Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: due date for vat payment :: cpt :: articles on VAT and GST in India :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: form 3cd :: empanelment
 
 
News Headlines »
 How will goods and service tax impact state revenues?
 Tax officers can issue certificates to avoid taking TDS from NRIs
 India is second most complex tax jurisdiction
 How to link your Aadhaar and PAN details to file income-tax returns
 How to calculate capital gains tax on property sold at less than stamp value?
 Return Filing - Under GST, this is how you will file tax returns from July 1
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017

Strike a balance between financial goals and tax savings
October, 13th 2015

There are a few tax benefits that you can use to your advantage under the Income-tax Act, 1961. However, tax saving should not be at the cost of your financial goals. You need to create a balance between financial goals and tax planning.

Prima facie it appears your investments in ELSS, PF and life insurance premiums have exhausted the section 80C limit of Rs.1.50 lakh. However, all these investments carry a minimum lock-in period. In ELSS, the minimum period is three years. The product also helps you participate in equity markets. So, with a moderate risk appetite, do stay invested in the ELSS to build your equity portfolio.

From financial year 2015-16, you are allowed to take an additional benefit of Rs.50,000 for investment in NPS. This deduction is available over and above the deductions of section 80C. Hence, the cumulative deduction available is Rs.2 lakh.

An NPS account can be opened with a tier 1 account—this is meant for savings for retirement. Only when you have a tier 1 account can you open a tier 2 account—a voluntary savings account. No tax benefit is available for this account. The investments in NPS can be done in equity, corporate bond-fixed income securities, and government securities via an active choice. You can choose a maximum of 50% in equity. Else, an auto choice-life cycle fund can decide the equity allocation based your age.

You have an education loan. Section 80E gives tax benefit on the education loan interest. This can be claimed over eight years once you start paying interest.

The other benefits which can help you attain more tax efficiency are:

* Section 24 gives you the benefit on interest on housing loan. The limit is capped at Rs.2 lakh.

* If you are staying in a rented house, you can claim the benefit of house rent allowance. Based on your basic salary and the rent paid, the exemption can be claimed.

* Section 80D provides benefit on health insurance premiums. Premiums paid for self, spouse and dependent children is deductible up to Rs.25,000, and for senior citizens it is Rs.30,000. If your premium does not exhaust the deduction limit, you could claim Rs.5,000 within the overall limit for preventive health check-ups.

* If donations have been made to specified organisations, tax benefit for these can be claimed under section 80G.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions