TAX Saving Tips for the new year 2013
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TAX SAVING TIPS IN 2013
First of all Happy New Year to all the readers and happy new tax benefits.
1. Every Family member to be an assessee:
Every family member should be an income tax assessee to avoid clubbing provisions and avoid the gifting complications.
2. Prepare a HUF:
Having a Hindu Undivided Family can also be a source for tax planning. HUF is considered as a separate legal entity and hence can avail the basic exemption limit.
3. LIP:
Life insurance Policies (LIP) can also be a source for handsome returns along with tax benefits.
One can have a deduction under section 80C of premium paid upto 10% of sum assured. The assessees who already have a LIP should constantly revise their policies to check what should be the adequate policy for them.
4. Section 80TTA:
Under section 80TTA, interest on saving bank account is exempt upto Rs. 10,000. So keep your funds in saving accounts, and earn 6% risk free interest along with tax benefits. Though
Rs. 10,000 is a minor amount but a Pot can be filled by drop by drop.
5. PPF
PPF can be also be a source for risk free income which comes along with tax benefits, and the good news is that now you can earn interest upto 8.8% and that too without any taxation effects. PPF account can be used for minor children also so that they can have a nice amount when they become major.
6. ZCB
Zero Coupon Bonds are another source for handsome returns along with tax exemptions, especially in case of Minors. The only thing is that you cannot earn annual incomes.
7. Tax Free Bonds
These bonds are also a source of earning some income but they are useful for the assessee having high incomes.
8. New Pension Scheme
Though this scheme has been introduced for long but still hasn’t become that popular. Employees as well as self employed assessee can avail the benefit of this scheme. It has only a minor drawback that the amount received under NPS shall be taxable.
9. Creating a TRUST
This method can be useful for the assessee concerned for security of their children and grandchildren. Creating a trust for welfare of the young ones can help the assessee escape some of the family problems.
10. Real Estate
Real Estate is a very good source for earning quite high returns but in a longer period. Along with that assessee can claim deduction under Section 80C as well as section 24.
11. Section 80CCG
Rajiv Gandhi Equity Saving Scheme has been introduced by the Govt. to allow small investors to enter into equity market and earn income as well as allow tax benefits.
-Author is a future member of Institute of Chartered Accountants of India.
Roopak Singh
Future CA
9953144882
Roopak@icai.org
Category : Income Tax | Comments : 1 | Hits : 2717
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Comments
Lokesh Agrawal
08-Jan-2013 , 01:34:07 amI think LIP is upto 20% of sum assured. pls check.