Sikkim Manipal University - MBA - MF0012 – Taxation Management
Semester: 3 - Assignment Set: 2=======================================================
PANKAJ CHOUREY Reg. No. 521036344 Page 1 of 15
Prepare a ready reckoner of various tax savings investment options coveringSection C to U. According you what are the 5 best investment options under these sections.
Deductions in respect of life insurance premium, deferred annuity, contributions toprovident fund, subscription to certain equity shares or debentures, etc. [Section80c] :-
In computing the total income of an assessee, being an individual or a HinduUndivided Family, there shall be deducted in accordance with and subject to theprovisions of this Section, the whole of the amount paid or deposited for the currentyear as does not exceed Rs. 1 lacs.
Deduction in respect of contribution to certain pension funds [Section 80ccc]
1) Deduction is permissible, under this Section, only to an individual assessee.2) It is allowed in respect of nay amount paid or deposited in the previous year by suchindividual to effect or keep in force a contract for any annuity plan of life InsuranceCorporation of India or any other insurer for receiving pension fund from the fund setup by LIC/or any other insurer referred to in Section 10(23AAB)3) The amount is paid out of his income chargeable to tax.Quantum of deduction: The whole of the amount paid or deposited (excluding interestor bonus accrued or credited to the assessee
s account, (if any) or Rs. 1,00,000whichever is less.
Deduction in respect of contribution to pension scheme of central government orany other employer [Section 80CCD] :-
The deduction under this Section is allowedto an assessee who is an individual and who is employed by the CentralGovernment or any other employer. The deduction is allowed on account of:1.
any amount not exceeding 10% of salary of the previous year paid or depositedby the employee in his account under the notified pension scheme2.
any amount contributed by the employer (i.e. central Government or any otheremployer) to such pension scheme not exceeding 10% of the salary of theemployee.
Section 80D: Deduction in respect of medical insurance premiumConditions