Investments & Means to Save Tax- ( Part II )

Continuing from the last edition on the various areas where investments can be made and how it helps in saving taxes, we go ahead with the other options that are available to an individual to facilitate savings, growth & tax-benefits.

1. Any contribution by an individual to a notified pension fund set by any mutual fund.

2. Any subscription by an individual or HUF to any deposit scheme or contribution to any pension fund set up by the National Housing Bank.

3. A subscription by an individual or HUF to any notified deposit scheme of a public sector company which is engaged in providing long term finance for construction or purchase of houses in India for residential purposes.<

4. Any sum paid by an individual as tuition fees provided the following conditions are satisfied-

       a. Such sum should have been paid as tuition fees excluding any payment  towards development fees or donation or payment of similar nature.
       b. It should have been paid at the time of admission or thereafter.
       c. It is paid to any university, college, school or other educational institution situated within India.
       d. It is paid for the purpose of full-time education.
       e. It is paid for any two children of such individual.

5. Any payment by an individual or HUF for purchase or construction of a residential house property, the income from which is chargeable to tax under the head ‘Income from House Property’. Such payment may be made towards:

        a. Repayment of the amount borrowed by the assessee from
              - The Central Government or any State Government or
              - Any bank, including a Co-operative Bank or
              - The Life Insurance Corporation or
              - The National Housing Bank or
              - The assessee’s employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act.

        b. Stamp Duty, Registration Fee and other expenses for the purpose of transfer of such house property to the assessee.

6. Any subscription by an individual or HUF to equity shares or debentures forming part of any eligible issue of capital approved by the board of wholly public company, any public financial institution where such proceeds are utilized for infrastructure company.

7. Any sum deposited in a term deposit for a fixed period of not less than 5 years with a scheduled bank , which is an accordance with a scheme framed and notified by the Central Government in the Official Gazette for the purpose of this clause.

8. Subscription to such bonds issues by the National Bank for Agriculture & Rural Development (NABARD) as the Central Government may, by notification in the Official Gazette , specify in this behalf.

9. Any sum deposited in an account under the Senior Citizens Savings Scheme Rules, 2004.

10. Any sum deposited as 5 years time deposit in an account under the Post Office Time Deposit Rules, 1981.

Note:-These deductions are allowed only when the specified amount has been actually paid in the previous year.

- Rittique Phukan (CA)