Tag: Income Tax India

Tax Saving Tips for Salaried Employees in India

Tax Saving Tips for Salaried Employees in India - Chakreview.com

Salaried employees tend to make investments near the end of every financial year in order to minimize taxes. However, there are other options available as well that can be helpful in saving tax. Enlisted below are some useful tax saving tips for salaried employees in India that you may find helpful:
Restructuring salary:
Though it is not an always available option, however, if your organization permits, it is one of the best ways to save tax. You just need to restructure a few components to bring down your tax liability. For instance: include transport, medical, education and other such allowances as a part of your salary and then to reduce tax, produce bills of actual expenses incurred for the respective allowances; opt for food coupons instead of lunch allowance as food coupons are exempt from tax up to Rs. 50 per meal; to decrease prerequisite taxation, opt for company car rather than making use of your own; etc.

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Tax saving under 80c: Best 80c Investment options

Every earning individual is concerned about tax payment and tax savings. When you go seeking advice on how to save tax, people often throw suggestions that leave you baffled and confused. This chaos may lead you to make poor decisions and end up regretting. Thus, it is vital for you to gather trusted information regarding different investment options that one can consider to save tax. Some of these effective solutions are available under Section 80 C. The Section 80C has now replaced the previously existing Section 88 and has been effective since April, 2006. Discussed below are some of the best investment options under Section 80C that can be used for tax saving purposes:

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Best Tax Saving Investment Schemes in India

Best Tax Saving Investment Schemes in India - Chakreview.com

Tax saving with investment – every individual who pays tax have interest in this topic. If you are one of them, you will glad to know that there are multiple options available forthe same. Knowing about your options is quite essential for making right tax saving decisions and not get stuck with multiple advices from everyone at the end moment.So, discussed below are some such best tax saving investment schemes in India from which you can draw such benefits:

Public Provident Fund
It is one of the best investment schemes in India that can be used for saving tax. It may not promise very high returns but it offers liquidity by way of withdrawals and loans; flexibility of investment and comes with a tax-free status. Investing in Public Provident Funds becomes an even more attractive option as the interest rate has been linked to bond yields in the secondary market. Also, it is expected that the Public Provident Fund will encounter a hike marginally in the year 2014-15. PPF requires a minimum investment of
Best Tax Saving Investment Schemes in India – Chakreview.com
Best Tax Saving Investment Schemes in India – Chakreview.com
INR 500 a year and a maximum investment of INR 1 Lac a year. Investing in PPF is the best option for elf-employed professionals, risk-averse investor and individu

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How to save Tax under different Sections?

If you are looking forward to some information on how to save tax under different section of the Income Tax law, you have come to the right place. Enlisted and discussed below are some of the income tax deductions list that you may find helpful:
Section 80C:
Under this section, deductions can be made in terms of different expenditures, investments and payments. The total deduction limit under the Section 80C is INR 1.5 Lacs. A few deductions that can be made to save tax as per this section include:
Life Insurance Premium(s) for self, spouse or child. It can also be for any member of the family in case of HUF.
Contribution to Employee’s Provident Fund Scheme, Recognized Provident Fund, Public Provident Fund for resident individual, Unit Linked Insurance Plan of LIC Mutual Fund and National Housing Scheme set deposit scheme/Pension fund.
Subscription to notified saving certificate and notified securities or deposit schemes.
Investment by resident individuals in Senior Citizens Savings Scheme 2005 for a 5 year period.

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Math of Income Tax: How it is calculated?

Calculating tax is not exactly as tough as it may sound to you. You just need to move step by step. But before you go on to calculate tax, you first need to understand ‘income.’ An individual’s income can be broadly divided under 5 different categories, namely the salary income, income from house property, professional/ …

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