Tax planning for a salried employee (Income Tax)

This query is : Open

Author : Anonymous

( Author )
18 August 2012

Dear All,

Can you suggest some measures of tax planning for a salaried employee having salary income equal to Rs. 600000/-.

Please suggest the measures by which tax liability comes to minimal or nil tax

Thanks in Advance...

CA CS Amit S. Kedia

( Expert )
18 August 2012

Claim HRA exemption, Invest amount in LIC which is a vry good investment.
Kindly tell me your salary structre for better tax planning

Neha Jain

( Expert )
18 August 2012

Section 80C provides you relief till Rs. 1 lac. Various Investments/expenses under Sec. 80C. They are listed below:

Life Insurance premiums ( of self and family)

Provident Fund contributions (of self and family)

Mutual Fund contributions

Public Provident Fund (PPF)

Tuition Fees (of 2 children)

Principal portion of EMI of the Housing loan

Fixed Deposit with Banks for 5 years

Following are additional deductions which are over and above the Rs.1 lac limit as mentioned above:

Health Insurance premium up to Rs.15,000/- (under section 80D)

Full Interest on Education loan u/s 80E

Donations u/s 80G

Author : Anonymous

( Author )
18 August 2012

Thanx to u both...

Amit Sir ...The salary is just Rs. 50000 per month & there is not any structure....

Neha Mam ...I want to know that whether there is any other way by which i can minimise my tax liability...Actually i dont want to make investments as u have suggested in this year...

So , Kindly tell me if there is other way out...

Author : Anonymous

( Author )
18 August 2012

I also want to know that as amit Sir has asked the salary structure..There is not any Salary Structure decided by the employer...

& hence in TDS Certificate the whole amount is appearing as basic...

So while Filing the ITR can i give the salary structure myself...Won't it be wrong ?

Neha Jain

( Expert )
18 August 2012

While filing ITR you can not give salary structure your self. Ask your employer to give you salary breakup for this year onwards.

Neha Jain

( Expert )
18 August 2012

Interest portion of EMI of Housing loan up to Rs.1.5 lacs (section 24).

Neha Jain

( Expert )
18 August 2012

section 80CCF provides for deduction max. upto Rs 20,000 for subscription to long-term infrastructure bonds as notified by the Central Govt

CA Guru M

( Expert )
18 August 2012

I don't think ITR 1 or ITR 2 ask for salary break up.

Only taxable salary( not entire CTC) needs to be shown.

However salary break up might provide you little tax savings.

CA Guru M

( Expert )
18 August 2012

Best option is get housing loan & invest in HP.

Atleast from next FY your tax burden will reduce.

you will be savings Rs.25K tax on Rs.1L Loan repayment & Rs.1.5L Interest deduction under Income from HP.

In case of let out property entire amount will be allowed as deduction, in that option your tax burden will further reduce.

CA Guru M

( Expert )
18 August 2012

If you don't want invest in HP. Then you have no options except whatever Ms. Neha has suggested.

Author : Anonymous

( Author )
18 August 2012

Thanx to you Both...