Tax planning

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2013 An assessee (Male - 38yrs) is expected to have following incomes in the FY 2013-14:
Income from HP - Rs 7,60,000
Income from business - Rs 89,000
Income from Other Sources - Rs 42,000

According to his investments, he will be eligible for deductions as under:
80 C - Rs 1,00,000
80 D - Rs 5,500
80 TTA - Rs 10,000

Give some good suggestions on how to minimize his tax liability for AY 2014-15?

Rupesh Jain

Rupesh Jain (Expert)
Follow

26 July 2013 he take housing loan for self residence house then he take deduction of intt on housing loan
or he give donation u/s 80G

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2013 Y to take housing loan if house is already complete and ready also 18 years old.
And 80 G doesn't seems promising option as he either donate or pay tax, he is going to loose money. Then y not pay the tax rather going for donations. I m not against donation but this doesn't seems good for the assesee

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2013 Any other good option where he can invest and save tax.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

02 September 2013 You have availed all the options available and hence you are on the right track. Housing loan is not an option because first you borrow and then on the borrowing bank charges interest which is to be paid by you and then claim the deduction. What is the benefit? The only benefit is that this interest is allowable as deduction from your income but physically you have to pay it to the bank which will reduce your capital.

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2013 Correct and Thanx Agarwal ji.