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| *Ostroff, Fair and Company>>>India Taxes |
I want to know about income tax rebate? |
i earn 25000 per month as assistant professor in medical college. i have life insurance with 10000 per annum premium Dear Professor, Go and invest in ELSS schemens and some Good insurance for a proper cover and savings.Tax rebate can be your other step. You can invest upto 1 Lacs to get 1 LAc(max) rebate under Sec80C out of which the interest you receive is taxable. I can Planout your investment as follows Term Insuurance Cover: 25Lacs +10Lacs Accidental Insurance (Expenses Rs.5000, takign your age as 30)-MOST IMPORTANT ELSS (Mutual Fund Special Scheme): Rs.5000*12 months=Rs.60000 Pension Plan: Franklin or UTI as it has got debt portion sas well. The benefits are that you will eb saving taxes on one hand (nearly 20000 per yr and get a moderate interest. Further you should get Medical Cashless insuurance, that also falls in the same category continue paying ur life insurance premia Remember NSC is a no no these days, no use 6.6% interest that is taxable cannot evenmeet rising inflation Best of luck romesh_model@yahoo.com You can goto incometax.gov.in site for computing ur tax. Just FYI..u can save to a maximum of 100,000 INR for tax saving in Insurance, NSC etc. Please note following points : 1. Rebate term is no more now under I T Act. 2. In place of it, now deduction u/s 80 C is given .The deduction is given up to Rs 1 Lac on investments which were previously under rebate section 88. Like PF/LIC premium/Principal payments of home loan etc. There are other investments also.But total deduction is only up to Rs 1 lac. 3. At the rate of RS 25,000, your gross salary is RS 3 lac.out of which some salary may be exempt.(the details of salary is not given). So , in my opinion if you want to save on tax, and you do not have home, or planning to purchase a home., just do it by taking loan, because now you will be bale to reduce up to Rs 1.5 lacs on interest plus Rs 1 lac on Principal payment.(previously it was restricted to Rs 20,000). This will make your total income below the taxable limit. Visit www.incometaxindia.gov.in and read Section 80 C of the I T Act. Also go though Section 22 to 25 of the I T Act. |
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