How to save the tax amount

Hi,

First of all, your husband shall declare to his employer his future investments which can save tax. Every company provides a form / online system in which you can declare your investments, eligible expenses & HRA so that TDS deduction will be reducd.

Please declare your monthly rent & proposed investments u/s 80C & 80D to the employer & your TDS will be reduced.

Most of the companies provide detailed sheet of eligible investments & expenses in the declaration sheet itself. So you will be able to choose investment products from there in full details. Most common investments are Life Insurance Premium, PPF, Tax Saver FD, Mutual Funds & NSC.

Please make sure you invest as declared by end of January of each financial year (April to March) as most companies ask for investment proofs by that time & if investment is not done by that time, you will face grater deduction of tax in Feb & March salary.

Madam ,

Before trying to save tax,, first of all calculate tax on annual income of your husband . As you know Upto Rs.180000/- Tax Liability is NIl 180000/- To 500000/- @ 10% And Between 5 lac to 8 lac @ 20% and beyod 8 lac @ 30% tax is to payable . HRA can be exempted from tax to a certaint limit. and Some allowances are exempt from tax.

then you can invest under LIC, 5 yr . FDR , Mutual Funds,, but upto Rs.100000/- Only.

Finaly , take consulatancy from Professional to comply with tax laws.because taxation is not so simple, there is a concept of HUF And many more tax planning concepts.Thanks

Dear Deepak,

Thanks for providing your valuable inputs. But apperantly from details provided by Mrs. Sinha the case is related to declaration which needs to be done so as to reduce TDS amount. I shall mention that she needs to contact consultant who can suggest her more & efficient ways of planning tax as the taxable income will be on higher side.

Mrs. Sinha,

Most of times there is much more tax saving potentials & options available with salaried employees but they miss it due to lack of knowledge and  timely action. You shall plan your taxation before end of each 31st March so that you can get maximum tax benefit. Also investments done for tax saving proves to be very much helpful for your secure future.

The income Tax slab for the Assessment year 13-14  is :

0 to Rs. 200000- 0

2 lacs to Rs. 5 lac-10%

5 lacs to Rs. 10 Lac -20%

After 10 Lac- 30%

U can invest your money in Sec 80c (like in PPF , ULIP Plan, 5 Year FD, Insurance etc.), But u can get deduction only upto Rs.100000/- . and there after it  u can also invest  in Central Govt. Infrastructure Bond in Sec 80CCF but upto Rs.20000/- only.And u can also get deduction of upto Rs.15000/- in Sec80D for medical Insurance Policy.

Regards,

Harish Bansal

Hi Harish ,

A small correction,Deduction u/s 80CCF is no more.It is applicable only for the A/y 2012-13.

And  under sec 80D u can invest in mediclaim upto Rs.35000/- p.y

Dear Harish,

80CCF is discontinued for AY 2013-14.

Hi Tanushree

Plz chk this calculation and you will be able to reduce tax amount.

Assuming salary is from aug 12 to march 13 i.e., for 8 mnths

Total salary of 8 months (basic+HRA+AGP+DA +Transport) = 560000/-

Proposed Deduction: Rs 173480/-

1. 80 C (assuming you are investing) = 50000/- [LIC;  5 yr FDR; MF; NSC; etc]

2. 80 D (with senior citizen) = 35000/- [mediclaim]

3. Transport (800*8 mnths) = 6400/- [ no investment requird]

4. HRA per month = (10260*8) = 82080/-

a) 11400 (actual recd)

b) 10260 (rent paid - 10% basic+da) (assuming u r paying rent of 15000/-

c) 23700 (50% of basic +da)

5) 80 GG cannot be claimed coz HRA is bring claimed

So, net salary [560000-173480] = 386520/-

Therefore, tax to be deducted for 8 month = 18652/- & per month = 2332/-

Tell your husband to give all his investment details, rent details to his employer.

Regards,

Harshal Vora

HI Tanushree ,

As said by my  friends, You should calculate tax payble without any planning first and then after you can plan tax payble according to provisions of Income Tax Act .There are many changes in acts for A.Y. 2013-14    :-

Deduction on life insurance policy, taken after 1 April 2012, will be allowed only if yearly premium is less than 10% of sum assured. This is a new change, earlier it was 20%. If it’s more than 10% then not eligible for deduction u/sec. 80C.

A New Section 80TTA( No tax will be charged on interest earned on balance in savings bank account subject to a maximum of Rs. 10,000 per year.)come in force from this year and so on.

So, you can take benifit from thease changes.

At the point of Investment you can invest your money in :

Life Insurance Premium, PPF, EPF, Tax Saver FD(up to 5 years), Mutual Funds, NSC, KVP(Maximum 1 lacs)

In mediclaim policy maximum 40000( If conditions satisfied)

In House property,

If you live at rent then you should take benefit of Sec 10 instead of Sec.80GG

Because lack of details i will not help you exact but i am attatching a word file that can help you in your tax planning.

Regards,

Alok Srivastava

You may also invest in Sec 80 CCG & can get deduction upto Rs. 25000 (50% of Investment Amount )

HARISH,

As per conditions laid down under section 80CCG ,deduction shall be withdrawn in case of  person fails to satisfy the conditions in after availing the deduction. Suppose a person has claimed the deduction when his income is less than 10 lakh ,if his income for the next year increased from 10 lakh then whether deduction will be revered or not it is not very much clear .If it is to be revered then person who's income is near to 10 lakh have to think twice before claiming this deduction.

Alok Srivastava,

How can u say that Invsetment in Sec80CCG is blockage of money.i think it is more beneficial than investing in PPF, FD etc. And if it is not clear in Sec80CCG(If Icome will be more than 10 Lacs in next Assessment Year) then it will not ur Deemed Income.

Do we have any Free Software available from Institute for returns filing?

Tax Suite Software is very handy to use and freely available, just click on the below link and get your copy immediately.

Link: https://icai.taxsuite.in/subsinfo.htm?mid=00000