Translate

Tax Planning to Have More Take-Home Salary

Tax Planning to have More Take-Home Salary


How the income tax is becoming a difficult decision?

The income tax is increasing and the salary earners are worried to plan more savings. The Basic Exemption Limit (BEL) is an amount up to which an individual will not be liable to pay any income tax. However, the income exceeds BEL will be liable to be taxed at a specific rate applicable under income tax act. After BEL, there is only one section which is very popular to get deduction i.e. Section 80C. During FY 2017-18, the limit under section 80C is 1.5 lakh. In case the BEL or limit under 80C raised from these limits then the take-home pay of each individual will be increased. The income tax department may introduce other clauses to increase the happiness of individuals by reducing the tax liability. However, the reduction in tax liability will also increase the liquidity in Indian economy leading to higher chances of inflation. In order to contain such liquidity, the income tax department may introduce new investment avenues with providing tax deductions.

Tax Planning Instruments:

At present, the investments in Life Insurance, Provident Funds (Employees Provident Fund, Government Provident Fund, Public Provident Fund etc.), Equity Linked Saving Schemes and Mutual Funds, 5-Yrs Tax Saving Deposits either in Banks or Post-Office including Senior Citizens’ Savings Scheme, Sukanya Samriddhi Account (SSA), payments of tuition fees, and even the repayment of principal amount of home loan covered under the minimal amount of Rs. 1.5 lakh.

How to plan for saving more:

It is required to extend the limit of 1.5 lakhs and also required to raise the Basic Exemption Limit (BEL) to at least Rs. 2 lakhs. However, the investment in e-NPS attracts more 50 thousand to be covered in 80CCD (1B).
Due to implementation of demonetization, Goods and Services Tax, and Real Estate Regulation and Development Act (RERA), the real-estate sector has been badly affected; the government may decide to give tax-benefits to home-buyers to improve the situation of badly-affected real estate sector.

Build home and invest through SIPs:

During 2017-18, the first time home buyers are allowed to get an additional benefit of Rs. 50 thousand under section 80EE of income tax act. The interest on Home Loan can be claimed as deduction under section 24 for up to Rs. 2 Lakhs and apart from it tax deduction of Rs. 50 thousand can be claimed under section 80EE however, this additional deduction can be claimed only if the loan has been sanctioned during FY 2016-17 for the amount up to 35 lakhs and the value of residential house property is not more than Rs. 50 lakhs. For 80EE, the individual should not have his own house earlier on the date of sanction of loan.
Further, the sentiments of investors have also been improved during last few times, and there are chances of more growth in industries. One can opt systematic investment plans (SIPs) to get more returns out of mutual funds along with the tax benefits under section 80C.  
*Copyright © 2018 Dr. Lalit Kumar. All rights reserved. 

No comments:

Post a Comment

I will be happy to hear from you. Please give your comments...

Auto_1

Horizontal Responsive1

Popular Posts

LoP1

Special Offer!

Funny Baba

Free Seminars

Featured post

Grow with a New Mindset and EQ

Grow With a New Mindset and EQ Everyone in this world is unique in most aspects and behaves differently because everyone has their own set o...

Free Notes

Tips to Grow

Earn Money

Popular Posts

Free Download

Tax Saving

Fun in Life

Labels

Progress Leaves Important Questions India Economic Growth Energy Governance Government Business Commerce Current Affairs Demand Economic GST General Knowledge Indian Youth Information Technology Parents Procedure Solutions Advance Tax Adverse impact of Social Media Agriculture Banking Change Children Clerk Common Man Corruption Currencies Decision Development Employees Financial Management Free Trade Agreements Growth Indian Culture Indian Economy Indian Rupee Interest on Advance Tax Liberalization Liquidity Management Money Notes Opportunity PPPs Personality Pollution Reforms Safety Supreme Court Technology United States 80C 80EE Accounts Act Action Advantages Air Quality Index Anti-virus Anti-virus Protection Appreciate Appreciation Assets and Liabilities Astrology Author Autocratic Automation BIFR Basic Exemption Limit Behavioural Benefits Best Resort Bitcoins Budget Business Environment CAD CBI Court CHSL Capacity Capital Capital Expenditure Capital Gain Capital Market Capital Stru Capitalism Care Taker Cash Cash Flow Cashier Challenge Change Management China Chit Fund Clean Clearing House Commission Competitive Examination Compliments Computer Computer Virus Consolidated Statements Consumers Contractual Control Covid-19 Pandemic Credit Criminal Law Act Crisis Crops Crypto-currencies Current Account Deficit Current Events Custody Cutomers Cyber Crimes DBT Dairy Register Dairy Writing Data Theft Debit and Credit Debt-trap Deficit Delhi Demonitization Dera Sacha Sauda Detecting virus Dictatorship Diet Difficult Situations Digital Disadvantages Dollar Donald Trump Download and Install Dr. MSG Drawing and Disbursing Officer Duties of Diarist EQ Earning Money Easy Electricity Emotions Employment Empowerment Environment Environmental Crisis Equity Ethical Values Evaluation Event Examination Expense Accounts Exposure Farmers Faster Finance Financial Administration Financial Control Fiscal Deficit Fixing Responsibility Food Grains For example Foreign Institutional Investors Free Fuel Prices Further Scope Geography Getting rid of Corruption Global Market Globalization God Good and Simple Tax Goods and Services Tax Google Adsense Google Desktop Government Departments Gurmeet Ram Rahim Singh Hacking Harmony Health Problems High Cour Honesty How Google Adsense Works Humanity IL&FS Identification of Assets and Liabilities Immunity Imports and Exports Imprisonment Income Income Accounts Income and Expenditures Indian Institute of Management Indian Jal Shakti Indoor Plants Industrialization Inflation Internet Inventions Investments Irregularities Jobs Journal Judgement Labour Language Law Leadership Learning Life Life Style Linking Aadhaar Loans Loss to Government MBA Mahatma Gandhi Management Development Programmes Managerial Success Managing the work performance Marketing MeToo Mind Mindset MoU Mobile Governance Moral Morality Motivation NITI Ayog NPAs NPS NRF Narendra Modi National Pension System Net Assets Value New Industrial Policy Niti-Aayog Non Performing Assets Outsourcing PSUs Palmistry Paper Parking of Funds Penalties People Personal Ledger Account Petroleum Picasso Police Commissioners Political influence Practical Problems Precautions Prime Minister Prime Minister Narendra Modi Principles of Management Probing Problem Problems Procurement Products Protection Public Public Sector Entities Publication Quality education RTI Activists Rafale Reaction Rebuilding organizations Record Keeper Recovering from Sickness Recovery Religious Research Paper Retrieval Revival Rulers' actions SIPs SSC Search Engine Section 234 (B) Seeking Information Self-education Services Sexual Harassment Sim Card Simple Sirsa Smog Social Media Social Responsibilities Society Solar Solved Speed Up Spiritual Saints Spyware Stability Staying Calm Storage Store Keeper Struggle Success Suggestions Surplus Sushant Rajput TDS Take-Home Salary Talent Retention Tax Tax Planning Teacher Technical Factors Tender Tips Touch Trade War Types of Tenders Unemployment Values Verify Aadhaar Waiving Off Water Webpages What Why and How to Evaluate Work Environment Writing Off Youtube deferred payment of advance tax e-Shram Portal higher education insolvency managerial skills scam training training courses world

Happy Moments

Learn and Update

Popular Posts

Auto_1

Horizontal Responsive1