605 (Income tax myth) Can a Individual save only uptil 1 Lac Rupees Video Link - https://youtube/watch?v=FAtl_iyCNcM Some people have spread this word that individuals can save only 1 lakh rupees .....i dont know who spread this false news , but this affected the indian psyche .... Please understand that there is a entire chapter for savings called deductions under chapter VI A It specifies the total sections for savings (80 C to 80 U ) which are applicable for a individual In this , only the section 80 C alone can carry saving capcity for 1 lakh rs However , individual can also invest in other prescribed investments as permitted under under sections 80 D, 80 E , 80 G , 80 TTA , 80 GGA , 80 DD etc etc ---- Sum total of all such investments permissible to section limits which can very well cross 1 lakh rupees is thus the benefit that a individual can get In the example, i show invest in provident fund for 1 lakh (80 c ), educational loan interest 20000 Rs (80 E), medical insurance for self (10000 rs ), Donations made to Chielf minister fund of uttaranchal 1260 Rs (80 G ), Savings bank interest income 8000 Rs (80 TTA ) now , my total savings would be ---100000+20000+10000+1260+8000=139260 From my Gross total income , this amont (savings )of 139260 shall be reduced to arrive at total income and tax would be applied as per income slabs
Posted on: Sat, 07 Jun 2014 02:49:18 +0000
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