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: VAT RATES :: Central Excise rule to resale the machines to a new company :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: VAT Audit :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARD :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: cpt :: form 3cd
 
 
Indirect Tax »
 Income-tax (16th Amendment) Rules, 2017
 TDS, TCS deferred for smooth GST rollout
 GST may lead to better operating profit margin for multiplex operators
 Indirect taxes must equal direct taxes
  Income Tax dept issues notices to ‘farmers’ claiming suspect agricultural income
 GST would match or be lower than the multiple indirect taxes on real estate
 Tax incidence under GST lower than current indirect taxes
 Here's the complete list of pre-GST discounts being offered by companies
 Applicability of Explanation 2 to Section 132B of the I.T. Act, 1961- reg.
 Here’s all you need to know about TDS and why it is deducted
 New indirect tax regime

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 2017 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