Tax

Be Smart – Start Planning Tax Investments for 2021-22 Today!

abhishek — Fri, 19 Feb 2021 06:30:00 GMT

Be Smart – Start Planning Tax Investments for 2021-22 Today!

19-Feb-2021 19-Feb-2021'

While many Indians have only recently put the finishing touches to their IT Returns filing for FY 2019-20, we at OneInsure believe it is never too early to plan to reduce the outgoings of your hard-earned money. And we’re talking about FY 2021-22 here, investments for which you can start in April 2021 through March 2022.

The primary tax-saving avenue for Indians is to make investments that comply with Section 80(C). You can claim a maximum tax deduction of Rs 1.5 lakhs under this Section. Also, it is interesting to note is that this amount doesn’t all have to be in investments alone. For example, if you are repaying the principal amount of a home loan, you are eligible for tax relief under Section 80(C) too.

Let’s briefly look at some of the most popular investments and other payments to save tax under Section 80(C):

Investments:
- Life insurance premium payments
- Unit-linked Insurance Plan (ULIP)
- Public Provident Fund (PPF)
- National Pension Scheme (NPS)
- Tax-saving Fixed Deposit (FD)
- Equity-linked Savings Scheme (ELSS) Funds
- Sukanya Samriddhi Yojana
- Senior Citizens Savings Scheme (SCSS)
Other payments:
- Home loan repayment of the principal amount
- Kids’ tuition fees

Tax saving is a delicate balancing act that involves smart, affordable investments and long-term vision. You should be careful not to make such a large investment for tax purposes that you then have very little liquidity left. And you should not be looking for new tax-saving avenues every year either.

We encourage slow and steady tax-saving investments (monthly) and instruments that give tax exemptions in as many stages as possible; that is, investment stage, accumulation stage, and withdrawal stage. The following plans are designed to continue for a long time and allow you to save tax while you grow wealthy slowly and steadily.

Child Plans

Child plans help you stay ahead of rising costs of education, your child’s marriage expenses, and many other major expenses. Major benefits:

Premiums and pay-outs both come with tax benefits
Flexible premium-payment terms
All pay-outs guaranteed
Inbuilt death cover

Retirement Plans

Retirement plans help you plan and save today so you can have an independent tomorrow. Investing in retirement plans is one of the most crucial decisions you will take in your earning life. Major benefits:

Premiums and pay-outs both come with tax benefits
Flexible premium-payment terms
All pay-outs guaranteed
Small savings turn into a huge corpus by the time you retire due to compounding
Flexibility to choose between lump sum pay-outs, monthly pay-outs, or both

Don’t delay tax-saving investments until it is too late. Contact OneInsure today in case of queries.
M – 86559-86559 | E – support@oneinsure.com

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Invested Yet? Time’s Running Out to Save Tax!

Aditya Nair — Tue, 18 Feb 2020 16:10:00 GMT

Invested Yet? Time’s Running Out to Save Tax!

18-Feb-2020 18-Feb-2020'

Aditya Nair

If, like other mature professionals or businessmen, you too have been looking for avenues to park your surplus money to save tax, the time to do so is fast running out for you!

In this article, let’s briefly touch upon some of the best tax-saving avenues for Indians as well as go through the step-wise to-dos for tax filing. Later, we will also touch upon the documents needed in order to have a smooth filing experience:

Choosing the Applicable ITR Form – Firstly, taxpayers have to choose the ITR form applicable to them.
Link Aadhaar with PAN – We would suggest every taxpayer to link their Aadhaar Card with their PAN Card.
For Salaried Employees – PAN Card, Form 16 issued by your employer/s, and salary annexure/s are required.
Documents Related to Interest Income – Bank statement/passbook for interest on savings account, interest income statement for fixed deposits, and TDS certificate issued by banks and/or others are required.
Form 26AS – Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department.
Other Investment Documents – Interest paid on housing loan, interest paid on education loan, and/or stock trading statement/s are required.
Tax-saving Investment Proof/s – All the tax-saving investments and expenditures incurred by you under Section 80(C), 80(CCC), and 80CCD(1) during the current year can help you lower your tax liability significantly. The maximum tax exemptions you can claim under these three sections cannot exceed Rs 1.5 lakhs in a financial year (according to current laws). Some of the most common available tax exemptions under Section 80(C) are as follows:
- Premiums paid for life insurance policies
- Employees Provident Fund (EPF)
- Public Provident Fund (PPF)
- National Pension System (NPS)
- Investments in ELSS schemes of mutual funds
Claim Deductions under Section 80(D) – Health insurance premiums paid by you are eligible for tax deductions under Section 80(D) of the Act for a maximum up to Rs 65,000 in a year (according to current laws).

How Can OneInsure Help You?

To show Section 80(C) and 80(D) deductions, you need to submit a document called the Premium Paid Certificate (also referred to as Tax Certificate). This document is issued by the insurance company to the policyholder, which shows the total (tax-exempted) premiums the person has paid during a specific financial year. This document serves as investment proof to receive tax benefits. At OneInsure, you can receive your Returns-ready compiled tax certificate in a matter of hours.

This service is given for FREE. Moreover, this service is available regardless of where you have bought your policies from – they don't necessarily have to be bought through OneInsure.

How Can I Avail my Tax Certificate?

On request, this service can be availed through any one of the following mediums:

The OneInsure App: Play Store | App Store
WhatsApp Chat: 98202-25238
Website: www.oneinsure.com
Customer Service Hotline: 86559-86559
Chat: Two options to chat with an insurance expert:
- Through the Ask An Expert section on the OneInsure app
- Get queries resolved by OneChat from any page on the OneInsure website (right-bottom)
Email: support@oneinsure.com

We are just a request away!
Be Sure with OneInsure

(Source and Credits: ClearTax and ET)

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New Income Tax Regime vs Old – Important Questions Answered

Aditya Nair — Mon, 10 Feb 2020 09:06:00 GMT

New Income Tax Regime vs Old – Important Questions Answered

10-Feb-2020 10-Feb-2020'

Aditya Nair

The Union Budget for 2020-21, which was announced on Feb 1, was themed around agriculture reliefs, holistic development, and overall economic revival. Towards the latter, the Finance Minister announced sweeping tax reliefs (optional) across almost all income tax slabs (barring the above-Rs-15-lakhs-income slab), but these reliefs came with a condition.

Let’s explore the new tax rates and find out whether you should move to the new tax regime or stay with the old one.

The Difference between the Old and the New Tax Regimes

Union Budget 2020-21 offers taxpayers a choice to either pay tax under the new regime of lower income tax rates (except for the above-Rs-15-lakhs-income slab) by foregoing the tax exemptions/deductions they have been enjoying OR continue to pay tax under the existing income tax rates by claiming the exemptions and deductions (for example, 80(C), 80(D), HRA, LTA, and so on) that are applicable.

In effect, the more exemptions an individual claims, the less likely s/he is to benefit from the new optional tax regime. Note, however, that the choice of which regime to choose will vary from person to person and from profession to profession.

Having said that, it’s also important to know that basic calculations show that if you are a salaried individual who claims a large number of exemptions (for example, 80(C), 80(D), interest on housing loan, HRA, LTA, special allowance, and so on), you are likely to be better off in the existing income tax regime.

What Are the New Tax Rates?

Here’s a look at the new tax rates versus the old tax rates:

Under the new tax regime, taxpayers will have to pay no tax for annual income up to Rs 2.5 lakhs
Individuals earning a salary between Rs 2.5 and 5 lakhs will pay 5% tax
Income between Rs 5 and 7.5 lakhs will be taxed at 10%
Individuals earning between Rs 7.5 and 10 lakhs will attract 15% tax
Taxpayers will have to pay 20% and 25% tax for incomes between Rs 10 – 12.5 lakhs and Rs 12.5 – 15 lakhs, respectively
Income above Rs 15 lakhs will be taxed at 30%

That’s Good to Know, But I Want to Save Tax Now!

As mentioned earlier, some simple calculations show that if you are a salaried individual who claims tax exemptions and deductions like those under Sections 80(C) and 80(D), interest on housing loan, HRA, LTA, special allowance, and so on, you are likely to be better off in the existing income tax regime.

However, it may vary from case to case. So, rely on the experts at OneInsure to guide you through the new tax regime. Contact us at 86559 86559 or support@oneinsure.com.

In case you want to save tax, a very good choice is investments under Section 80(C). And what better avenue to save tax than by providing a safety net to your family in case of your absence while simultaneously building a corpus for your future, be it for your retirement, for your child’s education/marriage, or for a foreign vacation.

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Taxes – Enemy or Friend?

Aditya Nair — Thu, 02 Jan 2020 04:40:00 GMT

Taxes – Enemy or Friend?

02-Jan-2020 02-Jan-2020'

Aditya Nair

Nothing is certain in life except for death and taxes

— Benjamin Franklin

Taxation has a poor reputation throughout the world. And with good reasons too, we must add. While some are fearful of taxes, others are wondering how best to avoid them.

At OneInsure, our approach is neither of these. In our view, taxes are to be embraced. Here’s why:

Laws for tax deductions in India are highly favorable
Tax-deductable investments are primarily focused on:
1. Building wealth for the future
2. Helping you protect your loved ones and yourself in case of adverse circumstances
3. Incentivizing you to pay back your debts, such as home loans and education loans

In this article, let’s quickly look at tax-deductable investment options 1 and 2, which the wide and diverse world of insurance can help you with.

Let’s briefly look at some of the most popular investments to save tax under Section 80(C):

Life insurance premium payments
Unit-linked Insurance Plan (ULIP)
Public Provident Fund (PPF)
Employee Provident Fund (EPF)
National Savings Scheme (NSC)
Tax-saving Fixed Deposit (FD)
Equity-linked Savings Scheme (ELSS) Funds
Sukanya Samriddhi Yojana
Senior Citizens Savings Scheme (SCSS)

This is an informative article that lists all the deductions under Section 80(C) and contains detailed information about each.

Under Section 80(D), you can claim tax deductions against premiums paid for health insurance. This article will help you with all the details you need to know about Section 80(D).

At OneInsure, we encourage the following points when it comes to tax-saving investments:

Tax-saving avenues have to be legal and have a valid paper trail
Slow and steady tax-saving investments (monthly) are better than lump sum investments
Invest in instruments that give tax exemptions in as many stages as possible; the stages are:
- Investment stage
- Accumulation stage
- Withdrawal stage

So, let’s create a better tomorrow with smart, affordable, tax-saving investments today.

Let’s look at one of the most popular investment tools among Indians – retirement plans. This is designed to continue for a long time and allow you to save tax while you get rich slowly and steadily.

Retirement Plans

Retirement plans help you plan and save today so you can have a non-dependent, secure tomorrow with no lack of funds. Investing in retirement plans is one of the most crucial decisions you will take in your earning life. Here are some benefits:

Premiums paid come with tax benefits under Section 80(C)
Pay-outs you receive from retirement plans come with tax benefits under Section 10(10D)
Flexibility to choose the premium-payment term that is convenient for you, including monthly
Retirement plans are structured in such a way that they ensure continuity of investments
Small savings turn into a huge corpus by the time you retire due to the magic of compounding
Flexibility to choose between lump sum pay-outs, monthly pay-outs, or a combination of both

Don’t delay tax-saving investments until it is too late. Contact OneInsure today in case of queries.

M – 86559-86559 | E – support@oneinsure.com

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It’s Never Too Early to Start Thinking about Tax Savings

Aditya Nair — Thu, 28 Nov 2019 03:27:00 GMT

It’s Never Too Early to Start Thinking about Tax Savings

28-Nov-2019 28-Nov-2019'

Aditya Nair

Tax season is almost here. Although it may be a bit early in the financial year to start thinking about tax savings, OneInsure believes it is never too early to plan to reduce the outgoings of your hard-earned money.

Let’s briefly look at some of the most popular investments and other payments to save tax under Section 80(C):

Investments:
- Life insurance premium payments
- Unit-linked Insurance Plan (ULIP)
- Public Provident Fund (PPF)
- Employee Provident Fund (EPF)
- National Savings Scheme (NSC)
- Tax-saving Fixed Deposit (FD)
- Equity-linked Savings Scheme (ELSS) Funds
- Sukanya Samriddhi Yojana
- Senior Citizens Savings Scheme (SCSS)
Other payments:
- Home loan repayment of the principal amount
- Kids’ tuition fees

This is an informative article that lists all the deductions under Section 80(C) and contains detailed information about each.

Tax saving is a delicate balancing act that involves smart, affordable investments and long-term vision. You should be careful not to make such a large investment for tax purposes that you then have very little liquidity left. And you should not be looking for new tax-saving avenues every year either.

At OneInsure, we encourage the following points when it comes to tax-saving investments:

Tax-saving avenues have to be legal and have a valid paper trail
Slow and steady tax-saving investments (monthly) are better than lump sum investments
Invest in instruments that give tax exemptions in as many stages as possible; the stages are:
- Investment stage
- Accumulation stage
- Withdrawal stage

So, let’s create a better tomorrow with smart, affordable, tax-saving investments today.

Let’s look at investment plans. These are designed to continue for a long time and allow you to save tax while you get rich slowly and steadily. Here are some categories of investment plans you could consider.

Child Plans

Child plans help you stay ahead of rising costs of education, your child’s marriage expenses, and many other major expenses. Major benefits:

Premiums paidcome with tax benefits under Section 80(C)
Pay-outs you receive from child plans come with tax benefits under Section 10(10D)
Flexibility to choose a premium-payment term that is convenient for you, including monthly
Allpay-outs are guaranteed and not dependent on the performance of markets or investor sentiments
Inbuilt death cover that allows the family to survive and the child to continue with education and fulfill aspirations and dreamseven though you may not be around

Retirement Plans

Premiums paidcome with tax benefits under Section 80(C)
Pay-outs you receive from retirement plans come with tax benefits under Section 10(10D)
Flexibility to choose the premium-payment term that is convenient for you, including monthly
Retirement plans are structured in such a way that they ensure continuity of investments
Small savings turn into a huge corpus by the time you retire due to the magic of compounding
Flexibility to choose between lump sumpay-outs, monthly pay-outs, or a combination of both

Don’t delay tax-saving investments until it is too late. Contact OneInsure today in case of queries.

M – 86559-86559 | E – support@oneinsure.com

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With ITR Deadline Close, Get All Your Documents In Place

Shraddha Gala — Wed, 28 Aug 2019 06:54:00 GMT

With ITR Deadline Close, Get All Your Documents In Place

28-Aug-2019 28-Aug-2019'

Shraddha Gala

It's that time of the year in India when people are hurrying to ensure they have filed and verified their Income Tax Returns before the deadline, because there is a risk of ending up paying a fine of up to Rs 5,000.

The procedure varies as per the income earned per year and income sources, like salary, business profits, capital gains, and so on. In the middle of all this, collating all your documents is an important aspect.

In this article, as we discuss the step-wise to-dos for tax filing, we will also list out the documents needed in order to have a smooth filing experience:

Choosing the Applicable ITR Form– Taxpayers have to choose the ITR form applicable to them.
Link Aadhaar with PAN– Taxpayers should link their Aadhaar Card with their PAN Card.
For Salaried Employees– PAN Card, Form 16 issued by your employer/s, and salary annexure/s are required.
Documents Related to Interest Income– Bank statement/passbook for interest on savings account, interest income statement for fixed deposits, and TDS certificate issued by banks and/or others are required.
Form 26AS– Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department.
Other Investment Documents– Interest paid on housing loan, interest paid on education loan, and/or stock trading statement/s are required.
Tax-saving Investment Proof/s– All the tax-saving investments and expenditures incurred by you under Section 80(C), 80(CCC), and 80CCD(1) during the current year can help you lower your tax liability significantly. The maximum tax exemptions you can claim under these three sections cannot exceed Rs 1.5 lakhs in a financial year (according to current laws). Some of the most common available tax exemptions under Section 80(C) are as follows:
- Premiums paid for life insurance policies
- Employees Provident Fund (EPF)
- Public Provident Fund (PPF)
- National Pension System (NPS)
- Investments in ELSS schemes of mutual funds

Claim Deductions under Section 80(D)– Health insurance premiums paid by you are eligible for tax deductions under Section 80(D) of the Act for a maximum up to Rs 65,000 in a year (according to current laws).

How Can OneInsure Help You?

This service is given for FREE. Moreover, this service is available regardless of where you have bought your policies from – they don't necessarily have to be bought through OneInsure.

How Can I Avail my Tax Certificate?

On request, this service can be availed through any one of the following mediums:

The OneInsure App: Play Store| App Store
(Suggested Reading: How to get tax certificate through the OneInsure app)
WhatsApp Chat: 98202-25238
Website: oneinsure.com
Customer Service Hotline: 86559-86559
Chat: Two options to chat with an insurance expert:
- Through the Ask An Expert section on the OneInsure app
- Get queries resolved by OneChat from any page on the OneInsure website (right-bottom)
Email: support@oneinsure.com

We are just a request away!

Be Sure with OneInsure

(Source and Credits: ClearTax and ET)

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Salary above Rs 20,000? Get Smart with Tax Now

Shraddha Gala — Fri, 18 Jan 2019 12:32:00 GMT

Salary above Rs 20,000? Get Smart with Tax Now

18-Jan-2019 18-Jan-2019'

Shraddha Gala

Indian citizens whose annual income exceeds Rs 2,50,000 (close to Rs 20,000 a month) are taxable. While filing tax is not optional for us, paying large sums as tax definitely is.

Tax saving is a delicate balancing act that involves smart, affordable investments and long-term vision. Nobody wants to make such a large investment for tax purposes that they then have very little liquidity left. And nobody wants to look for new tax-saving avenues every year either.

Having said that, tax saving is not as complicated as rocket science. The key is to strategize early and stay committed. Although 10 people will give you 10 different opinions on what the best tax-saving strategies are, the following points hold true for everyone, regardless of income, age, or socioeconomic status:

Tax-saving avenues have to be legal and have a valid paper trail
Slow and steady tax-saving investments (monthly) are better than lump sum investments
Invest in instruments that give tax exemptions in as many stages as possible; the stages are:
- Investment stage
- Accumulation stage
- Withdrawal stage

This article will introduce you to some best-in-class tax-saving investments that allow you to plan for a better tomorrow with smart, affordable investments today.

Investment Plans

Investment plans continue for a long time and allow you to save tax while you get rich slowly and steadily. Here are some categories of investment plans you could consider.

Child Plans

Child plans help you stay ahead of rising costs of education, your child’s marriage expenses, and many other major expenses. Major benefits:

Premiums paid come with tax benefits under Section 80(C)
Pay-outs you receive from child plans come with tax benefits under Section 10(10D)
These plans come in monthly premium payment modes
Flexibility to choose policy terms from 5 to 25 years
Flexibility to choose premium payment term that is convenient for you
Child plans are structured in such a way that they ensure continuity of investments
All pay-outs are guaranteed and not dependent on the performance of markets or investor sentiments
Significant death cover that allows the family to survive comfortably and the child to continue with education and fulfill aspirations and dreams

Retirement Plans

Premiums paid come with tax benefits under Section 80(C)
Pay-outs you receive from retirement plans come with tax benefits under Section 10(10D)
These plans come in monthly premium payment modes
Flexibility to choose premium payment term that is convenient for you
Retirement plans are structured in such a way that they ensure continuity of investments
Small savings turn into a huge corpus by the time you retire due to the magic of compounding
Flexibility to choose between lump sum pay-outs, monthly pay-outs, or a combination of both

Term Plans

Term insurance is the simplest and the most cost-effective form of life insurance that provides financial protection to the family of the life insured in the event of his/her untimely death. A pre-determined amount is provided to the family to take care of their financial obligations, such as:

Outstanding loans, if any
Children’s education
Manage day-to-day expenses

This way, the family of the life insured remains financially protected even after his/her death. However, it is important to note that no benefit shall be paid if the life insured outlives the policy period.

Term plans have become one of the most popular forms of insurance today due to the very high cover provided for the relatively very low premiums. Term plan premiums come with Section 80(C) tax benefits, and pay-outs come with Section 10(10D) tax benefits.

ULIPs

Unit-linked insurance policies (ULIPs) are the perfect alternative to mutual funds. ULIPs give the same returns as mutual funds over the long run and come with many other amazing benefits:

Gains made in ULIPs are completely tax-free
Lower fund-management charges
Same returns as mutual funds
Hassle-free movement between debt and equity instruments
Significant life cover that allows the family to survive comfortably

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Tax-Saving Investment Tips for Indians Aged 25 to 55

Mariya Panwala — Thu, 06 Dec 2018 05:20:00 GMT

Tax-Saving Investment Tips for Indians Aged 25 to 55

06-Dec-2018 06-Dec-2018'

Mariya Panwala

Who doesn’t want a bank balance of 2 crores, a large SUV, and family vacations to Europe and Australia every year?

Sounds like a dream, right?

Well, it need not be limited to just a dream. In this article, we will see some age-specific investment instruments that help you save smart and regularly to achieve all your financial dreams.

Firstly, let’s divide the major milestones (from the time you start earning to your retirement) of your life into two phases so we can prioritize financial goals:

Young Adult to Householder
Family Man to Retiree

Young Adult to Householder (age 25 – 35)

The right time to start investing is at 25, when one has started earning. Since a young investor has fewer financial obligations, s/he can afford to take financial risks. For quick returns, a major chunk of money can be parked in equity funds and the rest in debt funds.

Owing to its convenient nature, Systematic Investment Plans (SIP) have become a popular investment option among young Indians. By investing as little as INR 500 a month, they can fulfill short- or long-term financial goals. Let us see how much one can earn over varying periods (interest fixed at 12%).

Scenario 1 – Two-year SIP Scheme

Amount invested – INR 10,000/month = INR 2,40,000 in 2 years
Future value – INR 2,70,000 (approximately)
Total profit – INR 30,000

Scenario 2 – Ten-year SIP Scheme

Amount invested – INR 10,000/month = INR 12,00,000 in 10 years
Future value – INR 23,00,000 (approximately)
Total profit – INR 11,00,000

Clearly, the longer you keep your money invested in an SIP scheme, the better will be your returns. Start early, invest regularly, and let the power of compounding do its magic.

There is another lesser-known instrument in the market, called ULIP, which is superior to mutual funds in many ways. Some benefits include no tax burdens, higher returns than mutual funds over the long run, lower fund management charges, and death cover for the insured. The OneInsure Research Desk strongly suggests you opt for ULIPs if you fall in this age range.

Suggested Reading – 5 Reasons Why ULIPs Are Superior to Mutual Funds

Family Man to Retiree (age 35 – 55)

If one continues with investments in SIP, by the time s/he turns 35, one will have a good amount of savings that may be utilized for expenses incurred on marriage, delivery of the child, and the child's upbringing. However, from here on, financial responsibilities are bound to increase and one can no longer invest only in SIPs because of their risky nature. Investments need to be diversified at this stage and higher priority needs to be given to debt instruments like Guaranteed Income plans, FDs, and so on.

Earning potential at this stage is sure to increase as one grows professionally. By investing in the right investment options, one’s family’s future needs can be taken care of while simultaneously saving for retirement. Guaranteed money-back plans and health plans are some wise options for this age group of investors.

Money-Back Plans (Retirement Plans)

Money-back plans, besides providing retirement benefits and tax reliefs, offer regular returns to fulfill short-term financial responsibilities before your retirement. As the name suggests, money-back plans pay the policyholder a portion of their investments along with accrued bonuses at regular intervals while a lump sum is paid on maturity. This way, one can pay for their children’s education and other important milestones. Money-back plans also offer death benefit to secure the family members’ financial independence in case the policyholder meets an untimely end.

Health Insurance Plans

Even though not a typical investment plan, a health insurance policy is like a shield for your investment plans. Today, medical expenses during a single instance of hospitalization can run into several lakhs. Without an adequate health plan in place, one is bound to break into one’s investments. With a health insurance plan, this can be easily avoided. Moreover, health plans provide tax benefits under Section 80(D) as well.

With a strong financial portfolio, retirement dreams are achievable. If one has chosen to continue with SIP or ULIP, by this age, a huge corpus will have been made. And of course, your money-back plans or FDs will also mature close to retirement age.

Don’t forget that healthcare expenses at this phase of life tend to increase and can be too much to bear, especially when your income has ceased. A health plan is thus essential at this stage as well.

Invest early and smartly according to your risk appetite while you are earning and be rewarded in your sunset years. Call 86559-86559 for investment advice from experts in the field.

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Tax-Saving Investments under Sections 80(C) and 80(D)

Mariya Panwala — Tue, 24 Apr 2018 06:06:00 GMT

Tax-Saving Investments under Sections 80(C) and 80(D)

24-Apr-2018 24-Apr-2018'

Mariya Panwala

It's that time of the year again when people are talking about tax and tax-saving investments. In your pursuit to reduce tax burden, however, it is important that you resort to legal means only. That's where OneInsure comes in. In this short article, we present a number of legal methods through which you can not only save tax but also build a significant corpus for yourself and your family for later in life.

Sections 80(C) and 80(D) of the Indian Income Tax Act are two such tax-saving tools/schemes under which you can avail tax deductions up to a maximum amount of ₹1,50,000 and ₹60,000 respectively.

The following is the list of all the financial instruments that are covered under Section 80(C):

Investments in ELSS funds, that is, Equity-Linked Savings Scheme
Investments in PPF, that is, Public Provident Fund
Investments in EPF, that is, Employee Provident Fund
Investments in NSC, that is, National Savings Certificates
Investments in ULIPs, that is, Unit-Linked Insurance Plans
Payment of premiums against Life Insurance Policies
Investments in Tax-saving Fixed Deposits
Investments in Senior Citizens Savings Scheme
Investments in Sukanya Samriddhi Yojana
Repayment of home loans
Payment of children’s tuition fees

Under Section 80(C), you can avail a maximum deduction of ₹1,50,000. To know further on how to invest to save tax on the aforementioned investments and payments, we would strongly suggest you read this article: Complete List of Deductions under Section 80C with Explanation.

Likewise, if you have insured your and your family members’ health under a health insurance plan, then you’re eligible for tax deduction against the premiums paid under Section 80(D). The following is the working that shows the maximum limit on tax deductions against different categories of health plans:

A policy that covers individual, spouse, and children (no member is a senior citizen) – a maximum of ₹25,000

A policy that covers individual, spouse, and children + parents who are not senior citizens – a maximum of ₹50,000

A policy that covers individual, spouse, and children + parents who are senior citizens – a maximum of ₹55,000

A policy that covers individual, spouse, and children where you or your spouse is a senior citizen + parents who are senior citizens – a maximum of ₹60,000

Also Read: Self-employed? Here Are the Tax Benefits That You Can Avail

You can read further about how to invest under Section 80(D) to avail tax deductions in this article. To get yourself a health cover and reduce your tax right away, visit here or let us know in the Comments section below. You can also get in touch with us by dialing 86559-86559 or by dropping us an email at support@oneinsure.com.

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Self-employed? Here Are The Tax Benefits You Can Claim

Joan — Tue, 20 Mar 2018 12:19:00 GMT

Self-employed? Here Are The Tax Benefits You Can Claim

20-Mar-2018 20-Mar-2018'

Joan

Having the freedom to work at your pace, make your own decisions and set your work hours are probably the reasons why self employment is gaining immense popularity. Now, although there are many advantages to running your own business, the part about managing taxes and filing income tax returns can be quite cumbersome. From a tax perspective, the income that a self employed person earns is regarded as Profit & Gains of Business & Profession. Taxes need to be paid on the combined income the self employed individual has earned in a financial year from the different customers.

Under the Indian Income Tax Act, self-employed individuals are allowed to claim a few deductions. Some of these are:

Interest amount paid on the loan availed for running your business
Insurance premium paid for covering the stock, store and machinery
Life insurance premiums paid and investments in PPF, ELSS, etc. under Section 80C
Money spent on work-related expenses (you will need to maintain vouchers to support as evidence of such expenditures)
Salary, bonus or commission handed to employees, besides the money spent on their health cover
Payments not received for your goods and services and the losses incurred on account of this can be marked as non-recoverable and the amount will get deducted from your taxable revenue
Tuition fees spent on your children’s education
Medical premiums paid for self and family under Section 80D

With such provisions, if you are undertaking your own venture or are a self-employed professional, you can claim the above deductions to arrive at the final taxable income. ITR-4 Form is the income tax return form that needs to be submitted by self-employed individuals. This can be filed either online or in person. Before filing your returns, make sure that you have proper accounting records and prepare details of your profit and loss account.

To know about the various tax benefits you can claim, write to support@oneinsure.com.

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Complete List of Deductions under Section 80(C)

Mariya Panwala — Thu, 11 Jan 2018 14:37:00 GMT

Complete List of Deductions under Section 80(C)

11-Jan-2018 11-Jan-2018'

Mariya Panwala

Tax season is here, and it is natural to think of ways to reduce your tax burden. No one wants to part ways with one’s hard-earned money. However, one needs to make sure that the ways one resorts to are legal. This would require some research and consultation. So, to make your work easier, here’s OneInsure to take you through a list of investment options under Section 80(C) of the Income Tax Act, through which you can reduce your tax burden. Note that under Section 80(C), you can claim a maximum of ₹1,50,000 tax deduction.

The following list is divided into two categories – (a) investments and (b) certain payments against which you can claim tax deduction under Section 80(C).

Investments

#1 – Equity-linked Savings Scheme (ELSS) Funds

ELSS stands for Equity Linked Savings Scheme. This is like mutual funds and has equity and debt exposure. Putting your money in ELSS funds means that a majority of your portfolio is being invested in the stock market. You can claim a maximum of ₹1,50,000 [inclusive of other investments and payments made under 80(C)] tax deductions by way of investments in ELSS funds. These funds have a lock-in period of 3 years.

#2 – Public Provident Fund (PPF)

The contributions made towards your PPF account, where you can deposit a maximum of ₹1,50,000 in a year, are also eligible for tax deductions. You can claim up to ₹1,50,000 tax deductions (inclusive of other investments and payments) under Section 80(C).

#3 – Employee Provident Fund (EPF)

Any organization whose workforce exceeds 20 employees is liable to register with the EPFO, that is, the Employees Provident Fund Organization of India. Under this, salaried employees make their contribution to the EPF account (which is 12% of their basic salary). This works like a savings account that comes in handy in the event of uncertainties. A maximum of ₹1,50,000 tax deductions (inclusive of other investments and payments) is allowed against this fund under Section 80(C).

#4 – Tax-saving Fixed Deposits (FD)

Resident individuals and HUF can claim a maximum deduction of ₹1,50,000 [inclusive of other investments and payments made under 80(C)] in a year by way of tax-saving Fixed Deposits. However, FDs have a lock-in period of 5 years and thus premature withdrawals or loan against these funds cannot be applied for.

#5 – Unit-linked Insurance Plans (ULIP)

With all the talk and heavy marketing around mutual funds, it is easy to get carried away and begin investing in them. However, there is a superior wealth-making instrument in the market, namely Unit Linked Insurance Plans (ULIPs), which do much more and have fewer hidden costs.

ULIPs not only have several advantages over mutual funds, but they also eliminate all the disadvantages of mutual funds while giving you the same returns. Here's a look at some advantages of ULIPs:

Lower fund-management charges than mutual funds
No tax burden (gains made in ULIPs are completely tax-free)
Same returns as mutual funds
Hassle-free movement between debt and equity instruments
Added life cover

The amount invested under ULIP plans is eligible for tax deductions under Section 80(C). You can avail a maximum of ₹1,50,000 tax deductions [inclusive of other investments and payments made under 80(C)].

Also Read: 5 Reasons Why ULIPs are Superior to Mutual Funds

#6 – Life Insurance Premiums

Premiums paid under a life insurance policy is eligible for tax deduction under Section 80(C). However, one must note that the deduction is allowed only if the premium paid is less than 10% of the sum assured. The total claimed deductions including deductions claimed under any other investments and payments covered under 80(C) cannot exceed the overall bracket of ₹1,50,000 for this.

#7 – National Savings Scheme (NSC)

NSCs are another Government-backed savings instruments. The contribution made towards NSCs is eligible for deductions under Section 80(C) up to a maximum amount of ₹1,50,000 (inclusive of other investments and payments).

#8 – Senior Citizens Savings Scheme (SCSS)

The contribution made towards Senior Citizens Savings Schemes is eligible for tax deduction under Section 80(C). You can claim a maximum deduction of ₹1,50,000, which is inclusive of other investments and payments made under Section 80(C). Note also that the interest earned from this contribution is taxable.

#9 – Sukanya Samriddhi Yojana

Contributions made towards Sukanya Samriddhi Yojana, which is designed to provide for the girl child’s education and marriage, qualify for tax deduction under Section 80(C). A maximum of ₹1,50,000 [inclusive of other investments and payments made under 80(C)] is allowed.

Other Payments Eligible for Deduction under Section 80(C)

#1 – Home Loan Repayment of the Principal Amount

The principal amount paid against a loan taken either to buy or construct a residential property is eligible for tax deduction under Section 80(C) of the Income Tax Act. The maximum amount that you can claim for deduction is ₹1,50,000. However, one must also note that the property bought against which such benefit has been received cannot be sold within at least five years of possession. In case a sale has been made, the earlier claimed deductions will be added back to the income of the year in which such sale has been made.

#2 – Kids’ Tuition Fees

Under Section 80(C), the payment of tuition fees for a maximum of 2 children is eligible for tax deduction up to ₹1,50,000 [inclusive of other investments and payments made under 80(C)]. One must, however, also note that such payment of fees has to be for a full-time course and the educational institute to which it is paid has to be situated in India only.

For further queries on any of the above points, do let us know in the Comments section below or you can get in touch with us at 86559-86559 or drop us an email at support@oneinsure.com.

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Section 80(D) – Income Tax Deduction for Health Insurance

Joan — Sat, 16 Dec 2017 07:53:00 GMT

Section 80(D) – Income Tax Deduction for Health Insurance

16-Dec-2017 16-Dec-2017'

Joan

While most urban taxpayers in India like to save tax through investments, retirement plans, or ULIPs, there are many among us who choose to protect themselves with a circumspect health plan that gives them the following advantages:

Health plans cover large hospitalization costs in case of planned treatments, surgeries, and even emergencies (road accidents, for example) in return for relatively affordable premiums. If you visit a network hospital, the treatment can even be cashless. This protects you and your family from the financial burden of expensive treatments.
Family floater plans allow you to cover the entire family under a single health plan for marginally higher premiums.
High-quality treatments with no compromises.
Tax benefits up to ₹ 20,280 under Section 80(D).
Having a health plan ensures you are not fooled at hospitals with extra charges and unnecessary procedures.

As a mature householder, you must already be aware of why a health plan is a must-have in every urban salaried Indian’s financial planning. Having a health insurance policy not only helps cover your medical expenses, but it also gives you relief from tax liabilities. Section 80(D) of the Income Tax Act, 1961, allows taxpayers to claim deductions for health insurance premiums paid for insuring self, spouse, dependent children, and parents. The maximum investment declaration that can be made under this Section is ₹ 65,000. The following table specifies the details:

Insured	Exemption List
Self and Family	₹ 25,000
Self and Family + Parents	(₹ 25,000 + ₹ 25,000) = ₹ 50,000
Self and Family + Parents (senior citizens)	(₹ 25,000 + ₹ 30,000) = ₹ 55,000
Self (senior citizen) and Family + Parents (senior citizens)	(₹ 30,000 + ₹ 30,000) = ₹ 60,000

The provisions under Section 80(D) are:

You can claim an additional deduction of ₹ 5,000 for expenses related to health check-ups. This limit includes health check-up expenses of all the dependents in the family.
Any mode of payment (debit cards, credit cards, electronic transfer, and other means) is acceptable for claiming deductions under Section 80(D), except premium amount remitted in cash. Payment for preventive health check-ups, however, can be made in cash.
Deductions can only be claimed for premiums paid for dependent children. Premiums paid for children who earn is excluded in this Section.

How Do We Arrive at the Sum ₹ 20,280

To arrive at the tax-saving figure of ₹ 20,280, we have presumed the taxpayer is taxed under the 30% category (effectively, 31.2%). Since we know that the maximum investments declarable under Section 80(D) is ₹ 65,000, we use the following equation:

Tax saved = 31.2% * 65,000
Tax saved = 0.312 * 65,000
Tax saved = ₹ 20,280

Difference between Section 80(C) and 80(D)

Often times, people confuse Section 80(C) with Section 80(D). Under Section 80(C), deductions can be claimed up to ₹ 1,50,000, whereas under Section 80(D), deductions can be claimed up to ₹ 65,000. Tax benefits can be availed on life insurance premium payment, tax saving fixed deposits, PPF, ELSS, and others under Section 80(C) of the Income Tax Act. Section 80(D) governs the deductions on premiums for health insurance policies.

If you have any queries concerning the tax deductions under Section 80(D) of the Income Tax Act, drop us a message in the Comments section below or give us a ring at 86559-86559. We are happy to help!

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Life Insurance - Income Tax Deduction Under Section 80C

Madhurima Pawar — Mon, 28 Aug 2017 13:44:00 GMT

Life Insurance - Income Tax Deduction Under Section 80C

28-Aug-2017 28-Aug-2017'

Madhurima Pawar

Many invest in life insurance policies with a view to save tax.

Tax deductions can be claimed under Section 80C of the Income Tax Act, 1961 for premiums paid towards life insurance policy. For each financial year, the maximum amount of deduction you can claim under this section is ₹1,50,000. Only an individual or a Hindu Undivided Family can avail tax benefits on premiums paid for life insurance.

Who should take the policy?

In case of an individual, tax deduction is allowed for premium paid for insuring self, spouse and children. In case of a Hindu Undivided Family, tax deduction can be claimed for coverage taken in the name of any of the members of the Hindu Undivided Family. No tax benefits can be availed for premiums paid in respect of policy taken for any person other than those mentioned above.

Restriction on amount of deduction

In case of insurance policies issued on or before 31-3-2012, tax deduction are restricted to the extend of 20% of the capital sum assured. For insurance policies issued on or after 1-4-2012, these deductions are restricted to 10%. For any life insurance policies taken on or after 1-4-2013 for any individual suffering from disability or severe disability (referred to in section 80U) or from some ailment or disease (as given in section 80DDB), the limit will be 15% of the capital sum assured.

Conclusion

Deductions can only be claimed under Section 80C of the Income Tax Act as long as you are making premium payments. Your tax benefits shall be reversed if your insurance policy is terminated or surrendered within two years (five years in case of ULIPs) from the date of commencement of the life insurance plan.

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Tax Deductions under Section 80(C) of the Income Tax Act

Joan — Wed, 23 Aug 2017 11:49:00 GMT

Tax Deductions under Section 80(C) of the Income Tax Act

23-Aug-2017 23-Aug-2017'

Joan

Section 80(C) of the Income Tax Act provides avenues for tax-payers to reduce their tax burden. Individuals and Hindu Undivided Families are both eligible to claim deduction under this section. Tax-payers can claim deductions of up of ₹1,50,000 per year depending on their contribution to the permissible tax saving instruments.

Investment options eligible for deduction under Section 80(C):

Life Insurance - Deductions can be claimed under Section 80C for premiums paid on life insurance, including those on unit-linked insurance plans. Even if your insurance plan covers your spouse or children, you can still claim tax benefits for the premiums paid. But keep in mind that you can only claim the benefits if the premiums are paid by you and not your spouse or parents.

Public Provident Fund - Deposits made in PPF are eligible for tax deduction under Section 80(C). The deduction limit was earlier set at ₹1,00,000, which increased to ₹1,50,000 from FY 2014-15. There are other benefits to PPF as well. The interest that you earn is tax-free.

National Savings Certificate - This is a government-launched scheme designed for salaried individuals, government employees and business owners. Investments made in these certificates qualify for tax benefits up to ₹1,50,000 under Section 80C.

Senior Citizens Savings Scheme - Senior Citizens Savings Scheme is a long-term investment option introduced by the government of India. This scheme is exclusively meant for citizens above the age of 60. You can claim deductions on the amount deposited under Section 80(C).

Equity Linked Savings Scheme - The amount invested in an equity-linked savings scheme is eligible for tax exemption under Section 80(C). ELSS is a kind of diversified equity mutual fund that comes with a lock-in period of 3 years. The advantage of investing in ELSS is that along with the tax deduction, you stand to benefit from the potential upswing of equity markets.

You can also claim tax deductions under Section 80(C) for investments in Employee Provident Fund, Tax-saving Fixed Deposit (has a lock-in period of 5 years), and many more. To compare and buy life insurance policies, visit OneInsure's website or reach us at 86559 86559.

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How Much Tax Is Applicable On Pension Income?

Joan — Wed, 09 Aug 2017 11:55:00 GMT

How Much Tax Is Applicable On Pension Income?

09-Aug-2017 09-Aug-2017'

Joan

Pension plans have a big role to play once we cross the age of 60 - they provide financial coverage and give us a sense of financial stability and security. Now, it must be noted that just because we’ve retired, we don’t just stop paying taxes. The pension that a retired individual receives is regarded as salary and is therefore taxed as ‘income from salary’.

To understand how taxes are calculated on pensions, let us first look at the two kinds of pensions:

Commuted pension	Uncommuted pension
An individual, upon retirement, has the option to withdraw a percentage of the pension benefits in lump-sum. The amount received in lump-sum is considered as commuted pension.	Uncommuted pension refers to the pension that a retired individual receives on a periodic basis. The amount received as uncommuted pension is fully taxable in the hands of the retired individual.

Consider the following example to better understand how commuted and uncommuted pensions work:

Mr. X’s monthly pension amounts to Rs. 20,000. Due to immediate requirement of funds, Mr. X opts to take 10% of 10 years’ pension in lump-sum. By doing so, he receives a commuted pension of Rs. 2,40,000 (10% of 20,000 multipled by 120). For the 10-year period, Mr. X will receive Rs. 18,000 in uncommuted pension each month and post that he stands to receive Rs. 20,000 on a monthly basis.

Tax on pension

The income received in the form of pension is taxable under Section 192 of the Income Tax Act.

Commuted pension is exempt from tax in certain cases. Government employees do not have to incur tax on commuted pension. For non-government employees, however, it is partially exempt. In case you receive gratuity with pension, 33.33% of the pension sum that would have been received if the entire 100% of pension was commuted is tax exempt. If you only receive pension then 50% of the pension sum, which would've been received if the whole pension was commuted, is tax exempt. Under uncommuted pension, the family pension that is received comes under ‘income from other sources’. An amount that is equal to 1/3^rd of the pension sum or Rs. 15,000, whichever is lesser, is tax exempt.

For employees of the armed forces, the pension or family pension amount received is completely exempt from tax.

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Section 80D: Deduction for Medical / Health Insurance

Mon, 14 Sep 2015 06:47:00 GMT

Even the government wants us to buy more health Insurance which is very evident from the fact that health insurance tax deduction limits have been increased from the financial year 2015-16. This is also done keeping in mind the ever rising cost of medical treatments.