CLOSE X
Algo Trading
Home

Blogs

Stock Market Blogs

Here are some less-known tax deductions to help you axe your income tax March 27 2021Tax deductions, How to reduce your income tax

Visit Count: 1443

Income Tax deductions

We often try to save up on taxes by investing in different schemes and options. The tax-savings season is nearly coming to an end. Often, we consider well-known options like insurance (endowment or moneyback policies), equity-linked savings schemes (ELSS), or small-saving instruments like National Savings Certificates (NSC). However, you might be unaware of a number of other choices that provide you with tax benefits.

What Are Tax Benefits?

Section 80C: for all savings and expenditures.

Many investments qualify for the Rs 1.5 lakh deduction under Section 80C. Even some of the most important expenses are eligible for tax deductions. Tuition fees for your children, stamp duty charged on the registration of a home, and principal repayment on a home loan are just a few of the significant expenses that can be deducted under the same section. You must make some investments before March 31 if you have not completely utilized the Section 80C limit. Alternatively, include the qualifying expenses in your estimates.




Preventive wellness checkups are eligible for a deduction in taxes.

Section 80D provides you income-tax deduction when you buy health insurance policies. Did you know, that it even covers preventive health checks? These, too, are qualified for an 80D deduction. A limit of Rs 5,000 can be claimed by each taxpayer. This is under Section 80D''''s total limit. If you spent money on a health check-up, you can demand it or schedule one before March 31. However, one cannot use cash for the payment, any other form of payment can be done.

Additional Investments in new pension scheme.

Section 80C income-tax exemptions are available if you participate in the National Pension Scheme (NPS). Only the NPS is exempt from section 80CCD (1B) of the income tax act, which provides for a deduction for investment. This segment allows for an additional deduction of Rs 50,000. This is in addition to the Rs 1.5 lakh limit set by section 80C of the Income Tax Act.

NPS investors can seek benefits of up to 10% of their salary (basic + DA; this increases to 20% of gross total income for self-employed individuals) under Sec 80 CCD (1), up to a limit of Rs 1.5 lakh under Sec 80 C.

LTA's cash voucher scheme

Many citizens who would have been availing the Leave Travel Concession (LTC) Scheme would have been unable to do so due to the lockdown and restrictions on movement. Other options for claiming the allowance were announced by the government.

The incentive is applicable to taxpayers who purchased products and services with a GST rate of 12 percent or higher. You can use your bills to demand the LTA scheme if you purchased appliances or household products.

Deduction for rent paid.

Self-employed or salaried individuals who do not receiving any home rent allowance can claim deduction of rent paid. Section 80GG incentives are also available to people who live with their parents in a residence owned by their parents. This clause provides for a maximum deduction of Rs 60,000 per year. The assesses must file Form 10BA in order to assert the benefit of this provision.

Make sure to submit the proof to your employer.

If you are a salaried employee, apart form making investments and incurring additional expenses, it is essential to submit the proof of your investments and expenses to your employer. “Normally, all salaried persons file Form 12BB at the start of the fiscal year, specifying the investments they plan to make during the year. Employers subtract tax at the source after accounting for investment-related tax deductions. If you haven't yet submitted proofs, your employer can calculate your total income without accounting for deductions and subtract tax at source from your March salary.

However, you can also account for your investments and expenditures by July 31 when you file your income tax return.

COMMENTS
Form
Categories
Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

6. Risk disclosures RISK DISCLOSURES ON DERIVATIVES:

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
https://www.bseipf.com/investors_education.html
We believe that an educated investor is a protected investor !!!

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on dp@indiratrade.com by today EOD."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Indrendu Joshi. Email: compliance@indiratrade.com. Call : 0731-4797275

Investor grievance complaint : complaint@indiratrade.com

INVESTOR CHARTER