Tax planning is the term that clearly explains the way how it should be managed and saved to minimize your liability as well. Hence, understanding its way of working, especially professionals under 20%-30% should know it in depth since a huge amount gets cut. Now, let’s look into different tools of Tax planning rather than 80C in detail.
TOOLS OF TAX PLANNING:
- Hindu Undivided Family: This is otherwise termed as HUF, which is quite a known and most effective tool of tax planning. Other than the salary income, other incomes can be transferred to your HUF account. If the Husband/wife possesses any ancestral property that generates rental income, it can be transferred to a HUF account. This serves as a purpose of your tax planning.
- Home loan: People having Housing loans can take the benefit of Rs.200000/- under Section 80C. The interest amount comes under 2 situations wherein, 1 person is self-occupied and he can get a deduction of up to 2 lakhs. If they are joint holders, they can get up to 4 lakhs. Another situation is if a property is let out, there is no limit for the deduction, however for a year, the limit is up to 2 lakhs.
- Education Loan: The interest amount for deduction is available for unlimited. But, the deduction is allowed for seven years. Even after passing your Secondary education, the deduction is applicable and even a loan facility is available. This comes under Section 80E.
- Mediclaim facility: This facility comes under Section 80D wherein the limit for individuals is up to Rs.25000/- and the limit for senior citizens above 60 years is Rs.5000/-. Hence, an individual if claiming an amount and utilizing a medical facility under a parents name can get a total benefit of up to Rs.75000/-.
Therefore, added to the above, based on your income and eligibility, you can make use of the tools of tax planning and save it efficiently.