13 March 2008
RECENTLY GOVT ADDED IN THE BUDGET POST OFFICE TIME DEPOSITS(5 YEARS) AND SENIOR CITIZEN SAVINGS (BUT SENIOR CITIZEN IS NOT APPLICABLE FOR YOUR FRIEND UNLESS HE IS 60). BUT BOTH ARE UNDR 80 C. MEDICAL INSURANCE UNDER 80 D IS INCREASED FOR PARENTS OF ASSESSEE ADDITIONALLY RS 15000/- PA. ONLY FOR PARENTS. HE CAN CONSIDER IF POSSIBLE. IF EMPLOYER ALLOWS SOME PART OF SALARY AS REIMBURSEMENTS , THAT IS TAX FREE LIKE EXPENSES INCURRED FOR OFFICIAL PURPOSES AND REIMBURSED ON VOUCHERS OR IN THE FORM OF T.A BILLS MONTHLY ETC.. CHILDREN EDUCATION ALLOWANCE RS. 100 PER MONTH PER CHILD FOR MAXIMUM OF TWO CHILDREN CAN ALSO BE CLAIMED AS TAX FREE. TRANSPORT ALLOWANCE OF RS. 800 P.M IS TAX FREE BESIDES MEDICAL EXP. REIMBURSED ON BILLS UPTO RS. 15000/-P.A SOME ASSESSEES PREFER TAX REFUND THAN BLOCKING HUGE MONEY IN SAVINGS. R.V.RAO
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