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Need your guidance on Tax savings

Date: 11 Jul 2016   Posted By: Ganesh     Group: Finance and Investments    Category: Tax Planning   

Dear Sir,

Help me to reduce the tax amount. I have declared 90,000 for Rent and 1.50 lakhs on 80C. Other than that what are all the other section we can show the amount to reduce the tax amount. Please suggest me other than the loan amount. I couldn't able to survive with this tax amount since I'm getting beaten by it lot.

Guidance regarding how to save on taxes

Author: Venkiteswaran.    11 Jul 2016      Member Level: Diamond     Points : 3  (Rs 3)    Voting Score: 0

Beyond a stage it may not be possible to save tax paying by using the tax saving provisions.
There is upper ceiling for the amount of tax saving or rebate or exemption under each Section.
Even to avail exemption that depends on the income and the type of income also.

If you are a salary earner and your income constitutes only salary and some common savings like bank FD etc, then the avenues to avail exemption and rebate are also limited.
You may avail benefit under Chapter VI , under section 80CC and also under other sub sections of 80. If you have a housing loan, you can get exemption of the housing loan interest.

You may refer to the various internet sources including IT web site in this regard., for more specific details. You may also consul your colleagues as to how they are doing. If your income is high and not just salary only, then it is suggested you consult a chartered accountant or a tax practitioner.

Author: Mahesh    12 Jul 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Health insurance and kids education is also part of the tax savings. So you can easily add that into your tax deduction. Motor insurance and travel allowance can be deducted from your tax too. If you are not saving for the PPF then create an account and start putting some money each year into it. It is completely tax deductible.

There are different types of tax deduction for the salaried and the business. So you have to check what applies in your case. You can get the deduction based on that. There are some of the basic deductions that apply to most of the individuals be it salaried or the businessman. So you have to check with the CA accordingly. Each year end you have to invest into tax saving instrument so that you can have some money saved as well as tax deducted.

Author: Kailash Kumar    12 Jul 2016      Member Level: Platinum     Points : 3  (Rs 3)    Voting Score: 0

Some of the additional measures may be as follows -
1. Interest income on Saving Account up to Rs. 10,000 is exempted under section 80TTA.
2. Agriculture Income, if any, is tax free in India.
3. Under section 80D, deduction of Rs. 20,000 for medical insurance of self, spouse and dependent children and Rs. 30,000 for medical insurance of parents above 60 years is allowed.
4. Medical expenditure up to 15,000 amount is non-taxable on medical expenses for the tax payer and his dependents, provided receipts of medical expenses are kept.

Author: Partha Kansabanik    12 Jul 2016      Member Level: Diamond     Points : 2  (Rs 2)    Voting Score: 0

My suggestions are as under:-

(a) Avail exemption upto Rs. 20,000/- on account of medical insurance under Section 80D of IT Act.
(b) Avail additional exemption upto Rs. 50,000/- on account of National Pension Scheme (NPS) under Section 80CCD of IT Act.
(c) Avail exemption of interest income on saving account upto Rs. 10,000 under section 80TTA of IT Act.

Out of these three, I think the exemption for NPS [Serial No. (b) above] is very important for tax saving purpose as well as for your secured future.

Author: Ganesh    14 Jul 2016      Member Level: Bronze     Points : 0    Voting Score: 0

Thanks a lot for everyone, I got some idea from each one. I will try this. Once again thanks a lot.

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