Tax planning for a salried employee

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2012 Dear All,

Can you suggest some measures of tax planning for a salaried employee having salary income equal to Rs. 600000/-.

Please suggest the measures by which tax liability comes to minimal or nil tax

Thanks in Advance...

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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18 August 2012 Claim HRA exemption, Invest amount in LIC which is a vry good investment.
Kindly tell me your salary structre for better tax planning

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Guest

Guest (Expert)

18 August 2012 Section 80C provides you relief till Rs. 1 lac. Various Investments/expenses under Sec. 80C. They are listed below:

Life Insurance premiums ( of self and family)

Provident Fund contributions (of self and family)

Mutual Fund contributions

Public Provident Fund (PPF)

Tuition Fees (of 2 children)

Principal portion of EMI of the Housing loan

Fixed Deposit with Banks for 5 years

Following are additional deductions which are over and above the Rs.1 lac limit as mentioned above:

Health Insurance premium up to Rs.15,000/- (under section 80D)

Full Interest on Education loan u/s 80E

Donations u/s 80G

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Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2012 Thanx to u both...

Amit Sir ...The salary is just Rs. 50000 per month & there is not any structure....

Neha Mam ...I want to know that whether there is any other way by which i can minimise my tax liability...Actually i dont want to make investments as u have suggested in this year...

So , Kindly tell me if there is other way out...

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2012 I also want to know that as amit Sir has asked the salary structure..There is not any Salary Structure decided by the employer...

& hence in TDS Certificate the whole amount is appearing as basic...

So while Filing the ITR can i give the salary structure myself...Won't it be wrong ?

Guest

Guest (Expert)

18 August 2012 While filing ITR you can not give salary structure your self. Ask your employer to give you salary breakup for this year onwards.

Guest

Guest (Expert)

18 August 2012 Interest portion of EMI of Housing loan up to Rs.1.5 lacs (section 24).

Guest

Guest (Expert)

18 August 2012 section 80CCF provides for deduction max. upto Rs 20,000 for subscription to long-term infrastructure bonds as notified by the Central Govt

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CA Guru M

CA Guru M (Expert)
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18 August 2012 I don't think ITR 1 or ITR 2 ask for salary break up.

Only taxable salary( not entire CTC) needs to be shown.

However salary break up might provide you little tax savings.

CA Guru M

CA Guru M (Expert)
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18 August 2012 Best option is get housing loan & invest in HP.

Atleast from next FY your tax burden will reduce.

you will be savings Rs.25K tax on Rs.1L Loan repayment & Rs.1.5L Interest deduction under Income from HP.

In case of let out property entire amount will be allowed as deduction, in that option your tax burden will further reduce.

CA Guru M

CA Guru M (Expert)
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18 August 2012 If you don't want invest in HP. Then you have no options except whatever Ms. Neha has suggested.

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2012 Thanx to you Both...

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