Last minute to save taxes – Plan your investments and file your return

It becomes very important to decide your investment plan for FY 2011-12 as the deadline is 31st March, 2012. Check if these tax saving instruments have been employed by you in your investment plan:

Investments in Section 80C

  • Deduction under this section should be utilized to the fullest. Investment in LIC premium (in the name of relative, spouse) or in Fixed Deposit for 5 years or more or invest in Time Deposit with Post Office for 5 years or more, investment in NSC or entire amount of Rs.100, 000 can be deposited in PPF (Public Provident fund).
  • Other than investments, deduction can be claimed for any sum paid as tuition fees whether at the time of admission or other wise to any university/ collage/ educational institution inIndiafor the full time education of any two children of an individual. Stamp duty, registration fees, and other expenses incurred for the purpose of purchase of house property are also entitled for section 80C deduction.

Medical premium – Section 80D

Premiums paid for medical / health insurance of self, spouse and children or parents are eligible for deduction upto Rs.15000 for each taxpayer. An additional deduction for parents (dependent or independent) is Rs.15000. If the amount paid is for a senior citizen, then one can claim an additional exemption of Rs.5000.

This deduction is over and above the overall limit of Rs.1 lakh as specified in Section 80CCE.

Investment in Infrastructure bonds:

An additional deduction of Rs.20000 is available for investment in these risk free bonds under section 80CCF. These bonds issued by only few specified companies qualify for tax benefits and presently certain qualifying bonds issues are open.

Home loan benefits:

The EMI (Equated Monthly Installment) paid on account of availing home loan is eligible for deduction. Deduction for principal component of the loan is available under Section 80C to the extent of Rs.1 lakh and deduction for interest component is available upto Rs.1.5lakh p.a.

File ITR of FY 2009-10 & 2010-11:

If you have missed filing of return for FY 2009-10, you should file it before 31st March, 2012, beyond which the return will become time barred and it cannot be filed. Return for FY 2010-11 should be filed to avoid any penalty. However interest @ 1% per month for late filing of return will be leviable.

Capital Gains:

In case any capital gain has arisen due to sale / transfer of asset like house property, shares, mutual funds etc. then it can be reduced by making investments available for reducing tax on capital gains. However investment instruments vary with respect to long term and short term capital gains. provides full fledged comprehensive tax planning service wherein we suggest the best investment and tax saving plans, which would minimize your total tax on income.

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