, plan income tax and of the country. This money is used for construction works. At the same time, the government also operates many schemes. However, many times the state and central governments also spend it as their promotion. At the same time, for the sake of their vote bank, they also spread free diseases among people. This is troublesome for the taxpayers. To save tax savings, do this management…
get into the habit of paying taxes
But income tax is an important legal provision, and we should follow it sincerely. However, as far as possible, within the ambit of law, we should try to minimize the tax liability through good planning.
Salary deduction creates trouble
In case of salaried employees, tax hurts when tax is not deducted on equated monthly basis, especially, when the majority of year-end salary ends up deducting income tax.
Thus, tax planning should begin with the beginning of the financial year, and we should declare in advance about the expenses and investments to our employer and comply with the commitment by providing proof of such expenses and investments, if required by the management. Needed.
Apart from salary, if individuals have income from any other source such as income from house property, income from business or profession, capital gains, or income from other sources, the details of such income, expenditure and investments must be discussed with their CA. .
Part A: Incomes which are not part of total income or which are exempt from income tax.
Part B: Certain deductions to be made in computing total income.
Part C: Certain other deductions are allowed in computing the total income.
take advantage of discounts
In addition, new tax regime under section 115BAC has been introduced in Budget 2020, which has split the income tax slabs. The exemptions can be availed in full to adjust your taxable income as per the new slab. However, deductions and certain exemptions are not allowed in the new tax slab regime.
Choose tax slabs wisely
Before choosing the tax slab, the taxpayer must decide the advantages and disadvantages of both the slabs. If he has exhausted the investment and spending limit, then it is beneficial to choose the old tax slab.
There is not much scope to save tax for a salaried person. However, for a person who is in business, a lot of deductions are available under Section 30 to 42 of the Income Tax Act. Employees can also do market-linked investments if they want. Investing in the National Pension System (NPS) is also a better option. In this, equity fund option should be given priority. In NPS, 60 per cent of the corpus can be withdrawn on retirement, which is not taxable. An annuity plan will have to be taken from the remaining amount, which will give pension for life.