15 March 2009
I am bit confused when i discuss issues related to income tax with others.Actually some people said that you cannot save 100% of your total income earned.But as far as i know there is no section in the income tax related to this.Whatever income is disclosed the department cannot object on ths utilisation of the income. Plz help me in this confusion????
15 March 2009
You can save Taxes on income by proper Tax Planning e.g under Sec.80C you can invest upto Rs. 1 lac, similarly in other section like 80D Medical insurance permium, 80E Repayment of Educationl Loan etc. so one can save Taxes by investing in eligible investment It is not mandatory that a person should pay taxes at any cost if he earns money
15 March 2009
Dear Abhishek... There is no section under the Act which prohibits an assessee from saving his entire income, but practically in assessment it becomes very difficult to prove ur general daily expenses before AO which leads to addition on account of non-acceptance of 100% saving.
If u vl search u vl find many judicial precedents on this question.
CAclubindia
