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Urgent advise needed to save income tax

685 views 5 replies

Saini

B.Com

27 Points Posted on 22 December 2014

Although i have been working for 12yrs but in 2014, I have worked only for 4 months i.e. from April to July and then i took sabbatical leaves.

My question is :(1)Do i still need to invest 1.50lacs under 80C to claim tax exemption, considering the fact that i worked & got salary for only 4 months ? (2) If yes, do i need to invest full 1.50lacs or can i invest equivalent amount of 4months only i.e. 50000/-

Thank You,

Replies (5)

Rahul Agarwal

Chartered Accountant

213 Points Posted on 22 December 2014

Hi,

First arrive at your tax liability and decide accordingly.

However, investments may also be dependent on other factors like : your own preference whether you wish to save by investing, or the fact that if you dont invest you may be a defaulter - like non payment of insurance premium.

So, for solely tax saving purposes, arrive at an estimated tax liability and then decide the quantum of investment that should suit your purpose.

satyashi

Student C.A. final

212 Points Posted on 22 December 2014

DEAR SAINI,

See there is no question of amount of salary.the deduction you can claim irrelevant of your salary is Rs.1,50,000/- for the year and if your income is below rs 150000/- you will get the full amount as deduction u/s 80c. so i suggest you to invest as per your income.i will be in a better position to tell the exact amount to be invested if you can give the details of your income.

Thank You.