SUNDAY's INSIGHT
*IT returns filing Season is in full swing...*
There is nothing unethical about saving taxes till you don’t do anything illegal. There are various uncommon ways to save your taxes legally.
It’s your money, and it is your responsibility to save as much as you can, again, without going the illegal way.
I am sharing few completely legal, but often overlooked ways. Take this only as bullet points and do not consider it to be tax advice. There are various sub-clauses that need to be looked into:
*Investing in tax saving instrument
*Creating an HUF
*Requesting your employer to
restructure your salary in a tax efficient
way
*Income tax harvesting to avoid capital
gains tax
*Leave travel allowance
*Interest paid on home loan
*Premiums paid for health insurance
*Preventive health check-up cost up to
Rs.5,000/-
*Gifts
If you are paying a lot of tax, hiring a tax consultant will definately help you save money even after paying their fee.
There a few ways people employ following unethical illegal methods, which I wouldn’t recommend to any individual...
*Lying about paying rent to parents while living in a house owned by them.
*Availing deduction on interest paid on fake loans from small finance companies and relatives.
*Indulging in profitable businesses under charitable trusts and societies.
*Inflating your business expenses and showing personal expenses in your business balance sheet.
*Again, for small businesses, showing that your families members are business consultants and paying salaries to them.
*Fake receipts of children’s tuition fee
If I was given an option, I wouldn’t lie at all on official documents. They have a way of coming back to bite you. I would, however, exploit every possible legal way to save every rupee.
Always remember, Your Financial Life is all about the choices that you make, knowingly or unknowingly....
Have a great day to all...
Biswajit Roy...
Wealth Educator
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