A Seminar Conducted by Akash Mahagaonkar, Head - Operations & Business Development, Relativity Management Solutions India Private Limited on How to Save Tax when your Income exceeds Rs.50 Lakhs & Above.

1. CONSULTING OUTSOURCING

2. CONSULTING | OUTSOURCING
Tax Planning should not be
Tax Evasion
• Income Tax Slabs FY 2013-2014
• Tax Planning through Family Members
• Tax Planning through HUF
• Tax Planning on NPS
• Tax Planning through Capital Gains
• Professional Tax Planning Advisory

3. CONSULTING | OUTSOURCING
Tax Slab for the FY 2013-2014
Male & 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 & Above
0 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 & Above
0 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%

4. CONSULTING | OUTSOURCING
Tax Slab for the FY 2013-2014
• 10% Surcharge If Income => 1 Crore
• INR 2,000 Rebate for Tax Payers whose income =< 5Lakhs

5. CONSULTING | OUTSOURCING
• There is a Greater Need for Proper Tax
Planning
Investment
Exempt
Interest
Exempt
Maturity
Exempt
Upto 2007

6. CONSULTING | OUTSOURCING
• There is a Greater Need for Proper Tax
Planning
Investment
Exempt
Interest
Exempt
Maturity
Exempt
Investment
Exempt
Interest
Taxable
Maturity
Exempt/Taxable
Upto 2007
2008 onwards

7. Tax Planning through Family

8. CONSULTING | OUTSOURCING
• Concept
• Worksheet – Sources of Income
Tax Planning through Family

9. CONSULTING | OUTSOURCING
Tax Planning through Family
• Make your Family Tree
• Its Exercise Time..

10. CONSULTING | OUTSOURCING
Tax Planning through Family
• Impact -
Instrument - Fixed Deposit
Investment Amount Rs. 5,00,000.00
Interest Rate 8.50%
Interest Per Annum Rs. 42,500.00

11. CONSULTING | OUTSOURCING
Tax Planning through Family
Case 1 - Income is Rs.42,500
Taxability You Spouse_1 Child_1
Income Rs. 42,500.00 Rs. 42,500.00 Rs. 42,500.00
Taxable Income Rs. 42,500.00 Rs. 0.00 Rs. 0.00
Tax Payable Rs. 14,407.50 Rs. 0.00 Rs. 0.00

12. CONSULTING | OUTSOURCING
Tax Planning through Family
Case 2 - Income is Rs.2,50,000
Taxability You Spouse_1 Child_1
Income Rs. 2,50,000.00 Rs. 2,50,000.00 Rs. 2,50,000.00
Taxable Income Rs. 2,50,000.00 Rs. 50,000.00 Rs. 50,000.00
Tax Payable Rs. 84,750.00 Rs. 5,000.00 Rs. 5,000.00

13. CONSULTING | OUTSOURCING
Tax Planning through Family
Case 3 - Income is Rs.2,50,000 + 80C Deduction
Taxability You Spouse_1 Child_1
Income Rs. 2,50,000.00 Rs. 2,50,000.00 Rs. 2,50,000.00
Taxable Income Rs. 2,50,000.00 Rs. 0.00 Rs. 0.00
Tax Payable Rs. 84,750.00 Rs. 0.00 Rs. 0.00

14. CONSULTING | OUTSOURCING
Don’t be in a hurry to save tax
• Points to Note :-
– Transfer of Funds cannot be executed anytime –
only on occasions like Birthdays / Marriage
Anniversary
– Proper Documentation has to be prepared
– Needs Planning & Discipline
– Cannot be done for Minor Children

15. CONSULTING OUTSOURCING
Tax Planning through HUF

16. CONSULTING OUTSOURCING
Tax Planning through HUF

17. CONSULTING | OUTSOURCING
Tax Planning through HUF
• HUF – Hindu Undivided Family
• Benefits are the same as creating a “Virtual”
Individual
• HUF is a separate tax entity in the eyes of the
IT Act
• Hence it enjoys Slab & Minimum Exemption
benefit

18. CONSULTING | OUTSOURCING
Tax Planning through HUF
• Lets go Back to our Worksheet
– Family Tree

19. CONSULTING | OUTSOURCING
Don’t be in a hurry to save tax
• Points to Note :-
– HUF Needs to be created by Documentation
– Needs a Separate Bank Account, PAN Number, etc
– A Business can also be executed using HUF

20. CONSULTING OUTSOURCING
Tax Planning through NPS
National Pension Scheme

21. CONSULTING OUTSOURCING
Tax Planning through Capital
Gains

22. CONSULTING OUTSOURCING
Tax Planning through Capital
Gains

23. CONSULTING | OUTSOURCING
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
Section 24 - Interest Paid on
Housing Loan
Rs.1,50,000 for Self- Occupied.
No Limit for Let out Property
Section 80G
50% of the Donation Amount &
100% of the Donation Amount*

24. CONSULTING | OUTSOURCING
Did you Know ?
• Interest Income from Savings Account is now
Exempt upto Rs.10,000
• Cost of a Medical Health Check-up (Upto
Rs.5,000) can now be included in Sec.80D
• Infrastructure Bonds u/s 80CCF has been
abolished this year

25. CONSULTING | OUTSOURCING
• Senior Citizen Age brought down from 65 to
60.
• New Class – Super Senior Citizens has been
added – Above 80.
Did you Know ?

26. CONSULTING | OUTSOURCING
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

27. Tax Compliance
Who, Why & When

28. CONSULTING | OUTSOURCING
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.

29. CONSULTING | OUTSOURCING
• 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.
What is Income Tax Returns Filing?

30. CONSULTING | OUTSOURCING
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

31. CONSULTING | OUTSOURCING
• Thank You
• Q & A