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Tax saving...help plzzzz.........

24 March 2013

help plzzzzzzzzzzzzzzzzzzzz.............

hey guys....having one doubt....my one friend is a salaried employee in Bharat Petroleum.He doesnt have any investment nor having any property in his name nor any insurance....he falls in 30% slab...how can he save his tax...any suggestions regarding any investments or deposit or anything....help plz....

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12 Replies

CMA RAVI (ASSISTANT MANGER - FINANCE) (478 Points)
Replied 24 March 2013

Hey runita there is hardly a week left for end of financial year. As you have mentioned he is not having any investments then probably he can't save tax. Have u ever heard a tree giving fruit without flower..that's the same case. Tax planning needs to be done practically in the begining and not at end of financial year...

2 Like

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 24 March 2013

is there any turion fee paid to childeren

if there it is exempt under 80c

it is recommended to plan properly at the begigng so as to reduce tax liability

Mihir (Wealth Manager) (5293 Points)
Replied 24 March 2013

First compute his total income. Check 26AS how much TDS has been deducted and deposited from his salary. Check for any EPF deductions from the salary.

You can invest in PPF. You can purchase NSC. Limit is Rs. 100,000/-

1 Like

CA Suraj Lakhotia (IndigoLearn) (4898 Points)
Replied 25 March 2013

Mostly his 80C limit would have been exhausted. There is no other option to reduce his tax.

CA Mukesh Choudhari (xyz) (153 Points)
Replied 25 March 2013

Apart from 80 C one can invest in the new Rajiv gandhi equity saving scheme, Medical insurence for self family and if parents are senior citizen then additional benefit in medical insurence.

CS M.Kurtrala Nathan (Company Secretary) (4101 Points)
Replied 25 March 2013

1. Better he can invest in 5 years FD tax savings scheme for 80C (upto Max. limit 1 lac)

2. Apart from 80C, he can take a individual health insurance policy or dependant health insurance policy for 80D ( upto max limit Rs.15,000)

3.Another option is to provide donation to any recognized institutions for 80G

1 Like

RAVITOSH KUMAR (Executive) (324 Points)
Replied 25 March 2013

Adding to the point made by Mr Nathan, One thing for sure you can do is even if you have not taken any medical insurance policy, your cash expenses upto Rs 5000 during the year on preventive health checkup will be allowed as deduction under section 80D within the overall limit as specified above. So keep your medical bills for record purpose.

You tax saving in the given condition would be 5000*30% = 1500.

CA Suraj Lakhotia (IndigoLearn) (4898 Points)
Replied 25 March 2013

Being in a PSU, Medical Insurance does not make sense, unless one is planning to change companies in near future.

All medical costs are borne by the company.

Vieshesh Garg (Student ca final) (84 Points)
Replied 25 March 2013

I think he still can save tax by investing in NSC or taking a LIC policy

Apart from it he can try and change his salary structure including in it HRA and show himself as someone living on rent in his parents house atleast for next year so that atleast he can save tax next year.

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 25 March 2013

He must be getting monetary perks and allowances.. so he can claim exemption for any professional/educational realted expenses on actual basis...LTc/LLTC if under taken...and various other under 10(14)..