Tax Compliance made easy - Ways to save your Tax

1. Maximize your Take home
Minimize your Tax
A Presentation to the Associates of
Infinite Computer Solutions

2. Lets Start with the Basics
• What is Tax & Why should
we pay tax ?

3. Lets Start with the Basics
• How much Tax Should I Pay ?
– Depends on your Income
– Not all Income is Taxable. After exemptions
and deductions, the Balance is taxable.

4. What are the Income Types ?
•
•
•
•
•
•
•
•
•
•
Salary
– Gross salary
– Perquisites
– Profits in lieu of salary
Income From House Property
Income from Pension or Family
Pension
Interest on Deep discount bonds
Dividend Income
Winnings from Lotteries, Race etc.
Interest Income from Saving A/C ,
Recurring Deposits & Fixed Deposits
Gift Income
Clubbing Income
Capital Gains
•
•
•
•
•
•
•
Sale of Shares / MF
Sale of Residential Property
Sale of Land & Building
Sale of Jewellery
Professional Income
Commission Income
Profit from trading in F&O,
Commodities, Derivatives & Forex

5. Tax Slab for the FY 2013-2014
Male & Females - 0-59 Yrs
0 to Rs.2,00,000
Rs.2,00,001 to Rs.5,00,000
Rs.5,00,001 to Rs.10,00,000
Rs.10,00,001 & Above
0%
10%
20%
30%
Senior Citizens - 60 & Above
0 to Rs.2,50,000
Rs.2,50,001 to Rs.5,00,000
Rs.5,00,001 to Rs.10,00,000
Rs.10,00,001 & Above
0%
10%
20%
30%
Super Senior Citizens - 80 & Above
0 to Rs.2,00,000
Rs.2,00,001 to Rs.5,00,000
Rs.5,00,001 to Rs.10,00,000
Rs.10,00,001 & Above
0%
0%
20%
30%

6. Tax Slab for the
FY 2013-2014

7. Tax Slab for the
FY 2013-2014
• How do we Calculate Tax ?
•
•
•
•
•
•
•
•
For Eg. Your Taxable Income is Rs.5,00,000
First 2 Lakhs – No Tax
Next 2 Lakhs to 5 Lakhs – 10% Tax
That’s Rs.30,000/Rebate u/s 87A Rs. 2,000/Income Tax Rs. 28,000/Add E.Cess @ 3% of Tax – Rs.840/Total Tax to be Paid = Rs.28,840/-

8. Now, Lets look at how
our Salary is Taxed

9. A typical payslip
Salary Paid under different components

10. A typical payslip
Salary Paid under different components
Fully Taxable
Partially Taxable
Partially Taxable
Partially Taxable
Partially Taxable
Fully Taxable
Partially Taxable
Partially Taxable

11. • It is only the Employee who can ensure to pay the
lowest amount of tax, Employer does not have a role
to play here.
Montek Singh, Chairman – Planning Commission

12. Common Exemptions
• Salary Based
HRA
Med Reimburse
Meal vouchers
Conveyance All
Leave Travel All
0-60% of your Basic
Rs.1250 a Month
Rs.2200 a Month
Rs.800 a month
Specified by Employer

13. Common Exemptions/Deductions
• Non Salary Based
Section 80C Deductions
LIC, PF, Pension Etc.
Rs.1,00,000 Maximum
Section 80D Deduction –
Self, Spouse & Children
Rs.15,000 (Upto 60 Yrs of Age)
Rs.20,000 (60+ )
Section 80D Deduction – Dependent
Parents
Rs.15,000 (Upto 60 Yrs of Age)
Rs.20,000 (60+ )
Section 80E
Actual Interest Paid towards Educational Loan
Rs.1,50,000 for Self- Occupied.
Section 24 - Interest Paid on Housing Loan No Limit for Let out Property
Section 80G
50% of the Donation Amount & 100% of the
Donation Amount*
Section 80TTA – Interest from Savings
Bank
Rs. 10,000 Maximum

14. List of 80C Deductions
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Life Insurance Premium paid towards any Insurance Company
Employee’s Contribution to Statutory or Recognized Provident Fund
Public Provident Fund
Tuition Fees of Children
Term deposit for 5 years or more with Nationalized Banks & Post Offices
Repayment of Principal of Housing loan
Stamp Paper & Registration Duty charges paid in the FY
Contribution to Annuity Plan
National savings certificate, Senior Citizen Savings Scheme & Recurring Deposit in Post Office
Premium paid towards ULIP Plans of any Insurance company, UTI & LIC Mutual Fund
Contribution towards deferred annuity on behalf of the Government
Pension Fund set up by an Mutual Fund
Pension Scheme
Equity Linked Savings Scheme (ELSS) of Mutual Fund
Equity Shares or debentures forming part of any eligible issue of capital by Public company
Contribution made to any Pension Fund set up by National Housing Bank
NABARD bonds

15. Lets See the Impact Now
Description of
Exemption
Every Month
HRA
Per Annum
Rs. 10,000
Rs. 1,20,000
Med Reimburse
Rs. 1,250
Rs. 15,000
Meal vouchers
Rs. 2,200
Rs. 26,400
LIC, PF, Children Tution Fee, etc
(Sec.80C)
Sec. 80D (Mediclaim)
Donations, if any
Interest on Housing Loan
TOTAL
Rs. 1,00,000
Rs. 10,000
Rs. 5,000
Rs. 1,50,000
Rs. 4,26,400

16. Lets See the Impact Now
Description of
Exemption
Every Month
HRA
Per Annum
The Tax you save
10% Bracket 20% Bracket 30% Bracket
Rs. 10,000
Rs. 1,20,000
Rs. 12,000
Rs. 24,000
Rs. 36,000
Med Reimburse
Rs. 1,250
Rs. 15,000
Rs. 1,500
Rs. 3,000
Rs. 4,500
Meal vouchers
Rs. 2,200
Rs. 26,400
Rs. 2,640
Rs. 5,280
Rs. 7,920
Rs. 1,00,000
Rs. 10,000
Rs. 20,000
Rs. 30,000
Rs. 10,000
Rs. 1,000
Rs. 2,000
Rs. 3,000
Rs. 5,000
Rs. 500
Rs. 1,000
Rs. 1,500
Rs. 1,50,000
Rs. 15,000
Rs. 30,000
Rs. 45,000
LIC, PF, Children Tution Fee, etc
(Sec.80C)
Sec. 80D (Mediclaim)
Donations, if any
Interest on Housing Loan
Rebate under section 87A
TOTAL
Rs. 2,000
Rs. 4,26,400
Rs. 44,640
Rs. 85,280 Rs. 1,27,920

17. Tax Planning through NPS
National Pension Scheme

18. Did you Know ?
• Interest on loan taken for residential house
property from 01.04.2013 now Exempt upto
Rs. 1,00,000/- [ Conditions Apply ]
• Rebate of Rs. 2,000/- for Individuals having
Total Income upto Rs. 5,00,000/-

19. Don’t be in a hurry to save tax
• Tips :– Plan your Taxes Properly
– Spread your Income Sources
– Don’t wait for Feb/Mar to invest
– Take Advantage of all possible exemptions
– Consult a Tax Expert for better tax planning

20. Tax Compliance
Who, Why & When

21. What is Income Tax Returns Filing?
• Declaration to the Dept of IT in a specific format.
• Once a year – On or Before 31st July
• Useful in many ways – Refunds, Visa Processing,
Credit Cards, Loans, Address Proofs, etc.

22. What is Income Tax Returns Filing?
• 2 Modes – E-Filing & Physical Filing
• All Employees earning more than 5 Lakhs have
to compulsorily use E-Filing only. A Bit
Complicated – Hence we come into the
Picture.

23. TaxBingo.com
• We assist Individuals & Corporates in their Tax
Compliance
– Income Tax Returns Filing
– Tax Refund Assistance
– Tax Planning & Advisory
– Legal Tax Consultation
– Financial Planning
– NRI Tax Advisory

24. • Thank You
• Q&A