Fire your tax related queries and i would get it solved!!!

[share bull]

Dear Bull,

Please inform me the numbers of the advisor's who can substantially reduce the tax amount for a 40Lac Salary package cool

At this level of earning it can only be minimized to a very less extent which a person earning 40 Lacs would not even think of....

So about the business as usual and invest the maximum possible under 80C

Dear Diosys,

Appreciate response and the accompanied wink.

I do know that it is pretty difficult, nay impossible, to reduce tax beyond a level. 80C & 80D have been taken care of.

I wanted to know as to how to structure the salary break-up in order to minimise taxable salary. I am talking of break-up of basic pay, allowances, perquisites etc.

 

[diosys]

Dear Diosys,

Appreciate response and the accompanied wink.

I do know that it is pretty difficult, nay impossible, to reduce tax beyond a level. 80C & 80D have been taken care of.

I wanted to know as to how to structure the salary break-up in order to minimise taxable salary. I am talking of break-up of basic pay, allowances, perquisites etc.

Dear Bull,

What max can be done is to further segregate your salary say by taking 800 p.m. as conveyance allowance...Then another 800 as uniform allowance...Medical reimbursement upto Rs. 15000 (on bills)....Apart from these there is nothing else you can do to minimize your tax outgo legally...

One thing that i can suggest is more of tax avoidance rather than planning and would depend on your risk taking ability...That is donate your salary...Dont worry only donate it in the books...Actually there are certain NGO's who are eligible under 80G for claiming benefit, these give out fake receipts and charge anywhere between 4-7% of the amount as charges...

Means you give them the amount through cheque...they give you donation receipt on which you can claim deduction under 80G...then they return you the money in cash back deducting their charges....

 

[qa_y2k]

dear diosys,
you have been doing a great job.I had a query,can a american citizen who has a overseas citizenship in india commonly known as OCI,trade in india as well.The law states that an overseas citizen of india can do pretty much all the things that an nri can do.
thanks again for all your time

 

[diosys]

dear diosys,
you have been doing a great job.I had a query,can a american citizen who has a overseas citizenship in india commonly known as OCI,trade in india as well.The law states that an overseas citizen of india can do pretty much all the things that an nri can do.
thanks again for all your time

Dear,

Thanks for your compliment....But i cannot help you much on this front since this query does not relate to taxation in any manner...this is more procedural...Ask your broker in india and only he can help...

Sorry..

 

[share bull]

Thanks Diosys. I am aware of the 80G NGO issue, but I guess would not want evade taxes in that manner. Anyways, one can possibly donate to a decent extent. Huge donations would wake raise IT eyebrows.

I will probably work and post a structure soon. Let me have your opinion whether it can be improvised.

Till then.

 

[sanjugalande]

dear friend
i a salarised person and tax deducted on my salary by company and gives form16
i als do option trading and intraday and short term
this year whcih form should i fill..?
does option trading is treated as a business trading ?
can i show expensess against option trading gain?

on option trading tax is 30% and also 30% tax on intraday ...is it correct?

thank you

 

[qa_y2k]

dear diosys,
sincerely appreciate your time sir.
cheers

Dear,

Thanks for your compliment....But i cannot help you much on this front since this query does not relate to taxation in any manner...this is more procedural...Ask your broker in india and only he can help...

Sorry..

 

[diosys]

dear friend
i a salarised person and tax deducted on my salary by company and gives form16
i als do option trading and intraday and short term
this year whcih form should i fill..?
does option trading is treated as a business trading ?
can i show expensess against option trading gain?

on option trading tax is 30% and also 30% tax on intraday ...is it correct?

thank you

Dear Sanju....

Just scroll through my posts on the first page...and you would get answers for all the above questions....

 

[Venkat123]

We made less than 1.5 lacs in 'profits' when we exercised options in March 2008. That's the only income we made during the entire fiscal year 2007. Should we file our tax returns?

We trade through ICICI.

Thank you

 

[diosys]

We made less than 1.5 lacs in 'profits' when we exercised options in March 2008. That's the only income we made during the entire fiscal year 2007. Should we file our tax returns?

We trade through ICICI.

Thank you

Yes you would be required to file your return.....