Here are the income tax slabs for AY 2013-2014 (FY 2012-13).
Income Tax Slabs – AY 2013-2014
INCOME TAX SAVING TIPS:
Optimal tax planning with section 80C: Eligible schemes under section 80C for 2012-20131. Life Insurance Premiums
2. Contributions to Employees Provident Fund
3. Public Provident Fund
4. NSC (National Savings Certificates)
5. Unit Linked Insurance Plan (ULIP)
6. Repayment of Housing Loan (Principal)
7. Equity Linked Savings Scheme (ELSS) of Mutual Funds
8. Tuition Fees including admission fees or college fees paid for full-time education of any two children
of the tax payer.
9. Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC
10.5-Year fixed deposits with banks and Post Office Savings Schemes
11.Senior Citizens Savings Scheme (SCSS)
Step by Step Guide to File Income Tax Returns: How To File Income Tax Returns Online
Income Tax Exemption Rules: Indian Tax Exemption Rules | Indian income tax sections
Besides the section 80C of the income tax law, you can save tax under section 80D.
All the health insurance products are eligible for tax saving under the section 80D
and you can save tax up to Rs. 35000 in case you buy a policy for your family and your dependent parents .
There are quite a few options you can opt for tax savings.
Tax saving Mutual Funds ("MF") --> which comes with a lock-in period of generally 3 yrs.
i.e. you can not get back your money within 3 yrs. from the time you put them into MF. This is a Highest return given option and also the riskiest one.
Fixed Deposits ("FD") --> put a money in a bank FDs which are "Tax-savings" for
a fixed tenure (generally 5 yrs). You will get cumulative and safe interest.
Life Insurance Corporation of India(LIC). You must be knowing about this.
It is advisable to secure your life against any danger. There are various plans provided by LIC out of which you can opt the best suited one.
Public Providend Fund(PPF), same as normal PF which a Salaried employees possess.
Difference is it is a scheme for a tenure of 15 yrs and you can withdraw the amount only once
and that too after 5 yrs. You can open a PPF accnt from any SBI branch or Post-office.
You have to make sure to have atleast 1 entry per year
i.e. you have to deposit atleast a minimum amnt (Rs. 500/- I guess)
atleast once in a year to continue healthy scheme.
NSC bonds --> National Saving Certificate bonds are available at Post-offices.
You will get safe return on this after a fixed tenure.
These are the widely used investment plans now a days. If you are a risk taker then go for 100% MF,
if you are a moderate risk taker then go for 60% MF, 20% PPF and 20% FD and
if you do not want any risk then go for 100% PPF, FD and/or NSC.
Thinking beyond Section 80C
I would suggest to secure your life with LIC along with other investments.
Your home loan and tax planning
“Repayment of principal amount” and “Payment of interest” are eligible for tax benefit.
Repayment of principal amount: Makes you eligible to claim a deduction up to a sum of 100,000 under section 80C (It is immaterial
whether HP is Let Out or Self Occupied. Interest is eligible for deduction u/s 24(b) as follows:
Self Occupied- Maximum of Rs 150000 Let Out- Actual amount of interest payable is eligible.
It makes sense to include your spouse as a co-owner; especially if your spouse’s income is taxable. This will result in higher tax saving.