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: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: empanelment :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: VAT RATES :: due date for vat payment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT Audit :: cpt :: list of goods taxed at 4%
 
 
Service Tax »
 IT infrastructure firm of GST under scrutiny for tax evasion
 GST council OKs draft law on relief to states
 GST Network gets notice for avoiding service tax
 GSTN contract may attract tax
 GST Council may discuss tax rate on gold at Udaipur meet
 Govt may rework indirect tax estimates mid-way after GST
 GST Council meeting: States allowed to tweak taxpayer division after consulting Centre
 Government may rework indirect tax maths mid-way after GST entry
 Govt may rework indirect tax mid-way after GST entry
 GST rollout will reduce disparity among states
 GST: E-tailers oppose tax laws

How to restructure your income, investments and expenses to optimise your tax
June, 23rd 2015

Kishore Lamba, a 32-year-old manager in a financial services company, is worried about his tax outgo. Lamba's company deducts more than Rs 10,000 as TDS every month from his salary. Lamba should rejig his salary structure. Instead of the high special allowance, his employer can put up to 10per cent of his basic salary in the NPS under Sec 80CCD2. He should also ask for perks such as newspaper and phone allowance which are tax free on submission of bills. These two measures will reduce his annual tax bill by Rs 20,000.


Lamba's tax planning also needs a rejig. He is putting too much in the PPF. Instead, he should put Rs 50,000 in the NPS under the new Section 80CCD1b. That will cut his yearly tax by Rs 10,000. He should also consider investing in ELSS funds or go for a low-cost online Ulip for better returns. Lamba is repaying a home loan but cannot avail benefits since the house is not self-occupied. He should give it out on rent and enjoy full deduction of the Rs 3.62 lakh he pays in interest. The rent (Rs 7,000 per month) will be taxed after a 30per cent standard deduction. But the deduction of the interest will cut his overall tax by almost Rs 62,500.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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