Save Income TAX

POSTED BY Anurag Srivastava ON April 28, 2012 5:24 pm COMMENTS (8)

Hello ,I have got a few Doubts about Income Tax

a) I started working from Sept. 2011 .This March no Tax was deducted . Will the salary which I earned in 2011-12 be considered in calculation of my Tax in 2012-13

b) What are the ways for HRA Exemption .Is it necessary to show all the receipts for house rent to get the Exempt. I live on a sharing basis How will the Exempt apply if I share half of the rent

8 replies on this article “Save Income TAX”

  1. Sir ,that everything is clear like for metros it is 50% of Basic Salary .I want to know how can I claim Income Tax refund for the month of April and May in which I forgot to produce the Rent Receipt on time .Will the refund process be done by my Company or I can directly Do

    1. Dear Anurag, From your original query, you got employed from Sept 2011. So the question of April & May does not arise for prev. FY i.e. 2011-2012.

      If you meant for current FY i.e. 2012-2013. my dear friend, you can still produce the receipts to your employer for these 2 months for current FY.

      Thanks

      Ashal

  2. Dear Anurag, HRA exemption ‘ll be based upon certain facts like the basic salary of yours’, actual share of your rent, the city you are living in…..?

    Please clarify the same.

    Thanks

    Ashal

  3. Ramprakash says:

    You can gift any amount of money without worrying about tax implication. Its NOT taxed in the hands of gift giver but in the hands of the taker. That too would be dependent on factors like amount of money, relationship between the two parties and the occasion on which the money was gifted.

    I assume you meant sec 80c by Tax relief. Only ELSS Mutual funds are covered under it and NOT all equity mutual funds.

  4. One more thing ,how much amount of money can we gift to someone an exempt it from TAX and are the investments done in Equity mutual funds come under Tax relief

  5. Ramprakash says:

    Hi Anurag

    Investments up to 1 lac in PF, VFP, PPF, Insurance Premium, Housing loan principal repayment, NSC, ELSS, long term bank Fixed Deposit, Post Office Term Deposit, etc. are deductible from the taxable income under sec 80C.

    Apart from that u can save tax in HRA, 800 p.m. in Travel Allowance, 15k p.a. in medical expenses and medical insurance premium (sec 80D).
    Your contribution to P.F. falls under 1 lac limit of 80C and hence non taxable. Your companie’s contribution to PF is also non taxable and does not come under 1 lac limit of sec 80c. So thats double benefit.

    Your company provides medical insurance. You fall sick. Claim expenses. The insurance company reimburses your expenses. You din earn anything by falling sick. So where is the question of tax?

  6. Thank you for your Reply !!

    Can you please tell me what are the areas where I claim the Tax relief like HRA ,TA ,Medical and any others

    Both the Components of PF(Given by me and the Company ) are not Taxable ??

    My Company provides me health insurance ,means i can claim the amount spent on medical treatment ,will that be Taxable

  7. Ramprakash says:

    a) For Salary earned between Sep 2011 and Mar 2012, Tax is applicable in FY 2011-2012 or AY 2012-2013. In your case since tax was not deducted in Mar ’12. That was probably coz ur total salry earned did not fall in the taxable limit. salary earned in 2011-12 will NOT be considered in calculation of Tax in FY 2012-13.

    b) 1) Rent receipts are NOT required if you pay less than 3K rent. However should your income tax file come under scrutinization, the assessing officer has the discretion to demand tax rent receipts.
    2) If you have a rent agreement, which states the amount of rent, and the no. of people renting , then you could show that for HRA. So if the total rent is 3k and 3 people are renting it, you can claim 1k. Also some companies may still demand Rent receipts. In that case you should ask your land lord for a 1k receipt with your name.

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