Basic tax planning tools

Hi Friends

Can u please name some tax planning tools/methods wiht detail explanations (for an individual)?

 

regards

Replies (3)

Dear Rohan,

There are numrous tax planning tools. you please say for what purpose you need it?? 
atleast give hint... for e.g. in capital gains, house property, clubbing of income, gift, etc......

I am talking in general...like for an individual drawing a salary..how should he plan nad invest his money/salary to save taxes

If your income is less than Rs. 200,000/-, you need not worry about tax.

Your taxable income (income from salary) shall be reduced upto Rs. 100,000/- . How? You have a choice of investing in Public provident fund, purchase national saving certificate, pay for life insurance premium, invest in equity oriented mutual fund, invest in ULIP, invest in 5-year fixed deposit. 

Your taxable income can be further reduce by another Rs. 15,000/-. How? If you pay for mediclaim insurance premium.

Even the interest you earn from saving bank account is exempt (tax-free) upto Rs. 10,000/- pa.

There are many other deductions available for individuals so as to reduce the taxable income. When the taxable income is reduced, so will the tax liability on it.  That is how one saves tax. We all want higher income, but higher income means more tax liability. Higher income and higher deductions availed, lower tax liability and higher returns.

It is better to invest (which wil earn interest and come back to you in the near future) instead of pay tax (which is just like an expense having no real tangible benefits) 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details