TAX PLANNING for Salaried Individuals – Year 2011-12
| TAX PLANNING for Salaried Individuals – Year 2011-12 | ||||||||||||||||||||||||||||||
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Many of us will be worried about tax deductions when October/November month comes in a year. If one plans well from the Year beginning then this will be very simple and we can reduce our Tax payment. Salaried individuals in India are not fully aware of the tax planning and various options available to plan the tax. Still many individuals are paying lot of Tax without knowing the various available options and also not plan in the beginning of the year. Many of us are planning at the end of Dec/Jan and due to the same sometimes ending into wrong decisions. The plans may vary for different persons depend on the financial status of a person and income. Find below the Tax Slabs for the male and female as per Income tax law. Income Tax Slabs 2011-2012 for Men
Income Tax Slabs 2011-2012 for Women
Income Tax slabs 2011-2012 for Senior Citizen (Between 60 Yrs to 80Yrs)
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Ways of Reducing Tax for Salaried Individual
- By claiming the various Allowances provided in the salary
- By the way of saving money in various investments where can get the tax benefit
1. Allowances
i) HRA
If House Rent Allowance (HRA) is included in the salary structure then salaried individuals can benefit rent paid by them for residential lodging. This benefit is available under Section 80GG and the deduction amount is given below;
- 40% of Salary (Basic + DA), 50% in case of Metros
- Actual HRA received
- Surplus of housing charge paid over 10% Basic
ii) Food Coupons (Like Sodexho Pass) can be availed up to Rs 60,000 per year
iii) Medical Expenses which are compensated by the employer up to Rs.15,000 per year.
iv) Transport Allowance up to Rs 800 per month.
v) Child Education Allowance Rs.100 Per child for two Childs
vi) LTA (Leave Travel Assistance) – Can be claimed 2 years in span of 4 Yrs
vii) Professional Attire Allowance (Purchase of Dress Material and Shoes)
viii)Professional Pursuit Allowance (Purchase of Books and periodicals)
ix) Entertainment Allowance
x) Telephone and Internet Charges
xi) Vehicle Maintenance Expenses
2. Tax Saving Instruments
i) Sec 80-C In this one can save up to Rs 1,00,000 - by making the following investment in any of the below :
- Life Insurance Premium
- ULIPS
- Pension Plans (Pure Pension as well as with life Coverage)
- ELSS Mutual Funds
- Provident Fund deducted by the company (EPF and Voluntary PF)
- Public Provident Fund (PPF)
- National Saving Certificate (NSC)
- Tuition fees paid for children's Education (Maximum 2 children)
- Principal component of Home Loan repayment
- 5-Year fixed deposits with banks and Post Office
ii) Other Major Sections
- Sec-80D - Medical Claim/Health Insurance (Up to Rs.15000) – Sec 80D, Including parents up to Rs. 25000.
- Sec 24 - Home Loan Interest payment (Up to Rs.150000)
- Sec 80G - Donations to Charities or Orphanage
- Sec 80CCF - Infrastructure Bonds – Up to Rs.20000 (5 Yrs lock in Period) – Newly added from last year onwards
- Sec 80E - Higher Education loan Interest repayment.
Make use of all the above Sections to reduce your tax.
To plan your Tax effectively at frees of Cost or to plan any Financial Investments and queries Contact us
Lakshmi Sriraman
Mobile: 09392757680/09894229677, e-mail: srilaks1@gmail.com
Our Services:
- Income Tax Planning
- Financial Planning to steam line all your investments and to meet your Long Term and Short Term needs
- Health Insurance Plans
- Child Plan, Money Back Plan, Pension Plans and Other ULIP, Non ULIP Plans from various Insurance Companies
- General Insurance Services (Car Insurance / House Hold Insurance)
- Demat AC Opening, Share Trading with lowest Brokerage (Portfolio Management Services and Free Share Tips)
- Gold/Equity and other Mutual Fund Investments
- Infrastructure Bonds to take care of your Tax rebate (Rs.20000) in Sec 80 CCF
- Post Office Savings Schemes
- New Pension Scheme (NPS)
- Fixed deposit Services
- Assistance for Land/Apartment Purchase and Housing Loans
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