Did you know that still no need to make tax payments up to your salary income of Rs.10.50 Lac. under the proper financial planning?How income tax office provides certain benefits, can be called tax planning. As per the applicable Income-tax provisions, Tax planning is rolled out to reduce the tax liability by applying the provision and moral of law. So that your efiling income tax is permissible to make tax planning and reduce the tax payment up to your salary income of Rs.10.50 Lac Most salaried people may be unaware of the difference between Tax planning v/s Tax avoidance, just a quick update, Tax planning is legally allowed in India, but Tax evasion is illegal. We are here talking about the legal ways of tax planning. How can you increase your monthly take-home salary by way of tax planning to reduce the tax payment to zero to the salary income of Rs.10.50 Lac. The ultimate objective of this is to use the legal way to reduce the tax and file the Incometax Efiling easily.
Income tax planning in advanceIf you want to reduce your tax payment zero, and no issue on the tax filing, one of the best things you can do is plan your tax savings and investment update to your HR/ Payroll at the beginning of the financial year, it generally falls in the month of April or May month. Every Assessment year, your Company payroll/ salary tax declaration gets updated by the online system, this means you can declare your savings, investment online to make the tax outgoing zero for your salary income to that extent of Rs.10.50Lac. most of the Companies payroll systems, provide an option to update employee investment and savings details by the self-service portal, you can go and update each of your tax plan details as we have explained below. Here are some tax-planning and Incometax return filing ideas to keep in mind when updating the tax savings in the company payroll system:
Know Your Company HR Payroll policy – file tax returnIf you want to update your tax savings plan, you first need to understand any Company payroll tax savings policy. And the facility of Income tax filing. It’s difficult to check with your HR/payroll team on each subject clarification, and you don’t want to. You want to find way there are options to update our tax plan in the system as per the allowed HR / payroll system, make sure to follow the same, otherwise, you can directly update as per your company given Payroll information When we have first started our payroll website, we had given full access to clients payroll data update the tax declaration to employees. From this impact, many of our client employees got there tax reduction closer to zero or very minimal tax deduction
Realistic basis options to save taxWhat are some common problems that employees have? lack on the income-tax system and provisions in India. so what exactly you know about is; whether the given section is applicable or can be done by me. this is basically you can go through the applicable sections with relevant explanation, so that, you can understand each provision and make the best judgment for each section update, the unknown section update may lead to the tax burden in the last month of the tax computation.
Focus on Long-Term retirement planners.Did you know that just for sake of tax planning, you should not end up with investment on worthless tax planning insurance or other products like normal savings? There are multiple plans, where your investment also grows on the manifold and also in the tax reduction in your salary. If you want your investment to be tax planned and get tax exemption, you have to make a wise selection of the investment advisor who is supposed to be SEBI registered investment advisor or reach our team in filing support office at [email protected] (8792858436)
Example to reduce the Tax payment zeroTax planning is an essential tool if you wish to take a higher take-home salary. You can go through the given tax planning payroll system to make the Tax payment zero up to the income of Rs.10.50 Lac! Let’s assume: Your Salary Income is Rs.10.50 Lac. So if the income is above 10 Lac, you will be under a 30% tax rate.
- Salary income Rs.10.50 Lac
- Then, all your section 80C deduction like PF, PPF, school fee, gives exemption up to: 1.5 Lac
- Then, make an investment on the NPS [Sect 80CCD 1B], available from Banks, up to: 50 K
- If you have taken a home loan, then Sec 24B, provides tax exemption up-to: 2 Lac
- For Medical insurance premium payment u/s Sec 80D, for Yourself, spouse & kids tax claim Rs.25K and for your parents its Rs.50K total: 75K
- For your donation as-per section 80G, can give tax benefit Rs.25K, you shall have stamped paid receipt
- Now, your taxable income is Rs. 5 Lac only, on the 5 Lac income, the tax liability is Rs.12500, however, Government gave a Rebate of Rs.12,500 for the taxable income up to 5 Lac.
For more about tax planning, income tax filing scheme e tax filing and implementation, please reach our payroll team, we have a structured income tax filing online system in Bangalore. Team IN Filings No 188/1, 1st Floor, Sahakarnagar, Bangalore 560092 Phone: 7019827351, [email protected]
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