Tax Query (Plz help)

there is no deduction for profession tax. in case of query, do reply.

regards,

ratan

Thanks for your calculation.

Would like to know best investment options

in continuation of my previous reply, the best option as per my opinion will be life insurance plan, coz shall be fully exempted on maturity, others may be taxable. other option may be Invested in Fixed deposit for 5 years or more. is there any mediclaim policy taken over by the employee.

regards,

ratan

No there is no Medicalim taken

then total investment that to be made shall be Rs. 35500/- in order to reduce tax liability to nil.

regards,

ratan

IN ORDER TO HAVE NIL TAX LIABILITY. U SHOULD HAVE THE FOLLOWING:

TOTAL INCOME - 286000

LESS: CONVEYANCE ALLOWANCE 9600/-

LESS: HRA EXEMPTION AFTER CALCULATION 16400/-

LESS: DEDUCTION OF RS 100000/-

U LEFT WITH 160000/- WHICH IS EXEMPT FROM TAX.

FOR DETAILS U CAN ASK ME AT MY MAIL HARBINDER.SINGH85 @ GMAIL.COM 

tell me how much amount he is paying towards rent to claim HRA. Best option to  make your income non taxable or below taxable limit is to make investments in  public provident fund , NSC, you can invest ion PPF minimum Rs500 to Maximum Rs 70000/- in a financial year.PPF interest is exempt under section 10(12) and you dont have to pay tax on maturity.whatever you are investing you can get deduction under section 80C

thnks

what if the amount in PPF would have been 5k and mutual fund 10k does that would have made any difference in Tax laiblity.

But amt invested in PPF shall be taxable on maturity.... check this.

regards,

ratan

I think the amount in PPF is not taxable on maturity could you please check the same and revert

And how much tax rebate do we get in PPF its 20% right.

No whole amt shall be allowed as deduction. no 20% crieteria.

ok thnks do 5k in ppf  and 10k in mutual fund does not make any diff

why u don't go for investment in term deposit  with bank.

What is the benefit for the same.

the benefit for that is the same amt deposit is allowed is deduction for the year in which investment is made and on maturity tax shall be levied only if interest income on such deposit exceeds Rs. 10000. but such FD cannot be break before the period of 5 Years.