As per Income Tax Notification for Salaried Employee dated 05-10-2012 by Income Tax Department whose salary drawn u/s. 192 of income Tax Law they realize to save Income Tax by amount of Rs. 2060 for the Assessment Year 2013-14. Thus, it is mandatory to pay the income tax for every citizen, whose annual Income over Taxable Limit. The Income Tax assessment takes place every calendar year in the month of March. The Government of India has been given so many benefits to the taxpayers. Tax payment is applicable for a person who is generating profit by any mode either by the business or from the job. In any of the public or private limited company, there are shareholders then the tax will not be exempted on the individual basis. The calculation is based on the annual profit generated by the organization.
Income Tax Saving Tips For Assessment Year 2013-14 / Financial Year 2012-2013
In India, there are various tax slabs for the male and female and as per the annual salary, the tax deduction takes place. If a male individual earns (in Rs) 200,001 to 500,000, the tax would be 10% if it exceeds from 500,000 to 1,000,000 the tax would be 20% if it exceeds from 1,000,000 the tax would be 30%. including Female assessee also. Tax slabs for the Sr. Citizen is different from the male individual, the tax limit for the female start from 250,001. For 250,001 up to 500,000 the tax is 10%, from 500,000 to 1,000,000 tax is 20% whereas for above 1,000,000 tax would be 30%.
To get the tax benefit, it is important to show the investment proof. Tax waiver is applicable if the investment has done in the following:
Mutual funds – There are several government and private mutual funds available in the market such as State Bank of India mutual funds, Franklin Templeton, Kotak Mahindra and ICICI. Investor has to take care that tax waiver is available only on those mutual funds that have a locking period; a fund without a locking period is not eligible for the income tax benefit.
Home Loan – If an individual has purchased any property on loan, a tax waiver is applicable on it.
House Rent – House rent is another mode to save the income tax. While filing for income tax, tax receipt should be attached.
Insurance Policy- Government has given tax benefit on different type of insurance policies such as life insurance policy and health Care. This should be noted that no tax benefit is given for the General insurance like motor insurance etc.
While filing for the income tax it is useful to attach the receipt of the documents as per the above list.
Optimal tax planning with section 80C: Eligible schemes under section 80C for 2012-2013
1. Life Insurance Premiums
2. Contributions to Employees Provident Fund
3. Public Provident Fund
4. NSC (National Savings Certificates)
5. Unit Linked Insurance Plan (ULIP)
6. Repayment of Housing Loan (Principal)
7. Equity Linked Savings Scheme (ELSS) of Mutual Funds
8. Tuition Fees including admission fees or college fees paid for full-time education of any two children of the tax payer.
9. Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC
10.5-Year fixed deposits with banks and Post Office Savings Schemes
11.Senior Citizens Savings Scheme (SCSS)
Besides the section 80C of the income tax law, you can save tax under section 80D.
All the health insurance products are eligible for tax saving under the section 80D and you can save tax up to Rs. 35000 in case you buy a policy for your family and your dependent parents .