Tax Planning is the process of proper usage of beneficial provisions of exemptions, deductions, rebates and relief’s, while fulfilling the tax obligations.
ü Varies from individual to individual
ü Based on various factors
o Taxable income
o Time schedule for investments
o Risk bearing inclination
o Existing investment pattern
o Expected returns
Declare Your Investments – Tax that is being deducted on a monthly basis is based on the information that you give. All you have to do is plan for your investments and declare them. Actual investment can be made at any time before Jan of a particular financial year. So, you can plan your investments and based on your comfort levels invest it any time before submission of proofs.
Have missed out on investments for the previous year?
Did you think you a large sum have gone out in taxes from your monthly salary?
Now is the time to take heed for the coming year.
How much should you invest?
No restriction as to the amount of money that you want to invest, after all it’s your money.
Well what would be considered for tax benefits is only a maximum of Rs. 70,000. If you intend to invest in infrastructure bonds the maximum amount will be Rs. 100000.