POSTED BY March 5, 2014 12:19 pm COMMENTS (4)
ONHi, I am Shivona
I want to know about TDS and Income tax, and for whome it is applicable ?? right now my monthly salary is 16000/- with no PF or anything deducted? If suppose after this increment my salary goes to 18000/- than do i have pay tax for it and if yes how can i avoid it?
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so if i invest Rs.8000/- monthly for RD at 9% interest for one year , how much tax will be deducted???
Dear Shivona, the PPF investment ‘ll be considered for taxsaving. Hence 2000*12= 24000 Rs. yly. As you need to invest only 16000 Rs. for tax saving. it ‘ll cover your tax liability and now you do not need to pay tax.
Please do note the interest earned on your RDis taxable. So you need to add your RD interest into your salary income for tax calculation purpose.
Thanks
Ashal
ok thnks ashal, still in want some clarification, now i am considering for investing in RD for one year and also a PPF account, so now suppose my salary is 18000/- and monthly i invest 6000/- for RD and 2000/- for PPF than also i have to pay tax ????
Dear Shivona, the right question to ask is – How can I save my tax outgo? At 18000 Rs. salary, your total yly income is 216000 Rs. only. Out of which 200000 Rs. is already tax free. Now on the remaining 16000 Rs. income, the tax is 10% hence 1600 Rs. Still if you want tosave this tax outgo, you can invest the 16000 Rs. in PPF account, purchase life insurance and prem. ‘ll be counted for tax benefit. 5Y tax saver FDs, Tax saver MFs……….
Thanks
Ashal