Income Tax Saving Discussion Thread

[asingh]

I doubt 80C will move to 2L.

No matter what, never invest in the darn ULIP.

 

[Zangetsu]

Few important questions,
1.Do you have a PPF a/c?

no..but is it a must?

2.How much money will you like to invest?

as much as possible.

3.What kind of investment you are looking for?(long term,short term etc.)

both LT & ST

4.Do you want any tax benefits?

yes..absolutely

 

[Zangetsu]

Q: On Bank Savings account tax is deducted from the interest we get,So does the Tax is deducted annually & also what is the % basis of tax deduction?

 

[red dragon]

1.PPF is not must,but does not hurt to have one.
You can deposit anything between Rs.500-70k,(the upper limit will probably increase soon)and the return after maturity is entirely tax free.

2.I think I have read somewhere,that a person should save about 40%of his income.

3.These are the common options you have,
*business.mapsofindia.com/investment-industry/top-10-investment-options.html

4.For tax benefit options,
Top 10 Tax-saving Instruments for Investors!

Regarding newer tax savings options,my knowledge is very much limited as I do not have to pay tax on my income(but I will have to pay tax on the interests from investments)

 

[Zangetsu]

Do we have to submit separate Form 16 for Tax Declaration?

e.g: A Form 16 from Employer & another Form 16 from some small business...

 

[PraKs]

small business may not have Form 16 unless you work for them. if you have ur own small business then It will come under diff catogery.

Hold on your horses, Direct tax code is comng, Lots will change from April 2012.