44.  Tax Planning Tips for F.Y. 2014-15

Tax planning has always been the test of efficiency for people along with being a test of their cunningness such that they can save their taxes in a lawful manner. Here are some of the tips that can help you to plan your taxes for the A. Y. 2014-15.

1) Invest in policies

Policies are a prominent way to save a handful amount of tax. Up to Rs. 1,00, 000 can be saved by way of investing PPF, EPF, Fixed Deposit for 5 years, Pension Plans, etc. as specified u/s 80C, 80CCC and 80CCD.

2) Divide Income to various family members

Avail the basic exemption limit of ` 2 Lakh in the various family members as possible. Prefer senior citizens like parents and women as then can avail higher exemption limit

 

3) Contribute to NPS

NPS stands for New Pension Scheme was has recently been initiated by the Government under which investors can claim a deduction as a have a Tax free NPS return, however, withdrawal under such system is till taxable.

4) The aid of Medical Insurance

A deduction of Rs.15, 000 is available for people who wish to invest in medical insurance for self. This deduction increases to Rs.20, 000 when it is done by senior citizens. (65 years or above for A.Y. 2014-15).

5) Expenditure towards disabled dependent

When certain amount is spent in form medical insurance for a disabled dependent, deduction up to Rs.50, 000 is available where the disablement is normal in nature. The same can be extended upto 1 lakh is the disablement is of severe type.

6) Expenditure for severe diseases

Expenses made for severe diseases such cancer and aids can also provide a deduction of Rs.40, 000.

7) Repayment of Higher Education Loan

When repayment is carried out for higher education loan, the same is also allowed as a deduction and hence can reduce ample amount of tax liability.

8) Donate

Donation to charitable trusts and organizations have always been regarded as an auspicious event, therefore, 100% deduction is available in such context. The same rate is also applicable in situation where contribution is made to a political party.

9) House loan interest

People who are liable to pay house loan interest can also claim deduction upto Rs.1,50,000 (the figure represents the maximum investment limit)

10) Contribute to superannuation fund

Contributing to superannuation fund of can save you upto Rs. 1,00, 000 as the same is tax free in the hands of the employee.

11) Transportation allowance

A sum of Rs. 9,600 can be claimed as a deduction for transportation and conveyance, additionally, no bill supporting such an event is required to be presented.

12) Using medical allowance

A person has the liberty of claiming Rs.15,000 by way of medical allowance , however, for such, a valid bill is required to be presented as a support.

13) Use House Rent Allowance

Using house rent allowances allow people to adjust a sum from their total tax liability.

14) Professional Tax

People often pay professional tax to the professionals and the same is available for deduction.

15) Investment in Direct Equity Investment is also very helpful in tax planning as it determines a 50% deduction in the amount of investment.
 
Sec. 143(3) : Scrutiny Assessments by Income Tax Department
“Penalties” Under Income Tax Act. 1956
How is a Search Operation Conducted by Income Tax Department ?
Surveys for Checking Ostentatious Expenditure
Surveys for Enforcing Compliance with Provisions of TDS
“Summon” U/s 131 of Income Tax Act.
Investigation by Income Tax Department:
Appellate Authorities of Income Tax Department
Power to Call for Information U/s Sec. 133(6) of Income Tax Act.
Specific Surveys U/s 133A(1) of Income Tax Act.
Types Of Income Subject To TDS [Deduction Of Tax At Source]
Pre-Requisite For Claiming Income Tax Refund
Benefits of Filing Income Tax Returnsn
Section-139(9): Defective Tax Return
 
 
How is a Search Operation Conducted by Income Tax Department ?
The provisions relating to search and seizure are contained in section 132 of the Income Tax Act, 1961.
 
Sec. 143(3) : Scrutiny Assessments by Income Tax Department
Scrutiny assessment refers to the examination of a return of income by giving an opportunity to the assessee to substantiate the income declared and the expenses, deductions, losses, exemptions, etc. claimed in the return with the help of evidence..
 
“Penalties” Under Income Tax Act. 1956
Penalties by way of monetary payments are charged under the Income Tax Act for various defaults relating to payment of taxes, maintenance of accounts, for noncompliance and non co-operation during proceedings, for evasion of tax, etc..
 
Income of Individuals And HUFs – As a Tax Payers Under Income Tax Act, 1961.
The individual tax payers and also the HUFs while proceeding to calculate the net taxable income in the first phase are required to arrive at the gross total income under different heads of income...
 
Types Of Income Subject To TDS [Deduction Of Tax At Source]
The following types of incomes are mainly subject to deduction of tax at source: (a) Salaries Section 192. (b) Interest on securities Section 193..
 
Pre-Requisite For Claiming Income Tax Refund
For claiming income tax refund the first prerequisite is that there should have been excess tax paid or deducted at source on the basis of return of income.
 
Section-139(1) : Provision for Voluntary Income Tax Return
Every person,— (a) being a company or a firm; (whether having income or loss) or (b) being a person other than a company or a firm if his total income or the total ncome of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall file a return of his income in the prescribed form.
 
Benefits of Filing Income Tax Returnsn
We have heard many a times that every individual whose total income exceeds the maximum exemption limit is obligated to furnish his/her Income Tax Return or ITR.
 
Section-139(9): Defective Tax Return
Where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of 15 days from the date of intimation.
 
Section 139(5) : Revised Income Tax Return
If any person, having furnished a return u/s 139(1), or in pursuance of a notice issued under section 142(1), discovers any omission or any wrong statement therein, he may furnish a revised return at any time.
 
Section-139(4A) : Income Tax Return of Charitable and Religious Trusts
Every person in receipt of income derived from property held under trust or other legal obligation wholly or partly for charitable or religious purposes or of income being voluntary contributions referred to in section 2(24)(iia) shall.
 
Section-139(4) : Belated Income Tax Return
If an assessee has not furnished a return of his income within the time allowed to him under section 139(1) or within the time allowed under a notice issued under section 142(1).
 
 
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