Tax Planning

55 Income Tax Exemptions & Deductions for Salaried

income tax exemptions and deductions

Are you paying too much tax?

Do you know that you can get a significant reduction in your tax liabilities if you take advantage of all the deductions and exemptions that are available?

The key question is, have you taken advantage of them all and maximized your tax savings? Yes, no, maybe?

If your answer is no or maybe, this guide should help you. It is a comprehensive list of all the tax exemptions and deductions that you can legally make use of in FY 2017-18 (AY 2018-19).

Let's look at each of them one by one...

How to pay Income Tax Online in <15 minutes [2019]

pay income tax online

Have you ever wondered...

...if you can pay your income tax through your debit card or netbanking?

Now if your only income is salary, you probably don't need to worry about it. Your company will deduct and deposit TDS automatically on your behalf.

But, if you are a freelancer or otherwise have a substantive income from sources other than your salary, you may have additional tax liabilities. In fact, you may be liable to pay advance taxes even before the year ends.

There are a ton of questions on this subject and in this guide, I will try and cover all of those in detail....

How to eFile Income Tax Return through NetBanking [<15 minutes]

eFile income tax return through netbanking

Filing income tax returns is an annual chore...

But, fortunately, it gets easier each year.

Unlike years past, where filing through your CA was probably the easiest option, you can now go to the tax department's website or a tax aggregator and complete your filing without stepping out of your home.

If you are submitting your returns yourself, nothing beats the convenience of being able to efile through your net banking account.

Yes, your netbanking account can be used to efile your taxes. And the whole process takes less than a few minutes.​

In this post, I will do a quick walkthrough of this process...​

Cost Inflation Index (CII) Chart for long term Capital Gains

Cost Inflation Index

Money loses its value over time because of inflation...

...And when it comes to sales of your long term capital gains, your real profit may actually be much lower because of the rise in prices over time.

The Income Tax department recognizes this and issues an annual Cost Inflation Index (CII) that allows you to index your cost of acquisition to take inflation into account.

This indexed cost is then used to calculate your long term capital gains and the resultant tax on same.

In this post, I will share the complete cost inflation index chart that's updated till AY 2018-19 plus a Capital Gains Tax calculator for you to easily compute your tax liabilities...

3 Ways to check Form 26AS & Tax Credit/TDS Statement Online

how to view form 26as

Before you file your taxes...

...make sure that all the tax credits deducted against your name have actually been credited to your account.

Be it TDS on your Salary or TDS deducted by banks on your fixed deposits, or some thing else, you should always cross check that these amounts have actually been deposited to the Income Tax department on your behalf.

Fortunately, with e-governance initiatives undertaken by IT department, it's now extremely easy to do these verifications by simply downloading your Form 26 AS.

In this post, I will do a step by step walk-through of three different methods to download your Form 26AS. Additionally, I will also cover basics on how to best interpret and use this form effectively...

5 Smart Ways to avoid TDS & Taxes on Fixed Deposits

save taxes fixed deposits

Fixed deposits are inherently tax inefficient...

Any interest on them is 100% taxable. And to add to that this interest is also subject to TDS in case it's more than 10k INR/year.

Now, even if you are otherwise under the overall exemption limit, by default, TDS will still get deducted from your account.

And once its deducted, it becomes a game of waiting. You first wait to file your returns and then you wait for the tax refund to actually happen.

Won't it be simple if you could avoid this TDS altogether? But can you even do that?

Well, yes, you can...

And in this post I will cover 5 ways to minimize your TDS...

How to Change & Correct PAN Card Name, Address & Signatures Online

update pan card details

You got married recently and now you want to change your last name on your PAN card?

Or maybe you just shifted to a new home and want to modify your address? Or possibly you want to change your signatures or your father's name or your photograph or your date of birth or some other such information.

Whatever it is, you are doing absolutely the right thing by keeping your pan account up to date.

But, how to go about it? And how much effort will it take? Quick answer to these questions is that the process to update your pan details is well defined and can be completed online. In most cases, you won't have to visit IT office at all.

In this post, I will cover this entire process in detail...

Tax Saving Fixed Deposits (FD) Guide – Plus the Best Interest Rates

tax saving fixed deposits

A Fixed Deposit allows you to invest your money for a pre-determined period in return for a guaranteed interest rate on it.

Tax Saving FDs (also known as Tax Saver FDs) are no different but additionally they also allow you to save some taxes.

In this guide, I will cover all the key features and the most common questions about this popular investment option. I will also list the banks offering the best interest rates on these FDs.

So, let's get started...

House Rent Allowance 101 : HRA Rules & Calculations

house rent allowance

Are you a salaried person?

Have you ever looked at your salary slip and wondered about the exact purpose of house rent allowance (HRA)? Do you know that HRA can help reduce your taxes if you stay in a rented accomodation?

Or may be you have some questions on your exemption limits or exact taxation rules that govern the HRA calculations.

Let’s see if I can help you with this…

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