LIC

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• House Rent Allowance (HRA) is best tax saving tools available to employees. With these you can save upto 50% of your salary if you reside in Metro(40% of your salary if you reside in non-metro).

  As per income Tax act, for calculation House rent allowance least of the following is available as deduction :

   

  -     Actual HRA received

  -     50% / 40%(metro / non-metro) of basic 'salary

  -     Rent paid minus 10% of 'salary'.

        Basic Salary for this purpose is basic+ DA forming part+ commission on sale on fixed rate.

   

  Cities Like, Delhi, Mumbai, Chennai and Kolkata constitutes Metro.

  Cities like Banglore, Gurgaon, Noida, Faridabad, Hyederabad, Pune, Ahmedabad are not considered as metro.These cities are considered as non-metro and accordingly 40% deduction allowed

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  Tax Saving Instruments available under section 80 C

  -   Employee Provident Fund (EPF)

  -   Deposits in Public Provident Fund (PPF),

  -   Investments in National Savings Certificate (NSC),

  -   5-year bank fixed deposits,

  -    Life insurance policy premium (LIC),

  -   Investment in equity-linked savings schemes (ELSS),

  -   Unit linked insurance plans (Ulips), among others.

  -   You can also claim a deduction for the school or university tuition fees you pay for your children provided they are enrolled in a full-time course at any institute in India, and

  -   Home loan principal repayment also qualifies for deduction under the overall limit of Section 80C.

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  Income Tax exemption from Infrastructure Bonds

  Rs. 20,000 tax exemption is provided for investments in certain Infrastructure Bonds. This is in addition to the already allowed exemption (Rs. 1,00,000) in certain savings instruments. .

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  We help you get faster Income Tax refunds

   

  Just send us form 16, make payment and relax. We will file your income tax return. You dont have to worry about filling in cumbersome Income tax forms. Leave it to our Income tax experts.

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• Visit our income tax queries section for understanding Income Tax Returns and Income Tax Refunds