 80 TTB  .Â
​If you need any clarifications or you want to  know various rebates available under various sections of IT Act ,  CLICK HERE   AND GO TO  TAX CHARTS / TABLES AND CLICK ON DEDUCTIONSÂ
2. Cumulative deduction allowed under Section 80C, 80CCC, and Section 80 CCD for savings/investments, premium for annuity / pension fund is Rs. 1.5 lakh.Now under Section 80CCD, a deduction of upto Rs. 50,000 is allowed over and above the limit of Rs. 1.50 lakh under Section 80C in respect of contributions made to NPSÂ
3. Deductions allowed Rs 50,000 / 1,50,000 under  Section 80 EE / 80 EEA for the Interest on Housing loans with certain conditionsÂ
4. Deduction allowed under 80 E  for interest on education loan taken for pursuing Higher Education .Â
Â
'higher education' means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, Board or university recognised by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so.
5. Deductions allowed Rs 2.00 lakhs under  Section 24  for the Interest on Housing loansÂ
6.  Deductions allowed Rs 1,50,000 under Section 80 EEB for the Interest on loans taken for purchase of electric vehicles.Â
7. Interest on savings bank accounts are exempted by tax up to an amount of Rs 10,000  under Section 80TTA  and for senior citizens only if they have not claimed under section 80TTB
8. Interest received by a senior citizen on deposits with banks / co-operative societies / post office  is exempted up to Rs 50,000 under section 80 TTB  .Â
​If you need any clarifications or you want to  know various rebates available under various sections of IT Act ,  CLICK HERE   AND GO TO  TAX CHARTS / TABLES AND CLICK ON DEDUCTIONSÂ
11 POPULAR INSTRUMENTS FOR REBATES UNDER SECTION 80C DEDUCTION LIST
Income Tax rebate on Home loans
Income Tax rebate on Education Loans
 The below mentioned instruments can be used only if you opt for Old tax regimeÂ
1. Premium paid on a Life Insurance policy for self or spouse or child (Tax benefits come with riders .To see the riders ,go to section)
2. Contribution made under Employee’s Provident Fund Scheme Amount paid towards PPF for self/spouse, any child  . Â
3. Contribution to a recognised Provident Fund
4. Sum deposited in Post Office Savings Bank Account(10 year/15 years)
5. Subscription to any notified securities/notified deposits schemes like ELSS  ( For  details ,  go to the end of the page  )
6. Amount invested in any notified savings certificate, Unit Linked Savings certificates.
7. Investments in Unit Linked Insurance Plan of LIC Mutual Fund
8. Payments made in installments or part payment for purchasing or constructing a house property.(conditions Apply ) Â
9.Tuition fees paid to any Indian school,college, university or other educational institutions ( Conditions Apply )
10. Contribution made to  Sukanya  samriddhi accountÂ
11. Tax saver Fixed Deposits issued by Commercial BanksÂ
1. Premium paid on a Life Insurance policy for self or spouse or child (Tax benefits come with riders .To see the riders ,go to section)
2. Contribution made under Employee’s Provident Fund Scheme Amount paid towards PPF for self/spouse, any child  . Â
3. Contribution to a recognised Provident Fund
4. Sum deposited in Post Office Savings Bank Account(10 year/15 years)
5. Subscription to any notified securities/notified deposits schemes like ELSS  ( For  details ,  go to the end of the page  )
6. Amount invested in any notified savings certificate, Unit Linked Savings certificates.
7. Investments in Unit Linked Insurance Plan of LIC Mutual Fund
8. Payments made in installments or part payment for purchasing or constructing a house property.(conditions Apply ) Â
9.Tuition fees paid to any Indian school,college, university or other educational institutions ( Conditions Apply )
10. Contribution made to  Sukanya  samriddhi accountÂ
11. Tax saver Fixed Deposits issued by Commercial BanksÂ
INSTRUMENTS QUALIFYING UNDER Â 80CCC, 80CCG AND Â 80DÂ Â AVAILABLE UNDER OLD REGIMEÂ
Instruments qualifying under 80CCC
Payment of premium for annuity plan of LIC or any other insurer.
Instruments qualifying under 80 CCG
Listed Equity shares or listed units of a fund in accordance with Rajiv Gandhi Equity Savings Scheme  Subject to following conditions :
​
Resident Individual  being a  new retail investor  with not more than 10.00 lakhs income and investing with a lock in period of 3 years Â
​Instruments qualifying under 80 D
​Health Insurance policies
Payment of premium for annuity plan of LIC or any other insurer.
Instruments qualifying under 80 CCG
Listed Equity shares or listed units of a fund in accordance with Rajiv Gandhi Equity Savings Scheme  Subject to following conditions :
​
Resident Individual  being a  new retail investor  with not more than 10.00 lakhs income and investing with a lock in period of 3 years Â
​Instruments qualifying under 80 D
​Health Insurance policies
POPULAR TAX SAVING SCHEMES
For the current interest rate on various SMALL SAVINGS Instruments ,visit our page " NEWS ON INTEREST RATES "
Array of products  from  Â
1. Guaranteed return schemes like PPF Â AND NSCÂ
2. Insurance schemes  which cover life  risks  with units linked to market  or otherwise
3. Equity linked  mutual funds  which have high risk  and return probabilities like ELSS  Â
are  available for the investors to utilize the rebates  on income tax  offered by the government .Â
PPF is  a fixed income long term investment  while NSC is fixed return  medium term  investment . Insurance policies which cover life risk are available  in unit linked market related schemes  and otherwise also.On the other hand ELSS is totally market related mutual fund which carry all the risks of an equity market and  have given good returnsÂ
Details of Each scheme is given below :Â
PUBLIC Â PROVIDENT FUNDSÂ
SALIENT FEATURES :
NATIONAL SAVINGS CERTIFICATES
SOURCE OF INFORMATION Â INDIA POSTÂ
NSC VIII Issue
NSCS ARE AVAILABLE ONLY IN POST OFFICES Â ALL OVER INDIAÂ
LIFE INSURANCE POLICIES
Life insurance policies  are   the financial instruments which cover Life Risks of the insured along with Tax relief .  Various  types of life insurance policies are available  with wide ranging terms  . Some are unit linked policies whose Net Asset value depends up on the  equity market and hence carry market risks .  For full details on Life Insurance  and tips for purchasing such policies , please go the page LIFE INSURANCE  Â
​Under 80 C  of Income tax  Act , life insurance premium paid  on life insurance policies  is  one of the eligible instruments for total tax exemption up to Rs 1,50,000 only  .   However  be cautious and confirm with policy issuers whether the contribution made to the particular policy is eligible for such exemption . The reason is there are riders for contributions made to be eligible for exemption .Â
As per Income tax law ,Â
Quote ; Â "Â
 Life Insurance premium is part of gross qualifying amount for the purpose of deduction under section  80 C . Payment of premium which is in excess of 10 percent  ( if policy is issued on or after 1-4-2013 , 15 % in case of insurance on life of person with disability referred to in section 80U  or suffering from disease or ailment specified in section 80 DDB/ rule 11DD )  of actual capital sum assured shall not be included in gross qualifying amount . The value of any premiums agreed to be returned or of any benefit by way of bonus or otherwise , over the sum actually assured , which is to be or may be received under the policy by any person , shall not be taken in to account for the purpose of calculating the actual capital sum assured .The limit of 10 per cent will be applicable only in the case of policies issued on or after 1-4-2012. In respect of policies issued prior to 1-4-2012, the old limit of 20 per cent of actual sum assured will be applicable.
With effect from 1-4-2013, 'actual capital sum assured' in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking into account--
 (i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. " unquote "Â Â
 For full page  of Income tax website  relevant to  the above rule  , CLICK HERE  Â
Hence premiere paid  one time premium policies may not be eligible to qualify for exemption  as  the insured amount may not be ten times the premium .  Further amount received under those policies may be treated as  Taxable Income and tax calculated .  Hence double check  with insurance companies before purchasing  as selling agents may not reveal you correctly .Â
EQUITY LINKED SAVING SCHEME Â ( Â ELSS Â ) Â
Is another popular scheme under which investors  can  invest in stock market mutual fund  while enjoying tax benefits under 80C of Income Tax act .Â
TAX SAVING FIXED DEPOSITS ISSUED BY COMMERCIAL BANKS Â :
Key highlights of Tax Saver FDs:
Array of products  from  Â
1. Guaranteed return schemes like PPF Â AND NSCÂ
2. Insurance schemes  which cover life  risks  with units linked to market  or otherwise
3. Equity linked  mutual funds  which have high risk  and return probabilities like ELSS  Â
are  available for the investors to utilize the rebates  on income tax  offered by the government .Â
PPF is  a fixed income long term investment  while NSC is fixed return  medium term  investment . Insurance policies which cover life risk are available  in unit linked market related schemes  and otherwise also.On the other hand ELSS is totally market related mutual fund which carry all the risks of an equity market and  have given good returnsÂ
Details of Each scheme is given below :Â
PUBLIC Â PROVIDENT FUNDSÂ
SALIENT FEATURES :
- Ideal investment option for both salaried as well as self employed classes.
- Non-Resident Indians (NRIs) are not eligible.
- Investment up to INR. 1,50,000 per annum qualifies for IT Rebate under section 80 C of IT Act.
- The rate of interest varies quarter to quarter  as per announcements made by Government .
- Loan facility available from 3rd financial year up to 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
- Withdrawal permitted from 6th financial year.
- Free from court attachment.
- An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
- Public Provident Fund(Individual account on his behalf or on behalf of minor of whom he is the guardian)INR. 500/- in a financial year INR. 1,50,000/- in a financial year
- The public provident fund is established by the central government.
- Â One can voluntarily open an account with any nationalized bank,selected authorized private bank or post office.Â
- SAFE , SECURE , TAX EFFICIENT Â AND Â LIMITED LIQUIDITY AVAILABLE Â FROM 3RD YEAR Â BY WAY OF LOAN FACILITY
NATIONAL SAVINGS CERTIFICATES
SOURCE OF INFORMATION Â INDIA POSTÂ
NSC VIII Issue
- Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses.
- No maximum limit for investment.
- No Tax deduction at source.
- Certificates can be kept as collateral security to get loan from banks.
- Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under section 80C of Income Tax Act.
- Trust and HUF cannot invest.
- No maximum limit for investment.
- Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
- A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor.
- Buy National Savings Certificates (NSCs) every month for Five years – Re-invest on maturity and relax - On retirement it will fetch you monthly pension as the NSC matures.
NSCS ARE AVAILABLE ONLY IN POST OFFICES Â ALL OVER INDIAÂ
LIFE INSURANCE POLICIES
Life insurance policies  are   the financial instruments which cover Life Risks of the insured along with Tax relief .  Various  types of life insurance policies are available  with wide ranging terms  . Some are unit linked policies whose Net Asset value depends up on the  equity market and hence carry market risks .  For full details on Life Insurance  and tips for purchasing such policies , please go the page LIFE INSURANCE  Â
​Under 80 C  of Income tax  Act , life insurance premium paid  on life insurance policies  is  one of the eligible instruments for total tax exemption up to Rs 1,50,000 only  .   However  be cautious and confirm with policy issuers whether the contribution made to the particular policy is eligible for such exemption . The reason is there are riders for contributions made to be eligible for exemption .Â
As per Income tax law ,Â
Quote ; Â "Â
 Life Insurance premium is part of gross qualifying amount for the purpose of deduction under section  80 C . Payment of premium which is in excess of 10 percent  ( if policy is issued on or after 1-4-2013 , 15 % in case of insurance on life of person with disability referred to in section 80U  or suffering from disease or ailment specified in section 80 DDB/ rule 11DD )  of actual capital sum assured shall not be included in gross qualifying amount . The value of any premiums agreed to be returned or of any benefit by way of bonus or otherwise , over the sum actually assured , which is to be or may be received under the policy by any person , shall not be taken in to account for the purpose of calculating the actual capital sum assured .The limit of 10 per cent will be applicable only in the case of policies issued on or after 1-4-2012. In respect of policies issued prior to 1-4-2012, the old limit of 20 per cent of actual sum assured will be applicable.
With effect from 1-4-2013, 'actual capital sum assured' in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking into account--
 (i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. " unquote "Â Â
 For full page  of Income tax website  relevant to  the above rule  , CLICK HERE  Â
Hence premiere paid  one time premium policies may not be eligible to qualify for exemption  as  the insured amount may not be ten times the premium .  Further amount received under those policies may be treated as  Taxable Income and tax calculated .  Hence double check  with insurance companies before purchasing  as selling agents may not reveal you correctly .Â
EQUITY LINKED SAVING SCHEME Â ( Â ELSS Â ) Â
Is another popular scheme under which investors  can  invest in stock market mutual fund  while enjoying tax benefits under 80C of Income Tax act .Â
TAX SAVING FIXED DEPOSITS ISSUED BY COMMERCIAL BANKS Â :
Key highlights of Tax Saver FDs:
- Deposits are opened for  a period  of 5 years.
- Maximum  tax deduction up to Rs.1, 50,000.
- Deduction is available to individuals, members of Hindu undivided family (HUF), senior citizens and NRIs.
- The interest earned from tax saver fixed deposits is taxable. Tax will deducted at source.
- Premature withdrawal is not allowed .
-  No  loan against tax saver fixed deposits.
- Tax saver deposits can be opened both singly and jointly. In case of a joint account, tax benefit will be availed by first holder of the deposit as per the section 80C of the Income Tax Act, 1961.
WHAT IS AN ELSS SCHEME ?
Subscription to certain  notified securities/notified deposits schemes  are eligible instruments under  section  80C for claiming deductions from  taxable income . One such popular investment is  tax saving mutual funds or Equity Linked Savings Scheme (ELSS).  In this  equity diversified fund , investors enjoy the benefits of capital appreciation as well as tax benefits. With  recent positive movements in equity market , more interest is being generated in the public on the scheme .Â
ELSS is basically an equity based diversified Mutual Fund with a lock in period of 3 years .It has got same risk and reward function of any other  equity based mutual fund .While under national saving certificate , funds are locked in a period of 6 years ,  ELSS  has lock in period of 3 years only .One who is willing to take  market risk , ELSS is a good option as investment  is tax free under 80C   as also all the returns . Some ELSS funds have been reported  giving good tax free returns over a long period of time . One has to carefully study the past performance of the fund  as well as fund manager's performance before investing.As returns or principal is not  guaranteed and classified as high risk investment,Risk averse  persons  may avoid such investment . Â
Persons interested  in investing in ELSS may understand Mutual Funds and go to the websites of Mutual fund IssuersÂ
ELSS is basically an equity based diversified Mutual Fund with a lock in period of 3 years .It has got same risk and reward function of any other  equity based mutual fund .While under national saving certificate , funds are locked in a period of 6 years ,  ELSS  has lock in period of 3 years only .One who is willing to take  market risk , ELSS is a good option as investment  is tax free under 80C   as also all the returns . Some ELSS funds have been reported  giving good tax free returns over a long period of time . One has to carefully study the past performance of the fund  as well as fund manager's performance before investing.As returns or principal is not  guaranteed and classified as high risk investment,Risk averse  persons  may avoid such investment . Â
Persons interested  in investing in ELSS may understand Mutual Funds and go to the websites of Mutual fund IssuersÂ
 For Tax on Retirement  Benefits CLICK HEREÂ
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PART I Â : MAJOR CHANGES IN TAX RULES FOR FY 2022-23Â Â Â Â CLICK HEREÂ
PART 2 : TAX RATES Â / SLABS FOR FY 2022-23Â Â Â Â CLICK HEREÂ
PART 3 :  TAX REBATES   FOR FY 2022-23   READ THE ABOVE  PART  ​  Â
PART 4 : Â ESTIMATE YOUR INCOME TAX / ADVANCE TAX FOR FY 2022-23Â Â Â CLICK HEREÂ
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UNIFIED Â PAYMENT INTERFACEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â BHARAT BILL PAYMENT SYSTEMÂ Â Â
BHIM APPÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â AADHARÂ Â Â
e-INSURANCE Â Account ( eIA Â )
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