How want to plan for salary tax for 2006-07. Please tell me the best way to save the tax and file myself?

Question

self preparation of tax for income 2.4 Lakhs and for my father 3 Lakhs

Answer 1

What???

Answer 2

Apart from the following allowances
Basic Salary : 100000
Transport Allowance : 9600
Medical Allowance : 15000
Contribution to PPF : 12000

You can do following additions -

HRA 40,000 if you live in a non metro and 50,000 if you live in a metro, but you will have to give a rent reciept for the same. Then you can opt for LTA, which can 10 to 15 grand per annum, you can also go for food coupens like Sodexho approx 12 K per annum. Then you ask your employer to add medical insurance for you and your family.

And you can always do the investments upto 1 Lakh per annum to get deduction under section 80C and you will end up paying little or no tax.

Answer 3

For the FY 2006-07 you need to invest Rs. 100,000 in tax saving schemes like life insurance, mediclaim etc.
The companies are now shying away from giving allowances as they have to pay FBT on those allowances.
So be prepared and try to invest in tax saving schemes as it is better to rely on yourself than on anybody else.

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Answer 4

As per Indian Income Tax Act
You may insist your employer to set your salary package as follows :
Basic Salary : 100000
Transport Allowance : 9600
House Rent Allowance : 36000
Medical Allowance : 15000
Contribution to PPF : 12000
All the above allowances are tax free, subject to condition of house rent allowance
For Balance Taxable income i.e 67400 you may claim deduction u/s 80C by purchasing insurance plans and other invesment plans available in market such as mutual funds etc. Further you may claim deduction of tution fees of your children if any.
Investing in the above manner would provide you all tax free income in your hands.