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tax savings

trideep (ca) (218 Points)

23 March 2018

the taxable income comes to Rs 543000 after all deduction i.e 80c and other. sir weather this 543000 can be invested in tax free bond as a whole? or i have to pay tax on this 543000. this is not business income it has salary n pension incom only

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11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 23 March 2018

First you have to pay tax liability over the net taxable income........ then you can invest the way you like......

Tax saving bonds are for tax-free interest income....... but initial investment is not covered under any exemption

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trideep (ca) (218 Points)
Replied 23 March 2018

that means I have to pay the income tax on 543000 and then I can invest this in a tax free bond.?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 24 March 2018

Correct.......

trideep (ca) (218 Points)
Replied 24 March 2018

but sir i have to pay the tax on this amount then there will be no benefit if i invest this amonut in tax free bond because i already paid the tax.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 24 March 2018

That's correct......

The bonds are suitable for high bracket tax payers, as the interest income received from the investment is tax-free.....

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trideep (ca) (218 Points)
Replied 26 March 2018

ok thank you for your help and time sir.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 26 March 2018

My Pleasure......

trideep (ca) (218 Points)
Replied 30 March 2018

Anothe question, Sir in the drop down option menu of ITR 1 do i have to select " after due" if i have to file ITR 1 for FY 2016-17 today? that is i want to file ITR 1 of FY 2016-17 on 30/03/2018.