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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Indirect Tax »
  Indirect tax evasion cases post a decline in FY18-19
 Income tax return revision: How many times can a return be revised? Find out
 CBDT notifies new I-T return forms
 Here are the key changes in tax rules to come into effect from today
 GST revenue growth in 2018-19 to match last 10 years’ indirect tax growth, says SBI report
 Things You Should Know Before Filing Your Income Tax Returns (ITR)
 All education loans do not get income tax benefits
 FM Arun Jaitley to focus on direct and indirect taxes
 Income Tax For Individuals – Assessment Year 2019–20
 States set separate dates to implement e-way bill
 What are direct and indirect taxes?

How to restructure income, investments & expenses to optimise tax outgo
August, 10th 2015

Like many salaried professionals, Abhay Sehgal also has income from property and investments. His salary structure is fairly tax friendly because only 8% of his total income goes in tax. However, he can bring this down significantly if his employer agrees to rejig the components of his pay package and Sehgal avails of the deductions he is eligible for.

Sehgal can ask his company to reduce the taxable special allowance and bonus. Instead, he can get reimbursements for telephone, travel and newspaper expenses. He should also ask for LTA. All these are tax free on submission of actual bills. If these add up to Rs 90,000 a year, his tax comes down by Rs 18,000. Another Rs 10,250 can be saved if the company puts 10% of his basic in the NPS under Sec 80CCD(2).

Sehgal's father suffers from Parkinson's disease, which is one of the specified illnesses under Sec 80DDB. He can claim a deduction of up to Rs 80,000 for his treatment. That cuts his tax by another Rs 16,000. If he invests Rs 50,000 in the NPS under the newly introduced Sec 80CCD(1b), his tax comes down further by Rs 10,300.

He should also avoid tax unfriendly fixed deposits. If he shifts some amount into debt funds, he can defer the tax till the time he withdraws the money.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

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