1) Only 2% of Indians file income tax returns due to fear of disclosure or complexity. 2) Various sources of income including salary, house property, business, capital gains, and others are outlined, with tax rates provided for different income levels and citizen types. 3) Tools for tax planning include deductions and allowances under Section 10 and Chapter VI A for items like housing loan interest, medical expenses, investments, education loans, and donations. Proper documentation is important for claiming deductions.

1. Tax Planning other than Sec. 80 C

2. Some Facts….
You will be surprised to know that only 2% population of India file their Income Tax
Return. Either people are scared to disclose their income to Department or they
think it is a bit stressful job.
We work 3 to 4 months to pay the Income Tax in a year.
YOU PAYMORE TAX BECAUSE YOUR NEIGHBOR DON’T PAY TAX…
Let’s encourage people to file their Income Tax Return.

3. Sources of Income
 Income From Salary
Income From House Property
Income From Business and Profession
Income from Capital Gain
Income From Other Sources

4. Tax Rates

5. 5
Slabs (INR)
Status of individual
Nil 5% 20% 30%
Resident / non-resident 250,000
250,001 –
500,000
500,001 –
1,000,000 1,000,001 & above
Resident – Senior Citizen (60
to 79 years) 300,000
300,001 -
500,000
500,001 –
1,000,000 1,000,001 & above
Resident – Very Senior
Citizen (80 years and above) 500,000 -
500,001 –
1,000,000 1,000,001 & above
• Surcharge :
10 % of Income Tax, where taxable income is more than Rs 50 Lacs
and upto Rs. 1 crore.
15 % of Income Tax, where taxable income is more than Rs 1 crore.
• Dividend received by a resident from a domestic company exceeding INR
1,000,000 p.a. taxed at 10% on the gross dividend

6. Tax Rates for Capital Gains
LTCG STCG
Sale of units of Equity
Oriented FundsThrough
recognized stock
exchanges
Exempt u/s 10(38) 15% tax u/s 111A
Any othercase 20% Tax 30% for companies
(If individuals
as per slab rates)

7. Tools of Tax Planning
Section 10 – Benefit of Various Allowances
Deduction Chapter VI A
 Housing Loan and Tax Benefit
Capital Gain from sale of House Property or any other
assets
Gift and Tax Implication
 Tax Planning through Spouse, Mom andDad
Points you should keep in mind.
Document Checklist for Declaration.

8. Tax Planning from Allowances

9. Section 10 - Benefit
Transport Allowances
Rs. 19,200/- p.a.
NO NEED TO SUBMIT ANY PROFF
FOR LOCAL COMMUTING

10. Section 10 - Benefit
Medical Allowances
Rs. 15,000/- p.a.
For Medical Expenses
Submit bills to HR

11. Section 10 - Benefit
Leave Travel Allowance (LTA)
Amount of exemption is-
Air- Economy class of Air
Rail – First class rail fare
With Family (yourself, spouse, two
children and dependent brother, sister,
parents)
Exemption: 2 Journey in a block of 4
calendar years;
Current block is 2014-2017 (January
1,2014 to Dec 31,2017).
Go on HOLIDAY to save your TAX

12. Amount of Exemption (HRA) -
Least of Following-
50% or 40% of Salary
 (Rent paid - 10% of Salary)
HRA component in your PAY SLIP
HRA exemption is NOT AVAILABLE if employee-
1.Resides in his/her own house.
2.Does not incur any expenditure on rent.
House Rent Allowance (HRA)

13. YES….. Rent has to be paid through
bank transfer entry (Cheque or NEFT).

14. YES…..Rent has to be paid through
bank transfer entry (Cheque or NEFT).
Can claim exemption even if he owns a house (in
same city or in a different city)

15. YES…..If you actually pay rent (through Bank
transfer) to reside in rented property and pay
housing loan EMI as well.

16. Housing Loan & Tax Benefit
 Most Popular tool for Saving Tax.
 Repayment of Housing loan -
a)Principal – Chapter VI A (already covered)
b)Interest on Housing Loan
 Payment of Interest on Housing Loan will be covered for Deduction up to
Maximum Rs. 2,00,000/- (In case of Self Occupied)
 It is advisable to take loan on Joint name to take benefit of Rs. 2,00,000/-
each. It means we can claim a deduction of up to Rs 400,000/-.

17. Housing Loan & Tax Benefit
Planning to Buy Second Home
 Go for housing loan if you are in higher
tax bracket because we can claim entire
amount of interest as a deduction.
 Don’t vacant it, Let out your property
because-
 It will generate cash revenue
 Entire amount of interest will allowed
as a deduction

18. Sale of House Property/ Any other Asset- Save Capital Gain
Holding for more than 24
months
Long Term Capital Gain Tax
arises

19. Sale of House Property/ Any other Asset- Save Capital Gain
Invest into another house property-
Before one year or after two year
from the date of original transfer
or
Construction with in THREE years
Invest in specified bond i.e. NHAI and
REC within a 6 month from date of sale
up to Maximum Rs 50 Lacs.

20. Chapter VIA Deduction
Investment in 80C (Max Rs 1,50,000/-)
 Premium of Life Insurance/TermPlan/ULIP
 Contribution toPF/PPF or National Saving Certificate(NSC)
 Housing Loan PrincipalRe-Payment
 FDR with 5 year lock in
 Tuition Fee - paid for children (own, adopted, step) for full time education;
 Self Contribution to Pensionscheme
 Stamp duty & registration charges on house propertypurchased
 ELSS-Mutual Fund ( Lock in period 3 years).
 NPS (Addition Rs. 50,000/-)

21. Investment in 80C (Max Rs 150,000/-)
 MandatoryExpenses-
 Housing Loan Principal Re-Payment
 Contribution to PF/PPF
 Tuition Fee - paid for children (own, adopted, step) for full time education;
 Stamp duty & registration charges on house propertypurchased
 Investments-
 ELSS-Mutual Fund ( Lock in period 3 years).
 Premium of Life Insurance/TermPlan/ULIP
 National Saving Certificate (NSC)
 FDR with 5 year lockin
 Self Contribution to Pension scheme

22. Chapter VIA Deduction
Benefits above Rs 150,000/-
MEDICLAIM (Sec. 80D)
 Max. Benefit : 55,000/-
 Mediclaim for self 25,000/-
 A deduction of Rs 5,000/- for preventive
health check-up is available.
 Mediclaim for parents 25,000/- or 30,000/-
(in case of senior citizen)
 Even if your parents are not dependent,
you can pay for medical insurance and
claim deduction.
“Health bhi aur Wealthbhi”

23. Beauty of Education Loan
 Interest is eligible for deduction with
UNLIMITED amount.
 Deduction available for EIGHT year.
 For full time studies or any vocational
studies after passing SSE.
 Taken a loan from anyFIIs.
 Deduction eligible for repayment of
education loans made for spouse or
children also.
Chapter VIA Deductions
Benefits above Rs 150,000/-

24. Chapter VIA Deduction
Benefits above Rs 150,000/-
Donation or charity made to any NGO/Trust/Political Parties
Maximum 10% of Gross Total income (For 50% deduction).

25. BE CAREFUL, Income Tax iswatching, ifyou
Cash deposits (10 lakh and above)
 Credit card bills (2 lakh and above)
 Mutual Fund purchase (2 lakh and above)
 Purchase of bonds/debentures (5 lakh and above)
Purchase of shares of a company (1 lakh and above)
Purchase of immovable property (30 lakh and above)
Sale of immovable property (30 lakh and above)
Purchase of RBI bonds (5 lakh and above)
Other points you should keep in mind

26. Most ImportantAlways advisable-
 If you switch the job in middle of the
financial year then inform the new
company about the income from the
old company, so that new company
will deduct the actual TDS on that.
 If You have FD Interest more than Rs
10,000/- then inform your company
and submit the income details so
that the company will deduct the
actual TDS on that.
Benefit- It can save the Interest on Tax
that can be huge.

27. Documents Check List
For Declaration
 In case you live in a rented apartment: 12 months rental receipt from owner
 In case you have home loan: Statement of housing loan with details of
principal and Interest components
 Medical bills for the year if any
 Tuition fee receipt paid for your
children if any
 Flight & train tickets for LTA claims
 Insurance premium receipts paid
for the year
 NSC purchased in the year
 Mutual fund (ELSS) statement
 Mediclaim premium receipt
 Parents’ mediclaim premium receipt
 Education loan statement (mentioning the interest component)
 Bank Fixed deposit receipts (the 5 year lock-in thing)

28. CA Vitesh W.
vitesh.w@prnam.in
“it’s make you more beautiful…”