Income Tax Planning
All of us who are in the profession of earning only white money must be constantly worried about the Income Tax and what to do save from paying the tax?
First thing is that you should do is that when you have crossed the yearly earnings of Rs.2.20 Lacs and for women who have crossed 2.55 Lacs should plan in advance rather than crying over spilled milk as the saying goes.
If you are earnings are between 1.10 and 2.20 Lacs for men and for women between 1.45 and 2.55 lacs, then you need to only plan for the investment of the money in the 80CC Act which comprises of the Provident Fund that you are accumulating from the earnings which is deducted in your pay slip, any Insurance for Life paid, Investment in Mutual Funds, Infrastructure Bonds, Tax Relief Bonds, Fixed Deposits in Banks.
If you are above the 2.20 Lacs for men and 2.55 Lacs for women, then think in the beginning of the year itself what is the method you would like to adapt rather than in the year end which will be too late. The options are that produce a rent receipt which has a ceiling for the metro cities as 50% of the Basic Salary. Other being purchase of property and going for the housing loan which gives the facility of waiving the Interest on the housing loan to the extent of 1.5 Lacs which will be additional to the 1.00 Lacs saving under 80C. This would mean for men who can take care will 3.70 Lacs without any tax burden and for women it would cover till 4.05 Lacs.
It is always advisable to plan for the purchase of property in the beginning of the career than later as the commitments are only going to increase, so much more difficult to plan in future.
First thing is that you should do is that when you have crossed the yearly earnings of Rs.2.20 Lacs and for women who have crossed 2.55 Lacs should plan in advance rather than crying over spilled milk as the saying goes.
If you are earnings are between 1.10 and 2.20 Lacs for men and for women between 1.45 and 2.55 lacs, then you need to only plan for the investment of the money in the 80CC Act which comprises of the Provident Fund that you are accumulating from the earnings which is deducted in your pay slip, any Insurance for Life paid, Investment in Mutual Funds, Infrastructure Bonds, Tax Relief Bonds, Fixed Deposits in Banks.
If you are above the 2.20 Lacs for men and 2.55 Lacs for women, then think in the beginning of the year itself what is the method you would like to adapt rather than in the year end which will be too late. The options are that produce a rent receipt which has a ceiling for the metro cities as 50% of the Basic Salary. Other being purchase of property and going for the housing loan which gives the facility of waiving the Interest on the housing loan to the extent of 1.5 Lacs which will be additional to the 1.00 Lacs saving under 80C. This would mean for men who can take care will 3.70 Lacs without any tax burden and for women it would cover till 4.05 Lacs.
It is always advisable to plan for the purchase of property in the beginning of the career than later as the commitments are only going to increase, so much more difficult to plan in future.
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