This is the last quarter of the
current financial year and it's time for you to review your tax
planning. You need to make the necessary investments to save on income
tax. The income tax rules provide various sections under which you can
claim various expenses and save tax.
Planning for the salaried segment
The employers estimate tax liability, deduct tax from salary and deposit it with the tax department. Although it is possible to claim further tax deductions at the time of filing IT returns, you can also submit the relevant bills to your employer for necessary adjustments in the tax deducted at source (TDS) itself .
Usually, employers have some cut-off date specified to furnish various investments and expenses, to factor them into their tax computations . It is advisable to submit the relevant proofs in order to reduce the TDS itself instead of claiming tax refunds.
These are some property related deductions allowed:
House rent allowance
To claim the house rent allowance (HRA) deduction, it is required to submit recent rent receipts, rental agreement copy etc.
The eligible deduction is the least of these three components :
Actual HRA received 50 percent or 40 percent (metro or other location) of basic salary plus DA Actual rent paid minus 10 percent of basic salary plus DA.
Home Loan
A statement or letter from the bank is required to claim the income tax deductions related to home loan interest and principal payments.
For self-employed taxpayers
Independent consultants, businessmen, professionals etc come under the self-employed category.
They can claim all their work-related expenses as deductions including office rent, home office rent etc. Self-employed people can also claim depreciation on their work-related assets.
However, they should maintain all relevant bills to support their claims. In addition to these claims, self-employed taxpayers are eligible for the general deductions that are applicable to others too.
Advance tax
You need to pay advance income tax if necessary in order to avoid penalty.
For salaried taxpayers, the tax computations and TDS filings are made by the employer. It is a taxpayer's responsibility to inform his employer in case he has any other income in addition to the salary in order to adjust the tax deductions and filings.
Income such as 'Income from House Property' should be furnished to the employer.
Self-employed taxpayers should prepare their advance tax assessments and pay tax in time to avoid penalty. According to the income tax laws, every individual should pay tax in advance if the liability is more than Rs 5,000.
Quick bytes
Plan and make necessary investments to save on income tax.
For salaried taxpayers, the tax computations and TDS filing are made by the employer.
Make sure you inform your employer if you have other sources of income, to adjust the tax deductions.
Planning for the salaried segment
The employers estimate tax liability, deduct tax from salary and deposit it with the tax department. Although it is possible to claim further tax deductions at the time of filing IT returns, you can also submit the relevant bills to your employer for necessary adjustments in the tax deducted at source (TDS) itself .
Usually, employers have some cut-off date specified to furnish various investments and expenses, to factor them into their tax computations . It is advisable to submit the relevant proofs in order to reduce the TDS itself instead of claiming tax refunds.
These are some property related deductions allowed:
House rent allowance
To claim the house rent allowance (HRA) deduction, it is required to submit recent rent receipts, rental agreement copy etc.
The eligible deduction is the least of these three components :
Actual HRA received 50 percent or 40 percent (metro or other location) of basic salary plus DA Actual rent paid minus 10 percent of basic salary plus DA.
Home Loan
A statement or letter from the bank is required to claim the income tax deductions related to home loan interest and principal payments.
For self-employed taxpayers
Independent consultants, businessmen, professionals etc come under the self-employed category.
They can claim all their work-related expenses as deductions including office rent, home office rent etc. Self-employed people can also claim depreciation on their work-related assets.
However, they should maintain all relevant bills to support their claims. In addition to these claims, self-employed taxpayers are eligible for the general deductions that are applicable to others too.
Advance tax
You need to pay advance income tax if necessary in order to avoid penalty.
For salaried taxpayers, the tax computations and TDS filings are made by the employer. It is a taxpayer's responsibility to inform his employer in case he has any other income in addition to the salary in order to adjust the tax deductions and filings.
Income such as 'Income from House Property' should be furnished to the employer.
Self-employed taxpayers should prepare their advance tax assessments and pay tax in time to avoid penalty. According to the income tax laws, every individual should pay tax in advance if the liability is more than Rs 5,000.
Quick bytes
Plan and make necessary investments to save on income tax.
For salaried taxpayers, the tax computations and TDS filing are made by the employer.
Make sure you inform your employer if you have other sources of income, to adjust the tax deductions.
