Tax Saving In India Is No More Taxing!
The general notion is that it feels great to be famous – to be someone! But sometimes it is great too if you are nobody like me who works as Asst. Teacher in a semi-govt. school in a semi-urban locality in one of the remotest and non-descript part of the country. Why do I feel great? Because I don’t have to go through the arduous task of filling tax returns every year like my colleagues do! Yes you read it right! I don’t have to pay income taxes (I belong a special community in a special area where nobody from my community has to pay) although my income from regular job and online is roughly around Rs. 500,000 per annum. I don’t even have a (PAN) card! But from what I see my colleagues go through, I reckon it is not funny to file returns especially as every year there are some changes made in tax policies by the government. So, I find my mates go around finding the best and cheapest tax accountant available in the town. Professional consultation is not always for just filling of returns, but salaried individuals with limited income also need to exploit the different schemes on offer by the government to save some paisa for the future and thereby get tax rebates.
As I have avid interest in economic and business affairs, I do read lots of finance and business related papers and journals. The other day I found one of the magazines (Outlook Money) that I subscribe to enclose a little pocket book titled “The Complete Tax Guide for 2008-09” which is really a handy item for all normal tax-payers. It gives a complete guide from calculating incomes to deductions, computation and tax planning, clubbing of income to filing of returns. I believe most net junkies don’t have time to read books anymore. While business houses can afford to hire chartered accountant firms for audit services, individuals can save lots of money if they have basic ideas about tax laws and tax saving schemes. Here, I’ll write what is advised on that handy book about “tax saving strategies during your lifetime.”
The budget of 2008 had much to offer to the salaried tax payers of the country. The smooth passing of the Finance Bill with no changes to the proposals made can bring in showers this financial year. There are two ways in which tax payers will benefit. One, the threshold level of income tax has gone up. This means that a greater part of the income come under zero tax status.
Two, the tax slabs have also been raised. Currently the maximum marginal rate of tax of 30 percent is applicable from the income level of Rs. 250,000, this now stands doubled at Rs. 500,000 for the next financial year. This means an under 65 year old male tax payer with a gross Read the rest of this entry »