This is a common concern for every person, to minimise the tax liability. In India, We have a greater mass of salaried person who generally are not willing to pay any consultancy to a Tax Planner. As the February closing, the concern gets increasing; so, here we are making an effort to give you a free tax planning consultancy.
Let’s see what all part of your salary is untaxable:-
1. Transportation Allowance: Granted to an employee to meet his expenditure for the purpose of commuting between the place of residence & duty. [ Up to Rs. 800/- p.m. exempt in Normal Case/ Up to Rs. 1600/- p.m. exempt in case of Handicapped]
2. HRA – House Rent Allowance: Provided that expenditure on rent is actually incurred, exemption available shall be the least of the following-
a. HRA received.
b. Rent paid less 10% of salary.
c. 40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi)
3. Medical reimbursement: any sum paid by the employer towards medical reimbursement is exempt up to Rs.15,000/-.
4. Gift or voucher or token: – Up to an amount of Rs. 5,000/- is exempt.
5. Food coupons like sodexo or ticket restaurant are exempt from tax up to Rs.60000
Now we should take into consideration the Savings you can make to narrow down taxable amount:
- Under section 80C, we can make a maximum saving of Rs. 1,00,000/- (one lakh). This investment may be in Life Insurance Premium, Mutual Fund, FD or there is a long list of options available.
- Under Section 80 CCF, you can invest up to Rs.20000 in infrastructure bonds
-
- Under Section 80D, Health insurance premium of upto Rs. 15,000/- for individual below 60 years of age and 20,000/- for senior citizen (May it be, the assessee himself or spouse or parents or Children).
A deduction for expenditure towards preventive health check-up for an amount of Rs. 5,000/- is allowed. The overall limit of this section should not exceed Rs. 15,000/20,000/-.
- Under Section 80E, the entire interest paid on the education loan could be used to claim a deduction. The loan should be taken for the sole purpose of higher education. It could either be for the individual, spouse or children. From assessment year 2010-11, deduction could be claimed for the student for whom the individual or assessee is the legal guardian.
(For Any specific tax-planning advice or assistance, you may contact Ms. Rohini Mishra at rohinimishra.cs@gmail.com)
