1. #1
    Unregistered

    In what way I can decrease my income tax money?

    I was working in a company for a salary package of 3 lacs per annum. But now I am working in another company for a salary package of 5.5 lacs per annum. I got to know that now I will be charged for income tax money. Is there any way so that I can avoid this income tax charges?

  2. #2
    RKK Array
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    Re: In what way I can decrease my income tax money?

    Current income Tax rates in India are:
    Upto RS 2lakhs- Nil
    Between 2 lakhs to 5 lakhs - 10 %
    Between 5 lakhs to 10 lakhs - 20%

    Since your income is 5.5 lakhs you are liable to pay Rs 40, 000 as Income tax

    If you invest Rs 1 lakhs in savings instruments like- PPF, Life Insurance policy etc than your Total tax liabilty would be Rs 30000
    Also you would get deductions for HRA.So give the house rent recipt as well

  3. #3
    Bread and butter Array
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    Re: In what way I can decrease my income tax money?

    Dear friend,as you have earned a good salary package of 5.5 lakhs per annum,this is an handsome salary. First I want to tell you that one who have earn an annual income of less than 2lakh there is no income tax on it and one who earn annual income of more than 2lakh there will be 10% tax on it. Therefore you also have to the annual tax of 10% on your income. In the last I only have to say that pay your tax carefully otherwise you have to pay the penalty after the last date of the submission of the income tax. So,dear go for it don't think that if you save tax our country will develop because our country will only develop if we pay the tax properly.

  4. #4
    Sydzee Array
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    Re: In what way I can decrease my income tax money?

    Dear friend

    There are many ways to avoid paying taxes; both legal as well as illegal. I suggest you take the legal side.

    You can invest some of your money into certain government schemes. Some of these schemes have tax free benefits.

    You can also donate some of your money for charity to NGO's which are registered under the 80 G clause of the income tax, by which the money you give as charity won't be taxed. but still you'll lose the money for the good cause.

    You can opt for certain life insurance or other insurance schemes, where the amount will not be taxable.

    I hope this has helped you.

    Good luck...

  5. #5
    saladi Array
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    Re: In what way I can decrease my income tax money?

    Dear friend

    There are many ways to get the exemption of income tax.Basing on your salary package you can save a max of one lakh under section 80c which includes Employees provident fund,public provident fund,life insurance, housing loans, children's fee, national savings certificate and fixed deposits in banks etc

    If you take mediclaim if your company has not taken , you may additionally get exemption up to Rs.15000/ . Premiums paid towards life insurance policy for self and the family members and Premium paid towards a ULIP will also be covered. . If you are covered by EPF in addition to, you can contribute to PPF which earns interest of 8 percent and this interest earned is exempt from tax.As per the income tax there is no ceiling on investment in PPF under 80c. This is the best way to get exempted from the income tax for the employees.So plan yourself accordingly basing on the above information and get the exemption upto to the maximum extent possible. Regards.

  6. #6
    srinivasa Array
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    Re: In what way I can decrease my income tax money?

    Hii sir, as per present government rules latest news is that as per ministry of finance every employee who is under the income of 5-6 lakhs per year can file for tax returns through it norms updated on 22nd july officially news has been declared.. This info is just to convey you that you can do best savings with present policy..
    Tips for decreasing you tax deductions from your salary are:

    1. buy a flat or house:
    By taking loan which can save upto 2 lakhs of tax under 80c policy of income tax department interest component of your savings you do in banks can be exempted of taxes. By reducing your integral principal amount you can save tax deductions..

    2.medical insurance premium:
    By taking medical insurance premium for your wife or your parents can also be valid doing this you will have official insurance medical transcripts for reduction of tax amount on your income.. You can go for applying the costs incurred to you by submitting medical insurance documents there by considerably reducing the income that you get in your salary account. Remember in medical insurance is productive for people who are dependent on you best are your parents..

    3. house rent :
    This is the best way to reduce your tax its important that you get the rental receipts signed by your company that you do stay in rental premises even you stay in your house you need to smart in regulating the funds don't worry you can be exempted if you can provide receipts for house rent there by hra component housing rental allowance which is a integral part of your income will not be taxed..

    4. education bills for your kinds and children future education savings policy:
    now this will be a smart and beneficial idea because there are many companies like hdfc child's plan education fund and savings which are quite common in present world there is provision for you to really do benefit you in terms of cost incurred to you in terms policy payment act of income tax department before you save all your money in banks its important that you have these plans to save your tax amount.

    5. pension plans:
    you can invest in pension plans if your an private employee just you can invest your small part of money by paying dividends..
    Investment in mutual funds will also be interest free govt will not apply tax on mutual funds.

    7.lta - leave travel allowance :
    one cannot have accountability and track how much you have spent on your vacation of your family.. If you have taken leave from company and went for vacation you can reduce your tax deductions from your salary by applying lta for an period of 2 years only this is to be submitted only by submitting the proofs for the travel like air tickets and food coupons hotel accommodation..
    It would be advisable to you if visit ca accountant he is the best man and licensed person who can really guide your salary savings give it a 100% for it all the best thank you..

  7. #7
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    Re: In what way I can decrease my income tax money?

    There are several means to obtain the difference of income tax.Basing on your pay deal you can save the max of a lakh less than segment 80c such as Staff members provident provide for,general public provident provide for,term life insurance, housing financial loans, children's cost, country wide price savings document and fixed build up inside finance institutions for example

    If you take mediclaim but if your business has not yet taken , a person can also get difference up to Rs.15000/.Prices paid out to life insurance coverage for self applied as well as the family people as well as Top quality paid out to the ULIP may also be covered..In case you are covered by EPF together with, you possibly can help with PPF which usually produces awareness with 8 % this also awareness gained can be exempt coming from tax.As for every your taxes there is no ceiling for purchase of PPF less than 80c. This is the easiest method to get free through the taxes for that employees.So system yourself consequently basing to the above information and facts to get your difference upto in order to the ideal level possible.
    down to existing federal regulations latest news flash is down to ministry with funding every staff member that's beneath the earnings of 5-6 lakhs each year can certainly apply for tax statements through them norms up-to-date for 22nd august technically news flash has been declared.. This info is only to convey a person you can do finest price savings together with existing policy..
    Tricks for lowering a person levy deductions through your pay usually are:
    By taking personal loan which can help save upto 2 lakhs with levy less than 80c insurance policy of income levy division awareness component of your respective price savings you need to do inside finance institutions is usually free with taxes. By reducing the integral primary amount you can save levy deductions..
    By taking insurance premium in your wife or perhaps your mother and father can also be valid carrying this out you may have public insurance coverage healthcare transcripts for decrease in levy amount on your income.. Apply for utilizing the expenses accrued for your requirements simply by submitting insurance docs there simply by noticeably reducing the salary that you enter inside your pay account. Keep in mind inside insurance can be effective for those people who are dependent upon you best are the parents..
    This is the easiest method to lower levy it has the critical that you enter your leasing bills closed on your business that you try remain leasing areas possibly you remain in your house you must good inside money money no problem fully free if you can provide bills for house rent there simply by hra component housing leasing allowance a integral piece of your respective salary is definately not taxed..
    this has to be good as well as effective thought due to the fact there are many the likes of hdfc youngster's system training provide for as well as price savings that happen to be quite normal inside existing world there exists supply so that you can really do help you when it comes to charge accrued for your requirements inside phrases insurance policy transaction act of income levy division when you help save all of your hard earned money inside finance institutions it has the vital that you have got these types of intends to beneficial levy amount.

  8. #8
    you@ Array
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    Re: In what way I can decrease my income tax money?

    Quote Originally Posted by Unregistered View Post
    I was working in a company for a salary package of 3 lacs per annum. But now I am working in another company for a salary package of 5.5 lacs per annum. I got to know that now I will be charged for income tax money. Is there any way so that I can avoid this income tax charges?
    Dear friend,as you have earned a good salary package of 5.5 lakhs per annum,this is an handsome salary. First I want to tell you that one who have earn an annual income of less than 2lakh there is no income tax on it and one who earn annual income of more than 2lakh there will be 10% tax on it. Therefore you also have to the annual tax of 10% on your income. In the last I only have to say that pay your tax carefully otherwise you have to pay the penalty after the last date of the submission of the income tax. So,dear go for it don't think that if you save tax our country will develop because our country will only develop if we pay the tax properly.

  9. #9
    kvp Array
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    Re: In what way I can decrease my income tax money?

    there are both legal and illegal ways for reduce the income tax
    >> to buy gold
    >> buy houses and flats
    >> pension rent
    >> medical premium
    >> savings policy
    >> education policy
    >> there are some government policy which does not have tax


    all the best
    thank you

  10. #10
    Unpredictable007 Array
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    Re: In what way I can decrease my income tax money?

    There are many ways to decrease your income tax rates
    1. You can invest your money in LIC policies
    2. You can also invest your money in medical or education premium.
    3. You can buy gold.
    4. You can take loan for some thing and then attach the receipt of interest given to bank.
    5. You can also apply for pension plans.
    6. Attach all possible bill and the child's education fees.

  11. #11
    realfriend Array
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    Re: In what way I can decrease my income tax money?

    Hello,
    1)In order to decrease your income tax you need a proper planning of income.
    2)One key tax planning strategy is to keep track of your itemized expenses throughout the year using a spreadsheet or personal finance program.
    3)Your standard deduction and personal exemptions depends on your filing status and how many dependents you have.
    4)You can increase your standard deduction and personal exemptions by getting married or having more dependents.
    thanks...............

  12. #12
    bonomali Array
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    Re: In what way I can decrease my income tax money?

    Hello,

    Well, decreasing Income Tax is an art and not many people have mastered the art. The following is the Incomex Tax rate in India,

    Taxable Income Tax Rate
    Up to Rs. 200000 (Men)
    Up to Rs. 200000 (Women)
    Nil
    Up to Rs. 250000 (Sr. Citizen age - 65 yrs.)
    Nil
    From Rs. 200000 to 500000 (Men)
    From Rs. 200000 to 500000 (Women)
    From Rs. 250000 to 500000 (Sr. Citizen age - 65 yrs.)
    10%
    From Rs. 500000 to 1000000 (Men)
    From Rs. 500000 to 1000000 (Women)
    20%
    From Rs. 500000 to 1000000 (Sr. Citizen age - 65 yrs.) 20%
    Above Rs. 1000000 (Men)
    Above Rs. 1000000 (Women)
    30%
    Above Rs. 1000000 (Sr. Citizen age - 65 yrs.)
    30%







































    You should put your money in differnt baskests such as,

    1. PPF or Public Providend Fund.
    2. NSC or National Savings Certificate.
    3. Fixed Deposit.
    4. Unit link Insurance Plan.
    5. Employee's Providend Fund

    Bye,

  13. #13
    java Array
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    Re: In what way I can decrease my income tax money?

    Following steps follows to decrease Income tax money : PPF or Public Provident Fund NSC or National Savings Certificate Fixed Deposit Unit link Insurance Plan Employee's Provident Fund buy houses and flats pension rent medical premium savings policy education policy

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