Hello All,
First thanks to forum for contribution & collection of huge information.
I'm working as "operation head" in India. I worked as "professional" till last 4 yrs & my CTC till end of March 12 is 904000. For last 4 yrs my company deducted TDS i.e. 10.3% monthly & I claimed almost 80 to 85% refund after filing balance sheet.
Now as company is growing my HR dept is claiming that I may exceed to 10 Lac P.A. & as per them my deduction will be 12% service tax + 10.3% TDS per month & I can only claim refund of TDS bur service tax will remains non-refundable & so it's beneficial for me to be salaried employee.
If I become salaried I can plan following max steps to save tax.
Deductions under Sec. 80C, 80CCC & 80CCD: Max 1 Lac
Deductions under Sec. 80CCF for Investment in Infrastructure Bonds: Max. Rs. 20,000
Deductions under Sec. 80D for Health Insurance: 15000
Deductions under Sec. 80D for Health Insurance of parents: 20000
Deductions under Sec. 80DDB. : Max. Rs. 40,000/-.
Income Net of Income Tax Liability: 708695
(Calculator link : https://www.investwellonline.com/taxcal/tax_calculator.htm)
Income Tax due: 96305 (Which is Fixed – Non refundable tax)
Question : Please advice which is the best way to save my tax ? Which step I should take ? Should I choose “Salaried employee” or “Be as a Professional” ?
Please advice.
Thanks & Regards,
Nashikar