How Much Can You Save on Taxes with National Savings? Seeking Advice on Deductions

Hi members,

Can anybody send me information on income tax deductions, and also how much we can show in national savings to avoid tax deductions from our salary? Is there a limit for that?

Awaiting replies.

Regards,
Kavitha
Email: rg_kavitha2000@yahoo.co.in

Dear Kavita,

You can visit the download section. Just type 'income tax list 2007' and you will find all the information related to income tax deductions and other relevant information.

I have one suggestion. Why are you investing in NSE? While NSE will provide you with tax benefits, it will also be considered as part of your income. NSE also offers very low returns compared to the amount invested. You can invest your money in ULIPs, mutual funds, insurance, mediclaim, infrastructure bonds, etc.

Regards,
Jayshree
Email: jayshreerv@gmail.com

Invest in Mutual funds (tax-saving), Life Insurance (ULIP) up to One lakh, PPF, NSS up to Rs. 70,000. You can save up to One lakh max. if invested in PPF/NSS/Life Insurance. The max limit is Rs. 70,000 and Rs. 30,000 more if invested in Mutual funds or Life insurance linked with Equity. Buy Medi-claim for the entire family up to Rs. 10,000. If receiving Medical allowance, then submit chemist's bill or doctor's bill to claim up to Rs. 15,000. You can also claim only tuition fees paid by you for your children's education that come under sec: 80-C (max limit: Rs. 1,00,000). You can donate to PM Relief Fund, Army Welfare, and claim 100% deduction or CRY and other institutions where you can claim 50% deduction. Give rent receipt to claim HRA or buy a house and claim interest and principle paid up to One lakh under Sec: 80C.