COMPLETE TAX SAVING INFORMATION : How you can planning the tax !

COMPLETE TAX SAVING INFORMATION : How you can planning the tax !
COMPLETE TAX SAVING INFORMATION : How you can planning the tax !

Table of Contents

* Income Tax
*Life Insurance tax planning
*Health insurance tax planning
*public provident fund
*ELS ( Equity Linked Savings Scheme)
    *senior citizen savings scheme
    * National pension scheme
    * Sukanya Prosperity Scheme

Income tax planning can be understood as those investments, through which the taxable income of the taxpayers is reduced.

This can be done through many mediums such as Life Insurance, Health Insurance, P.P.F., ELS, Bank FD, Senior Citizen Savings Scheme, National Pension Scheme, General Provident Fund (EPF) .) Etc.


The premium paid for all life insurance policies contributes to lower taxable income under section 80C . Section 80 C to obtain exemption under taking into consideration the following points |

i)   life insurance policy rather than own name, spouse / should be the wife or children's names |

ii) 20 % of the maximum exemption amount will be received only if the policy is before 31-03-2012 and if the policy is made after this date the limit of maximum exemption will be 10 %.                     
iii) Life insurance policy for minimum period of 2 years is mandatory to take advantage of tax planning.                                                                                                                                                           
Example: -   

Sharma has invested in the life insurance policy of the year 2017-18 , whose information is as follows. The total income of Sharma ji is 486000 .

Name of the policyThe premiumdateCapital adequacy amount
On own name45,6005/5/201732,00,000
In the name of wife38,4005/8/201725,00,000
On the name of his own son12,50015/06/201720,00,000
Mother's name35,9005/8/201730,00,000
In the appropriate example , Sharma has the name of himself, wife, son and mother in four policies. Tax deduction is deductible in tax deduction for taking life insurance policy under Section 80C of the Income Tax Act , 1961.

According to the stream, the premium paid on the policy is exempted if the suitable conditions are met. In this example, Sharma will have a maximum ceiling of 10% capital adequacy on the policy premium for himself , wife and son.

Sharma will get 32,000 on his own policy , 25,000 on his wife 's policy and 12,500 total exemptions on son's policy will be Rs . 69,500 . I.e. Sharma's tax Yoga income 4,16,500      The rupee will be.


All health insurance policies were paid for premium , Section 80D gives taxable contribute to reducing income under | Section 80 C to obtain exemption under taking into consideration the following points |

i) health insurance policy rather than own name , husband / wife , must be the mother / father or dependent children's names |

ii)   Maximum exemption is fixed up to Rs. 25,000 , in the name of a tax payer health insurance policy , the names of self , spouse , or dependent children.

iii)   Also, if the tax payer's name also takes the policy, then it gets more than 25,000 rebates and if the parent is a senior citizen, then the limit will be 30,000.

Example : -

Shukla ji has invested in the following health insurance policies in the year 2017-18 , whose information is as follows. The total income of Shukla ji is 5,26,400 .

Name of the policyThe premiumdate
On own name146005/5/2017
In the name of wife124005/8/2017
On the name of a destitute son450015/06/2017
Mother's name59005/8/2017
In the appropriate example , Shukla ji has the name of himself, wife, son and mother in four policies.

Tax deduction is deductible in taxable income after taking the health insurance policy under section 80D of Income Tax Act , 1961.

According to the stream, the premium paid on the policy will be obtained if the suitable conditions are met.

In this example Shukla ji himself , wife and mother of the policy premium discount ceiling to 25,000 will | Shukla ji will not get the benefit of son's premium as the dependent children under the section 80D can be exempted on health insurance only.

Shukla ji himself and wife of qualified health insurance policy 27,000 is , therefore, Shukla G 25,000 is the maximum limit that can get discounts as well as the parents of the policy 5,900 | That Shukla g total discount 30,900 bucks will therefore total revenue 495 500 will |


General Provident Fund (PPF ) is a popular long term investment plan by the Government of India, which provides attractive interest rates and security.

The taxpayer can get the exemption of the sum contributed in the PPF every year under the Income Tax Act, 1961 , under section 80C . Keeping these things in mind: -

i) In the general provident fund , the taxpayer has a minimum tenure of 15 years , which he can increase in the block of 5 years as per his wish.

ii) Interest will be calculated by 8 % in the General Provident Fund. Interest is calculated on the lowest balance between every month, it can be any day in the middle of the fifth day of the month and the last day.

iii) In the general provident fund, the taxpayer can do 500 rupees to a maximum of Rs 1,50,000. Also, the taxpayer can invest in a lump sum or up to 12 instalments in cash.

The benefits

i) Whether the taxpayer can take loan against his provident fund. First borrower time 3 years 5 maximum in the middle of the year 25% per 2 will last the rest of the year | The taxpayer can take the loan again provided he has repaid the first loan. The deadline for taking another loan is 6 years ago.

ii) Upon completion of 15 years , with the interest of the taxpayer from the PPF account along with the interest earned, the whole amount can be tax-exempted free and the account can be closed.               
iii) If the taxpayers wish to withdraw the provident fund before 15 years , then the scheme gives them partial withdrawal (permission) in 7 years. Taxpayer prematurely , can withdraw up to 50% of the amount that is the last remaining of the 4 years |

Example: -
 Shukla ji's salary has been deducted from Rs . 65,860 in the year 2017-18 as a general provident fund . Shukla ji's total income is 7,64,500 .

In the appropriate example , Shukla Ji's general provident fund account has been deposited by 65,860 of his employer who receives a maximum of 150,000 exemption under Section 80C of Income Tax Act , 1961. Hence Shukla Jee can get 65,860 exemptions. That is, Shukla ji's tax yoga income will be 6,98,640.


This is an open-ended equity mutual fund. Which give you the opportunity to save and grow your money. There are so many options here that provide good investment opportunities.

 However ,

income from these investments is taxable. These mutual funds come with a lock-in period of 3 years. These are the only mutual funds that help you reduce your tax net income.

The benefits

i) There is no time limit for investing in a mutual fund, and it offers investment options as per the taxpayer's willingness of Rs 500.

ii) The maximum amount invested in a mutual fund can be income tax exemption upto Rs. 1,50,000 , under section 80C of the Income Tax Act, 1961.

iii) On the benefit of the mutual fund, income tax is to be given at the rate of 10 percent only.
iv) Mutual Funds are run by expert and experienced professionals who are eligible to handle your investments.

Example : -

 Shukla ji pay since 2017-18 to 265,800 mutual fund is invested in that information Following | The total income of Shukla ji is 17,68,500 .

Name of mutual fundinvestment amountBased
Axis Long Term Equity Fund25,400Equity
Idfc Bond fund45,800Debenture
Reliance Tax Saver Fund81,200Equity
Tata Tax Saving Fund74,500Equity
Icici Pru Long Term Bond Fund38,900Debenture
In the appropriate example , Shukla ji has invested in five mutual funds, under the section 80C of Income Tax Act , 1961 , a maximum of 150,000 exemptions can be obtained in the Equity Linked Savings Scheme . Shukla has invested 1,81,100 equity linked savings mutual and 84,700 bond based mutual funds, so the eligible investment in tax rebate is 1,81,100 , but the exemption maximum limit will be up to 1,50,000 . That is, Shukla ji's tax yoga income will be 16,18,500.


Senior Citizen Savings Scheme has been created keeping in mind the senior citizen . This is a long-term savings option, which provides security and additional features that are usually associated with any savings or investment scheme.

 Keeping these things in mind: -

i) Age of Indian Senior Citizen should be 60 years or more.

ii) retirees who voluntary retirement scheme (opted scheme should be invested within one month of receiving the retirement benefits to beneficiaries |

iii) Retired defense personnel should be of minimum age of 50 years.

iv) The minimum duration is 5 years.

v)   This scheme can be made available through commercial banks and post offices throughout India.

The benefits

i) It is sponsored investment by the Government of India , so it is considered one of the safest and reliable investment options |

ii) the Income Tax Act , 1961 Section 80 under which 150000 may get income tax exemption up to Rs |

iii) Savings or F.D. Interest rate is 8.6% compared to the account.

iv) can withdraw money ahead of time, where only 2 after year 1 percent of pre-mature to pay fees and 1 year after but two before the year 5 will be pre-percent-mature fee |

Example : -

Shukla ji, in 58 years of VRS They have received this year ( 2017-18 ) total salary of 1,65,860 as well as outright 14,26,500 service retirements . Shukla ji deposited 12,50,000 accounts in SBI under the Senior Citizens Savings Scheme.

Suitable examples Shukla ji Senior Citizens Savings Scheme investment to the Income Tax Act 1961 Section 80C maximum under 150,000 have become eligible to receive discounts |  That Shukla ji sum income 1,442,360   will |


The pension plans in general , to employees of private and even the unorganized sector | Anyone who wants to plan quickly for his retirement and wants less risk is a good plan for that . Keeping these things in mind: -

i) the employees of the central government of their basic salary 10% would like to contribute |
ii) Other employees can invest in this scheme according to their own wishes, from minimum 250 rupees.

iii) This scheme has been divided into two parts, NPS Tier 1 and NPS Tier 2.

AttributesNPS Tier 1NPS Tier 2
N . P . S . Is it mandatory to invest in ?YesNo
Is the bank account compulsory ?NoYes
What is the minimum amount per contribution ?500250
How much is the minimum contribution in a year ?60001000
Contributions to tax rebates?Rs. 150000 under Section 80C and Rs. 50000 under Section 80CCDNo
iv) Pension Fund Regulatory and Development Authority (PFRDA) up to 25% of NPS Partial withdrawal is allowed from. The following conditions

  1. Partial withdrawals are allowed only for a specific purpose, such as children's education , children's marriage , is to treat the purchase of residential property or building or specified diseases |                                                                                                                                 
  2. The person should subscribe to NPS for at least 10 years.                                                                 
  3. Maximum withdrawal is allowed during whole tenure, minimum gap of five years between two withdrawals is necessary but not for the treatment of specified diseases.
v)   100% withdrawal from NPS, at the time of retirement or at the age of 60 years, if the balance of your NPS account is less than two lakh rupees.                                                                                           
vi) Income tax treatment at the time of withdrawal from NPS.                                                                     

AttributesAt the time of retirement or after 60 yearsBefore retirement (except partial withdrawals)
Maximum withdrawals?6 % of the accumulated wealth20 percent of the accumulated wealth
Income tax rebate ?4 % of the accumulated fund will have to pay income tax on the remaining 20 %.20 percent of the accumulated fund will not be given income tax.
What is the balance of the accumulated money?On an annuity purchase of 40 percent monthly pension.Upon the purchase of an annuity that provides 80percent monthly pension.
Example: -

Sharma ji has cut down the following investment and National Pension Scheme in the year 2017-18 , whose information is as follows. Sharma's total income is 726,500 .

Investment namesinvestment amount
Equity Linked Savings Scheme75,600
Fixed deposit (five years)58,400
Life insurance premium25,400
Contribution to National Pension Scheme54,350
In the appropriate example , Sharma has invested.

All the investments suitable under Section 80C of the Income Tax Act , 1961 are eligible to get the discount but the maximum limit is Rs. 1,50,000. Also , under Section 80CCD , a contribution of Rs 50,000 will be exempted on contributions to the National Pension Scheme .

Sharma has invested 1,59,400 equity-linked savings schemes, fixed deposits and life insurance premiums, which is more than the maximum limit so he will get a discount of 150,000.

Also a maximum of 50,000 will be availed through the National Pension Scheme. So Sharma's taxable income will be Rs 5,26,500.


This scheme is for the Girl Child by the Central Government, which has been started under the Beti Bachao- Beti Teacho Scheme.

 This plan not only envisages financial security for every girl living in Indian families , but also contributes to making them financially independent. This scheme has been started with the word "Blob Blossom fills the ocean", which has given it the real essence.


i) Sukanya Prosperity Account can be opened only by the parent / legal guardian for maximum of two girls. Twins and medical certificate from an authorised medical institution for three letters provided discount by presenting |

ii) The scheme can be opened only for the birth and the girl of 10 years of age. The account will be opened only after the name of the girl and not the name of the parent.

 This account will be opened in post offices or authorised branches of commercial banks.

iii) It is mandatory for a girl to be an Indian citizen, and if the girl is not a citizen of India after the plan, then she will have to close the account within a month.

iv) The account can be opened with minimum deposit amount of Rs. 500 and there is no limit in the number of months or year deposited in this account but can not exceed Rs. 150,000.

v) This scheme is presently offering interest of 8.1 percent.

vi) After maturity of 21 years from the date of opening the account or the marriage of the girl child, the account will be matched.

vii) Partial withdrawals can be made from the account , which include work like higher education and marriage.

It can be deducted 50% of the deposit amount by the end of last year. Planning of this withdrawal is only possible , when the girls take over the age of 18 years.

viii) Income tax exempt will be on the amount of deposit under the upper limit section 80C .

Example : -

Sharma ji has made the following investments in the year 2017-18 under the name Sukanya Samrudhi scheme of his four girls whose information is as follows. Sharma's total income is 15,26,500 .

Girl's nameThe ageinvestment amount
Sita7 years95,600
Geetayear 988,400
Rita2 years25,400
Mita11 years54,350
Suitable examples of Sharma total named after its four Balikao 263,930 is invested | All the investments under Section 80C of the Income Tax Act , 1961 are not eligible for relaxation in the Sukanya Samrudhi Yojana.

According to the appropriate conditions, this scheme is for two girls who are under 10 years of age and the maximum limit is Rs. 1,50,000. Therefore, Sharma can choose any of his three girls Sita, Geeta, and Rita.

The total investment in Geeta and Rita is 1,13,800 , on the other hand, the total investment in Sita and Geeta is 1,84,000 .


 the maximum limit of 150,000 on the basis of investment of Sharmaji Sita and GeetaYou can get a discount of rupees. So the Sharma taxable income 1,376,500 will Rupee |

Comparison of all tax planning together

PlanInvestment limitRate of interestClosed in periodIncome tax benefits
Life insuranceNo limits4 to 6 percent5 yearsUp to 150,000 discounts under Section 80C and 10 (10D) .
health insurance,No limits--Up to 25000 discounts under Section 80D
public provident FundMinimum 500 and maximum of 150,0008 percent15 yearsDiscounts up to 150000 under section 80C
ELS,No limitsNo interest rate   set 3 yearsUp to 150,000 discounts under Section 80C
Senior citizen savings schemeMinimum 500 and maximum of 150,0008 to 8.5 percent5 yearsUp to 1,50,000 discounts under Section 80C
National pension schemeMinimum 500 and maximum no limit
4 to 10 percent 
Above optionsUp to 1,50,000 discounts under Section 80C

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