Maximize your take home 20062012 general

A Presentation to the Associates ofInfinite Computer Solutions

Maximize your Take homeMinimize your Tax

Lets Start with the Basics

• What is Tax & Why should we pay tax ?

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

Lets Start with the Basics

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

Tax Slab for the FY 2013-2014Male & Females - 0-59 Yrs

0 to Rs.2,00,000 0%Rs.2,00,001 to Rs.5,00,000 10%Rs.5,00,001 to Rs.10,00,000 20%Rs.10,00,001 & Above 30%

Senior Citizens - 60 & Above0 to Rs.2,50,000 0%Rs.2,50,001 to Rs.5,00,000 10%Rs.5,00,001 to Rs.10,00,000 20%Rs.10,00,001 & Above 30%

Super Senior Citizens - 80 & Above0 to Rs.2,00,000 0%Rs.2,00,001 to Rs.5,00,000 0%Rs.5,00,001 to Rs.10,00,000 20%Rs.10,00,001 & Above 30%

Tax Slab for the FY 2013-2014

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/-

Now, Lets look at how our Salary is Taxed

A typical payslipSalary Paid under different components

A typical payslipSalary Paid under different components

Fully TaxablePartially Taxable

Partially Taxable

Partially Taxable

Partially TaxableFully Taxable

Partially Taxable

Partially Taxable

• 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

Common Exemptions

• Salary Based

HRA 0-60% of your BasicMed Reimburse Rs.1250 a MonthMeal vouchers Rs.2200 a MonthConveyance All Rs.800 a monthLeave Travel All Specified by Employer

Common Exemptions/Deductions• Non Salary Based

Section 80C DeductionsLIC, 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

Section 24 - Interest Paid on Housing LoanRs.1,50,000 for Self- Occupied.No Limit for Let out Property

Section 80G50% of the Donation Amount & 100% of the Donation Amount*

Section 80TTA – Interest from Savings Bank Rs. 10,000 Maximum

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

Lets See the Impact NowDescription of

Exemption Every Month Per Annum

HRA Rs. 10,000 Rs. 1,20,000

Med Reimburse Rs. 1,250 Rs. 15,000

Meal vouchers Rs. 2,200 Rs. 26,400LIC, PF, Children Tution Fee, etc (Sec.80C) Rs. 1,00,000

Sec. 80D (Mediclaim) Rs. 10,000

Donations, if any Rs. 5,000

Interest on Housing Loan Rs. 1,50,000

TOTAL Rs. 4,26,400

Description of Exemption Every Month Per Annum

The Tax you save

10% Bracket 20% Bracket 30% Bracket

HRA 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. 7,920LIC, PF, Children Tution Fee, etc (Sec.80C) Rs. 1,00,000 Rs. 10,000 Rs. 20,000 Rs. 30,000

Sec. 80D (Mediclaim) Rs. 10,000 Rs. 1,000 Rs. 2,000 Rs. 3,000

Donations, if any Rs. 5,000 Rs. 500 Rs. 1,000 Rs. 1,500

Interest on Housing Loan Rs. 1,50,000 Rs. 15,000 Rs. 30,000 Rs. 45,000

Rebate under section 87A Rs. 2,000

TOTAL Rs. 4,26,400 Rs. 44,640 Rs. 85,280 Rs. 1,27,920

Lets See the Impact Now

Tax Planning through NPS

National Pension Scheme

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/-

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

Tax Compliance Who, Why & When

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.

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.

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

• Thank You

• Q & A