Tax planning - Plan the taxes you pay for the year that has just finished. You may think you've missed all structuring opportunities but you can still avail some deductions. Read this to learn more.

1. Tax planning by
CA Abhishek Murali
abhishekmurali@victorgrace.in
abhishekmurali@gmail.com

2. 
...and I’m not talking about Christmas. In July you’ll be
filing your tax returns and while some people plan
properly, others don’t. Anyway, as always I’m here to
help you wade through complex tax waters
In July you will be filing your income tax returns for the
financial year April 2013 – March 2014 and while all
structuring opportunities are over, we can try to save
some taxes in the following ways
Its that time of the year again...

3. 
 The income tax act allows you to deduct certain
investments/expenses from your income
 Most people are not aware of these basic deductions
and don’t avail the benefits accrued from the same
 These can save substantial amount of taxes
Chapter VI deduction of
the Income Tax act

4. 
Example to my right
shows how you avail
these deductions and
how they have an impact
on your taxes.
In the given example my
client has saved
Rs.200,000 from getting
taxed
What is a deduction?

5. 
Claim these deductions –
Key deductions
The appendix has a detailed explanation of each
deduction and investment you can claim. However for
those short of time, these are the common deductions
that can be claimed:
 Payment of Medical Insurance(80D): Upto INR
15,000 can be claimed for yourself/wife/children
and Rs.15,000 for your parents. And if your parents
are over 65 – You can claim upto Rs.20,000

6. 
 Interest paid on Higher Education Loan(80E): If you
or your spouse/children study further and you have
taken an education loan; you can claim the
INTEREST paid on the education loan during the
year as a deduction from your income
 Donation to charitable institutions(80G):Depending
on which fund you donate to, you can claim 50% or
even 100% of the donation you make, as a deduction
Claim these deductions –
Key deductions

7. 
 Rent paid for house (80GG):You can claim a portion
of the rent you paid; or even all of it. Refer appendix
for computation of how
 Interest from saving bank deposit (80TTA): You can
claim the actual interest credited into your savings
account or Rs.10,000 – whichever is lower – as a
deduction
Claim these deductions –
Key deductions

8. 
 Rebate if your Income is less than Rs. 5 lacs (87A):
A brand new deduction. If your income is less than
Rs.5 lacs, then you can claim Rs.2000 deduction of
TAX PAYABLE
 Interest on loan from House Property(80EE): Upto
Rs.1 lakh of the interest paid on your House
Property loan can be claimed as deduction
Claim these deductions –
Key deductions

9. 
 Discuss with your auditor and understand if you’ve
enjoyed all the benefits of these deductions. If you
don’t have an auditor, try to go through the
deductions and understand if you can avail any
benefits.
What you should do while
filing you returns

10. 
 I cannot emphasise the importance of planning your
income and taxes. Not enough people do this and end up
paying substantially more taxes than they should
 Every stream of income can be planned and investments
can be made
 Also feel free to contact me for any doubts or planning
over phone or through mail at my personal mail ID –
abhishekmurali@gmail.com . And I will respond
Going forward - How you
need to plan

11. 
 http://www.sendspace.com/file/wywoam
 I have uploaded the excel format of the appendix
which has the detailed explanations of the
deductions in the above link
Appendix – Link to
download

12. 
By CAAbhishek Murali
abhishekmurali@victorgrace.in
abhishekmurali@gmail.com
Thank you