Fire your tax related quieries and i would get it solved!!!

hometypist · #51 2nd August 2007, 11:28 PM

Thanks very much. Please let me know some of the best ELSS.

Quote:

Originally Posted by yoogi

ELSS is Equity linked Savings Scheme, a type of Mutual fund scheme that invests more than 60% ( probably 100%) in equity and related instruments. It is almost like investing in equities under the guidance of a stock/financial adviser.

The money invested in these mutual funds are exempted from Tax, upto a limit of 100,000 rs. But you cannot take money out of this fund for the first three years. The maturity amount, prfofit (if any , after three years) is also tax free.
My ELSS has given me about 25% pa.

So instead of investing directly in Stocks, you can invest in ELSS and get exemption.
All major fund houses like SBI Mutual funds, HDFC mutual funds, etc have ELSS options.

You can also invest some money in PF account (profident fund..) which may not give you attractive returns like ELSS (but less risky..) but also exempted from tax.

Also you can use your Life insurance premium for tax exemption.

Under section 80/c of income tax act, savings in these are exempt from paying tax.
There are few more investments like NSC, Post office savings.....that are also exempted.

If you want to save some money, and get exemption for that, you can either use PF or ELSS or combination of both.

If you use diosys's break up, you need to actually spend money (or atleast produce bills for that.) That directly answers your question about break up of your salary.If you have problems with any of such expenditure, then you can use one or more of the savings mentioned here as exemption.

yoogi · #52 3rd August 2007, 07:31 AM

use a combination of expenses and savings to save tax. B'cos most likely that you will end up actually making some of these expenses any way. (Uniform can be buying formal suits for office use..). go to moneycontrol.com, click on mutual funds and you will see best funds by performance.

I personally like "SBI Magnum Tax Gain" and "HDFC Tax Saver". I have invested in "Fidelity Tax advantage", which is also not bad. Go to any decent branch of these banks and they will give you application forms for ELSS funds. Fill up and pay by cheques or Auto fund transfer. If you want to save 30K in ELSS, better pay 2500 a month so that you don't have to spend two month salary on savings at one time.

Be warned: No matter whatever be your emergency requirements, you cannot withdraw money from this for 3 years.

diosys · #53 3rd August 2007, 09:13 AM

in ELSS i have personally chosen...

1.) SBI Magnum Tax Gain...
2.) Fidelity Tax Advantage....
3.) Franklin Tax Shield.....
4.) Birla Tax Saver Fund....

diosys · #54 3rd August 2007, 05:54 PM

Hi guys.....

I am out of town for the next 2 days hence i would be unable to answer any of your tax queries....So please post them and i would revert to them when i return....

Have a lovely weekend.....

yoogi · #55 4th August 2007, 09:38 AM

diosys , yours is an excellant help to all of us. Have a nice weekend.

diosys · #56 5th August 2007, 08:04 PM

Quote:

Originally Posted by yoogi

diosys , yours is an excellant help to all of us. Have a nice weekend.

Thanks Buddy !!!

diosys · #57 6th August 2007, 03:25 PM

Hi all,

I am back with a tax tip !!!

If you have not filed your Income Tax Return then you can file them even till 31st March, 2008.....Correct....This is what you might have read in the newspapers....But i would like to inform you you that you can still file it till March, 2009 !!! without any penalty....

The same can be done by using Sec 139(4) of the Income Tax Act wherein it stipulates that return on income filed belated can be one year from the end of the assessment year i.e. for the FY 2006-07 it would be 31st March, 2009 !!!

So Sleep......

yoogi · #58 6th August 2007, 04:45 PM

I am one who is sleeping soundly, without filing returns. I paid tax on July 28, to avoid intrest. But haven't filed my returns.

One website warned me of the consequences of not filing returns on July 31st:

1. Will not get Tax returns with interest from April 1. instead the interest will be calculated only after I filed.

2. I cannot make any correction to the return in case of any error.

both are fine with me..

diosys · #59 6th August 2007, 05:58 PM

It is correctly stated by Yoogi.....

diosys · #60 7th August 2007, 04:59 PM

Just for everybody information i would like to inform that have started this thread for queries relating to service tax also....So if anyone has any issues with Service tax then they can also fire them at me !!!

Taxing Tip....

If you have regular share trading income and you get classified as trader then please fill your income tax return in ITR-3 and if auditable then in ITR-4....

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