Category: tax saving

Deduction under section 80D: The Ultimate guide

Deduction under section 80D is available for mediclaim insurance paid during the previous year. It is covered under chapter VI of income tax act. Who can use deduction under section 80D? Only individual and HUF can use section 80D deduction.   Whose insurance should be taken to get benefit of deduction of mediclaim insurance? Individual: individual can take medical insurance for himself, spouse, dependent parents or dependent children. HUF : HUF can take medical insurance for any member of HUF. Maximum limit of deduction u/s section 80D: Deduction 80D is available over and above the deduction under section 80C...

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How to check income tax refund status online easily

You can track income tax refund status online very easily.I hope you have filed your return on time and now it is time to get income tax refund if your tax liability is less than tax deducted via TDS/TCS. . In this post You can learn how to check tds refund status online and meaning of various refund status on income tax site. How to check income tax refund status online? Income tax refund status can be track through income tax e filling site. For it, Go to following link Income tax e filling website Click on LOG in...

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HRA exemption calculation with examples

When you receives salary slip, you can see one column showing HRA amount. Full form of HRA is house rent allowance. You can claim HRA exemption and save income tax on HRA received. Know HRA exemption calculation with examples u/s 10 (13A): Before I start, let’s see what you will learn from this post: HRA rules knowledge HRA calculation with 3 simple examples when there is change in salary, place or rent received. Proof to be produced while claiming HRA exemption. Other important facts with regards to HRA rules. HRA is the amount received by employee to pay the...

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Save tax on sell of house property by sec 54

 Long term capital gain is taxed at 20%.The rate is high and as a taxpayer or professional, you should be aware of saving long term capital gain by using sec 54. Here I have tried to explain main points of section 54 through questions and answers. Who can claim deduction u/s 54? Only individual and HUF can take benefit of section 54.. For which transaction exemption u/s  54 is allowed? Section 54 can help to save the tax when any residential house is transferred and the asset should be long term asset. It means that you have owned the residential house for more than 3 years from the date of transfer. Which asset should be purchased? You have to purchase another residential house within 1 year before the date of transfer or within 2 years after the transfer. The deduction is also available if you construct the residential house within 3 years from the date of transfer.Cost of plot can be included as cost of new residential house. How much exemption is allowed? Exemption is allowed up to the least of following: cost of the new residential house capital gain. What if you purchase or construct two new residential houses? The exemption is available to only one unit. But you can choose for which house you are seeking exemption. Obviously, you will choose the house which has more cost....

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Top 5 Ways of income tax saving

Each tax payer searches way to save his tax and get more net income. In practice, I have meet two kinds of people – one who doesn’t want to spend 1 Rs. on tax and another who asks me to calculate tax payable higher as possible. Here I am talking about first kind of person. So here I will suggest you 5 top ways of tax saving. Way No. 1:  Claim your expenditure of business:  Many taxpayers do not know what to claim in return as expense. If the expenditure is related to business and revenue nature, you can definitely claim it. Maintain all the bills of expenditure in one separate file. You can claim salary of employee, interest paid on loan, rent of office, petrol expenditure, travelling expenditure, mobile bill , bad debt and most important depreciation. Yes , you can claim depreciation on asset as expenditure. It will be varied between 5% to 100%. so don’t forget to claim it. Way no. 2:  Investment in insurance:  Investment in life insurance and medical insurance will not only give you insurance cover and bonus but it is smart way of saving tax. Suppose you have invest Rs. 1,00,000 in LIC policy and your income is Rs. 6,00,000. so you have to pay 20% tax on Rs. 1,00,000 (Rs. 6,00,000-Rs. 5,00,000)  but as you invest in LIC .your income will...

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