Maximum Income Tax You can Save for FY 2018-19? With Automated Master of Form 16 Part B for 50 employees for F.Y.2018-19

What is the Maximum Income Tax I can save for this Year (FY 2018-19)? A question I am often asked. Tax laws keep changing year on year, especially in Budget. In this post, we summarize all the tax saving sections
The table below gives the details of all the tax exemptions available:


S. No.
    Tax Sections
Description
Maximum Tax Exemption Limit (Rs.)
1
80C/ 80CCC/ 80CCD
Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty.

150,000
2
80CCD(1B)
Investment in NPS
Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)
50,000
3
24 (B)
Interest paid on Home Loan for Self occupied homes.
You can claim Tax Benefit on both HRA & Home Loan
200,000
4
80E
Interest paid on Education Loan. No Limit – Rs 50,000 is just an assumed value
Tax Benefit on Education Loan (Sec 80E)
50,000

Click here to Download Automated Income Tax Form 16 Part B for Financial Year 2018-19 & Ass Year 2019-20 [This Excel Utility Can Prepare at a time 50 employees Form 18 Part B as per latest Tax Slab for A.Y.2019-20]

5
80D
Premium payment for medical insurance for self and parents. Includes Rs 5,000 limit for the preventive health checkup

Making Sense of Tax Benefit on Health Insurance u/s 80D
60,000
6
80DDB
Treatment of Serious illness for self and dependents (Limit of Rs 1,00,000 for Senior Citizens and Rs 40,000 for others)
80,000
7
80U
Physically Disabled Tax payer (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)
125,000
8
80DD
Physically Disabled Dependent (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)
125,000
9
80G
Donation to approved charitable funds like Prime Minister Relief fund, etc (assumed value)
50,000
10
80GGA
 Donations for scientific research or rural development (assumed value)
50,000
11
80GGC
Donations to political parties (assumed value)
50,000
12 A
80TTA
Interest received in Savings Account

10,000
12 B
80TTB
Interest Income for Senior Citizens Only

50,000
12 C
10(15)(i)
Interest up to Rs 3,500 for single holder account and up to Rs 7,000 for joint account in Post Office Saving Account
7,000
13
80GG
For Rent Expenses who do have HRA component in salary

60,000
14
87 A
Tax Rebate Rs. 2,500/- who’s taxable income less than 3,50,000/-
2,500


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