Save tax without investing

[Kalyan]

Save tax without investing

Some of your regular expenses are tax deductible too. See which ones.

While this is the season for tax planning and making lastminute investments in some of those tax planning options, the problem for some is not the choice. For them, arranging the money for tax saving instruments is a bigger challenge than worrying about the tax.

If you are one of those in this category, here is some help. Some expenses you have incurred during the current financial year too give you tax relief and you may not be actually required to cough up the entire Rs 1 lakh. Just check out if you are lucky.

source : economic times

[Kalyan]

Tuition fees

The school fees paid for your children's education is an expenditure allowed under Section 80C of the Income Tax Act. In simple terms, this expense gives tax relief and hence, the balance amount can be invested for meeting the upper limit of Rs 1 lakh.

However, the school fee, for the purpose of tax relief is restricted to tuition fee. For instance, a parent may have paid an annual education fee of Rs 50,000 to the school but the tuition fee component could be Rs 25,000. In such an instance, only a sum of Rs 25,000 would be considered for the purpose of Section 80C deduction.

The good news for the parent is that such a deduction is allowed for two children and the upper limit is Rs 1 lakh which was earlier pretty low at Rs 24,000 earlier.

source : economic times

[Kalyan]

Medical expenses

Every employee is allowed a medical reimbursement of Rs 15,000 per annum and hence this is not a taxable perk. Also, this facility is allowed over and above the hospitalisation facility under medical insurance scheme.

So, in these last days of tax planning , all you have to do is to put together the medical bills collected since April 2008 and provide it to your employer.

Failure to do so will increase your tax liability as your employer will give the sum as an allowance. On the other hand, if you have already incurred the expenditure , it can be a cash generator and use the same for your tax planning.

source : economic times

[Kalyan]

Leave travel expenditure

Your annual vacation in the current financial year might have reduced your bank balance but it can also take away some of your tax worries.

The amount incurred towards your annual vacation can be deducted as expenditure against your leave travel allowance (LTA) and such deduction is allowed once in two years or twice in a block of four years.

So, if you didn't bother to provide details of your annual vacation last year, do it in the current year and reduce your tax liability . Of course, the expenditure claim should be supported by necessary bills to qualify for deduction.

While these expenses can reduce your tax without fresh investments, get wise during the next year and plan your income in a better way. For instance, keep track of your LTA and claim your medical bills at regular intervals to avoid last minute tax planning.

source : economic times

[dhoni]

absolute in many school they are getting more fee
that should they tell like building fund and some necessary to avoid tax pay