How to save Tax

Save Tax by forming HUF: Benefits & Drawbacks

Save Tax by forming HUF: Benefits & Drawbacks

A very effective and legal way advised by chartered accountants to save tax is HUF i.e. Hindu Undivided Family. In India there are many families which are undivided and the incomes earned by such families are joint income as compared to Individual Incomes. As these are joint incomes and not Individual Incomes, these incomes cannot be taxed in the hands […]

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PPF Account and PPF Interest Rate @ 8.7%

PPF Account and PPF Interest Rate @ 8.7%

We all have heard a lot about PPF Account and seen our parents make investment but what is PPF Interest Rate in India and what are the benefits of investing in this form of Instrument? This is one question which usually crops up in our minds and in this article we have tried to explain the basics and the benefits […]

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Tax Benefit on Home Loan: Section 24, 80C, 80EE

Tax Benefit on Home Loan: Section 24, 80C, 80EE

A very important criterion to be kept in mind while taking a Home Loan is the Tax Benefit on Home Loan. To explain the Tax Benefit on Home Loan, we would be dividing the Repayment of Home Loan into 2 components:- Repayment of the Principal Amount Repayment of the Interest on Home Loan As the repayment comprises of 2 different […]

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Tax Saving Mutual Funds: Should you be investing in them?

Tax Saving Mutual Funds: Should you be investing in them?

Section 80C allows for deductions for investments in specified instruments and investing in Tax Saving Mutual Funds is one such specified instrument which can be claimed as a deduction under Section 80C at the time of filing of income tax return and the balance income after claiming all deductions and exemptions is taxable as per the income tax slab rates. […]

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Tax Free Bonds: Should you be investing in them?

Tax Free Bonds: Should you be investing in them?

In India there are 2 types of bonds through which the tax liability of a person can be reduced:- Tax Free Bonds Capital Gain Bonds Tax Free Bonds are the bonds on which the interest received is fully exempted from tax under Section 10. However, the principal amount invested in these bonds cannot be claimed as a deduction from the […]

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Tax Planning vs Tax Avoidance vs Tax Evasion

Tax Planning vs Tax Avoidance vs Tax Evasion

The tax liability of a person can be reduced through Tax Planning, Tax Avoidance & Tax Evasion. Although, in common parlance these terms are used interchangeably, these terms are technically different from each other and should not be used interchangeably. Although, the objective of all the 3 (i.e tax planning, tax avoidance and tax evasion) is to reduce the taxes, […]

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8 Effective ways of earning Tax Free Income

8 Effective ways of earning Tax Free Income

Tax is payable on all incomes earned in India by an Indian resident. However, there are some exceptions to this rule and some incomes have been specifically exempted from tax. Such income is referred to as Tax Free Income and in this post, we would be highlighting the 7 most popular means of earning tax free income. Popular means of […]

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Tax Planning: How to Save Tax legally in 8 different ways

Tax Planning: How to Save Tax legally in 8 different ways

The Indian Income Tax Act allows for certain deductions which can be claimed to save tax at the time of filing of Income Tax Return by all classes of Taxpayers (i.e. Salaried Individuals, Professionals, businessman etc). These deductions which help in saving tax are only available if the taxpayer has done proper tax planning during the year. If an Individual […]

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Section 80E: Income Tax Deduction for Education Loan

Section 80E: Income Tax Deduction for Education Loan

As per the Income Tax Act, a taxpayer is allowed to claim deduction under Chapter VI-A for the Repayment of Education Loan (Section 80E) and for the Repayment of Home Loan. However, the deduction allowed for both these loans is different and in this article, we would mainly be focusing on the deduction allowed for Repayment of Education Loan. For […]

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Tax Saving Fixed Deposit: Should you be investing in them?

Tax Saving Fixed Deposit: Should you be investing in them?

To give a boost to the declining interest in fixed deposits of retail investors, the Finance Ministry in the year 2006 announced that all Fixed Deposits with a maturity of not less than 5 years shall be eligible for deduction under Section 80C of the Income Tax Act. Such type of Fixed Deposit is popularly known as Tax Saving Fixed […]

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