What All ways we can reduce the taxable amount

DEAR KAMAL MAK SURE THAT DEARNESS ALLOWANCE OR DEARNESS PAY FORMS PART OF U R BASIC SALARY THIS WIL MINIMIOSE TAX INCIDENCE IN CASE OF HRA,GRATUITY,PENSION,EMPLOYERS CONTRIBUTION TO RECOGNISED P.F,PLEASE INVEST IN PUBLIC PROVIDENT FUND BCZ RECEIPT ON MATURITY IS FULLY EXEMPT. FURTHER IF U R RECEIVING ANY COMMISION ON SALES THEN MAKE SURE IT ISA GIVEN IN FORM OF  % OF SALES TJIS WILL FURTHER REDUCE U R TAX INCIDENCE ON HRA ,ENTERTAINMENT ALLOWANCES,GRATUITY,COMMUTED PENSION...UNCOMMUTED PENSION IS ALWAYS TAXABLE FOR ALL SO PLZ. TRY TO MAKE THE PENSION COMMUTED.

SINCE EMPLOYERS CONT. TO RECOGNISED PROVIDENT FUND IS EXEMPT UPTO 12% SO U R EMPLOYER CAN GIVE U TAX BENIFITE BY CONTRIBUTING 12% OF SALARY

FIXED MEDICAL ALLOWAANCE IS ALWAYAS TAXABLE SO PLZ. TRYFREE MEDICAL FACILITIES

U MUST TAKE BENIFIT OF RELIEF UNDER SECTION 89 OF INCOME TAX ACT.

     OTHERS VIEW SOLICITED THNXS

     REGARDS VIJAY(CSFINAL)STUDENT

IN RESPECT OF HOUSE PRPPERTY INCOME U CAN GET DEDUCTION OF INTERST OF RS.150000 OR RS30000 DEPENDING UPONDATE OF LOAN AS WELL AS STANDARD DEDUCTION U/S 24 30% OF NET ANNUAL VALUE....FURTHER U CAN CAN GET CEDUCTION  U/S 80C TO 80 U

IN RESPECT OF INCOME FRM HOUSE PROPERTY DEDUCTION OF MUNICIPAL TAXES IS ON PAYMENT BASIS AND NOT ON DUE BASIS SO MAKE SURE U MAKE PAYMENT OF SAME TO GET MORE FAVOURABLE TAX TREATMENT, if house prpty used for resedential prpse then ignore this one....OK MORE TAX PLANNING TOOLS WILL FOLLOW

REGARDS

VIJAY

CS FINAL

IN RESPECT OF INCOME FRM HOUSE PROPERTY DEDUCTION OF MUNICIPAL TAXES IS ON PAYMENT BASIS AND NOT ON DUE BASIS SO MAKE SURE U MAKE PAYMENT OF SAME TO GET MORE FAVOURABLE TAX TREATMENT,.... if house property is used for residential prpse then ignore this one OK MORE TAX PLANNING TOOLS WILL FOLLOW

REGARDS

VIJAY

CS FINAL

DEDUCTION OF INTEREST OF 150000 OR 30000 IS APPLICABLE FOR ONE SELF OCCUPIED PRPPERTY AND NOT IN CASE LET OUT OR DEEMED TO BE LET OUT PROPERTY.... FURTHER IN CAS EPROPERTY IS ACQUIRED BY TAKING A LOAN AND LOAN IS UTILISED FOR PURCHASE,CONSTRUCTION,REPAIR,RENEWAL,RECONSTRUCTION. I THINK  THERE IS NO LIMIT FOR DEDUCTION  AS IS IN CASE OF ONE SELF OCCUPIED PROPRTY bt it can be claimed on accrual basis INTEREST ON LOAN TAKEN TO REPAY ORIGINAL LOAN AS ABV IS ALSO ALLOWABLE SO DONT REPAY LOAN FRM U R OWN RESOURCE REPAY IT BY TAKING A LOAN circcular no.28 dated august20,1969 of income tax dept...

dear vijay

municipal tax deduction is not allowable if the person is using house property for residential purpose.

dear kamal

u can cliam interest deduction u/h house property upto rs.150000 if property construction is completed with in three years.for principal amount deduction u can claim it in the year in which construction is completed.this will fall u/s 80C.U can cliam other deduction u/s 80C like insurance premium,tution fees for childeren if u have.

if u have medical policy then u can claim it apart from rs.100000

regards

tarun rustagi

thanks vicky and tarun for your valuble comments.