TAX PLANNING

This query is : Resolved

VIJENDRA CHATURVEDI (Querist)
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11 July 2007 SIR,
MY SEGREGATION OF MY SALARY IS BASIC 8500 , SPECIAL ALLOWANCE 19475 , HRA 1500 , PF 1040 , AND SOME OTHER AMOUNT.NOW PLEASE SUGGEST ME HOW I PLANNED MY INVESTMENTS TO SAVE MAXIMUM TAX.i am working at ahemdabad.i am living in the rented house but yet their is no agreement with the landlord over any legal paper.my actual rent is 2500 with 15000 as a advance for the house.i am getting this amount rs 19475 under the head special allowance.

SHIV KUMAR GUPTA

SHIV KUMAR GUPTA (Expert)
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11 July 2007 Query is not claer in itself.
Pl clear following points.
place of working
rented or own house
details of special allowance of RS.19475/-
investments details.

s.k.gupta

Shashi Mohan Jha

Shashi Mohan Jha (Expert)
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11 July 2007 Basic & Spl allowances are taxable straight away. HRA is subject to rent paid by you whereas PF would not be taxable.
Now based on your taxable income (you can collect from your company) you will have to plan for more investment in 80C eligible instruments.

Off course for salaried class taking a housing loan is an effective tax saving instrument.