Did you know: Here are 21 aspects which may miss your sight about taxation in India?

A lot is talked about the taxes in informal chats. We tend to read the highlights in the news papers and other articles. Stuff may look attractive or otherwise as that look and we may tend to take the planning decisions on that information. 

Mymuneemji lists out certain subtler things of glaring day to day Income Tax stuff that a Tax payer should keep in mind before. This may otherwise skip your reading and thereby render the decisions wrong. Read on....

1. You cannot claim tax benefits on payment of life insurance premium of your parents even if they are financially dependent on you.
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3. You can claim tax benefits for payment of life insurance premium under Section 80 C for your children even if they are not financially dependent on you.
4. You can pay medical insurance premium of your parents and claim tax benefits even if they are financially NOT dependent on you.
5. You can claim tax benefit of medical insurance premium for your child only if the child is financially dependent on you.
6. For one self occupied house property you can claim deduction in respect of interest upto Rs. 2 lacs per annum from 1^st of April 2015 onward (Before that Rs.1.5Lac) but in respect of let out property you can claim full interest paid.
7. You are entitled to claim interest on loan taken even from your relatives and friends for residential and commercial property.
8. Deduction under Section 80 C for repayment of home loan is available only for a residential house property.
9. You can claim deduction for payment of tuition fee for only two children under Section 80C. The deduction for tuition fee is not available for your spouse or siblings.
10. Interest accrued on NSC for each of the years except the last year is eligible for deduction under section 80 C even though no fresh investment is made in NSC during these years. 
11. New Tax benefit under section 80C for a girl child under Sukanya Samriddhi account scheme for the amount invested, interest accrued on deposits and withdrawal from the said scheme in accordance with the rules of the said scheme will be exempt from tax. This tax benefit is retrospective amendment with effect from assessment year 2015-16.   
12. Sec 80 D deduction in respect of health insurance premium limits have been increased applicable from F.Y 2015-16, from Rs. 15,000 to Rs.25,000 for person below 60 years and for senior and very senior citizen from Rs. 20,000 to Rs. 30,000.  For very senior citizen deduction is available even for medical expenditure upto Rs. 30,000, as getting a medical insurance is difficult at that age but this needs to be paid in cheque which SEEMS very UNPRACTICAL. 
13. Deduction under section 80DD/80U limits have been increased for persons with disability and severe disability applicable from F.Y 2015-16. For disability the limit increased from Rs. 50,000 to Rs. 75,000, and for severe disability from Rs. 1,00,000 to Rs.1,25,000.
14. Deduction under Section 80 E is available only to individual for entire amount of interest paid during the year and no tax benefit is available for repayment of principal amount of education loan. 
15. Sec 80 EE deduction allow such home buyers an additional deduction of interest for first time buyer state of Rs. 1,00,000 was to be claimed in A.Y 2014-15. If the limit is not exhausted, the balance may be claimed in A.Y 2015-16 if the loan is sanctioned between 1.4.13 to 31.03.14, and the loan amount should not be more than 25 lakh and value of house should not be more than 40 lakh.
16. 80G -100% deduction for National fund for control of Drug abuse, Swachh Bharat Kosh and Clean Ganga fund.
17. The holding period is 12 months for certain financial assets but for other class of assets it is 36 month to avail benefits of long term capital gains.
18. Allowance of balance 50% additional depreciation as per section 32(1)(iia) applicable from F.Y 2015-16, in case were additional depreciation@20% on new plant and machinery acquired and installed and machine used for a period below 180 days were qualified for half rate(10%) of depreciation, it is proposed to provide the balance 50% depreciation in the immediately succeeding previous year.
19. If you tender listed shares in the open offer, you have to pay tax even if you have held the shares for twelve months or more. But there is no tax liability on long-term capital gains arising from the sale of listed shares sold through broker of stock exchanges.
20. Normal short term capital gains is taxable at the slab rate applicable to you but tax on short term capital gains on sale of listed shares through stock broker is taxable @ 15% if security transactions tax (STT) is paid irrespective of your slab rate.
21. You can claim tax benefits of leave travel assistance (LTA) for your spouse, child, parents and siblings. Spouse and child may be financially independent but the parents and siblings have to be dependent on you. LTA benefits can be claimed in respect of two children only if born after 1st October 1998.
22. Advanced tax is not applicable for the tax payers under presumptive taxation regime. i.e., in small Retail or plying and hiring owning below 10 trucks or such others with a turnover below Rs. 1 Cr.