Top Tax Saving Ideas For Financial year 2017-18
                     
PowerPoint Presentation



BEST TAX SAVING 
IDEAS WITH GOOD 

RETURNS
FOR INDIAN TAX PAYERS:  F.Y. 2017-18, A.Y. 2018-19 


REBATE UNDER SECTION 80C, 80CCC, 
80CCD
• Under section 80 C , 80 CCC one can save up to Rs 150,000 in specific saving schemes  and get rebate-

• PPF

• EPF

• Insurance

• ELSS

• Five year tax saving FD

• NPS

• NSC

• Principal Payment of Home Loan

• SSA for girl child

• Kids tuitions fee

• Principal repayment under home loan

• Under section 80 CCD one can  get rebate of additional Rs 50,000-
• NPS


PUBLIC PROVIDENT FUND (PPF)

• One can save up to Rs 150,000 each year in PPF and get rebate under 80 C
• PPF is best tax saving instrument with around 8% interest rate

• One can open PPF account in his own name and also in name of his/her children. However maximum 
rebate allowed remains Rs 150,000

• One can open PPF account in a bank or post office

• PPF account has a lock-in of 15 years with limited withdrawal and loan facility

• PPF falls under Exempt-Exempt-Exempt  (EEE) category which means no taxes are applicable during 
contribution, accumulation and  at maturity

• PPF requires at least Rs 500 contribution in a year


TAX SAVING MUTUAL FUNDS (ELSS)

• Equity Linked Saving Schemes (ELSS) offer better returns than PPF.  Most ELSS provide a return of more 
than 9%

• One can get tax rebate up to Rs 150,000 each  financial year under 80

• ELSS has  smallest  lock-in period of 3 years  as compared to any other tax saving scheme

• Like PPF,  ELSS  also falls in Exempt-Exempt-Exempt category which means no taxes are applicable 
during contribution, accumulation and  at final withdrawal.


NATIONAL PENSION SYSTEM  (NPS)
• NPS is secure Govt. pension scheme that allows individuals save and get pension  after the age of 60

• NPS is regulated and managed by PFRDA

• NPS allows an additional rebate of Rs 50,000 (80CCD) over and above the limit of Rs 150,000 provided under 
80C

• Unlike PPF, there is no upper limit for money that can be deposited in NPS in a financial year. However rebate  is 
capped at Rs 50,000 for F.Y.

• Since NPS is equity linked scheme, it offers better returns than PPF

• NPS  is EET instrument where 60% of the corpus is taxable at maturity

• NPS requires at least Rs 500 investment in a F.Y.

• One can open NPS account through any bank , post office or online


INSURANCE

• One can get rebate up to Rs 15,0000 under 80c for premium paid for any ULIP, term insurance or 
traditional insurance plan

• Additional rebate  of Rs. 50,000  (for self, family and parents) is available under 80CCD for health 
insurance premium

• Insurance  carries EEE  status, hence any maturity amount is non taxable


SUKANYA SAMRIDDHI ACCOUNT (SSA)
• SSA scheme was launched in 2014-2015 by Govt. of India to promote girl child under ‘Beti Bachao Beti 

Padhao' campaign

• This scheme has a lock-in f 14 years
• Sukanya Samriddhi account can be opened in the name of girl child below the age of 10 years

• Partial withdrawals are allowed under SSA

• Maximum Rs 150,000 can be deposited in SSA account in a F.Y.

• SSA offers 1% more interest as compared to PPF. It started with 9% in 2015 but now offers 8.1% interest rate
• SSA has also got Exempt-Exempt-Exempt (EEE) status
• This account requires at least Rs 1000 deposit in a year


TAX SAVING FIXED DEPOSIT (FD)

• Tax saving fixed deposit is a type of fixed deposit that offers returns in the range of 6% to 8%

• Tax saving FD has a lock-in of 5 years

• Tax saving FD can be opened in any bank or post office

• Tax saving FD can be opened in single name or joint names

• Interest earned from tax saving FD is taxable


HOME LOAN

• Home loan  rebate has two components: Interest and principal
• Principal repayment  up to Rs 150,00 0 can be deducted from taxable income under 80C
• Interest payment up to Rs. 200,000  is allowed as additional rebate 

• Home loan not  only provides additional tax saving of  Rs. 200,000 but one also saves on rent 


OTHER IMPORTANT TAX SAVING AND REBATE 
TIPS

• More rebates-
• Education Loan (80E)- No limit. However, one can only claim deduction for interest paid and not the principal 

amount

• Children Tuition Fee- Rs. 150,000 under 80 C  

• Section 80DD- Up to Rs 75,000  for spending on medical treatments of dependents

• Section 80DDB- Any individual below the age of 60 years can claim up to Rs 40,000 for the treatment of specified 
critical diseases

Deductions/rebate for F.Y. 2017-18

80C Rebate- Rs 150,000
Home Loan rebate- Rs 200,000
80CCD NPS rebate- Rs 50,000


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