INCOME TAX EXEMPTION UPDATES... FOR FY:2016-17

Here is a guide to help your Tax Planning.
·         80 C:- Max limit 150000/- (Life Insurance Premium, MF , FD , NSC, PPF , Home Loan Principal , etc.)
·         80CCD:-50000/- (NPS)
·         80CCG:- 25000/- or 50% of your investment whichever is less.
·         80D:-25000/- ( Mediclaim Policy for self, spouse, children)
·         30000/- for dependent parents u/s-80D. Medical reimbursement: - 15000/- US 17(2)
·         80DDB:- Medical expense occurred on dependent for specified illment
·         80TTA:- Up to 10000/- for Interest saving bank account
·         Gift tax :- Exempted upto 50000/-. Above 50k full amount taxable (FY) from other than Blood relation. Gift from Blood relation is 100%Exempted.
·        Transport allowance: - 19200/- (FY) C.E.A. :- 2400/- (FY)
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·         HRA :- as per the calculation
·         24(b) :- 200000/- (home loan interest)
·         80G :- full amount in few selected organisation. This exemption is 50%
·         80GGB :- 100% exemption for political parties
·         80EE :- unlimited (interest on education loan)
·         80U :- 75000/- (in case of taking care of a Handicapped depends)

So Plan Your Financial Year 2016-17 Income Tax Exemption. 

New slab rate for income tax 2017-18 income:
Till 3L - NIL
3L - 5L - 5%
5L - 10L - 20%
Over 10L - 30%

Rebate of 87A reduced to 2.5K from 5K