2006-10-16 01:49:32 · 4 answers · asked by parveen s 1 in Business & Finance ➔ Taxes ➔ India
I always tell people - if you want to pay less tax - earn less money. ;)
2006-10-16 01:51:39 · answer #1 · answered by Ruthie Baby 6 · 1⤊ 0⤋
You can save income tax by investing in Govt. securities. But saving in govt. securities is not worth as the returns from such savings is much lower (around 4%) than the inflation rate of 6%. In effect, you are loosing money over the years. Further the real value of money also goes down over a period of time.
I recommend to invest in blue chip company shares for 3 to 5 years as the returns will be far higher than the tax saved and it squares up inflation. Further it should be understood that tax saving is only for the year invested while the returns are everlasting.
Consider tax as an unavoidable expenditure and better pay the tax and be worriless.
2006-10-16 12:45:07 · answer #2 · answered by gopirs2002 1 · 0⤊ 0⤋
Things like fully funding your traditional IRA and itemizing deductions where you are able are the obvious answers. But to agree with the previous responders, the more money you make the more you're going to pay in taxes, its just a fact of life.
Not paying more to the government than necessary is smart, not paying what you legitimately owe will get you thrown in jail, so please be careful.
2006-10-16 11:43:28 · answer #3 · answered by Adam D 2 · 0⤊ 0⤋
by earning less. The more you earn, the more you need to pay taxes.
2006-10-16 08:56:55 · answer #4 · answered by The Potter Boy 3 · 0⤊ 0⤋