What is the Maximum Income Tax You can Save for the F.Y. 2019-20 With Automated Income Tax Form 16 for F.Y. 2018-19

What is the Maximum Income Tax I can save for this Year (FY 2018-19)? A question I am often asked. Tax laws keep changing year on year, especially in Budget. 2019

S. No.	Tax Sections	Description	Maximum Tax Exemption Limit (Rs.)
1	80C/ 80CCC/ 80CCD	Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty.	150,000
2	80CCD(1B)	Investment in NPS	50,000
3	24	Interest paid on Home Loan for Self occupied homes.	200,000
4	80E	Interest paid on Education Loan. No Limit – Rs 50,000 is just an assumed value Tax Benefit on Education Loan (Sec 80E)	50,000
5	80D	Premium payment for medical insurance for self and parents. Below 60 Years Rs. 25000/ & above 60 Years Rs.30,000/-	55,000
6	80DDB	Treatment of Serious illness for self and dependents (Limit of Rs 1,00,000 for Senior Citizens and Rs 40,000 for others)	80,000
7	80U	Physically Disabled Taxpayer (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)	125,000
8	80DD	Physically Disabled Dependent (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)	125,000
9	80G	Donation to approved charitable funds like Prime Minister Relief Fund, etc (assumed value)100% Or 50%	50,000
10	80TTA	Interest received in Savings Account	50,000
11	80GG	For Rent Expenses who do have HRA component in salary	60,000

12	87A	Maximum Rebate Rs. 5,000/- who’s Taxable Income Less than 5 Lakh	5,000/-
13	Revised Standard Deduction U/s 16(ia)	Revised Income Tax Standard Deduction from 40,000/- to 50,000/- U/s 16(ia) by the Finance Budget 2019 ( Only for Salaried Persons)	50,000/-

 

Tax Saving Sections Summary:

Below is the recap of all tax saving sections for FY 2019-20:

Section 80C/80CCC/80CCD: Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA, and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty (Best Tax Saving Investments u/s 80C)

Section 80CCD(1B): Investment in NPS (Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?)

Section 24: Interest paid on Home Loan for Self occupied homes. Budget 2017 has capped the limit to Rs 2 Lakhs for both rented and self-occupied house. You can claim Tax Benefit on both HRA & Home Loan – Know How?

Section 80EE: Additional exemption on Home Loan Interest for First time home buyers. (Budget 2016)

Section 80E: Interest paid on Education Loan. No upper/lower Limit! (Tax Benefit on Education Loan (Sec 80E))

Free Download Automated Income Tax Form 16 Part A&B for F.Y. 2018-19 [ This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B ]

Section 80D: Premium payment for medical insurance for self and parents. Below 60 Years Rs. 25000/- and Above 60 Year as Sr.Citizen Rs.30,000/-

Section 80DDB: Treatment of Serious illness for self and dependents (Limit of Rs 80,000 for the person above 80 years, Rs 60,000 for the person above 60 years and Rs 40,000 for rest)

Section 80U: Physically Disabled Taxpayer (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)

Section 80DD: Physically Disabled Dependent (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)

Section 80G: Donation to approved charitable funds like Prime Minister Relief Fund, etc

Section 80TTA: Interest received in Savings Account Rebate Rs. 50000/-

Section 87 A: Income Tax Rebate Rs. 5000/- who’s taxable income less than Rs. 5,000/-

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Download Automated All in One TDS on Salary for Non-Govt employees for F.Y.2017-18 With Maximum Income Tax You can Save for FY 2017-18?

The table below gives the details of all  tax exemptions available for F.Y.2017-18

S. No.	Tax Sections	Description	Maximum Tax Exemption Limit (Rs.)
1	80C/ 80CCC(1) 80CCD(2)	Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty.	150,000
2	80CCD(1B)	Investment in NPS ( Additional deduction max limit of U/s 80C Rs. 1.5 Lakh.	50,000
3	24 (b)	Interest paid on Home Loan for Self occupied homes.	200,000
4	80EE	Additional deduction on Home Loan interest for First Time Home Buyer	50,000
5	80E	Interest paid on Education Loan. No Limit – Rs 50,000 is just an assumed value	50,000
6	80D	Premium payment for medical insurance for self and parents. Includes Rs 5,000 limit for preventive health checkup	25000/- + 30,000/- + 5,000/- = 60,000
7	80DDB	Treatment of Serious illness for self and dependents (Limit of Rs 80,000 for person above 80 years, Rs 60,000 for person above 60 years and Rs 40,000 for rest)	80,000
8	80U	Physically Disabled Tax payer (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)	125,000
9	80DD	Physically Disabled Dependent (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)	125,000
10	80G	Donation to approved charitable funds like Prime Minister Relief fund, etc (assumed value)	50,000
11	80TTA	Interest received in Savings Account	10,000
12	80GG	For Rent Expenses who do have HRA component in salary	60,000
13	87A	Tax Rebate who’s taxable income below 3.5 Lakh	2,500/-

Below is the recap of all tax saving sections for FY 2017-18:

Section 80C/80CCC/80CCD: Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty.

Section 80CCD(1B): Investment in NPS (Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)

Section 24: Interest paid on Home Loan for Self occupied homes. Budget 2017 has capped the limit to Rs 2 Lakhs for both rented and self-occupied house. 

 Section 80EE: Additional exemption on Home Loan Interest for First time home buyers. (Budget 2016)

Section 80E: Interest paid on Education Loan. No upper/lower Limit! (Tax Benefit on Education Loan (Sec 80E)

Download Automated Arrears Relief Calculator with Form 10E from the F.Y.2000-01 to 2017-18.

Section 80CCG: Budget 2017 removed this tax exemption for RGESS

Section 80D: Premium payment for medical insurance for self and parents. Also, includes Rs 5,000 limit for preventive health check up.

Section 80DDB: Treatment of Serious illness for self and dependents (Limit of Rs 80,000 for person above 80 years, Rs 60,000 for person above 60 years and Rs 40,000 for rest)

Section 80U: Physically Disabled Tax payer (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)

Download Automated All in One TDS on Salary for Govt and Non-Govt Employees for F.Y.2017-18[This Excel Utility can prepare at a time Tax Computed Sheet + Arrears Relief Calculation U/s 89(1)+Form 10E + Individual Salary Structure for Govt and Non-Govt Employees + Automated H.R.A. Exemption Calculation U/s 10(13A) + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2017-18 as per the latest Income Tax Slab]

Section 80DD: Physically Disabled Dependent (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)

Section 80G: Donation to approved charitable funds like Prime Minister Relief fund, etc

Section 80TTA: Interest received in Savings Account

Section 80GG: In case you do not receive HRA from an employer or are self-employed but NO house in your name.

Section 87A :- Tax Rebate Rs. 2500/- who’s Taxable Income less than 3.5 Lakh.

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