Thursday, October 14, 2010

Tips for Tax Planning

There are numerous opportunities for minimizing the amount of income tax you pay.
In order to achieve that, you need intelligent income tax planning.

Some Tips:

• Combine your Tax Planning with your Financial Plan so that the products you invest in match your risk profile and your future goals
• A home loan is not necessarily a bad debt. Consider getting a loan while buying a home to claim deductions under section 24 (b) and 80 C
• Charity is good- not only for the receiver, but the giver as well; Check on the validity and receipts before you claim that deduction u/s 80G
• Take advantage of the tax breaks that the IT sections 80C, 80 CCF, 80D and 80DD offer.
• Insuring oneself makes sense- as the premium is exempt u/s 80C (upto 1 lakh) and the maturity amount is tax free
• By taking medical insurance, you not only insure your family against medical expenses, you also get a tax deduction u/s 80D- so take that cover today!
• Always maintain a Record of Your Investments
• File your taxes on time!

Following up with explanation of the above section 

No comments:

Post a Comment