Tax Saving for income above Rs.10 Lacs
Querist :
Anonymous
(Querist) 06 January 2010
This query is : Resolved
Hello, Happy New Year 2010
Please suggest tax saving schemes.
Details as below:
salary 11L. I am claiming 80C for 1L and interest on housing for 1.5L. What else can help to reduce taxes. I am the only earning member with wife, 2 minor daughters and senior Citizen parents as dependents.
Some Inputs Gathered as below - however I am open to further ideas.
Please suggest if the following thoughts are feasible in my case.
A> Both husband and wife should, by obtaining gifts from older family members, have a separate Hindu Undivided Family (HUF) so as to claim a further exemption of Rs 1.10 lakh through proper tax planning.
B> If the couple has children, say, one son and one daughter, each one can separately form a trust for the would-be spouse of one child in such a manner that the initial exemption of Rs 1.10 lakh under the provisions of Section 164 of the Income Tax Act is available.
C> Besides, if either worships some deity, then he or she can have a private religious trust of one's own chosen deity. Such a trust would be liable to assessment as a separate taxpayer under the category of artificial juridical person and would enjoy a separate exemption of Rs 1.10 lakh.
D> Donation
A V Vishal
(Expert) 06 January 2010
A detailed talk can only help to plan taxes for your future, it is difficult to advise since in my opinion advise on details given by you can be immature & inappropriate.
soumitra basu
(Expert) 06 January 2010
I have some little suggestions:
1) You can make medical insurance and get deduction.
2) yes, you can make donation and get deduction under section 80G.
3) You can claim medical and as well as maintenance expenses for your dependent guardian.
4) You can discuss with your employer for bifurcation of salary so that there may be some exempted allowance.
aman kumar
(Expert) 07 January 2010
a v vishal is right
Vineet
(Expert) 07 January 2010
Hi
If I understand correctly, you are the only earning member and your salary is fixed.Then how will you bring further income as gift.
Please note that only way you can save tax in your hand is structuring your salary in such a way that it encompasses all the available exempt allowances such as HRA, Conveyance, Children Education, Hostel, Medical reimbursement, LTA etc.
Other methods such as Mediclaim, Donation, medical expenses etc are not taxsaving instruments. They are actual fund outgoes which result in some deduction. Certainly in these cases fund outgo is much more than tax saving. Hence you should claim them only if they have actually been incurred rather than incurring such expenses for tax saving.
I wonder how creating a trust in the name of children or religious deity or HUF will save tax in your hand. They will be seperate taxable entities but the fact remains your salary income is taxable in your hands only.
