More tax can be saved if Bahugana invests in the NPS under Sec 80CCD(1b). She already puts Rs 25,000 in the scheme in a year. If this investment is raised to Rs 50,000, she will save Rs 1,300 more. At 36, Bahugana should opt for a balanced allocation in the NPS. Next, she should ask […]
NPS, home loan, tax-free perks can help Agrawal cut tax by over Rs 75,000
Agrawal is planning to buy a house. If he takes a loan of Rs 25 lakh at 8.5% for 20 years, he will pay an interest of Rs 2.1 lakh in the first year. Though his HRA will be taxed, the home loan deduction will cut his tax by Rs 36,000. Next, Agrawal should ask […]
Chenappan can cut tax outgo by Rs 64K via NPS, salary rejig
Chenappan should start by asking his company to replace the transport allowance in his pay with telephone and newspaper bills reimbursements. He should also ask for leave travel assistance and food coupons. These perks are tax free against submission of bills and actual usage. If he gets Rs 88,000 under these heads, his tax will […]
Lied in your tax return? Rectify the lapses now
NEW DELHI: When a friend told Ashish Kumar how a tax prepare had got him a huge tax refund, the Pune-based executive decided to also try his luck. Kumar sent his Form 16 and other details to the tax preparer. Within a few days his tax return had been filed with a refund of over Rs 50,000. This […]
Don’t ignore these incomes while filing your tax return
However, tax filing portal Taxspanner found that almost 80% of taxpayers who filed their income tax returns do not report any interest income. “Not declaring this income amounts to tax evasion and could fetch a notice from the tax department,” says Sudhir Kaushik, Co-founder and CFO, Taxspanner.com. Things become more serious if the undeclared income […]
‘CAs’ help you get fat income tax refunds, with a bit of fraud
This is easy because no documents have to be submitted to support deductions or exemptions claimed in a income tax return. “One can claim deduction for medical insurance, home loan or education loan or even disability of self or dependent without having to submit any evidence,” pointed out a Mumbai-based chartered accountant. For this, […]
Tax Return Filing Tips for Ola or Uber Drivers; Deductions to Reduce Tax Liability
Tax filing tips for Ola or Uber drivers If you are running a business then Section 44AD presumptive income option is the easiest option for tax compliance. The section applies to all those running their own businesses and do not maintain their book of accounts. Under this section, from Ola or Uber driver to any small […]
How investing in NPS can help Vinod cut tax by over Rs 50,000
Gupta should start by asking his company to hike his telephone reimbursement by Rs 6,000. The medical allowance, which is now taxable, should be scrapped and replaced with a magazine and newspaper reimbursement. These two changes will reduce his annual tax by about Rs 7,500. Next, Gupta should ask his company for the NPS benefit. […]
How claiming medical expenses under section 80DD can reduce Sharma’s tax outgo
Sharma should start by asking that the transport and medical allowances in his salary, which are now taxable, should be replaced with a newspaper allowance. He should also ask for a higher telephone allowance. This rejig will cut his tax by about Rs 5,600. Income from employer Income other sources Next, he should ask his […]
Why salaried Maduri needs to rejig pay structure to cut tax
Income from employer He should ask his company to reimburse magazine and newspaper bills, telecommunication expenses and also provide food coupons. These perks are tax free against submission of bills and actual usage. If he gets Rs 75,000 under these heads, his tax will reduce by about Rs 24,000. Next, he should ask for […]
