Wify is earning money in USD and it seems that she will cross the current the INR 145k slab limit. My question is whether she is entitled for any IT discount/rebate for her earnings in forex. She has no other income
other than this.
Thanks in advance...
2007-03-06 20:19:24 · 3 answers · asked by SMDas 1 in Business & Finance ➔ Taxes ➔ India
Even if her income crosses Rs.1,45,000/- she can avoid paying income tax by investing in approved savings up to a maximum amount of Rs.1,00,000/-during a year, like
1. Contribution towards PPF upto an amt. of Rs.70,000/-p.a.
2. By investing in ELSS mutual fund Schemes upto Rs.1 Lac.
( These investments will be locked for a period of 3 years).
3. By contributing towards insurance premia
4. By investing in NSCs ( NATIONAL SAVING CERTIFICATES).
5. By contributing towards ULIPs ( Unit Linked Insurance Plans)
This is to say that if her income is Rs.2.3laks in this financial year 2007-08. She can save Rs.85,000/- in any of the above schemes and avoid paying any income tax. [basic exemption of Rs.1,45,000/- + total approved savings of Rs.85,000/-).In case of doubts, better contact any auditor in this regard.
2007-03-10 00:50:00 · answer #1 · answered by arpita 3 · 0⤊ 0⤋
She has no special IT discount / rebate for earning in FOREX. you can invest in 80 C instruments and get the benefits.Thus other than basic exemption and 80 C exemption of rs 100000 no other benefit is available.and the 145K limit is for next year.not for year ending 31.3.2007
2007-03-06 22:22:59 · answer #2 · answered by The Consultant 1 · 0⤊ 0⤋
no tax liability
2007-03-06 21:37:02 · answer #3 · answered by Umesh A 1 · 0⤊ 0⤋