Tax Saving as per Income Tax Law?

Question

AS A STUDENT I WANT TO KNOW -
HOW TO SAVE INCOME TAX & HOW MANY FIELDS OR HEADS IS CONSIDERED BY INCOME TAX ACT FOR TAX REBATE?

SUPPOSE MR.X'S MONTHLY SALARY IS RS.65000/- PM AND HE ALSO EARN RS.20-25 THOUSAND P.M. FROM DIFFERENT SOURCE-LIKELY SHARE,COMMODITY MARKET ETC. & HE WANTS TO SAVE INCOME TAX AS HOW MUCH AS POSSIBLE. HOW WE CAN COMPUTE ITS TAX LIABILITY.

PL. ANS. WITH FULL DETAILS OF ABOVE WITH HEADS ETC.

Answer 1

As per your question i can say their are totally 5 heads

01. Income from Salary
02. Income from House Property
03. Income from Capital Gain
04. Income from Business
05. Income from Other Sources

The person can get any head of income he will expempted from Rs.100000/- from income tax.

Please correct it yourself has their is no rebate

To avoid tax apart from the RS.100000/- exemption you can also show some saving for Rs.100000/- such as LIC policy, PPF, Education Loan, Childrens Loan, Mutual Fund, Prinicpal amount of Rs.20000/- Max against Housing loan, Donation.

Apart from the above you can consider the Medical for Rs.15000/-, LTA twice in 4 year, Food vouchers Rs.15600/- and Gift Voucher Rs.5000/- etc.,

You can also conisder the interest paid to housing loan that will be fully exempted.

Answer 2

Exemption upto 1 lakh per year, for Savings like Life insurance, Provident fund, Post office savings 1 lakh exempted. Total 2 lakh to be exempt from tax.

If you build house for your personal use and getting deduction for loan interest upto 1.5 lakhs per year from the date of completion of building. (Head income from House Property)

Answer 3

your dad can avail full Rs 1,00,000 tax exemption under sec. 80 c of income tax act. 1961 which allows us the exemption of Rs. 1,00,000 . under the following heads.

1.PROVIDENT FUND
2.LIFE INSURANCE PREMIUM
3.VPF
4. PPF
5.ELSS
7.PENSION FUND (80CCC)
8.ULIP
9.NSC
10.CTD
11.PRINCIPLE AMOUNT OF HSG LOAN
12.STAMP DUTY AND REGISTRATION CHARGES
13.FIXED DEPOSIT IN SCHEDULED BANK
14EDUCATION EXPENDITURE
15.INFRASTRUCTURE BONDS
16.INTEREST ON HOUSING LOAN

the above head can be used to get the maximum exemption of section 80 c is Rs. 1,00,000. only

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