We have sold one lodge(commercial building) in one of the big city for 10 crores..
What are the options available to reduce the tax burden??
We have sold one lodge(commercial building) in one of the big city for 10 crores..
What are the options available to reduce the tax burden??
You must contribute at least 12% of your salary-basic pay, dearness allowance (including cash value of any food concession) and retention allowance-towards EPF. This is deductible under Section 80C.
Premature withdrawal is allowed only under conditions specified by the government. If the amount is withdrawn before five years of subscripttion to the scheme, the tax benefits that have been availed on it are cancelled.
Any resident Indian can invest in PPF and claim income tax deduction. An individual can also contribute on behalf of a Hindu Undivided Family. One can also invest in the name of spouse and children. However, tax deduction is available only on contributions up to Rs 1 lakh. At present, PPF is offering 8.7% annual interest. The interest earned is tax-free.
People above 60 years (or those above 55 years who have taken voluntary retirement) can invest in SCSS. The maturity period is five years, though it can be extended by another three years.
One can deposit only once any amount in multiples of Rs 1,000 but not more than Rs 15 lakh. At present, SCSS is offering 9.2% annual interest, which is paid quarterly. The interest earned is taxable.
You can invest in five- and 10-year NSCs. Five-year NSCs are offering 8.5% a year while 10-year NSCs are paying 8.8%. The interest earned is taxed. There is no restriction on the amount that can be invested, though tax deduction can be claimed only up to Rs 1 lakh.
You must contribute at least 12% of your salary-basic pay, dearness allowance (including cash value of any food concession) and retention allowance-towards EPF. This is deductible under Section 80C.
Premature withdrawal is allowed only under conditions specified by the government. If the amount is withdrawn before five years of subscripttion to the scheme, the tax benefits that have been availed on it are cancelled.
Any resident Indian can invest in PPF and claim income tax deduction. An individual can also contribute on behalf of a Hindu Undivided Family. One can also invest in the name of spouse and children. However, tax deduction is available only on contributions up to Rs 1 lakh. At present, PPF is offering 8.7% annual interest. The interest earned is tax-free.
People above 60 years (or those above 55 years who have taken voluntary retirement) can invest in SCSS. The maturity period is five years, though it can be extended by another three years.
One can deposit only once any amount in multiples of Rs 1,000 but not more than Rs 15 lakh. At present, SCSS is offering 9.2% annual interest, which is paid quarterly. The interest earned is taxable.
You can invest in five- and 10-year NSCs. Five-year NSCs are offering 8.5% a year while 10-year NSCs are paying 8.8%. The interest earned is taxed. There is no restriction on the amount that can be invested, though tax deduction can be claimed only up to Rs 1 lakh.
SSGS and Associates
Chennai
CA Inter
View Details
CAclubindia
