Showing posts with label indian tax. Show all posts
Showing posts with label indian tax. Show all posts
Filing Tax Return(A legal obligation for every qualified citizen)
The most important aspect of an income tax return is filed. Over non-taxable income slab for the full fiscal year, filing tax returns with income of individuals is essential.
Cope with the latest technology and changing world, India Income Tax Department through the Internet known as e-filing returns for filing a convenient, hassle-free and fast online service is launched. These sites also provide the facilities to provide free tax filing, most of your tax return online filing, ie without any charge. This not only saves time but is more convenient. Fail to file returns within a specified period the person is allowed to file a late return. Also, free tax filing service, so through it at home or any place where internet is available to sit as individuals can file their tax returns is easy.
Income tax return form, the ITR-1 to ITR ITR -8 ranges known as. Individuals and the taxpayers who each form so that they deal annual information returns (AIR) through the post are presented in relation to all the information can include different sets of covers. Real estate and mutual fund large transactions like the user's Permanent Account Number (PAN) to help banks and many other income tax department officials are reporting. Income tax return form is divided into several categories. Individuals for an ITR ITR 4, 6 and 7 are for ITR ITR companies are fringe benefits to ITR 8. These ITR forms related websites which may be offering free tax filing can be downloaded from. However, some sites charge a nominal fee for filing the return.
Income tax return must be filed within the specified period to avoid any punishment. In addition, faulty returns within 15 days from the date of such information should be corrected. Person to keep in mind the head can see and decide which type of income of the assessee and he should choose according to the form. Personal income with the amount of all income sources should correctly refer to the Income Tax Department must submit a form or online submission form that the cyber world as the income tax department can offer free tax filing.
Cope with the latest technology and changing world, India Income Tax Department through the Internet known as e-filing returns for filing a convenient, hassle-free and fast online service is launched. These sites also provide the facilities to provide free tax filing, most of your tax return online filing, ie without any charge. This not only saves time but is more convenient. Fail to file returns within a specified period the person is allowed to file a late return. Also, free tax filing service, so through it at home or any place where internet is available to sit as individuals can file their tax returns is easy.
Income tax return form, the ITR-1 to ITR ITR -8 ranges known as. Individuals and the taxpayers who each form so that they deal annual information returns (AIR) through the post are presented in relation to all the information can include different sets of covers. Real estate and mutual fund large transactions like the user's Permanent Account Number (PAN) to help banks and many other income tax department officials are reporting. Income tax return form is divided into several categories. Individuals for an ITR ITR 4, 6 and 7 are for ITR ITR companies are fringe benefits to ITR 8. These ITR forms related websites which may be offering free tax filing can be downloaded from. However, some sites charge a nominal fee for filing the return.
Income tax return must be filed within the specified period to avoid any punishment. In addition, faulty returns within 15 days from the date of such information should be corrected. Person to keep in mind the head can see and decide which type of income of the assessee and he should choose according to the form. Personal income with the amount of all income sources should correctly refer to the Income Tax Department must submit a form or online submission form that the cyber world as the income tax department can offer free tax filing.
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How to Compute Total Income
Before filing return in the income tax department a statement showing computation of total income is to be submitted along with the ROI. Here is given a brief presentation of Computation of Total Income:
Particulars
a) Income from Salaries
Basic Salary xx
Taxable Allowances xx
Taxable Value of Perquisites xx
Gross Salary xx
Less : Entertainment Allowance xx
Professional Tax xx xx
b) Income From House Property
Gross Annual Value xx
Less: Municipal Taxes paid x
Annual Value xx
Less: Deduction u/s 24 xx xx
c) Profits and Gains of Business
or Profession
Net Profit as per P/L A/c xxx
Add: Amount shown as expenses
but not allowed xx
xxx
Less: Expenses allowed but not
claimed. xx
xxx
Add: Incomes not shown in the P/L
A/c but taxable xx
xxx
Less: Incomes shown in the P/L
A/c but not taxable xx xxx
d) Capital Gains
Sale Consideration xxx
Less: Expenses on transfer xx
Net Sale Consideration xxx
Less: Cost of acquisition/improve. xx
Capital Gains xxx
Less: Exemptions (if any) xx xxx
e) Income From Other Sources xx
Gross Total Income xxx
Less: Deduction u/s 80CCC to 80U xx
Total Income xxx
Saving tax for salaried individuals – Calculating Taxable Income
Paying zero tax for salaried individuals in India – Calculating Taxable Income
Slab before tax and taxable income, calculate deductions - How to avoid paying tax or as short as possible to pay in three blog posts I am writing this article. I have always found it very confusing to calculate the past and through oversights lost a bundle of cash. Here, I have all the information about the salaried people in India know how I posted the tax savings, so that a ready reference whenever I need to calculate.
Calculating taxable income in IndiaFirst, you need to calculate the gross income from salary. The house rent allowance and provident fund contributions include the monthly payments are. If you are a new employee, how many months it has worked with your current employer depends on. Basic pay, dearness allowance and commissions that are fully taxable, most Indians as part of the following major components include allowances in addition to their salary. If you have not been in office some of these benefits is provided, just skip to the next step.
1. House Rent Allowance - If a portion of your salary as house rent allowance or HRA is marked and you are paying rent, the rent deposit receipt. Their children home spouse, or your own name should not be. As the biggest savings from the tax burden, it's you the friends / non-earning member whose home is named after a relative's help with the exchange houses.
Pay rent or house rent allowance in your payslip as prescribed amount, whichever is less the total amount will be deducted from your salary gross earnings. However, people living in the metro cities or for others to pay 40 percent of the salary should not exceed 50 percent. You rent the house as paying more than Rs 5000 per month, you and your rent receipts a lease document will be presented a revenue ticket. Rent receipt books for around 15 are available at any stationary store.
2. Up to Rs: Medical Reimbursement. 15,000 per year to support the bill is free. (Company 20 percent of the amount of 6.8 percent pays Fringe Benefit Tax on this amount). If you do not claim, it is taken as part of your income is taxable. There are some fake drug stores and doctors who take cash bribes to make fake medical bills are. These same people who buy drugs for diseases of legitimate excuses bills to customers are made. However, it is better than using this method reduced investment an additional 15, 000 invested, will earn you more in the long run.
3. Up to Rs: Transport allowance. 800 per month (Rs. 9,600 per year) if it is tax free conveyance allowance as mentioned in your salary. No bills are required for this amount.
4. Phone bills: the company (CTC) for its cost allocation claims you can.
(Company 20 percent of the amount of 6.8 percent pays Fringe Benefit Tax on this amount). If you do not claim, it is taken as part of your income is taxable.
5. Employee Stock Options: Company contained 33.99 percent of the purchase price on the date on the difference between market value and has to pay Fringe Benefit Tax.
6. TA left - it is free for salaried individuals and families every four years can be claimed for only two visits. Block the current year 2006-2009 for which LTA is non taxable. Also, in the mode of travel should be -
- Airline - the national airline 'Indian' economy fare
- Railway - First class AC fare
- Road - deluxe / first class public transport buses.
All allowances claimed that you cut and abandoned, including excerpts, you also need to include other sources of taxable income. Previous employer, bonuses, income from house property, painting, sales, capital gains and independent of other wage - the income as low as one or all could meet. This its "gross total income 'does.
Reduction of information about "gross total income 'is the next cut" has been called the post. How helpful to you in India salaried people can find this section to save tax? Do you have any other suggestions or information can add up to?
Slab before tax and taxable income, calculate deductions - How to avoid paying tax or as short as possible to pay in three blog posts I am writing this article. I have always found it very confusing to calculate the past and through oversights lost a bundle of cash. Here, I have all the information about the salaried people in India know how I posted the tax savings, so that a ready reference whenever I need to calculate.Calculating taxable income in IndiaFirst, you need to calculate the gross income from salary. The house rent allowance and provident fund contributions include the monthly payments are. If you are a new employee, how many months it has worked with your current employer depends on. Basic pay, dearness allowance and commissions that are fully taxable, most Indians as part of the following major components include allowances in addition to their salary. If you have not been in office some of these benefits is provided, just skip to the next step.
1. House Rent Allowance - If a portion of your salary as house rent allowance or HRA is marked and you are paying rent, the rent deposit receipt. Their children home spouse, or your own name should not be. As the biggest savings from the tax burden, it's you the friends / non-earning member whose home is named after a relative's help with the exchange houses.
Pay rent or house rent allowance in your payslip as prescribed amount, whichever is less the total amount will be deducted from your salary gross earnings. However, people living in the metro cities or for others to pay 40 percent of the salary should not exceed 50 percent. You rent the house as paying more than Rs 5000 per month, you and your rent receipts a lease document will be presented a revenue ticket. Rent receipt books for around 15 are available at any stationary store.
2. Up to Rs: Medical Reimbursement. 15,000 per year to support the bill is free. (Company 20 percent of the amount of 6.8 percent pays Fringe Benefit Tax on this amount). If you do not claim, it is taken as part of your income is taxable. There are some fake drug stores and doctors who take cash bribes to make fake medical bills are. These same people who buy drugs for diseases of legitimate excuses bills to customers are made. However, it is better than using this method reduced investment an additional 15, 000 invested, will earn you more in the long run.
3. Up to Rs: Transport allowance. 800 per month (Rs. 9,600 per year) if it is tax free conveyance allowance as mentioned in your salary. No bills are required for this amount.
4. Phone bills: the company (CTC) for its cost allocation claims you can.
(Company 20 percent of the amount of 6.8 percent pays Fringe Benefit Tax on this amount). If you do not claim, it is taken as part of your income is taxable.
5. Employee Stock Options: Company contained 33.99 percent of the purchase price on the date on the difference between market value and has to pay Fringe Benefit Tax.
6. TA left - it is free for salaried individuals and families every four years can be claimed for only two visits. Block the current year 2006-2009 for which LTA is non taxable. Also, in the mode of travel should be -
- Airline - the national airline 'Indian' economy fare
- Railway - First class AC fare
- Road - deluxe / first class public transport buses.
All allowances claimed that you cut and abandoned, including excerpts, you also need to include other sources of taxable income. Previous employer, bonuses, income from house property, painting, sales, capital gains and independent of other wage - the income as low as one or all could meet. This its "gross total income 'does.
Reduction of information about "gross total income 'is the next cut" has been called the post. How helpful to you in India salaried people can find this section to save tax? Do you have any other suggestions or information can add up to?
Sales Tax
Sales tax is due when?
Central Sales Tax inter-state trade or commerce in the course of a business or a state or outside, or in the course of import, export from India, usually by the sale of all items is due.
Interstate's sales?
According to S3, to a sale or purchase in interstate or the following business cases, in the course of commerce shall be deemed to take place:
* The sale or purchase occasions movement of goods from one state to another;
* The sale of goods during their movement from one state to another for the title transfer documents is affected.
Where the cargo carrier or other bailee for transmission, for the purpose of section is given to the movement of goods (b) above, starting at the time of such delivery and time when such delivery is taken considered eliminated in the carrier or bailee. Also, the freight movement begins and ends in the same state, to the movement of goods, shall not be deemed a state to another.
In the course of interstate trade as a sale, there should be an obligation to transport goods out of state. Obligation of the seller or buyer may be. Or understanding between the parties or between them or compromise, or the law of the contract due to the transaction, which related to the sale of such transactions may arise from nature. There should be a contract between seller and buyer. In terms of the contract, the goods must be moved from one state to another. If no contract, no inter-state sale is.
There is an interstate sale if the buyer and seller can be of the same state, even if a state sale of goods as a result of a contract to move to another, or, the goods are sold while they in transit by the transfer of documents.
To the sales tax is payable? By whom is it payable?
Authority in the state sales tax is due on sales of which began the movement of goods. That any inter-State trade or commerce affected by them in the course of the sale of goods paid by every business, even if the tax liability for sales of goods by an appropriate state laws arises.
Possible insult, which can be determined that are liable to be punished? What are the penalties for such crimes?
Crimes may be committed, penalties, set to be summarized as below. Crime, section10, under normal punishable with imprisonment with or without a fine (up to 6months) are.
1. Giving false declaration in form C, EI, E-II, F or H, which he knows or has reason to believe that it is wrong.
2. No CST Act, unless registered or not complying with security-related provisions are required to be registered under.
3. A registered dealer that the goods purchased, your certificate of registration under the covers for a discounted rate by the false representation.
4. Falsely representing that he is a registered dealer, although he is not.
5. Abuse or use for different purposes, materials, obtained at a discounted rate under C form.
6. Form C, as per the provisions of the CST Act is not obtained after the occupation.
7. Collect any amount, sales tax or CST as represented by an unregistered dealer in contravention of the provisions of the Act by a registered dealer.
What a company in liquidation in respect of payment of Central Sales Tax liability? What is the liability of directors of a private company?
If a liquidator or receiver is appointed in the case of a company, its placement within 30 days of the sales tax authorities should be informed. Sales Tax Authority within 3 months her company in liquidation amount of the tax due will be intimate. Sales tax authorities "liquidation in a matter of priority" creditors are.
Terminator on one side of the company's assets as reported by Sales Tax Department before setting the amount of dues will not settle. Liquidator, but may be any of such property or a court order or in compliance with the tax, payable by the company under CST Act for the purpose of paying the debt for which any property secured creditors to pay or part with Government debt due on the date of liquidation, or entitled under the law of priority of payment, such costs and expenses to meet the company's termination, as the appropriate authority in the opinion, reasonable.
On payment of central sales tax liability of the directors of a private company is?
If a private limited company is in liquidation and any tax, company valuation, can not be recovered, it becomes a personal liability of directors, jointly and severally.
But directors can avoid liability if they do not pay to prove that neglect misfeasance, or violation of duty on the part of directors was not due to the Company regarding matters.
Electricity sales tax levy
1. No state sales tax on any sale or levy can purchase where such sale or purchase takes place
* Out of state and
* In the course of import of goods into or export of goods outside India.
2. Parliament only inter-state sale or purchase of goods can levy
The main principles of state sales tax law
1. To a sale or purchase of goods to take place when existing goods or future goods to the idea of money in the property transfer takes place is called.
2. Different categories of goods and sales tax rate is divided into different are charged for different categories of goods.
3. Most of the cases relating to sales tax, tax on sale or purchase of goods at a single point.
4. Some state laws assess manufacturer, trader are divided into several categories, such as the provisions of the agents, etc. and the effect of a registration certificate required to assess, under sales. Sale or purchase is to submit certain forms or certificates as the dealer in its category, manufacturer, etc. is put on by the assessee (and sales tax rates are levied in the difference).
5. Generally, the sale or purchase of a quarter is focused on return and the assessee is required to submit the return in the prescribed form.
6. Evaluation of the time, the assessee to submit all documentary evidence and related sales tax / commercial tax officer is satisfied.
7. State sales tax law to be followed in case of an assessee preferred an appeal process writing.
8. Each merchant apply for registration and a registration certificate to that effect should be. Registration certificate number of all bills / cash memos should be cited.
Inter-State sale transactions do not amount
Not all inter-state sale of goods from one state to another but also dispatches for the result of movement or sale of the contract agreement must be due to the event. There are some instances where goods sold outside the state have gone and yet they do not consider inter-state sale are: -
* Inter-state sale
* Share of head office branch and vice versa to transfer
* Import and export sale or purchase
Sale through commission agents * / account sales
Work contract to execute delivery of goods *
Sales Tax ID number
Basically a state sales tax ID number is your Social Security number under which you submit and any service or product that qualifies for taxation in your state, you pay to sell a commercial version. Department of Taxation provides state sales tax ID numbers and it takes about a month to get one.
The rule of thumb for sales tax is that most services are exempt and most products are taxable except for food and drugs. However, the state gradually make the services that are taxable for the last few years, adding to the list. Check with your state department of taxation, the product or service you sell is taxable in your state to determine.
Sales tax exception
Wholesalers and retailers that have a valid state resale certificate * as sales to resellers.
* Tax-exempt institutions such as schools or charity sales
The forms are being filled?
* Form C;
* Form D;
* Form G;
* E-I and E-II form.
Central Sales Tax inter-state trade or commerce in the course of a business or a state or outside, or in the course of import, export from India, usually by the sale of all items is due.
Interstate's sales?
According to S3, to a sale or purchase in interstate or the following business cases, in the course of commerce shall be deemed to take place:
* The sale or purchase occasions movement of goods from one state to another;
* The sale of goods during their movement from one state to another for the title transfer documents is affected.
Where the cargo carrier or other bailee for transmission, for the purpose of section is given to the movement of goods (b) above, starting at the time of such delivery and time when such delivery is taken considered eliminated in the carrier or bailee. Also, the freight movement begins and ends in the same state, to the movement of goods, shall not be deemed a state to another.
In the course of interstate trade as a sale, there should be an obligation to transport goods out of state. Obligation of the seller or buyer may be. Or understanding between the parties or between them or compromise, or the law of the contract due to the transaction, which related to the sale of such transactions may arise from nature. There should be a contract between seller and buyer. In terms of the contract, the goods must be moved from one state to another. If no contract, no inter-state sale is.
There is an interstate sale if the buyer and seller can be of the same state, even if a state sale of goods as a result of a contract to move to another, or, the goods are sold while they in transit by the transfer of documents.
To the sales tax is payable? By whom is it payable?
Authority in the state sales tax is due on sales of which began the movement of goods. That any inter-State trade or commerce affected by them in the course of the sale of goods paid by every business, even if the tax liability for sales of goods by an appropriate state laws arises.
Possible insult, which can be determined that are liable to be punished? What are the penalties for such crimes?
Crimes may be committed, penalties, set to be summarized as below. Crime, section10, under normal punishable with imprisonment with or without a fine (up to 6months) are.
1. Giving false declaration in form C, EI, E-II, F or H, which he knows or has reason to believe that it is wrong.
2. No CST Act, unless registered or not complying with security-related provisions are required to be registered under.
3. A registered dealer that the goods purchased, your certificate of registration under the covers for a discounted rate by the false representation.
4. Falsely representing that he is a registered dealer, although he is not.
5. Abuse or use for different purposes, materials, obtained at a discounted rate under C form.
6. Form C, as per the provisions of the CST Act is not obtained after the occupation.
7. Collect any amount, sales tax or CST as represented by an unregistered dealer in contravention of the provisions of the Act by a registered dealer.
What a company in liquidation in respect of payment of Central Sales Tax liability? What is the liability of directors of a private company?
If a liquidator or receiver is appointed in the case of a company, its placement within 30 days of the sales tax authorities should be informed. Sales Tax Authority within 3 months her company in liquidation amount of the tax due will be intimate. Sales tax authorities "liquidation in a matter of priority" creditors are.
Terminator on one side of the company's assets as reported by Sales Tax Department before setting the amount of dues will not settle. Liquidator, but may be any of such property or a court order or in compliance with the tax, payable by the company under CST Act for the purpose of paying the debt for which any property secured creditors to pay or part with Government debt due on the date of liquidation, or entitled under the law of priority of payment, such costs and expenses to meet the company's termination, as the appropriate authority in the opinion, reasonable.
On payment of central sales tax liability of the directors of a private company is?
If a private limited company is in liquidation and any tax, company valuation, can not be recovered, it becomes a personal liability of directors, jointly and severally.
But directors can avoid liability if they do not pay to prove that neglect misfeasance, or violation of duty on the part of directors was not due to the Company regarding matters.
Electricity sales tax levy
1. No state sales tax on any sale or levy can purchase where such sale or purchase takes place
* Out of state and
* In the course of import of goods into or export of goods outside India.
2. Parliament only inter-state sale or purchase of goods can levy
The main principles of state sales tax law
1. To a sale or purchase of goods to take place when existing goods or future goods to the idea of money in the property transfer takes place is called.
2. Different categories of goods and sales tax rate is divided into different are charged for different categories of goods.
3. Most of the cases relating to sales tax, tax on sale or purchase of goods at a single point.
4. Some state laws assess manufacturer, trader are divided into several categories, such as the provisions of the agents, etc. and the effect of a registration certificate required to assess, under sales. Sale or purchase is to submit certain forms or certificates as the dealer in its category, manufacturer, etc. is put on by the assessee (and sales tax rates are levied in the difference).
5. Generally, the sale or purchase of a quarter is focused on return and the assessee is required to submit the return in the prescribed form.
6. Evaluation of the time, the assessee to submit all documentary evidence and related sales tax / commercial tax officer is satisfied.
7. State sales tax law to be followed in case of an assessee preferred an appeal process writing.
8. Each merchant apply for registration and a registration certificate to that effect should be. Registration certificate number of all bills / cash memos should be cited.
Inter-State sale transactions do not amount
Not all inter-state sale of goods from one state to another but also dispatches for the result of movement or sale of the contract agreement must be due to the event. There are some instances where goods sold outside the state have gone and yet they do not consider inter-state sale are: -
* Inter-state sale
* Share of head office branch and vice versa to transfer
* Import and export sale or purchase
Sale through commission agents * / account sales
Work contract to execute delivery of goods *
Sales Tax ID number
Basically a state sales tax ID number is your Social Security number under which you submit and any service or product that qualifies for taxation in your state, you pay to sell a commercial version. Department of Taxation provides state sales tax ID numbers and it takes about a month to get one.
The rule of thumb for sales tax is that most services are exempt and most products are taxable except for food and drugs. However, the state gradually make the services that are taxable for the last few years, adding to the list. Check with your state department of taxation, the product or service you sell is taxable in your state to determine.
Sales tax exception
Wholesalers and retailers that have a valid state resale certificate * as sales to resellers.
* Tax-exempt institutions such as schools or charity sales
The forms are being filled?
* Form C;
* Form D;
* Form G;
* E-I and E-II form.
Tax Saving Options in India
Indian citizens are offered several tax saving options in India by both the public sector and the private sector. The tax saving options include tax saving bonds, certificates, funds and the central government also allows various tax deductions and tax rebates and tax exemptions from time to time.
Birla Tax Relief 96
StanChart Tax Saver Fund
Kotak Tax Saver
UTI Equity Tax Saving
Tata Tax Saving Fund
HDFC Tax Saver
ABN AMRO Tax Advantage
6.5% Savings Bonds Cumulative bonds
6.5 % Savings Bonds Non-cumulative bonds The interest payment on these bonds is done with the help of either ECS or with Interest Warrant for 6.5% Savings Bonds Non-cumulative bonds and the interest payment on 6.5% Savings Bonds Cumulative bonds is made with the principal amount at the time of maturity of the bond. The best thing about this bond is that the people who have invested in these bonds are entitled to get complete tax exemption on the interest income under the Income Tax Act, 1961.
8% Cumulative Savings Bonds
8% Non-Cumulative Savings Bonds Though the investor is required to pay taxes on the interest income of the bond but the tax is not in any way deductible at source.
Post Office Time Deposits
Post Office Monthly Income Scheme
Deposit Scheme for Retiring Government Employees
Post Office Recurring Deposits
National Savings Scheme
Deposit Scheme for Retiring Employees of Public Sector Companies
National Savings Certificates
Public Provident Funds
Postal Life Insurance
Kisan Vikas Patra Post office time deposit schemes offer various interest rates based on the tenure of the loan for example the interest rate for:
The rate of interest offered by the post office monthly income scheme is 8% per annum and the scheme holders are allowed a monthly interest payment and receive a bonus of 10% on the principal at the maturity of the scheme. However, the best part is that the investors are entitled to get tax relief under section 80L of the Income Tax Act, 1961. Similarly, investment in the public provident fund scheme fetches income tax rebates as per Section 88 of the Income Tax Act, 1961.
Tax Saver Mutual Funds as a Tax Saving Options in India:
Indian citizens are offered various tax saver mutual funds schemes. Some of the prominent schemes include:Tax Saving Options in India by Public Sector Bank:
The Reserve Bank of India offers a unique tax saving bond named as the 6.5% Savings Bonds, 2003. This tenure of the bond stretches over a period of 5 years and as the name of the bond suggests, the rate of interest allowed on the bond is 6.5% per annum. The bond is endowed with the facility of interest payment on a half yearly basis. The Reserve bank of India issues these bonds as Stock Certificates and provides for the bank ledger account facility together with the bond. The maximum limit of investment on the bond has not been fixed and the 6.5% Savings Bonds, 2003 are of 2 types :Tax Saving Options in India by Private Sector Banks:
Private Sector banks like UTI Bank Ltd., HDFC, IDBI, and ICICI offer many tax saving bonds to the Indian citizens. But the 8% Savings Bond, 2003 is a special bond which is offered by all these organizations. The tenure of the 8% Savings Bond, 2003 is 6 years and the name of the bond suggests that the rate of interest on the bond is 8%. This bond is similar to 6.5% Savings Bond, 2003 with respect to the payment of interest on a half-yearly basis. All organizations provide a bank-ledger account facility to the bond holders. These bonds are available in 2 kinds:Tax Rebate as a Tax Saving Options in India:
The central government has now removed the previous discrimination done in case of people who earn more than Rs. 500,000 by allowing tax rebates even to them as per the modified version of Section 88 of the Income Tax act, 1961. The latest budget allows tax rebates on significant issues like rebates on medical insurance premiums, interest paid for a housing loan, expenses incurred for medical treatment of an individual, and so on. Tax rebates are also offered to the employees as per Section 89 (1) of the Income Tax Act, 1961 and this rebate is allowed to employees who have received their salary in arrears or opted for a share of the company profits instead of their salary, received salary in advance, or received salary of more than12 months at a time.Post Office Saving as a Tax Saving Options in India:
The Postal System offers numerous tax saving options in India and the tax saving schemes of the post office are quite popular among the Indian citizens on account of the high interest rates. The stakes involved in investing in these funds is comparatively less and some of these schemes qualify for tax deductions. The various schemes offered by the post offices include:| Tenure | Interest Rate per annum |
| 1 Year | 6.25% |
| 2 Year | 6.50% |
| 3 Year | 7.25% |
| 5 Year | 7.50% |
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