Posts Tagged ‘saving plans’

TAX deduction : Save it, before its too late …

February 5, 2012 1 comment

Being a HR professional, every year at the end of quarter say in between to Jan-Mar. I generally attend same type of queries. Like :

  • What is my tax liability ?
  • While declaring investments form, I mentioned 1 lakh of investment but actually investing  30k , so now how much TDS I have to pay in next couple of months ?
  • How to calculate my TAX liability ?
  • What is my TAX Slab ?
  • Which all investments I can do and what are their max limit ?
  • How to calculate my HRA ?
In general practice people declare their  saving investments at its max limit just to avoid  TDS deduction and wake up at the end of the quarter when no time is left for investments and eventually get deductions in form of  TDS.

ideal scenario is, while filling investment declaration form at the beginning of Financial year, pay little attention into following things :-

  • Your current salary structure. which all components in your salary structure has tax exemptions and what type of  bills you have to submit to avail that.
  • Understand your tax slab/ tax liability / tax calculation.
  • Type of investments and their max limits.
  • Fill your declaration form with such proposed investment amount which you can actually invest or save.
  • Plan your year accordingly, put some targets for your savings and invest them accordingly.
  • Make a personal file and collect all the required bills there.
We all know what we have to do, but we just keep things pending and ignored.
A small effort will save your lot of money and future.