Tax Planning Measures

For tax saving purposes an employee can investment in following:

1. Lic

2. PPF

3. Mediclaim

etc.

• PPF Upto 70000
• LIC
• mediclaim
• Mutual funds
• NSC
• Bank Deposits FIxed
• etc...

They Can Struct their salary structure according to thair taxability....

Like some allowances are wholly exempt (it means upto spending amount)

They should be use these type of allowances  some of the allowances are...

travelling allowance.

uniform alowance

academic allowances.

after all if they have taxable income than they should deposited

some amt in lic , pf and other govt. funds...

1st prepare IT computation and allow exemption of Allowances like HRA, Transport Allowance etc.

Give deductions of Chepter VI (Section 80C to Section 80U)

80C - upto 1,00,000 in which PPF Rs.70,000

80D- 20,000 and Rs. 15,000 extra if medical policy is for parents

80E- Interest on Educational Loan

80G - Any donation to approved charritable society (Plz do check the % Allowed) and receipts of donations

and other sections as well