1.Section 80C: An investment of maximum Rs 1.0 lakh is available for exemption under this section. PF,NSC,PPF,ELSS,Life Insurance,Housing Loan Principal repayment,School tution fees for children’s are available instruments for investments.Generally our Tax planning hovers around Life Insurance especially ULIPs as they are the most missold products.Section 80ccc i.e. pension products are also clubbed with this section.
NPS (New Pension scheme) would be included in this section from 2012 as proposed in Direct Tax Code.
4. Section 80 E: Entire Interest paid toward education loan for higher studies is eligible for deduction from your income.
Strategy: If you are planning for higher studies or any professional course,utilize this option.
5. Section 80G: 50% or 100% of the amount donated for any good cause is eligible for deduction.
Strategy: If you are a Businessman or a Professional,utilize this option to the maximum.
Financial Doctor’s Advice: Make Financial Planning one of your new year resolution.