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Modified on : 6 May, 2018

Maximise Tax Savings for AY 2019-20 (FY 2018-19)

You can plan to maximize your tax savings and reduce income tax liability by availing the benefit of provisions relating to deductions/exemptions from taxable income under various sections of Income Tax Act.

Pay No Tax on aggregate Income of ₹ 7,75,000/-
Save Tax of Rs. 77,200/- or more

If investments are properly made, a resident individual assessee aged below 60 years having income of ₹ 8,15,000/- from salary or Rs. 7,75,000/- from business or profession / other sources including saving bank interest of ₹ 10,000 and living in house / flat acquired with borrowed funds will not be required to pay tax. The exempted income will be more in case of senior and very senior citizens and assessees eligible for other deductions available.

Income from salary (Net of Standard Deduction) / Business or Profession / Other Sources₹ 7,75,000
Less : Interest on funds borrowed for aquiring the house property₹ 2,00,000
Gross Total income₹ 5,75,000
Less : Deduction available under Sec. 80C₹ 1,50,000
Less : Deduction u/s 80CCD(1B) (Contribution to NPS scheme)₹ 50,000
Less : Deduction u/s 80D for medical insurance of self / family₹ 25,000
Less : Deduction u/s 80D for medical insurance of parents
(presumed that the parents are senior citizen)
₹ 50,000
Less : Deduction u/s 80TTA for Saving account interest₹ 10,000
Total Income₹ 2,90,000
Tax payable₹ 2,500
Less : Rebate u/s 87A₹ 2,500
Net Income Tax LiabilityNil
Tax Savings₹ 77,200

Tax Saving Calculator for Resident Individuals

Note : This calculator has been compiled for limited purpose of calculating and comparing your tax savings. For calculating your taxable income and tax liability, please use Income Tax Calculator for AY 2019-20.

Enter data in applicable unshaded cells
Total Income taxable at Normal Rates (Excluding Income taxable at Special Rates & Exempt Income)
A. Deductions you can plan to maximise tax savings :
SectionDescription / InformationInvestment/ Expenditure/ DonationInvestible amount availableEligible Deduction Amount *
80CInvestment in eligible securities, Expenditures, Repayments etc. (PF, PPF, Life Insurance, NSCs, ULIPs, MFs, Home Loan repayment, tuition fees etc.) Max. - ₹ 1.50 lacs
80CCCPremium Paid for Annuity Plan of LIC or Other Insurer.
80CCD(1)Contribution to Pension Account by assessee upto 10% of salary.
TotalDeductions available u/s 80C, 80CCC and 80CCD(1) (Max. ₹ 1.50 lac)
80CCD(1B)Contribution to NPS (New Pension Scheme).
80CCGAmount invested in listed shares
(For persons whose taxable income is upto ₹ 10 lacs and who availed benefit under this section for AY 2017-18.)
50% of the amount invested. Max. ₹ 25,000/-
80DHealth insurance of self / family
(Max. - 30000 if Senior Citizen, else 25000.)
80DHealth insurance of parents.
(Max. - 50000, if parents are Senior Citizen, else 25000.)
80GDonations eligible for deduction upto 100% / 50% / with or without restriction
* Maximum deduction available under the section or the actual amount of investment / expenditure / donation, whichever is lower.
B. Other deductions :
SectionDescription / InformationEligible Deduction Amount *
80CCD(2)Contribution to Pension Account by employer. (Max. 10% of salary)
80DDMedical treatment of handicapped dependent relative
(Max. - ₹ 100,000/-. ₹ 125,000/- in case of severe disability.)
General
Severe
80DDBMedical treatment of specified disease or ailment for self or dependent relative.
(Max. - ₹ 1,00,000 for Senior Citizen / Very Senior Citizen and ₹ 40,000 for others)
< 60 years
> 60 years
80EInterest on Educational Loan for Higher Studies of self/ family member or a relative. (Max. - No upper limit)
80GGHouse Rent paid. Maximum ₹ 60,000/-
80RRBIncome by way of Royalty of a Patent. (Max. - ₹ 300,000/-)
80TTAInterest on Savings Accounts (not time deposits), available to Individuals or HUFs (aged 60 years or less). (Max. - ₹ 10,000/-)
80TTBInterest on Bank Deposits, available to Sr. Citizen (Max. - ₹ 50,000/-)
80UPersons suffering from Physical Disability.
(Max. - ₹ 75,000/-. In cases of severe disability. ₹ 125,000/-)
General
Severe
24Interest Accrued on Home Loans. (Max. ₹ 2,00,000/-.)
Total Deductions from Income chargeable at Normal Rates.
Taxable Income chargeable at Normal Rates
* Maximum deduction available under the section or the actual amount of investment / expenditure / donation, whichever is lower.
Tax Liability & Tax Savings
DescriptionBefore deductionsAfter deductionsTax Saved by deductions
Income SlabIncome TaxIncome SlabIncome Tax
Exempt Income Slab
Income chargeable at 5%
Income chargeable at 20%
Income chargeable at 30%
Total
Less : Rebate under Section 87A (10% of Income Tax - max. ₹ 5,000/-, if total taxable income is below ₹ 5 lacs)
Income Tax
Surcharge
Education Cess [ 4% of (Income Tax + Surcharge)]
Total Tax liability on income taxable at Normal Rates