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Save Tax

save tax

Most of us are aware about the instruments eligible for tax saving under Section 80C (with an increased exemption limit of ₹1.5 lacs) and under Sections 80CCE, 80D, 80E, 80G, 24(b), etc., of Income Tax Act, 1961 but a large proportion of us do not utilize the benefits fully.

 

Just by investing in options available under Sections 80C and 80D, you would be able to save tax upto the extent of ₹63,345/-*.

 

While you’re planning for your taxes, it is advisable to choose instruments that would not only save tax but would also provide the long term benefits in terms of savings or protection, in line with your financial goals.

You can diversify your portfolio across the host of options mentioned below:

 

Tax Benefit Under SectionMaximum Investment Amount
(in ₹)
Investment Options
80C 1,50,000

Market-linked:

Mutual Funds (Equity Linked Saving Scheme)

Unit Linked Insurance Plans (ULIPs)

 

Fixed Income:

Public Provident Fund

5-year Tax saver FD

National Savings Certificate (NSC)

Employee Provident Fund

NABARD Bonds

 

Others:

Life Insurance premium

Repayment of Housing Loan principal

Children tuition fee (maximum of 2 children)

 

Maximum tax amount saved: ₹46,350/-

80D 55,000

Health Insurance: Mediclaim Insurance policy

 

Maximum tax amount saved: ₹16,995/-

80E No limit for claiming rebate Interest on Education Loan for pursuing higher education
24(b) 2,00,000 Interest on Housing Loan for self-occupied property
80G Depends upon the list of Approved Funds / Charitable Institutions Donate online: Reach out and make a difference.

 

*Tax Benefit of ₹63,345 is calculated on investment of ₹ 2,05,000 at the highest tax slab rate of 30.90% under Income Tax Act, 1961, assuming that the total income is below ₹1 crore and is not subject to the applicable surcharge.

Disclaimer: Terms and conditions of ICICI Bank and third parties apply. ICICI Bank is not responsible for third party products, goods, services and offers. Usage of any third party product / service shall constitute a contract between the user and the third party.Nothing contained herein shall constitute or be deemed to constitute an advice, invitation, offer or solicitation to sell/purchase any products/services of ICICI Bank or any third party. The tax write up above is for the general understanding and reference. The user needs to verify all the facts, law and contents with the text of the prevailing statutes and seek appropriate professional advice before acting on the basis of any information contained herein as the taxation implications may vary depending upon the facts in each case/interpretation by tax authorities and the tax laws are subject to change from time to time. ICICI Bank Ltd expressly disclaims any liability to any person, in respect of anything done or omitted to be done by any such person by placing reliance upon the contents of this write-up.