In today’s world corporate as well as individuals are required to comply with a number of income tax compliances, which require expert knowledge and are mostly time-bound and technical in nature. Moreover, most of the income tax compliances nowadays are required to be completed online and require specialized knowledge. We at FINACT Professional Services provide Time-bound and quality services to our clients. Our span of Income Tax services covers all aspects of Indian Income Tax Laws. Our services help our clients to operate efficiently and meet out their tax liability.
There is more to tax planning than exemptions available on savings. After all, your capital is more productive in your hands and it can work wonders for you if planned properly. You will also know how to tax proof your incomes and gains
What is tax planning and what you could gain from it?
A good citizen should always pay tax. But he should not end up paying unnecessary tax. A smart citizen is one who pays tax but also makes maximum use of provisions available in Tax Laws to minimize it.
Some common questions that come to mind:
This can be achieved through scientific Tax planning.
Tax Planning involves measures within the current legislation dealing with the choice of time, location and activities, with creation and support of the most effective schemes and contractual relationships to increase the cash flows due to minimization of tax payments.
Through proper tax planning, you will not only lower amounts of tax payments with respect to basic taxes, but you’ll also create a wealth stream for achieving long term goals.
Optimization of tax payments includes:
Tax Planning Tips
An Indian Citizen can save tax under the following sections:
Section 80C of Income Tax Act 1961:
A maximum of Rs. 1,00,000 can be claimed as a deduction from your taxable income provided it is invested in any / all of the following:
Section 80D of Income Tax Act 1961:
Health insurance, popularly known as Mediclaim Policies, provides a deduction from Rs. 15000/- upto Rs. 35,000/- (Rs. 15,000/- for premium payments towards policies on self, spouse and children and (read as in addition to) Rs. 15,000.00 for premium payment towards non-senior citizen dependant parents (total Rs. 30000/-) or Rs. 20,000/- for premium payment towards senior citizen dependant parents(Total Rs. 35000/-)). This deduction is in addition to Rs. 1,00,000/- savings under IT deductions clause 80C. For consideration under a senior citizen category, the incumbent’s age should be 65 years during any part of the current fiscal, eg. for the fiscal year 2010-2011, the incumbent should already be 65 as on March 31st, 2011). This deduction is also applicable to the cheques paid by proprietor firms. However, premiums paid by senior citizens for covering health of their children, dependent or otherwise, are not eligible for the deduction.
Section 80DD of Income Tax Act 1961:
The total deductible amount under this section is Rs. 40,000. Sec. 80DD stipulates that a resident individual or a member of HUF having a dependent relative who suffers from a permanent physical disability (including blindness) or mental retardation is entitled to a deduction of Rs. 20,000 in a year for medical treatment, training or rehabilitation. Payment to LIC’s ‘Jeevan Aadhar’ and UTI’s ‘Special Plan for the Handicapped’ specially designed for such persons is covered by Sec. 80DD. Deduction under section 80DD is statutory in nature and is allowed in full, irrespective of the actual expenditure incurred on medical treatment.
Section 24 of Income Tax Act 1961:
Under Section 24, the maximum amount of Rs 1,50,000 paid towards interest on your Housing Loan can be deducted from your income.