I intend to save maximum income tax from my salary. How is it possible.?

Question

I am 49 year old male working in Central Government of India in one of the A1 class city. MY salary details for the year 2010-11 are as follow.(figures represent total earnings for the year)
basic pay Rs 219060
Grade pay Rs 57600
HRA RS46290
DA Rs 115401
TA Rs 12800
DA ON TA 5440
TOTAL Rs 456591

I was saving an amount of Rs 2000 towards GPF subscription from 3/20010 to 10/2010 and from 11/10 I have to increase it according to my tax requirements.

I am paying interest for the purpose of higher studies of my son in Canada who is studying an advance diploma in electronics which is of post secondary level as per canadian standard but admission is given in this course only to those who have completed 15 years of education in India.

I am having an own house in the city which will be used by my daughter and her in laws and for this purpose I will not be charging rent.

I am staying in a rented accumulation for which I am paying rent of rs 7000/- pm.

My questions are.
What is the best way to save income tax and to what maximum extent I can save tax.

Whether I can claim HRA exemption in presence of my own house which is given to my daughter without rent and that I am residing in a own house.

My mother is a family pensioner who is drawing a Gross pension of about Rs 4700/-. Whether any amount invested for her treatment is eligible for deduction from taxable income. Is she dependent upon me and for what purposes she is dependent upon me.

What are the other ways for saving income tax from my salary.

Apart from saving in GPF what are the other ways to save to get deduction other than Rs one lakh which is elegeble under section 80C. (eg any ELSS scheme). How to select good scheme which will be useful for my son who has completed his engineering and who is in the age of 24 years.

Answer 1

If you pay mediclaim premium for your mother whether she is dependent or non-dependent, you can still get benefit under section 80D.

You will not get benefit for interest paid for higher studies of son since the educational institute is not located in India.

You can select the best scheme of ELSS by consulting a Mutual Fund Advisor.

There are other options under 80C as well such as PPF, NSC, 5 years fixed deposit, etc.

Answer 2

first element I constantly take excitement in human beings to pay all valid tax to the administrative. for making a extra robust existence for its citizen. yet I additionally favour for the valid tax mark downs available to group . in this context u would evaluate right here : a) Deduction available for somewhat some investments and money united states80C. b) value of scientific facility or insurance top type united states80d c) 80 g for donation isn't available to the business enterprise . different deduction available are HRA united states10(13a) , interest on Housing loan are to be computed and allowed via the employers to its workers. Pls observe that the income Tax branch has casted the job of the ASsessing Officer (partly) to convey at the same time and pay the tax from all workers , subsequently do not ignore to deduct and deposit the tax in time different clever u would be answerable for the default. thank you S ok Somani,FCA

Answer 3

Hi,



You can get the HRA exemption provided the flat is not registered on your name.



You can invest Rs 20000 more INFRA bonds. You can also claim Leave Travel Allowance twice in 4 years.



http://www.investinsure.in/2010/11/ctc-and-your-salary-breakup/