AMFI- Registered Mutual Fund Distributor

Service Details

Tax Planning

Tax planning refers to financial planning for tax efficiency. It aims to reduce one's tax liabilities and optimally utilize tax exemptions, tax rebates, and benefits as much as possible. Tax planning includes making financial and business decisions to minimise the incidence of tax.

Income Tax Slabs & Rates

The Finance Minister introduced new tax regime in Union Budget, 2020 wherein there is an option for individuals and HUF (Hindu Undivided Family) to pay taxes at lower rates without claiming deductions under various sections. The following Income Tax slab rates are notified in new tax regime vs old tax regime:

Income Tax Slab

Tax Rates As Per New Regime

Tax Rates As Per Old Regime

₹0 - ₹2,50,000



₹2,50,001 - ₹ 5,00,000



₹5,00,001 - ₹ 7,50,000

₹12500 + 10% of total income exceeding ₹5,00,000

₹12500 + 20% of total income exceeding ₹5,00,000

₹7,50,001 - ₹ 10,00,000

₹37500 + 15% of total income exceeding ₹7,50,000

₹62500 + 20% of total income exceeding ₹7,50,000

₹10,00,001 - ₹12,50,000

₹75000 + 20% of total income exceeding ₹10,00,000

₹112500 + 30% of total income exceeding ₹10,00,000

₹12,50,001 - ₹15,00,000

₹125000 + 25% of total income exceeding ₹12,50,000

₹187500 + 30% of total income exceeding ₹12,50,000

Above ₹ 15,00,000

₹187500 + 30% of total income exceeding ₹15,00,000

₹262500 + 30% of total income exceeding ₹15,00,000



Deduction on

Allowed Limit (maximum) FY 2021-22


Investment in PPF
– Employee’s share of PF contribution
– NSCs
– Life Insurance Premium payment
– Children’s Tuition Fee
– Principal Repayment of home loan
– Investment in Sukanya Samridhi Account
– Sum paid to purchase deferred annuity
– Five year deposit scheme
– Senior Citizens savings scheme
– Subscription to notified securities/notified deposits scheme
– Contribution to notified Pension Fund set up by Mutual Fund or UTI.
– Subscription to Home Loan Account scheme of the National Housing Bank
– Subscription to deposit scheme of a public sector or company engaged in providing housing finance
– Contribution to notified annuity Plan of LIC
– Subscription to equity shares/ debentures of an approved eligible issue
– Subscription to notified bonds of NABARD

Rs. 1,50,000


For amount deposited in annuity plan of LIC or any other insurer for a pension from a fund referred to in Section 10(23AAB)


Employee’s contribution to NPS account (maximum up to Rs 1,50,000)


Employer’s contribution to NPS account

Maximum up to 10% of salary


Additional contribution to NPS

Rs. 50,000


Interest Income from Savings account

Maximum up to 10,000


Exemption of interest from banks, post office, etc. Applicable only to senior citizens

Maximum up to 50,000


For rent paid when HRA is not received from employer

Least of :
– Rent paid minus 10% of total income
– Rs. 5000/- per month
– 25% of total income


Interest on education loan

Interest paid for a period of 8 years


Interest on home loan for first time home owners

Rs 50,000


Medical Insurance – Self, spouse, children
Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old

– Rs. 25,000
– Rs. 50,000


Medical treatment for handicapped dependent or payment to specified scheme for maintenance of handicapped dependent
– Disability is 40% or more but less than 80%
– Disability is 80% or more

– Rs. 75,000
– Rs. 1,25,000


Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD
– For less than 60 years old
– For more than 60 years old

– Lower of Rs 40,000 or the amount actually paid
– Lower of Rs 1,00,000 or the amount actually paid


Self-suffering from disability :
– An individual suffering from a physical disability (including blindness) or mental retardation.
– An individual suffering from severe disability

– Rs. 75,000
– Rs. 1,25,000


Contribution by companies to political parties

Amount contributed (not allowed if paid in cash)


Contribution by individuals to political parties

Amount contributed (not allowed if paid in cash)


Deductions on Income by way of Royalty of a Patent

Lower of Rs 3,00,000 or income received