Tax Planning: Tax Planning: Save Tax with Smart Investment

Why do you need tax planning?

Choose tax regime & optimise in-hand salary.

Include right set of products based on needs from protection to investments.

Diversify investments to grow investments while saving Tax.

Tax saving options under old tax regime by ABCD

TAX DEDUCTION UPTO ₹1.5 LAKH

Life Insurance

Save tax under Section 80C on the premium paid

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TAX DEDUCTION UPTO ₹1 LAKH

Health Insurance

Premiums paid qualify for deduction under Section 80D

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TAX DEDUCTION UPTO ₹1.5 LAKH

ELSS Mutual Fund

Investments up to ₹1.5 lakhs are eligible for deduction

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INTEREST DEDUCTION UP TO ₹2 LAKH

Home Loan

Save tax on the principal and interest on loan.

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TAX DEDUCTION UPTO ₹50 K

NPS

Invest in the National Pension System and claim an additional deduction of up to ₹50,000

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TAX DEDUCTION UPTO ₹1.5 LAKH

Tax Saver FD

Invest in tax saver FDs and claim deduction under section 80C.

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Tax Calculators

Calculate Your Tax Liability Quickly With ABCD’s Income Tax Calculator.

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Basic Details
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Income Details
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Deductions
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Summary

Account Basic Details

2023-24 LATEST BUDGET

Return to be filed between 1st April 2024 - 31st March 2025

Select Your Current Age

My Current Age

Below 60

My Current Age

60-80

My Current Age

80 & Above

	OLD SCHEME	NEW SCHEME
Gross Total Income	₹	₹
Total Deductions	₹	₹
Tax Payable	₹	₹

Basic Details

NAME

PAY MONTHLY RENT

PAN NUMBER

EMAIL ID

Home Details

OWNER'S NAME

OWNER'S PAN NUMBER

Enter start date

Enter end date

RENTED HOUSE ADDRESS

ANNUAL BASIC SALARY

ANNUAL DEARNESS ALLOWANCE

Annual HRA

RENT PAID IN THE YEAR

Do you live in Mumbai, Delhi, Chennai or Kolkata?

Taxable HRA

₹ 0

Rent Paid in excess of 10% of salary

₹ 0

50% of Basic Salary

₹ 0

Amount of exempted HRA

₹ 0

HRA Chargeable to Tax

₹ 0

Customer Satisfaction Stories

Arun Sharma

Aditya Birla Health Insurance

My trading experience with ABM has been very fruitful. I have always been receiving excellent support from my dealer. Moreover, the transparent business practices at ABM makes it the preferred broker in the industry.

Mrs. Priyanka Sharma

Aditya Birla Money Customer

Mumbai

Ashesh Shah

Aditya Birla Capital Limited

Aditya Birla Health Insurance has been my companion in my weight loss journey of losing 17 Kgs and helping me stay disease-free. Health Returns keeps my whole family motivated to be active and stay fit and each person can do the exercise of their choice

Mr. Rajinder Balhara

Aditya Birla Health Insurance Customer

Delhi

Shruti Davda

Aditya Birla Health Insurance

Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.

Mr. Bansal

Aditya Birla Sun Life Insurance Customer

Haryana

Mr. Vivek Mishra

Aditya Birla Sun Life Pension Management Customer

The digital platform and whatsapp service of ABHFL gives me a quick access to my basic loan details such as statement of accounts, loan account details, interest certificate, and repayment schedule.

Mr. Arpit Jain

Aditya Birla Housing Finance Customer

Gurgaon

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Understanding Tax Planning

Table of Contents

What is tax planning?Who is liable to pay tax on income?What are the five heads of income?What are some of the popular deductions under the Income Tax Act?What is the difference between gross income and net income?What are some tax-saving investment options?

What is tax planning?

Tax planning is an activity which aims to reduce your taxable income by utilising tax-saving investments, exempted expenses and filing your tax under the best tax regime.

Who is liable to pay tax on income?

Resident individuals with total income exceeding exemption limits as per new or old regime

Non-resident Indians having income in India

Hindu Undivided Families

Companies

Association of Persons

Body of Individuals

Partnership firms

What are the five heads of income ?

Salary income

Income earned as a salaried employee

Income from house property

Rental income from a let-out house property

Income from capital gains

Gains earned from selling capital assets

Income from business/profession

Income earned from a business or a profession

Income from other sources

Income not falling under any of the four heads

What are some of the popular deductions under the Income Tax Act?

Section 80C - Deduction up to ₹1,50,000
Section 80CCD (1B) - Deduction up to ₹50,000
Section 80D - Deduction up to ₹1,00,000
Section 80TTA - Deduction up to ₹10,000
Section 80TTB - Deduction up to ₹50,000
Section 80E - Deduction of education loan interest paid
Section 24(b) - Deduction up to ₹2,00,000 on home loan interest

What is the difference between gross income and net income?

Gross income

Total aggregated income from all five heads of income

Net income

Gross income minus all the applicable deductions and exemptions allowed under the Income Tax Act

What are some tax-saving investment options?

Life insurance plans - Premiums paid and benefits received are tax-free
Health insurance plans - Premiums are allowed as a deduction
Equity Linked Saving Scheme (ELSS) of mutual funds
Public Provident Fund (PPF)
Employees’ Provident Fund (EPF)
National Pension System (NPS)

Sukanya Smariddhi Yojana (SSY)
Senior Citizens’ Saving Scheme (SCSS)
National Saving Certificate (NSC)
Kisan Vikas Patra (KVP)
5-Year Fixed Deposits from banks and post-offices

FAQs On Tax Planning

To lower your taxable income, maximise deductions under Section 80C (investments like PPF, ELSS, ULIPs), Section 80D (health insurance premiums), and Section 80G (donations). Claiming your HRA allowance and travel reimbursements also helps.

You can claim deductions on home loan interest under Section 24(b) up to ₹2,00,000. The principal repaid is allowed as a deduction under Section 80C up to ₹1,50,000. Additionally, stamp duty and registration charges can also be deducted under Section 80C within the limit of ₹1,50,000.

Several options offer tax benefits for child education expenses. You can invest in Equity Linked Saving Schemes (ELSS), Units Linked Insurance Plans (ULIPs) for children, or open a Sukanya Samriddhi Yojana account, all offering deductions under Section 80C up to ₹1,50,000.

Yes, you can claim deductions under Section 80D for medical insurance premiums paid for yourself, your spouse, and your dependent parents.

Yes, donations to specified charitable organizations can be claimed as a deduction under Section 80G, subject to certain conditions and limits.