Tax planning does not mean evading tax, but paying the right amount of tax to the government, said well-known chartered accountant B Chandrakanth Rao.
Speaking on the topic Personal Income Tax Planning,organized by Mangalore Productivity Council on Tuesday February 19, he said that tax planning was complex and time consuming in the past but the easy regime introduced by Prime Minister Dr Manmohan Singh during his tenure as finance minister has brought relief to the tax payers, he informed.
Most of the time we are busy in earning and spending, hence we do not take time to devise a right strategy to save tax which is an essential need. Moreover, one should understand the taxation laws to plan for the future,he advised.
Providing some tips to save income tax, he said that if any non-resident Indian is residing in India for less than 6 months in a year, the money earned by him abroad will not be accounted for taxation.
A salaried person should have provisions to receive his salary in various kinds of allowances other than receiving in a lump sum, he added.
When it comes to the matter of investment, there is no better option than owning a house. One should plan it as early as possible, he suggested.
Public Provident Fund (PPF), Unit Linked Insurance Plan, Equity Linked Savings Schemes are the other options to save the tax, he told.
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