This Tax Planning Applies to Individuals.
You might have heard many times over the media that your Income upto Rs 500000, Tax is ZERO which is true.
But the silver-lining is suppose your Final Income after all deductions & exemptions exceeds marginally 500000, THEN you need to be careful here.
Eg : if your Total Final Income is 515000,
Now that you know Upto Rs 500000 is Zero
BUT for Balance of 15000 Taxable Income
The Tax liability comes to 15500.
you may ask for Just additional 15000 of taxable income, Tax to be paid is 15500?
Yes it is! So Explore S.80C Take advantage in S.80 D
Exhausted Everything? No Worries We got you covered.
Now lets says after all exemptions & deduction still if you have income marginally exceeding 500000.
Say 500100. Tax Liability comes to 13021.
(An Increase Of Rs 100 from 500000 gives you tax liability from ZERO to 13021)
In Such Situation Make Donations to Orphanages etc.covered under 80 G. Make a minimum amount of donation 225(if your Computed approx total income is 500100)
Note : Such Donations have to made during the Financial Year(Apr-Mar).
SMALL DONATION BIG TAX SAVINGS, ENJOY.
We hope you will keep this info in mind while giving your data for TDS Deductions on Salary to your employer & according take advantages of it.
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Have a great day!