Mid of March 16-17 has came and soon the FY 16-17 will end. By this time you should sit down and look into your finances and fine-tune your tax plan. If you have not carried out any tax planning yet, time is running out for you.
Here are some of the few steps which can help you save tax:
- Estimate your total income and tax saving investments for entire year
- Club your total investments for knowing what return you have earned on it.
- Review your last year tax to know about the tax structure and benefits
- Check your tax paid details in form 26AS before filing the return.
- Know about available tax exemptions & Benefits
Here are some of the exemptions available and benefits
- Get deduction u/s 80 C – up to Rs.1, 50,000 (Investments, LIC, PF, PPF, NSC etc.)
- If Net income (Gross Total Income (less) Deduction) does not exceed Rs.5, 00,000 – then don’t forget to claim relief of Rs. 2000/-under section 87A.
- Invest in National Pension Scheme and get extra deduction of Rs. 50,000/-
- Deduction available u/s 24 in respect of Interest paid on Self Occupied house Property has been extended from Rs.1, 50,000 to Rs 2, 00,000
- Claim deduction u/s 80TTA( Up to Rs.10,000/- ) Interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office.
- As per section 80D, Expenditure incurred on preventive health check up of himself/parents/spouse can be deducted.
- Long Term Capital Gain arise on transfer of Listed Equity Shares, Derivatives or equity oriented mutual fund is exempted income. (It is so because security transaction tax is already charges upon these transaction)
- Following Incomes are exempted from the Payment of Income Tax: agriculture income, dividend on shares, gifts, Interest on PPF, Interest on notified bonds issued by local authorities, Interest received from Public Sector Company or notified bonds or debentures or Mutual fund etc.
- If you are salaried employee and professional tax is deducted by your employer then claim its deduction from salary.
- Donations made to Political Party or Electoral Trust is eligible for deduction u/s 80GGC.
- Cash donation towards registered charitable trust is allowed for deductions if donation amount is less than Rs 10,000.
Once you figure out the total income and benefits you can file your return online at https://incometaxindiaefiling.gov.in. In case on any queries you can contact PAS for your return preparation and filing your return.