After assessing your tax liability, the next step is tax planning for Save Tax. It involves selecting the right tax saving instruments and making investments accordingly.
Deductions from Taxable Income:
Deduction under section 80C
This new section has been introduced from the Financial Year 2005-06.
Under this section, a deduction of up to Rs. 1,00,000 is allowed from [...]

Tax gives us the tension and makes responsible us for our state but Tax deduction gives us a way to save our tax and relief from tax anxiety.Tax deductions are simply expenses that you are allowed to use to reduce your gross income. From a big picture perspective, figuring out your taxes is actually [...]

The month of July is associated with the time for filing returns of income by individual taxpayers. The government has recently notified new forms for filing income tax returns. These forms replace the old ones. Any person planning to file her return for the year ended 31 March 2007 (relevant to income tax assessment [...]

Section 80C
Section 80L used to allow deduction of interest earned on, say, a National Savings Certificate or a bank deposit up to a limit of Rs 12,000. But now all these are gone .In their place has come Section 80C — “u/s 80CCC, & u/s 80CCD”, as the Finance Bill puts it. Thus, the [...]

Section 80G
Under this section deduction is made in respect of donations to certain funds, charitable institutions, etc. Deduction is not available for donations given in kind.
The deduction is available only for the entity to which donations is made is an approved charitable institution by the government. A receipt of the institute, in evidence made, [...]

Annuity is an annual grant received by the employee from his employer and is covered under the definition of salary. It may be paid by the employer voluntarily or on account of contractual agreement. A deferred annuity is not taxable until the right to receive the same arises. Other form for annuities made under [...]

In both the above situations gratuity upto a specified limit is exempt under the provisions of sec.10(10) of the Income Tax Act, 1961.
For the purpose of exemption of gratuity under sec.10(10) the employees are divided under three categories:
1. Govt. employees – In the case of govt. employees the entire amount of death-cum-retirement gratuity is [...]

Bonus
Bonus is taxable on receipt basis and is included in the gross salary in the year in which the bonus is received.
Fees & Commissions
Any fees or commission received by the employee or receivable by the employee is fully taxable and has to be included in gross salary. Commission may be a fixed amount per [...]