Taxes are unavoidable in the society that we are living today but there are several ways in which you can reduce or minimize their impact. If you want to manage your taxes well then you should have a proper tax plan. Failure to plan means that you will not get anywhere. When you don’t know to calculate your taxes what are you supposed to do? It is advisable for you to hire a tax professional who can assist you meet your tax returns target. Today paying taxes has been made easy because you can hire a tax professional to assist you. Below are some of the key income tax provisions that you as a tax payer need to understand in order to avoid confusion:
1. Any money that is donated in cash to registered charitable organizations or trusts is fully allowed despite the fact that this money is not more than Rs. 10,000
2. Any donation that is made to an electoral trust or to a political party is eligible for deductions of 100% or u/s 80GGC.
3. Any expenditure that has been incurred on preventive health check-ups of individual/parents/spouses or dependent parents should be deducted u/s 80D to around Rs. 5,000 and this can apply even when cash has been paid.
4.Under Chapter VI A there is a maximum deduction and this deduction has been extended from the year 2015-16 to Rs. 1,00,000 to around Rs. 1,50,000. They include investments, NSC, PPF, LIP, PPF, New Pension Schemes and much more.need more information? checkout more articles at http://www.mycentraloregon.com/2016/02/14/hiring-unlicensed-tax-preparer-can-be-risky/
5. Deductions that are available in respect of paid interest are u/s 24 and they are paid on house properties that are self occupied. They have also been extended to Rs. 2, 00,000 from Rs. 150,000.
6. In case you are planning to club your minor child’s income u/s 64 1A using …Read More