Know your tax Liability

In these competitive times, doing things at the right time makes all the difference. So is it with your tax planning- timely and periodic tax planning lessens your burden during the financial year end.
What are your objectives for tax planning?
 

• Know your tax Liability
• Understand the current regulations
• Awareness about the various Investment options available
• Making the right choice

 Know your tax Liability :

Taxable income slab (Rs.)	Rate (%)
Up to 1,60,000(for individuals other than women and senior citizens) Up to 1,90,000 (for women below 65 years of age) Up to 2,40,000 (for Resident Individual of 65 years or above)	NIL
Rs 1,60,000 to Rs 5,00,000	10%
Rs 5,00,000 to Rs 8,00,000	20%
Rs 8,00,000 and above *	30%
* No surcharge is applicable

Note

• Education cess is applicable @ 3 per cent on income tax.
• These calculations are illustrative and based on our understanding of current tax legislations, which are subject to change.
• Please contact your tax consultant for exact calculations of your tax liabilities

Tax Planning Investment Products available :

Long Term Infrastructure Bonds  :

In accordance with Section 80 CCF of the Income Tax Act, the amount, not exceeding Rs. 20000/- per annum, paid or deposited as subscription to Long Term Infrastructure bonds during the previous year relevant to the assessment year beginning April 01, 2011 shall be deducted in computing taxable income of a resident individual or a HUF. In the event, that any applicant applies for bonds in excess of Rs. 20,000 per annum, the aforestated tax benefit shall be available to such applicant only to the extent of Rs. 20,000 per annum.

Insurance  :

nsurance is designed to offer financial protection for you and your family during the times of uncertainties. One can choose from a range of traditional insurance, unit linked and general insurance plans designed to help you with your savings, retirement, investment, protection needs and also save taxes.

Income Tax Section	Gross Annual Salary	How Much Tax Can You Save?	HDFC Standard Life Plans
Sec. 80C	Across All income Slabs.	Upto Rs 30900/- saved on Investments of Rs 1,00,000/-	All Life Insurance Plans
Sec. 80CCC	Across All income Slabs	Upto Rs 30900/- saved on Investments of Rs 1,00,000/-	All Pension Plans
Sec. 80D*	Across All income Slabs	Upto Rs 9,270/- saved on Investments of Rs 30,000/- (Inclusive of Rs 15000/- towards health Insurance of parents) Upto Rs 10,815/- saved on Investments of Rs 35,000/- (Inclusive of Rs 20,000/- towards health Insurance of parents who are senior citizens)	1)All Health Insurance Plans 2)All the Health Insurance Riders available with Conventional Plans
Total Savings Possible**	Rs 41715/- 1) Rs 30,900/- towards Sec 80 C and Sec 80CCC 2) Rs 9,270/- or Rs 10,815/- under Sec 80 D 3) Above figures calculated for a male with gross annual Income exceeding Rs 5,00,000/-
Sec. 10 (10)D	Under Sec 10(10)D,the benefits received by you are completely tax-free

applicable to premiums paid for all Health Insurance Plans, Critical Illness Benefits, Accelerated Sum Assured and Waiver of Premium Benefit.
**These calculations are illustrative and based on our understanding of current tax legislations.
^The above mentioned tax benefits are subject to changes in the tax laws.Please contact your Tax Consultant for an exact calculation of your tax liabilities.

Mutual Funds :

Equity Linked Saving Scheme (ELSS) is an open-ended equity scheme that is offered by mutual funds in line with existing ELSS rules. The investments under this type of scheme are entitled to deductions u/s 80C of the Income Tax Act, 1961 to such extent (presently Rs.1 lakh) and subject to such conditions as may be notified from time to time. The invested money in ELSS is locked for a period of 3 years i.e., once invested in a ELSS fund, the money cannot be taken out or redeemed for a period of 3 years from the date of investment/allotment of units. Also, it has to be noted that any amount (irrespective whether Rs. 1 lakh or higher) which is invested into these schemes cannot be redeemed for the first 3 years.

ELSS has certain distinct advantages:

• The 3-year lock-in period in ELSS allows the fund manager to build a portfolio for the long-term without worrying about everyday redemptions.
• The profits on the sale of ELSS units are treated as long-term capital gains, and as per current tax laws, these are not subject to tax. Also, there is no dividend distribution tax on equity investments and dividends earned and are tax free in the hands of the investor. 

Other Tax Saving Schemes v/s ELSS :

Parameter	PPF	NSC	ELSS
Returns	8%	8%	Equity Market linked
Tenure	15 Years	6 Years	Minimum 3 Years
Minimum Investment p.a.	Rs. 500	Rs. 100	Lumpsum: Rs. 500/-
Maximum Investment p.a.	Rs. 70,000	No Limit	No Limit

Note: Please note, as per Section 80C, an individual will get the tax benefit for a maximum investment of Rs. 1 lakh (in a Financial Year) across any one or all the investment avenues put together. 

Making the right choice:

At SAMPARK we offer a number of advantageous tax saving investment options. We are here to help you with the right investment solutions to suit your particular circumstances and needs. We understand the value of your hard earned money. Looking forward to helping you make your money work as hard as you do.

An early beginning ensures a relaxed journey. Start tax planning now!

To know more, walk- in to our office at JALAN BHAWAN, 52 N S ROAD, ASANSOL-713301

OR CALL : +91-9333100221/9093440221
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