Best Tax Planning Tips
Make Maximum Assessee in Family
Make your family members income tax assesses to avail basic exemption limit like 1,60,000 for male, 1,90,000 and 2,40,000 for senior citizens. This is the best option and first step of tax planning. See Income Tax Slab for A.Y. 2010-11 to know the exemption limit.
Women and Senior Citizens
Woman and senior citizens assesseess have more exemption limit then male assessee, so If possible, create income on their name is more tax saving option. Tax planning is the science and art, and of course right of yours to use as a tool to plan your tax.
Tax Planning with Home Loan
Home loans are the best and famous to plan your tax. Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. These deductions are available to assessees, who have taken a loan to either buy or build a house, under Section 24(b). See Tax Planning with Home Loan to know more.
Deductions u/s 80C & 80D
Get full deduction of u/s 80C for Rs. 1,00,000, deduction of u/s 80D of mediclaim for extra deduction of Rs. 15000 (for medical insurance in respect of self, spouse and dependent children) and Rs. 20,000 (for medical insurance in respect of parents above than 65 years). These sections of income tax are the best tools for tax planning, don’t forget to use that. See also: 12 things you must know before buy health insurance!
Invest in Government Securities
Invest in notified Government Securities and schemes because income from these sources are fully exempt from tax u/s 10(11) and 10(15). Public Provident Fund: Interest and withdrawals are full exempt from tax u/s 10(11). See the tax saving schemes to know more.
Gift Tax Planning
Gift from close relatives are not taxable, you can divert income to other family members but first see the clubbing of income to know more. see taxation of gifts to know more. Gifts from other than relatives are taxable, So be careful to receive gifts as gifts may become rifts. See new provision of taxes on gifts w.e.f. 1/10/2009 to know more about gift tax planning.
Related posts:
- Tax Planning with Home Loan
- 5 Things You Must Know for Your Retirement Planning
- Save Maximum Tax on Salary by Simple Salary Framework
- Last Minute Tax Planning
- What is Tax Planning and Need to Planning of Tax? – Part-2
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{ 4 comments… read them below or add one }
Dear Sir,
Please send me form 16 & 16 A in Excel format
Tax benefits on home loan as per the Income Tax Act, 1961 under Section 24(b) can be claim for last three year in current year if assesse has not claim his deduction for las three years?
please suggest!
Good, to the point information to save tax. I have few queries for which I need more information from you :
1) can a salaried individual create income in names of female members / sr.citizens in the family and save tax?
2) Can a salaried individual pay rent to his wife/mother/father and claim HRA Exemption?
3) Can a salaried individual create an HUF and club his income under the HUF?
i want to know about the excess investment facility given by the finance minister in his proposal for the year 20010-11.
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