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How To Do Tax Planning In 2013?

Tax planning implies the spelling out of financial goals, where by the financial goals are aligned according to the tax liabilities and taxation is managed in a legal and systematic manner. Before planning tax liability it is important that the taxpayer studies a few basics.

Every taxpayer shall go through Section 80C for getting acquainted with tax planning with schemes like ULIPS, Life Insurance Premiums, National savings certificates (NSC), Post office savings etc.

Maintain A Separate HUF Tax File

The first step in tax planning is maintaining a separate HUF tax file (if the tax payer is a Hindu), apart from the individual tax file. The HUF enjoys the basic income-tax exemption of Rs. 2,00,000 and also enjoys tax deduction in terms of section 80C as well as deduction for interest on housing loans.

ALSO READ :- How To Set Up Hindu Undivided Family (HUF) And What Are Its Tax Benefits?

Buy Property In Joint Names

With respect to buying property, in most cases, it will be wise to purchase property in joint names as it would lead to greater saving in terms of tax and better investment planning as every co-owner will enjoy a separate deduction of interest on housing loan.

ALSO READ :- Home Loan In Single Name Or Joint Names – Which Is Better?

Look Beyond Section 80C

An important tip to tax payers would be to look beyond 80C, there are other sections such as 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGC, 80U AND 80CCF that can help in greater tax savings. These sections hold information for understanding tax planning and exemptions for specific cases such as medical treatment for dependent handicapped, medical premium for senior citizens loans for educations and the like.

ALSO READ :- Income Tax Deductions u/s 80C To 80QQB Every Individual Tax Payer Should Know

New Retail Investors Can Invest In Rajiv Gandhi Equity Saving Scheme

The tax year 2013, a few IT Section 80CCG provisions are encouraging debutant stock market investors. Accordingly, those who are investing in the stock market for the first time can make an investment up to Rs. 50,000 and have the benefit of a tax deduction equal to 50 per cent of such investment. It makes good financial sense to do tax saving by exposure to Rajiv Gandhi Equity Investment Scheme.

ALSO READ :- Rajiv Gandhi Equity Saving Scheme For Retail Investors

Other Important Things To Remember

  • Salaried people shall keep an eye on the Provident fund provisions as a few amendments are expected soon.
  • All the health insurance products are eligible for tax saving under the section 80D.
  • The IT Department has started collecting spending data of high profile spenders through “306” watch, there 2013 is the year of doing sound tax planning.

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