Friday, 7 September 2012

Determining Taxable Income As Per 2012-13 Guidelines


The income tax form for 2012-13 fiscal states that the following investments will be regarded as exempted from taxation as per the Section 80C of the Indian Income Tax Act:
Premium of life insurance
Mutual funds
Unit Linked Insurance Plans
Fixed deposit postal deposit schemes with tenures of 5 years each
National Savings Certificates
Pension plans
Public Provident Fund
Tuition fees
Principal of housing loans
Fixed deposits
The employee's contribution to the provident fund is normally deducted from his or her salary. The following deductions are also available to an employee as per the rules of the Indian Income Tax Act:
Mediclaim expenses for self as per Section 80D
Interest paid for education loans as per Section 80E
Mediclaim expenses for parents as per Section 80D

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