Tax planning has always been the test of efficiency for people along with being a test of their cunningness such that they can save their taxes in a lawful manner. Here are some of the tips that can help you to plan your taxes for the A. Y. 2012-13.
1) Invest in policies
Policies are a prominent way to save a handful amount of tax. Up to Rs. 1, 00, 000 can be saved by way of investing PPF, EPF, Fixed Deposit for 5 years, Pension Plans, etc. as specified u/s 80C, 80CCC and 80CCD.
2) Divide Income to various family members
Avail the basic exemption limit of Rs. 2 Lakh in the various family members as possible. Prefer senior citizens like parents and women as then can avail higher exemption limit.
3) Contribute to NPS
NPS stands for New Pension Scheme was has recently been initiated by the Government under which investors can claim a deduction as a have a Tax free NPS return, however, withdrawal under such system is till taxable.
4) The aid of Medical Insurance
A deduction of Rs. 15, 000 is available for people who wish to invest in medical insurance for self. This deduction increases to Rs. 20, 000 when it is done by senior citizens. (65 years or above for A.Y. 2012-13).
5) Expenditure towards disabled dependent
When certain amount is spent in form medical insurance for a disabled dependent, deduction up to Rs. 50, 000 is available where the disablement is normal in nature. The same can be extended upto 1 lakh is the disablement is of severe type.
6) Expenditure for severe diseases
Expenses made for severe diseases such cancer and aids can also provide a deduction of Rs. 40, 000.
7) Repayment of Higher Education Loan
When repayment is carried out for higher education loan, the same is also allowed as a deduction and hence can reduce ample amount of tax liability.
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