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Preface
All of us engage in some economic activity and work hard to make a living. But as you start
doing so you tend to attract the attention of the Income Tax Department, as they too are
doing their economic activity of taxing your income, as you earn. And thus as we work hard to
make a living, it becomes imperative for us to work a little more harder and smarter to save
our taxes (the legal way) too, so that it can help us make our dreams come true - A dream of
buying a better car, bigger house etc.
But, remember in the quest of attaining the same, if you keep your tax planning exercise
pending till the eleventh hour, then it would be merely a tax saving exercise leading to sub
optimal gains.
This guide on Tax Planning has been written with the purpose of helping you plan your taxes
smartly. If one incorporates the financial planning aspects such as your age, income, ability to
take risk and financial goals to tax planning exercise, then one can wisely complement tax
planning to investment planning as well.
Also, realisation will dawn on you that theres more to tax planning than the mere Rs 1 lakh
limit under Section 80C, of the Income Tax Act, 1961. There are many other provisions that
can provide you tax benefits. A simple thing like taking a loan for buying a house can make
you eligible to get tax benefits.
So, read on and wish you all VERY HAPPY TAX PLANNING!!
Team Personal FN
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Disclaimer
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Mutual Fund Advisor (ARMFA) under AMFI Registration No. ARN- 1022 and adheres to AMFI
Guidelines and Norms for Intermediaries (AGNI), and all its employees engaged in distribution
of Mutual Fund products have passed the prescribed AMFI certification examination. This is a
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disclaim any warranty of any kind, imputed by the laws of any jurisdiction whether in or
outside India, whether express or implied, as to any matter whatsoever relating to the
Service, including without limitation the implied warranties of merchantability, fitness for a
particular purpose. PersonalFN will and its subsidiaries / affiliates / sponsors / trustee or their
officers, employees, personnel, directors will not be responsible for any direct/indirect loss or
liability incurred to the user or any other person as a consequence of his or any other person
on his behalf taking any investment decisions based on the above recommendation. This is
not a specific advisory service to meet the requirements of a specific client. Use of the Service
is at any persons, including a Client's, own risk. The investments discussed or recommended
under this service may not be suitable for all investors. Investors must make their own
investment decisions based on their specific investment objectives and financial position and
using such independent advisors as they believe necessary. Information herein is believed to
be reliable but PersonalFN does not warrant its completeness or accuracy. The Service should
not be construed to be an advertisement for solicitation for buying or selling of any securities.
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This guide is for users personal use and the user shall not resell, copy, or redistribute this
guide, or use it for any commercial purpose. Please read the Terms of Use on the website
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Index
Section I: Introduction
Tax Saving Vs. Tax Planning
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Section II: Mistakes which you have been doing while saving tax
06
Section III: Your small steps (to Tax Planning) can take you leaps
Steps to tax planning
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12
17
18
22
30
38
43
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I - Introduction
All men make mistakes, but only wise men learn from their mistakes.- Sir Winston Churchill.
The above proverb is very much relevant to our daily lives - be it handling finances or even in
any other facets of life.
Moreover the famous author John C. Maxwell has also quoted A man must be big enough to
admit his mistakes, smart enough to profit from them, and strong enough to correct them.
But again this is conveniently forgotten by most, which often leads to failure to learn from
mistakes, the arrogance to admit it and which thus leads you to repeat the same mistakes
again.
While undertaking your tax planning exercise too, you tend to repeat the same mistake of
waiting till the eleventh hour and are arrogant enough to admit it.
As the financial year draws to a close, we all start feeling the heat and realise that yes, now
we have to invest in order to save tax. But have you ever wondered whether it is the prudent
way for tax planning?
Remember, waiting till the eleventh hour to undertake your tax planning exercise will often
drive it towards mere tax saving rather than tax planning; which in our opinion is a suboptimal way to undertake a tax planning exercise.
Unlike tax saving which is generally done through investments in tax saving
instruments/products, under tax planning we take into consideration ones larger financial
plan after accounting for ones age, financial goals, ability to take risk and investment horizon
(including nearness to financial goals). And by adapting to such a method of tax planning,
you not only ensure long-term wealth creation but also protection of capital.
Hence, please remember to commence your tax planning exercise well in advance by
complementing it with your overall investment planning exercise.
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The answer in our opinion is a sheer No. And thats because of the ignorance and / or
arrogance (of not admitting your mistakes) which you have, while doing your tax saving
investments.
Remember when you think of insuring yourself, it should purely mean protecting your life against any
contingent events; and thus given that you should be ideally buying only pure term life insurance plans,
which gives due importance to your human life value. It is noteworthy that ULIPs are investment-cuminsurance plans where for the premium paid, the insurance cover offered under these plans is far less
(usually 10 times of your annual premium) when compared to pure term life insurance plans; where for
a lesser premium amount you get a greater life cover which precisely what a life insurance plan is
intended for.
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To bring to your notice our Income Tax Act, 1961 also considers humane side of our life and also gives
deduction for contributions you make on such developments. So, in case if you pay your medical
insurance premium, incur expenditure on the medical treatment of a dependant handicapped,
donate to specified funds for specified causes, contribute in monetary form to political parties or
electoral trusts, take a loan for pursuing higher education or if you are an individual suffering from
specified diseases, then all this too can help you effectively plan your tax obligations, thus optimally
reducing your tax liability. Moreover, taking into account the urge to buy your dream home by taking a
loan, the Act also extends tax saving benefits to you.
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provisions of the Income Tax Act applicable to the aforementioned sources of income), as
well as by availing deductions to GTI.
Now, one may ask how do I undertake this activity if Im a novice?
Well, the answer is pretty simple! You can either get it done at your office (many organisation
do offer this facility), ask your CA / tax consultant to do it, or use the convenience of the new
and updated tax portals that have emerged in more recent times. But, along with all this
please do not forget to do your self-study to carry out effective tax planning exercise. One
must note that its vital to know at least those provisions of the Income Tax Act, which
directly have an impact on your finances.
Step 2 - Compute the Net Taxable Income
After having done with computation of GTI by using the relevant provisions of the Income Tax
Act for each source of income, the next step is to compute your Net Taxable Income (NTI).
Under NTI from the GTI, the various deductions allowed under the Income Tax Act, should be
accounted for (i.e. subtracted from your GTI), which would thus reduce your taxable income.
These deductions enable you to enjoy reduction in tax liability, as it covers Sections under the
Income Tax Act for:
Investing in tax saving instruments (your most loved and sought after Section 80C,
along with the recently introduced RGESS - Rajiv Gandhi Equity Savings Scheme)
Donations
Expenditure on handicapped dependent
Premium payment for your medical insurance
Interest paid on loan taken for higher education
Rent paid for residential accommodation
Expenditure incurred on a specified diseases suffered by you
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Remember, if you use the respective provisions effectively to do tax planning, it will enable
you to achieve the long-term objective of wealth creation.
Step 3 - Calculate the tax payable
After having effectively saved tax in the prudent way mentioned above, the next step is to
compute your tax liability based on the present income tax slabs, and thereafter file your tax
returns.
The income tax rates for Individuals and HUFs for FY 2012-13 are as follows:
Net Taxable Income (in Rs)
Upto Rs 2,00,000 (for general tax payers male and female)
Upto Rs 2,50,000 (for senior citizens)
Upto Rs 5,00,000 (for very senior citizens aged 80 and above)
Rs 2,00,001 to Rs 5,00,000 #
Rs 5,00,001 to Rs 10,00,000
Above Rs 10,00,000
(Source: Finance Act 2012, Personal FN Research)
Rate
Nil
10%
20%
30%
# For senior citizens (age 60 but less than 80 years), with NTI between Rs 2,50,001 to Rs
5,00,000 taxable @ 10%
Moreover you would also have to pay an education cess @ 3% on your tax liability computed.
So, say if your net taxable income (NTI) after availing for all deductions available is Rs
10,00,000 then your tax liability will be computed as under:
Computation of tax liability (2012-13)
Taxable Income (in Rs)
12,00,000
Upto 2,00,000
Nil
Rs 2,00,001 to Rs 500,000
10%
30,000
Rs 500,001 to Rs 10,00,000
20%
1,00,000
Rs 10,00,001 & above
30%
60,000
Tax payable (in Rs)
1,90,000
Education Cess
3%
5,700
Total Tax (in Rs)
1,95,700
(Source: Personal FN Research)
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Age
Your age and the tenure of your investment play a vital role in your asset allocation. The
younger you are more risk you can take and vice-a-versa. Hence, for prudent tax planning
too, if you are young, you should allocate more towards market-linked tax saving
instruments such as Equity Linked Saving Schemes (ELSS), Unit Linked Insurance Plans
(ULIPs) and National Pension Scheme (NPS), as at a young age the willingness to take risk
is high. One may also consider taking a home loan when you are young as; number of
years of repayment is more along with your willingness to take risk being high.
Also a noteworthy point is the earlier you start with your investments, the greater is the
tenure you get while investing in an investment avenue, which enables one to make
more aggressive investments and create wealth over the long-term to meet your
financial goals.
Lets understand this much better with the help of an illustration.
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An early bird gets a bigger pie
Particulars
Suresh
Mahesh
Sandesh
25
30
35
60
60
60
35
30
25
7,000
7,000
7,000
10%
10%
10%
2,65,76,466
1,58,23,415
92,87,834
The above table reveals that, Suresh starts at age 25, and invests Rs 7,000 per month in an
ELSS scheme through SIPs (Systematic Investment Plans) until retirement (age 60). His
corpus at retirement is approximately Rs 2.65 crore. Mahesh starts at age 30, a mere 5
years after Suresh, and invests the same amount in ELLSS scheme (through SIPs) until
retirement (also at age 60). His corpus builds up to approximately Rs 1.58 crore, note the
difference between the 2 corpuses here. And lastly, we have Sandesh, the late bloomer of
the lot. He begins investing at age 35, the same amount monthly in an ELSS Scheme as
Suresh and Mahesh, and invests up to his retirement (also at age 60). His corpus is, in
comparison, a meagre Rs 92 lakh.
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One can also consider donating an affordable amount towards a noble cause, as doing so
will make you eligible for a tax benefit (under section 80G of the Income Tax Act which is
discussed ahead in this guide).
For some of you young people, pursuing higher education may be a priority. But there
may be a case you do not have enough corpus (funds) garnered by you. However, you
need not worry, as there are several banks willing to offer higher education loan; and if
you avail the same, the interest paid by you on such loan taken will be eligible for tax
benefit (under section 80E of the Income Tax Act which is discussed ahead in this guide).
Income
Similarly, if your income is high, your willingness to take risk is high. This thus can work in
your favour, as you have sufficient annual GTI which allows you to park more money
towards market-linked tax saving investment instruments, for generating higher returns
and creating a good corpus for your financial goal(s). Also, on account of the higher GTI
your eligibility to take a home loan also increases, which can also help you to optimally
reduce your tax liability.
Yes, one may say if I have a high income, then why I need a home loan. I can straight away
go ahead and buy!
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Sure, you can do so but, the Income Tax Act provides you the tax benefit for repayment of
principal amount along with the interest of loan taken, which you will miss.
Also given that you are financially strong, you can also consider donating some of your
money towards a noble cause, which can also enable you to enjoy a tax benefit (under
section 80G of the Income Tax Act which is discussed ahead in this guide).
Similarly, if your income is not high enough (i.e. it is low), and you do not want to put your
money to risk; you can invest in tax saving instruments which provide you assured returns.
These instruments can be Public Provident Fund (PPF), National Savings Certificates
(NSCs), 5 Yr Bank Fixed Deposits, 5 Yr Post Office Time Deposits and Senior Citizen Savings
Scheme (provided you are a senior citizen).
Financial goals
The financial goals which one sets in life, also influences the tax planning exercise. So, say
for example your goal is retiring from work 5 years from now, then your tax saving
investment portfolio will be also less skewed towards market-linked tax saving
instruments, as you are quite near to your goal and your regular income will stop.
Likewise if you are many years away from the financial goal, you should ideally allocate
maximum allocation to market linked tax saving instruments and less towards those
instruments (tax saving) which provide you assured returns.
Risk Appetite
Your willingness to take risk which is a function of your age, income, expenses, nearness
to goal, will be an important determinant while doing your tax planning exercise. So, if
your willingness to take risk is high (aggressive), you can skew your tax saving investment
portfolio more towards the market-linked instruments. Similarly, if your willingness to
take risk is relatively low (conservative), your tax saving investment portfolio can be
skewed towards instruments which offer you assured returns, and if you are a moderate
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risk taker you can take a mix of 60:40 into market-linked tax saving instruments and
assured return
Yes, we reckon the fact that prudent tax planning exercise can be a time consuming
and complex. But please note the fact that its an annual activity which every tax payer
has to go through and if you start early and plan properly, the task becomes easier.
Remember, procrastination will only ensure that you invest at the last moment and not
in line with the parameters discussed above. If you are hard pressed for time, consider
hiring a competent tax consultant along with an investment advisor.
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Hence, if you invest in any or all of the aforementioned instruments; you would qualify for
deduction under this section subject to the maximum of Rs 1,00,000 p.a. But we think rather
than just merely investing in any of the above tax saving instruments, one can also can use
these tax saving instruments for prudent tax planning by recognising your age, income,
financial goals and risk appetite.
Now you may ask how?
Well, its simple! In the aforementioned list you can classify the tax saving instruments into
those offering variable returns (i.e. market-linked instruments) and those offering fixed
returns (i.e. assured return instruments). By doing so you would be able to ascertain which
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suits you best (taking into account the factors mentioned above) and will also extend your tax
planning exercise to investment planning too.
Lets discuss in detail the classification into market-linked tax saving instruments and assured
return tax saving instruments.
These are mutual fund schemes, which are 100% diversified equity funds providing tax saving
benefits. And these are popularly known as Tax Saving Mutual Funds. A distinguishing feature
about them is that they are subject to a compulsory lock-in period of three years, but the
minimum application amount in most of them is as little as Rs 500, with no upper limit. You
can either make lump sum investments or investments through the Systematic Investment
Plan (SIP).
It is noteworthy that, in the long-term if you intend to create wealth by hedging the inflation
risk, then this tax saving instrument can give you luring returns.
Yes, you may say but there is risk involved. Well, no doubt about that, but in order to
even out the shocks of volatility in the equity markets you can adopt the SIP route of investing
here which will provide you the advantage of compounding along with rupee-cost
averaging.
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SIPs provide cushion against market volatility
However a noteworthy point in SIP investing for ELSS is that your every SIP installment (which
can be monthly, quarterly or half yearly) should complete the minimum lock-in period of 3
years.
Deduction: The maximum tax benefit which you can enjoy under section 80C is Rs 1,00,000
p.a. Moreover, if you make any long term gains at the time of exit any time after the end of
the lock-in period; then you would not have to pay any Long Term Capital Gains Tax (LTCG)
too.
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2.
These are typically insurance-cum-investment plans which enable you to invest in equity and
/ or debt instruments depending on what suits you as per your age, income, risk profile and
financial goals. All you simply need to do is, select the allocation option as provided by the
insurance company offering such a plan. Generally they are classified as aggressive (which
invests in equity), moderate or balanced (which invests in debt as well as equity) and
conservative (which invests purely in debt instruments).
Hence apart from the insurance cover (which is 10 times your annual premium) offered under
these plans, the returns which you would get would be completely market-linked as your
premium amount (after accounting for allocation and other charges) is invested in equity and
debt securities.
And in order for you to track such plans the NAV is declared on a regular basis. These policies
have a minimum 5 year lock-in period, and also have a minimum premium paying term of 5
years. The overall term of the policy would vary from product to product.
In case of any eventuality the beneficiaries would be paid the sum assured or fund value,
whichever is higher.
But a noteworthy point is, while some well selected ULIPs may add value to your portfolio in
the long-term; your insurance and investment needs should be dealt separately, thus enabling
you to have the optimum insurance coverage and the right investment instruments for longterm wealth creation.
Deduction: The premium which you paying for your ULIP would be eligible for tax benefit,
subject to the maximum eligible amount of Rs 1,00,000 p.a. as available under Section 80C.
Moreover, a positive point is that at maturity the amount which you or your beneficiary
would receive is tax free (exempt) as per the provisions of Section 10(10D) of the Income Tax
Act.
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3. National Pension Scheme (NPS):
National Pension Scheme which was earlier available only for Government employees was
later on May 1, 2009 also introduced for people in the unorganised (private) sector, as need
for deeper participation in the pension contribution (through this product) was felt.
For NPS, if you (eligibility age: from 18 years to 60 years) belong to the unorganised sector
(i.e. private sector); the contributions done by you towards the scheme would be voluntary,
and you can invest in any of the two under-mentioned accounts:
Tier-I Account:
In this account your minimum investment amount is Rs 500 per contribution and Rs
6,000 per year, and you are required to make minimum 4 contributions per year. Under
this account, premature withdrawals upto a maximum of 20% of the total investment is
not permitted before attainment of 60 years, however the balance 80% of the pension
wealth has to be utilised by you to buy a life annuity.
Tier-II Account:
For opening this account you will have to make a minimum contribution of Rs 1,000 per
annum. The minimum number of contributions is 4, subject to a minimum contribution
of Rs 250. However, if you open an account in the last quarter of the financial year, you
will have to contribute only once in that financial year. You will be required to maintain a
minimum balance of Rs 2,000 at the end of the financial year. In case you dont maintain
the minimum balance in this account and do not comply with the number of
contributions in a year, a penalty of Rs 100 will be levied. Moreover, in order to have
Tier-II account, you first need to have a Tier-I account. Tier-II account is a voluntary
account and withdrawals will be permitted under this account, without any limits.
Even if you hold both the above accounts under NPS, only the Tier-I account will be eligible
for tax benefits.
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While investing money in NPS, you have two investment choices i.e. Active or Auto
choice. Under the Active choice asset class, your money will be invested in various asset
classes viz. E (Equity), C (Credit risk bearing fixed income instruments other than Government
Securities) and G (Central Government and State Government bonds); where you will have an
option to decide your asset allocation into these asset classes. In case of Auto Choice, your
money will be invested in the aforesaid asset classes in accordance with predetermined asset
allocation.
But remember, the return on your investment is not guaranteed as it is market-linked. At
your age of 60 years, you can exit the scheme; but you are required to invest a minimum 40%
of the fund value to purchase a life annuity. And the remaining 60% of the money can be
withdrawn in lump sum or in a phased manner upto your age of 70 years.
In our opinion this product is not very appealing for creating a substantial corpus to meet your
retirement need. Rather, if you chalk-out a prudent financial plan with the help of a financial
planner, and invest wisely as per the plan laid out (which would mostly recommend you equity
allocation at younger age, and then as your age progresses balance the asset allocation
between equity and debt instruments), then the corpus which you would be able to create will
be substantial enough to meet your retirements needs. Also under this scheme, when one
withdraws money, at the age of 60 it is taxable.
Deduction: If you are an employed individual, you can claim deduction under Section 80CCD
up to 10% of your salary, which comprises Basic + DA; In case you are a self-employed
individual, the restriction up to which you can claim tax benefit under Section 80CCD is
capped at 10% of your gross total income. So the contributions which you make to the NPS
account, would be eligible for tax benefit but subject to the maximum eligible amount of Rs
1,00,000 p.a. as available under Section 80C.
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instruments (for your tax planning) along with the fact that your risk taking ability is low; then
you should plan investing in tax saving instruments which offer you assured returns. Under
these instruments there is zero risk of erosion to your capital. Following are the tax saving
instruments available under this category:
1. Non-Unit Linked Life Insurance Plans:
Life Insurance plans can be broadly classified as pure term life insurance plans and
investment-cum-insurance life insurance plans.
Pure term life insurance plans are authentic in nature, as they cater to the need of only
protection and not investment. Hence such plans offer a high life insurance coverage at low
premiums. Generally the term insurance plans offer a policy term of 10, 15, 20, 25 or 30
years.
Investment-cum-insurance plans on the other hand, as the name suggest offer you an
investment option as well as an insurance option. But here your insurance coverage is far
lesser, than the one provided under pure term insurance plans. So, you pay a high premium
which gets invested, but insurance coverage on the other hand is meagre. Such insurance
plans can be offered in various forms such as ULIPs (as discussed above), endowment plans,
money back plan, pension plans etc.
We think that while you are considering your insurance needs, you should ideally look at only
pure term life insurance plans, thus keeping your insurance needs separate from investment
needs.
Deduction: Over here too the premium which you paying for your such non-ULIP life
insurance plans would be eligible for tax benefit, subject to the maximum eligible amount of
Rs 1,00,000 p.a. as available under Section 80C. Moreover, a positive point is that at maturity
the amount which you or your beneficiary would receive is exempt (tax free) as per the
provisions of Section 10(10D) of the Income Tax Act.
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2.
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After your term of 15 years is over if you wish to renew your account, you can do so for a
period of another 5 years at the rate of interest prevailing then, without having the
compulsion of putting any further deposits in case of extension. The withdrawal in case of
extended accounts is permissible once in every financial year. But the total withdrawal should
not exceed 60% of the balance accumulated to the account at the commencement of the
extension period (of 5 years).
It is noteworthy that if you are risk averse, then this product is best in its class for tax planning.
Moreover, it also offers you an appealing tax-free return of around 8% p.a. (compounded
annually).
Deduction: The contributions which you make to the accounts mentioned above, would be
eligible for tax benefit but subject to the maximum eligible amount of Rs 1,00,000 p.a. as
available under Section 80C.
3. National Savings Certificate (NSC):
The NSC is also a scheme floated by the Government of India, and one can invest in the same
through your nearest post offices, as the scheme is available only with the India Post. The
certificates can be made in your own name, jointly by two adults, or even by a minor (through
the guardian), and has a tenure of 5 years or 10 years.
The minimum amount which you can invest is Rs 100, with no maximum limit to the same.
NSC maturing in 5 years offers interest @ 8.6% p.a. compounded half-yearly whereas NSC
maturing in 10 years offers interest @ 8.9% p.a. compounded half-yearly, thus giving you an
effective interest rate of 8.78% p.a. and 9.09% p.a. The interest income accrues annually and
is reinvested further in the scheme till maturity (i.e. 5 or 10 years) or until the date of
premature withdrawals.
Premature withdrawals are permitted only in specific circumstances such as death of the
holder.
Deduction: Your investment in NSC is eligible for a deduction of upto Rs 1,00,000 p.a. under
Section 80C. Furthermore, the accrued interest which is deemed to be reinvested qualifies for
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deduction under Section 80C. However, the interest income is chargeable to tax in the year in
which it accrues. But in case if you have no other income apart from interest income, then in
order to avoid Tax Deduction at Source (TDS), you can submit a declaration in Form 15-H (for
general) or Form 15-G (for senior citizens) as applicable.
4. Bank Deposits and Post Office Time Deposits:
The 5-Yr tax saving bank fixed deposits available with your bank is also eligible for a deduction
under Section 80C and comes with a lock in period of 5 years. The minimum amount that you
can invest is Rs 100 with an upper limit of Rs 1,00,000 in a financial year. The interest rates
offered by some of the popular banks are as under:
Bank Name
8.25
9.00
8.75
9.25
8.50
9.25
9.00
9.75
8.75
9.25
However, the interest earned here would be subject to tax deduction at source, making it
detrimental for your tax planning, but again you can submit a declaration in Form 15-H (for
general) or Form 15-G (for senior citizens) as applicable for not deducting tax at source.
Similarly 5 Yr Post Office Time Deposits (POTDs) also offer you a tax benefit under Section
80C. The account can be opened by you either in single name or jointly or even by a minor
(through a guardian) who has attained the age of 10.
The minimum investment amount is Rs 200, and there isnt any upper limit. However, the
investment amount over Rs 1,00,000 will not be eligible for any tax benefit.
A 5-Yr POTD earns a return of 8.5% p.a. (compounded quarterly), but paid annually. Hence,
say if deposit an amount Rs 10,000, the interest income which you will fetch would
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approximately be Rs 877 p.a. As regards premature withdrawals are concerned, they are
permitted only after 6 months from the date of deposit with a penalty in the form of loss of
interest.
Deduction: Your investment in the both these schemes are eligible for a deduction of upto Rs
1,00,000 p.a. under Section 80C. But as mentioned above, the interest earned on your
investments will be subject to tax deduction at source. However, in case if you have no other
income apart from interest income, then in order to avoid Tax Deduction at Source (TDS), you
can submit a declaration in Form 15-H (for general) or Form 15-G (for senior citizens) as
applicable.
5. Senior Citizens Savings Scheme (SCSS):
Well, the SCSS is an effort made by the Government of India for the empowerment and
financial security of senior citizens. So, in case if you are over 60 years old, you are eligible to
invest in this scheme. Moreover, if you have attained 55 years of age and have retired under a
voluntary retirement scheme; then too you are eligible to enjoy the benefits of this scheme.
In order to avail the benefits of this scheme, you are required to open an SCSS account (either
in a single name, or jointly along with your spouse) at your nearest post office or any
nationalised bank. You can do a onetime deposit under this scheme subject to the minimum
investment amount of Rs 1,000 and a maximum of Rs 15,00,000. The maturity period
provided for this scheme is 5 years offering a rate of interest of 9.30% p.a. payable on a
quarterly basis (i.e. on March 31, June 30, September 30 and December 31) every year from
the date of deposit.
After one year from the date of opening the account, premature withdrawals are permitted.
If you withdraw between 1 and 2 years, 1.5% of the initial amount invested will be deducted.
And in case if you withdraw after 2 years, 1.0% of the balance amount is deducted.
Deduction: Your investments upto Rs 1,00,000 in SCSS are entitled for a deduction under
Section 80C. However, the interest earned by you would be subject to tax deduction at
source. But in case if you have no other income apart from interest income, then in order to
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avoid Tax Deduction at Source (TDS), you can submit a declaration in Form 15-H (for general)
or Form 15-G (for senior citizens) as applicable.
Options Galore - Snapshot of section 80C
Schemes
Type
Interest Rate
Term
Premature
Withdrawal
Section No.
No
80C
Growth
Growth
Market-Linked Returns
Term: 10 - 20 years;
Lock-in-period: 5 years
Yes
Growth
Market-Linked Returns
30-35 years
Rs 6,000
Yes
80C
Recurring
8.8% p.a.
Rs 500 - Rs 100,000
Yes
80C
Deposit
8.6% (compounded
half-yearly)
5 years
No
80C
Deposit
8.9% (compounded
half-yearly)
10 years
No
80C
Bank Deposits
Fixed
Deposit
5 years
No upper Limit
No
80C
Fixed
Deposit
1-YR: 8.2%;
2-YR: 8.3%;
3-YR: 8.4%;
5-YR: 8.5%;
(compounded
quarterly & paid
annually
1-5 years
Yes
80C
Deposit
5 years
Rs 1,000 - Rs 15,00,000
Yes
80C
5-40 years
Varies from
policy to policy
The tuition fees that you pay to any university, college, school or other educational institution
situated within India for your childrens education is also eligible for deduction under section
80C. However the fees paid towards any coaching center or private tuition may not be
eligible. Also you need to note that this deduction is available only to Individual Assesse and
not for HUF, and is limited to Rs. 1,00,000 and a maximum 2 children. If someone has four
children, then husband and wife both enjoy a separate limit of two children each, so they can
separately claim deduction (upto Rs 1,00,000) for 2 children each, subject to the amount they
have actually paid.
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7. Principal repayment on Housing Loan:
You always wanted to have your dream home and now you have been able to get it with the
help of housing loan from a bank or financial institution. But after you have got your home
through this loan, you have the obligation to repay the principal amount of the loan on time.
The repayment of principal amount, makes you eligible to claim a deduction upto a sum of
Rs 1,00,000 under section 80C; and that benefit is available with you immaterial of the fact
whether you stay in the same property (Self Occupied Property - SOP), or have let it out on
rent (Let Out Property LOP). You can also claim tax benefit on the interest you pay on your
housing loan, but under a separate section (this is covered in detail at the later stage in the
guide)
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The premium paid by you on medical insurance policy (commonly referred to as a mediclaim
policy) to cover your spouse and you, dependent children and parents against any
unexpected medical expenses, qualifies for a deduction under Section 80D.
The maximum amount allowed annually as a deduction (from your GTI) is Rs 15,000, in case if
you pay for yourself, spouse and dependent children. And if you are a senior citizen, the
maximum deduction gets extended to Rs 20,000.
Further, if you pay medical insurance premium for your parents (irrespective of whether they
are dependant or not on you), you can claim an additional deduction of upto Rs 15,000 under
this section. So, for example, if you pay a premium of Rs 15,000 for yourself and Rs 15,000 for
your parents, you will be eligible for a total deduction of Rs 30,000.
However, while paying the premium you need to ensure that the payment is made in any
mode other than cash.
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2.
If you have incurred any expenditure in the form medical treatment (including nursing),
training and rehabilitation for a handicapped dependent suffering from disability, then the
expenditure so incurred by you qualifies for deduction under Section 80DD of the Income Tax
Act. Similarly, if you have deposited a sum of money under any scheme framed in this behalf
by LIC (Life Insurance Corporation of India) or any other insurer or administrator or a specified
company (approved by the Board), for maintenance of the dependent being a person with
disability; also qualifies for a deduction under Section 80DD.
The quantum of deduction here depends upon the severity of the disability suffered by the
dependent. Hence, if the dependent is suffering from 40% of any disability [Specified
under section 2(i) of the Person with Disability (Equal Opportunities, Protection of Rights and
Full Participation) Act, 1955], then you would be entitle to a deduction of a fixed sum of Rs
50,000 p.a. from your GTI irrespective of the expenditure incurred or amount deposited.
Similarly, if the dependent is
then you claim a higher deduction of fixed sum of Rs 100,000, from your GTI irrespective of
the expenditure incurred or amount deposited.
It is noteworthy that over here the term dependent being a person with disability means
your spouse, children, parents, brothers and sisters.
Moreover, in order to claim the deduction you need to submit a medical certificate issued by
a medical authority along with your return of income. Also if you are claiming a deduction in
your tax returns for such an expenditure incurred or amount deposited, your dependent
cannot claim a deduction under Section 80U in case hes (handicapped dependent) filing his
tax returns separately.
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3.
If you have incurred expenditure on your medical treatment or for your dependents, then
too the expenditure so incurred, makes you eligible for deduction under Section 80DDB of the
Income Tax Act.
The deduction from your GTI, which you are entitled to, is Rs 40,000 or the amount actually
paid, whichever is lower. And if you are a senior citizen, then you are eligible for a deduction
of Rs 60,000 or the amount actually paid, whichever is lower.
It is noteworthy that over here the term dependent means your wholly or mainly
dependent spouse, children, parents, brothers and sisters. Also, in order to claim a deduction
under this section, you are required to submit a medical certificate from a doctor
(neurologist, oncologist, urologist, haematologist, immunologist, or any other specialist)
working in a Government hospital.
4.
While pursuing a personal goal of enrolling for higher education in order to be competitive
enough to meet your financial goals; the Income Tax Act offers you deduction (from your
GTI), when you take a loan to fulfil such dreams.
Sure, you can also take an education loan for your wifes or childrens education or for any
person (minor) for whom you are the legal guardian. But that makes you eligible for
deduction under Section 80E of the Income Tax Act, to the extent of the interest paid on such
a loan taken.
The deduction is available for a maximum of 8 years or till the interest is paid, whichever is
earlier. So, to simplify it further, the deduction is available from the year in which you start
paying the interest on the loan, and the seven immediately succeeding financial years or until
the interest is paid in full, whichever is earlier.
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It is noteworthy that, here the term higher education means full-time studies for any
graduate or post-graduate course in engineering (including technology / architecture) ,
medicine, management or for post-graduate courses in applied science or pure science
including mathematics and statistics. But from the Finance Act of 2011 its scope is extended
to cover all fields of studies (including vocational studies) pursued after passing the Senior
Secondary Examination or its equivalent from any school, board or university recognised by
the Central or the State Government or local authority or any other authority authorised by
the Central or the State Government or local authority to do so. However, no deduction is
available for part-time courses
5.
As mentioned earlier that our Income Tax Act, 1961 considers the humane side of our life,
and so if on humanitarian grounds you donate to certain specified funds, charitable
institutions, approved educational institutions etc, the donation amount qualifies for
deduction under this section.
The deductions allowed can be 50% or 100% of the donation, subject to the stated limits as
provided under this section. For example, donations to National Defence Fund set up by the
Central Government are allowed 100% deduction, while for Prime Minister Drought Relief
Fund are allowed at 50%. Under the Income Tax Act, if you make donations to any of the
host of notified funds and / or charitable institutions, you are eligible for deduction under
Section 80G.
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Amount Deductible
100%
100%
100%
100%
100%
100%
Maharashtra Chief Ministers Relief Fund and Chief Ministers Earthquake Relief
Fund
100%
Any fund set up by Gujarat State Government for providing relief to earthquake
victims
100%
50%
50%
50%
50%
50%
Note: There are also other funds and charitable institutions that are eligible for deduction under Section 80G.
In order to claim deduction under this section, you are required to attach a proof of payment
along with your return of income.
6.
Rent paid in respect property occupied for residential use (Section 80GG):
If you are a self-employed or a salaried individual who is not in receipt of any House Rent
Allowance (HRA), and is paying a rent for an accommodation (irrespective whether furnished
or unfurnished) occupied for residential use, then you can claim a deduction under this
section.
But as a pre-condition for availing deduction under this section, you or your spouse or your
minor child must not own any residential accommodation either in India or abroad.
And the deduction which will be available to you under this section is the least of:
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7.
Say, if you have some nepotism for any political party or electoral trust as you appreciate the
work done by them; and therefore decide to make a monetary contribution to the party or
electoral trust, then the amount so contributed would be eligible for a deduction under this
section.
8.
As said earlier, that our Income Tax Act, 1961 considers the humane side of life; so if you as
an individual resident in India is suffering from any specified disability i.e. not suffering from
not less than 40% any specified diseases given below, then you would be eligible for
deduction under this section.
Specified disabilities:
Blindness
Low vision
Leprosy-cured
Hearing impairment
Locomotor disability
Mental retardation
Mental illness
The deduction available under this section is flat (i.e. fixed) Rs 50,000, immaterial of the
expenditure incurred. But if the disability is severe in nature (i.e. 80% or above), then one is
entitled to flat (i.e. fixed) deduction of Rs 1,00,000.
However in order to avail of the deduction, one needs to file copy of certificates issued by the
medical authority, at the time of filing returns.
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9.
The Union Budget 2012-13, the Finance Act 2012 has introduced a new section 80CCG on
Deduction in respect of investment made under an equity savings scheme to give 50% tax
break to new investors who invest up to Rs. 50,000 and whose gross total annual income is
less than or equal to Rs. 10 lakhs. For this Rajiv Gandhi Equity Savings Scheme (RGESS) has
been introduced as a tax saving scheme only for the novice investors who are entering the
equity markets for the first time and hence, this benefit is like a once in a life time benefit.
The objective of the scheme is to encourage flow of savings in the financial instruments and
improve the depth of the domestic capital market. In order to device safety measures for new
investors investing in direct equity through the RGESS, the stocks of Maharatna, Navaratna
and Miniratna, besides the top 100 stocks (BSE 100 or CNX 100) listed on the stock exchanges
are considered under RGESS. The argument for proposing investments only from the large
caps and PSU domain is, not only to provide security but also ensure liquidity.
The first time investors can take benefit of RGESS, by investing in eligible stocks, RGESS
eligible close-ended Mutual Fund schemes and RGESS eligible Exchange Traded Funds. To
make it convenient to identify the eligible stocks and mutual funds, the stock exchanges shall
furnish list of RGESS eligible stocks / ETFs / MF schemes on their website. Further, the list
shall also be forwarded to the depositories at monthly intervals and whenever there is any
change in the said list. For this purpose, mutual fund houses shall communicate list of RGESS
eligible MF schemes / ETFs to the stock exchanges.
The money invested under RGESS is subject to an overall lock-in period of 3 years, though one
can sell / pledge / hypothecate their securities after the expiry of the mandatory lock-in
period of 1 year, but he cannot withdraw the money before 3 years. i.e. Investors may be
allowed to churn their portfolio after completion of fixed lock in period of 1 year, but his
account will be converted into an ordinary demat account only on completion of 3 years.
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Options Galore - Snapshot of deduction under other 80s
37
Section
Limit
80D
80DD
80DDB
80E
80G
80GG
80GGC
80U
80CCG
www.PersonalFN.com
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Similarly, if you have taken a loan for the purpose of reconstructing, repairing or renewing the
property, the amount of deduction under section 24(b) which youll be eligible for will be
restricted to Rs 30,000, irrespective whether you want to stay in it or let it out on rent.
Lets understand with an example how home loan taken for buying your dream home to
stay in it (SOP) can reduce the total tax payable by you.
Lets assume you earn Rs 6,50,000 p.a. by way of salary and have taken a home loan of Rs
40,00,000 for buying your dream home and you have decided to stay in it. The home loan is
for tenure of 20 years and the rate of interest is 9.0% p.a. and the Equated Monthly
Installments (EMI) is Rs 35,989.
Tax savings on account of home loan
Gross Annual Salary (Rs)
Loan Amount (Rs)
650,000
4,000,000
Tenure (yrs)
20
9.0
EMI (Rs)
35,989
356,960
74,908
1,00,000
41,200*
20,600*
30,900*
The above table clearly shows the benefit of availing a housing loan if you are contemplating
buying a house. The total tax payable on your income without a home loan works out to Rs
41,200. The same with a home loan works out to Rs 20,600, thus saving you Rs 20,600.
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Amt ( Rs)
74,908
10,000
20,000
10,000
20,000
134,908
100,000
34,908
The amount eligible is more than what you can claim. Yes, you have an option of not investing
in PPF, POTDs or NSC but these are assured return schemes with attractive returns. And as
said earlier your portfolio should always comprise of a mix of assured return and marketlinked return instruments, in a composition which is in accordance to your financial goals and
willingness to take risk. Hence, ignoring these investment avenues may not be prudent from
financial planning perspective.
So, now the next question is how do you claim maximum available deductions to minimise
your tax liability? The answer lies in taking a joint home loan. A joint home loan can be taken
with your spouse or relative.
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Lets understand with an example how a joint home loan with your spouse can help reduce
your tax liability.
Assume your spouse and you decide to take a joint home loan of the same amount as
mentioned above and share the loan in ratio of 50:50.
Particulars
Gross Salary (Rs)
Home Loan Amount (Rs)
Tenure (yrs)
Rate of Interest p.a.
EMI (Rs)
Annual Interest Paid (Rs)
Principal paid in the 1st year (Rs)
Life Insurance (Rs)
Other contributions towards tax-efficient
instruments (Rs)
Total amount contributed under section 80C
& 24(b) (Rs)
Amount which cannot be claimed to reduce
tax liability (Rs)
Tax Paid when: (Rs)
1. No home loan benefit availed
2. Single home loan benefit availed
3. Joint home loan benefit availed
You
Your Spouse
650,000
650,000
4,000,000
20
9.0%
35,989
178,480
178,480
37,454
37,454
10,000
10,000
50,000
50,000
247,454
247,454
28,480
28,480
49,440
20,600
20,862
49,440
49,440
20,862
28,840
57,156
Now since your spouse is a co-owner and has contributed towards repayment of the loan she
too would be eligible for the tax benefit (both principal and interest component).
So, as indicated in the table above, if the principal and interest amount is shared equally
between your spouse and you, the contribution per person comes to Rs 37,454 for principal
repayment and Rs 178,480 for interest payment. The principal amount is now half of what
was earlier which allows you to claim deductions towards other contributions. At the same
time it reduces the tax liability to a significant extent and leads to a household saving of upto
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Rs 57,156. As compared to a Single home loan, a Joint home loan leads to a saving of Rs
28,316.
From the tax planning point of view, it is vital to ensure that the higher earning member pays
higher portion of the home loan EMI. This is because the tax benefit accrues in proportion to
your contribution towards loan repayment.
So, remember if you plan to buy a house, it makes sense to include your spouse as a coowner; especially if your spouses income is taxable. This will result in higher tax saving in
addition to boosting your loan eligibility.
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Now you may ask How can the income tax authority tax me, if I have not let out my
property on rent?
Well, thats because annual value of your property after providing for deduction available
under Section 24(b) is taxed under the head income from house property. A noteworthy
point is, term house property includes building(s) or land appurtenant (i.e. attached)
thereto also.
And now the next question which may be popping on your mind is What is annual value of
the property and which deductions are available?
Annual Value:
To understand that better let us take a case where you have let out the property (LOP) and
then DLOP.
In cases where you are enjoying a regular income from the property in the form of rent, then
the annual value of your property would be calculated by adopting the following steps:
a) Find out the reasonable expected rent of the property (which is municipal rent or fair
rent, whichever is higher)
b) *Consider rent actually received / receivable
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In case you own more than one house, and the other house(s) apart from the one where you
are staying are vacant throughout the month, then the other house property(s) would be
considered as a Deemed to be Let Out Property(s) - DLOPs. Moreover, you would be liable
to pay tax on such property(s) after having calculated the Gross Annual Value (GAV), which
will be calculated in the same way as for LOP. But the only difference being that, here rent
would be the standard rent calculated as per the municipal laws.
Thereafter, if you as the landlord are paying any municipal taxes towards these properties,
then those would be subtracted to obtain the Net Annual Value (NAV).
Remember, over here in case you have multiple DLOPs, then you have an option to consider
one of property as an SOP and the rest would be considered as DLOPs as the present Income
Tax law. So, say you have 4 such DLOPs then you should ideally select the property with the
highest GAV as an SOP property, as this optimise your tax planning exercise, as the remaining
properties available with you will have a lower GAV.
Self-Occupied Property
You need not worry here if you are occupying the property, throughout the financial year for
your stay (i.e. residential use) and thus the NAV of the property will be considered as Nil.
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But if you are occupying the property for some part of the year, and the rest of the year you
have earned an income by letting it out, then proportionately for the rest of the year when
the property was let out, the calculation of annual value would be applicable as that of LOP.
Deductions:
After having calculated the Net Annual Value (NAV) as seen above, you are eligible to claim
deductions under Section 24(b), which further reduces your taxability under this head of
income. You broadly get the following deductions:
Standard Deduction [Section 24(a)]
Owning a home and maintaining the same costs you money. But irrespective of the fact
whether you have incurred any expenditure or not to do so, you will be eligible to claim a flat
deduction of 30% calculated on the NAV of the property. And this deduction is of specific use
if ones property is LOP and / or DLOP. In case if the property is SOP, then you are not eligible
to claim any deduction as the NAV of your SOP is Nil.
Interest on borrowed capital [Section 24(b)]
As reiterated above too (in the home loan section), if one wisely takes an home loan for
buying a house property then the interest so paid on the borrowed capital will make you
eligible for deduction under Section 24(b), irrespective whether the house property is SOP,
LOP or DLOP.
In case of SOP the income from house property will be negative income, (if interest is paid on
capital borrowed by you to buy or construct or reconstruct or renew or repair the house),
which will enable you to reduce your overall Gross Total Income (GTI). In case other
properties
i.e., LOP and DLOP the income from house property will be positive, but would be reduced
to the extent of standard deduction and interest paid.
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The quantum of deduction depends upon the purpose for which you take a loan i.e.
purchase, construction, reconstruction, repair or renewals, and also the type of property i.e.
SOP, LOP or DLOP.
Hence, in case you have taken a loan for the purpose of purchase or acquisition of the house
which is an SOP, then you will be eligible for a maximum deduction of a sum of Rs 1,50,000.
But if the loan is taken for the purpose of repair, renewal, or reconstruction, then eligible
deduction is restricted to Rs 30,000.
Now if the property is LOP or DLOP, then you do not have any maximum restriction for
claiming interest so it can be above the otherwise limit of Rs 1,50,000, irrespective of the
usage i.e whether for the purpose of purchase, construction, reconstruction, repair or
renewals.
Remember, while everyone buys house property(s), it is important to avail the benefits available under
the Income Tax Act, wisely as this would enable in optimally saving your tax liability, and off course
enjoy the fruits of your investment made too and / or enjoy the comfort of your dream house too.
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If you are paying rent for an accommodation, and if your organisation extends you HRA
benefits, then this is another vital component which can help you to reduce your tax liability.
But it should be noted that you cannot pay rent for the house which you own and if you are
residing in it.
Hence, now on the other side if you are staying in a rented house and you are the one paying
the rent, then HRA exemption [under Section 10(13A)] can be availed for the period during
which you occupy the rented house during the financial year.
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However in order to obtain an exemption, you are required to submit appropriate and
adequate proof of payment of rent for the entire period for which you want to claim
exemption. But, if you as an employee is drawing an HRA less than Rs 3,000 per month, you are not
required to provide a rent receipt to your employer.
The maximum exemption which you can enjoy for HRA is as under:
In Chennai/ Delhi/ Kolkata/ Mumbai
In other cities
Least of:
Least of:
Actual HRA
Actual HRA
50% of salary*
40% of salary*
*Salary for this purpose includes basic salary + dearness allowance (if in terms of service)
(Source: Personal FN Research)
Here a noteworthy points is, if your rent is very high and if you are not fully covered by the
HRA limit, then it would be wise to pick a company leased accommodation (if the company in
which you work in offers so), as this company leased accommodation would constitute to be
the perk value and would be taxed @ 15% of your gross income. Sure, the perk value is
taxable but it still works out to be more effective for tax planning, than opting for a HRA than
doesnt fully cover your rent.
While you may be fond of opting for a leave and travel with your family for a holiday, dont
forget to assess what tax benefits are extended to you for doing so. The Income Tax Act
provides you tax concession if you have actually incurred expenditure on your travel fare
anywhere in India either alone or along with your family members (i.e. your spouse, children,
parents, brothers and sisters who are mainly or wholly dependent on you).
The exemption extended to you under the Act is for two journeys performed in a block of four
calendar years. And the current block of four calendar years is from 2010 to 2013 (i.e. from
January 1, 2010 to December 31, 2013).
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As per the present Income Tax Rule, the exemption would be available to you in the following
manner:
Particulars
Where the journey is performed by air
Where the journey is performed by rail
Where the places of origin of journey and destination are connected
by rail and journey is performed by any mode of transport other
than air.
Where the place of origin of journey and destination (or part
thereof) are not connected by rail
Amount exempt
Amount of "economy class" airfare of the national carrier by the
shortest route to the place of destination or amount actually
spent, whichever is less.
Amount of air-conditioned first class rail fare by the shortest
route to the place of destination or amount actually spent,
whichever is less.
Air-conditioned first class rail fare by the shortest route to the
place of destination or amount actually spent, whichever is less.
In case you have not availed of a LTC and have not travelled in any of the four calendar year
of the block period, then you are allowed to carry-over the concession to the first calendar
year of the next block, but for only one journey.
It is vital that you utilise your leaves wisely and travel to any of your loved holiday destination
in India, as this will not only de-stress you, but also help you in reducing tax liability. After you
have returned from your journey, in an excitement please do not tear your travel tickets /
boarding pass (for air travel) as you need to submit them to your employer so that your tax
liability can be reduced.
Education allowance:
If you are married with kids, and if your employer is providing with education allowance, then
do not refrain from availing it, as this can again help you in reduction of your tax liability. The
exemption extended to you under the Income Tax Act is Rs 100 per month for a maximum of
two children (i.e. in other words Rs 2,400 p.a. totally). Similarly, if your children are staying in
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a hostel then a maximum of Rs 300 per month per child but subject to a maximum of two
children will be available to you as an exemption (i.e. Rs 7,200 per month).
Medical reimbursement:
During the year if you and / or family members have visited a doctor or bought medicines
from a chemist, then all the expenditure incurred by you and / or your family members during
the year for medical purpose too, would help you in reducing your tax liability.
As per the Income Tax Act, the maximum amount of deduction available with you is Rs 15,000
for every financial year, and to claim the same you are required to submit to your employer,
medical bills for the financial year stating the amount in total which you intend claiming.
Similarly, it is noteworthy that if your medical insurance premium is paid by the employer or
reimbursed, then that too will not be subject to tax. Also if your employer is providing medical
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facility in hospital or clinic owned by him, local authority, Central Government or State
Government then medical expenditure incurred under such a hospital too, would not be
subject to any tax.
So, next time when you get your pay cheques in hand please evaluate the aforementioned
points, and assess whether every component in your salary is structured well and to do so
you can certainly talk to the human resource department, as they too may help you on this.
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IX - Conclusion
In the previous pages of this guide we have seen that your extra step towards the tax
planning way would enable you to wisely reduce your tax liability. Remember waiting till the
eleventh hour to do your tax planning exercise, is not going to help in a big way. It would just
lead to tax saving and not tax planning. Just to reiterate, while you have host of tax-saving
investment options available under Section 80C, following an asset allocation model (for your
tax planning exercise), in accordance to your age, ability to take risk and investment horizon is
going to make your tax saving portfolio look more prudent even from a financial planning
perspective.
Model Asset Allocation
Age
EPF/PPF/5-Yr Bank
FDs
ELSS (Rs)
Total (Rs)
< 30
20,000
25,000
55,000
100,000
30 - 40
20,000
35,000
45,000
100,000
41 - 50
20,000
45,000
35,000
100,000
51 - 55
20,000
60,000
20,000
100,000
Also one needs to look beyond the ambit of section 80C, as you may exhaust the limit of Rs
1,00,000 and still find it insufficient to reduce your tax liability. So, you should access the
other deductions available under section 80 (as mentioned above) too.
Moreover, while you are working hard with an organisation to make a living; remember to
effectively know and structure each component of your salary income in order to effectively
save more tax, which in a way will help you buying all the comforts and luxuries in life.
We think that while you must take help of your tax consultant while filing your returns and
seek opinion from him, we also think that a self-study approach on your tax planning exercise
is quite necessary as one should be well versed with at least those tax provisions which affect
us directly. And with that note we wish you all Happy Tax Planning!!
General Disclaimer: This communication is for general information purposes only and should not be construed as
a prospectus, offer document, offer or solicitation for an investment or investment advice.
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Contact us
Head Office
Mumbai
101, Raheja Chambers,
213, Free Press Journal Marg,
Nariman Point,
Mumbai - 400 021.
Tel: +91-22-6136 1200
Fax: +91-22-6136 1222
Email: info@personalfn.com
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