Income tax planning and its benefits | Introduction to Tax Planning is an intellectual process that makes
your financial position more tax efficient. This applies to all actions taken by taxpayers to ensure that
their tax liabilities are minimized and that all available deductions, credits and exemptions are used and
function in a coordinated manner. It is therefore a process that analyzes one's financial position in
terms of tax efficiency.
As a taxpayer, you can have several
sources of income:
Household income,
Wage,
Income from a business or
profession,
Capital gains
Income from other sources.
Regardless of your source of
income, you have to pay taxes to the government at the paved rates. Therefore,
a central element of a good tax plan is to reduce the tax burden and increase savings
while complying with legal obligations.
Download and prepare One by One Form 16 Part B for the Financial Year 2021-22
Why choose tax planning?
Tax planning is an integral part of
your business and you are suffering losses if you don't make the best use of
the deductions and benefits provided by the state. It helps achieve business
and financial goals and offers various benefits to both large and small
businesses.
Taxes will have a major impact on
your income, so a tax plan is important for managing your wealth. In today's
fast-paced environment, it's important to keep up with changes in tax
legislation and have strategic plans to make sure you are paying exactly what
you owe.
The benefits of tax planning
Tax breaks, deductions and
discounts can be requested if you know the taxes in detail. It also ensures
that you plan your expenses well and save more.
Download and prepare at a time 50 Employees Form 16 Part B for the Financial Year 2021-22
Deductions for different sections
U/s 80C Deduction - Provides some
of the most useful options for minimizing your tax payment rate. You can get a
tax relief of up to Rs 150,000. Life insurance expenses, employee reserve fund
contributions, college fees, mortgage repayments, all can be claimed under 80C.
U/ s 80D deductions: if the
insurance premium is paid for health or medical insurance of you, spouse,
children and parents, the maximum deduction is Rs 25,000 for children under 60
and Rs 50,000 for those over 60. allowed.
Deductions u / s 80DD: Deductions
of up to Rs 75,000 or Rs 1.25,000, as applicable, are provided to an employee
for expenses incurred in treating and maintaining his disabled employee.
U / s 80E deductions: Interest paid
on a student loan in a fiscal year is eligible for u / s 80E deduction.
U / s deductions 80TTA and 80TTB:
This is the simplest deduction an individual can request, as long as the
taxpayer has money in a savings account. Interest earned on savings accounts is
tax-free up to Rs 10,000 at 80 TTA and up to Rs 50,000 for seniors at 80 TTB.
Deductions U/ s 80U: taxpayers are eligible for deductions of up to Rs 1.25,000 if they suffer from certain disabilities or illnesses.
Download and prepare at a time 100 Employees Form 16 Part B for the Financial Year 2021-22
