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2010 Budget bites | Tax savings

March 3rd, 2010

Under Section 80C

This section allows for an overall deduction up to Rs.1.2 lac in the following specified instruments:

  • Premium for life insurance
  • Premium for pension plan
  • Contribution to a provident fund, including Public Provident Fund
  • Repayment of home loan principal
  • Investment in Equity-linked Savings Schemes of Mutual Funds
  • Deposits in NSC, five-year term deposits of Post Office and schedule commercial banks, Senior Citizen Savings Scheme etc.

Under Section 80D

Premium paid for health insurance up to Rs.15,000 (Rs.20,000 for senior citizens) for individuals or spouse or children. Additional Rs.15,000 is available for deduction if the premium is paid towards health insurance of parents.

Under Section 80E

Payment of interest on education loan taken for higher education for yourself, spouse or children.

Under Section 24

A maximum of Rs.1.50 lac is allowed for deduction from total annual income towards interest payment on a housing loan

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