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tax planning wih salary income

CA Amit Talada (CA, NCFM (level IV)) (4016 Points)

30 December 2008

how tax can be saved having salary as the primary income???

kindy suggest??

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13 Replies

Dilip Kadam (services) (119 Points)
Replied 30 December 2008

Making a investment u/s 80C

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 30 December 2008

There are not lot of way to escape from tax payment for salarised employees. But we can save tax

1. U/s 80C upto Rs 100000 by investing into certain specified investments, further

2. we can get LTA concession to the extent we are producing travelling bills in addition to that

3. we can ask compnay for food coupens (Tax free 100%) instead of cash payment.

CA. Abhishek Bansal (Research Analyst) (64 Points)
Replied 30 December 2008

Hi Amit,

There are a number of ways for saving taxes for a salaried person. The first and primary way is to have a proper salary structure, which may include components like Conveyance allowance, HRA, LTA, Medical reimbursements and food coupons, which are tax free.

Apart from that, 80C calls for a number of deductions which can be availed as per suitability.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 30 December 2008

Agree with Abhishek Bansal and further u can also consider Housing Loan Interest, Medical Policy (Section 80D), Eductaion Loan Repayment (Section 80E), Donations (Section 80G)

R.Suresh (Sr. Executive) (394 Points)
Replied 30 December 2008

Hi,

In a salary person lot of way to saving taxes. The first way is get a proper salary structure, which may include Conveyance allowance, HRA, LTA, Medical reimbursements and food coupons, which are giving for sum limit of tax exemptions.

Apart from that, section 80C is going to investment exemptions, 80D for medical premium, 80E for education loan interest repayment deduction and Donation for 80G etc.,

Rajat Rathi (Job) (55 Points)
Replied 30 December 2008

Hey,

In continuation to that can u guide me what would be the tax Implication in case a C.A gets the salary in the form of consultancy Fees from his employer......Further can the same employee can get the COP from the Institute and can carry on the Practice.......................................................................

R.Suresh (Sr. Executive) (394 Points)
Replied 30 December 2008

Hi,

Waht is COP ?

I don't understand your sentence, becuase you are telling that salary in the form of consultancy fees from employer in this case going to be a employee and employer relationship is contiuing means no way to Sign the reports.

In ICAI qualification for CA is Chartered accountant means should not be a employee of organisation.

Amit Sureka (Finance Manager-India) (251 Points)
Replied 08 January 2009

COP is Certificate Of Practise.

Sometimes a person works as consultant and do some savings in terms of tax. The person received monthly retainership. The company deduct TDS @ 20%++ and pay the amount. Consultant shows it as business income and claim some expenses and pay lower tax. But the person has to comply with service tax as well.

Rajinder yadav (Accounts Executive) (22 Points)
Replied 21 November 2009

LAKSHMI NARAYAN (CA Final Student) (904 Points)
Replied 25 November 2009

Tax Planning for Salary income differs from person to person based on his salary breakup and personal details. So if you are a salaried employee then send me your payslip to saraga @ rediffmail.com. I will send you a tax plan.