Every one of us is eager to know ways of saving tax. We are not very delighted to watch our savings moving out of our pocket. Let’s get the advantages of the new tax proposals of Budget 2014-15 that has been passed by both houses of Parliament and get some better savings. Let’s revise the tax-saving strategy for increasing our take home pay.
After the release of new Budget, many organizations have asked for revised investment declarations from their employees for reassessment of their liabilities according to the new tax laws.
Kuldip Kumar, executive director of tax regulatory services, PWC said that you will have to bear higher tax outgo every month if you do not revise the declarations soon. You can avail a higher take home pay immediately after resenting revised declaration.
You can even have tax refund with the revised investment declaration. As informed by Raghvendra Nath, managing director of Ladderup Wealth Management, the employer would have already deducted tax for 5 months based on earlier calculations.
You are expected to experience lower liability than what is already paid after revising of tax saving plan as the basic exemption limit has been adjusted upwards to Rs 2.5 lakh. So an individual with a salary of Rs. 3.5 lakh, section 80C would be enough to decrease his liability to zero. For people with higher salary bracket can get their liability decreased significantly with the payment of interest on their home loan. You could also be eligible for a refund from the Income Tax Department.
For availing benefits of higher deduction on interest on home loans you need to declare investment details. No extra efforts are required to avail the benefits of the increase in basic exemption limit. You can bid a goodbye to your last minute hassle by finalizing your additional tax saving investments.
It is better not to delay the process till February or March 2015. You are likely to lose out on tax savings and you may land up making wrong investments. Plan out your investments and invest the additional amount according to your investment plans.