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Chat Transcript

Balwant Jain

CA & CS ,

How to do Tax Planning for current year


Questions Answered


guest: Sir, What r d disease covered under 80 c for medical expenditure to sr.citizens?

Balwant Jain: There is no dedcutions available for any medical expenditure for treatment of senior citizens under Section 80 C. I think you are talking about the dedcution available to very senior citizen above 80 years who do not have any medical insurance policy. There is not restriction as to any disease. So for a very senior citizen expenditure incurred on health upto 30,000 can be claimed under Section 80D(2)(c).

guest: Sir I want to know about our savings how much persentage maximum savings because our liabilities is minimum at this time

Balwant Jain: The percentage of income one should save would vary from person to person depending on the size of the family, life style, recurring expenditure and levels of income. But as a thump rule one should save minimum of 40% of the income.

guest: How to do tax planning this financial year

Balwant Jain: This is very open ended question. First of all you need to exhaust the limit available under Section 80 C, which is 1.50 lakhs by investing in the instrument suitable beside your regular PF deductions, life insurance premium, school fee for children. If this limit is exhausted, you can contribute Rs. 50,000/- in your NPS account and claim additional deduction under Section 80 CCD(1B). A proper answer is possible if all the relevant data are available.

labani90: Sir my total income is 900000 per year. How do I plan for tax. I am 33 years old married male and dont have any loans.

Balwant Jain: Since you are 33 years old, you can invest in ELSS by way of SIP for the balance amount available after adjusting PF deduction, LIP, School Fee, home loan repayment etc. Additionally you can contribute Rs. 50,000/- to NPS account over and above Rs. 1.50 lakhs claim available under Section 80 CCE for items available for deduction under Section 80 C, 80 CCC and 80 CCD(1).

kp-dm: My yearly pensino is 200000 And salary is 250000. Now what to do to save tax.

Balwant Jain: I presume you are a senior citizen as you are receiving a pension. You can deposit Rs. 1.50 Lakhs within the overall limit of 15 lakhs in Senior Citizen Saving Scheme and claim the tax benefits under Section 80C as other items are not suitable for you.

amit661988: Hello Sir, need few recomendation for ELSS funds. Since I am late i cannot do SIP so please suggest best combination

Balwant Jain: For the amount to be invested under Section 80C for ELSS you still have five months. Invest the same over the five months online of offline and avail the tax benefit for ELSS. You can invest in Axis Long Term advantage fund or Aditya Birla Tax Relief 96 or equally in both.

guest: Sir my salary 9lacs per annum.i m having 1.5 lacs investments thru lic policieshsing loan10k health ins. Tel me others investment plan to avoid tax Rajesh Udupi

Balwant Jain: You now only have left with one option of investing in NPS and claim deduction upto Rs. 50,000 a year under Section 80 CCD(1B). This is over and above Rs. 1.50 laks which you already have exhausted.

guest: Balwant ji.. There is decrease in income tax to be paid by me in this fy as compared to last fy. Is this serious issue? Will IT DEPT bother me by sending notices? I lost my job due to recession. Kindly guide. Regards

Balwant Jain: If you are a salaried person, you need not worry at all. Even if you receive a notice from income tax department you can explain it.

guest: I am a senior citizen, and my tax liability is nil since my income is much below the minimum limit. I want to know if I Can adjust my short term capital gains against the minimum income limit? Regards Panduranga Rao

Balwant Jain: In case it is normal short term capital gain, this will be added to your income and it the total income together with this does not exceed Rs. 3 lakhs, you do not have any tax liability. Even if the ST gain in from shares or equity oriented funds on which a flat tax at 15% is payable, you will still be able to adjust the shortfall in your income upto the basic exemption against the ST gains under Section 111A.

guest: I am working in India for US listed company. I am aviling ESPP to which I am paying perquiste tax on share allocation. What will be tax implications if i sell shares after hold8ng them for more than 3 years ?

Balwant Jain: Since the shares are listed on US stock exchanges and will be sold there only so you will not be able to claim the exemption available under Section 10(38) as no securities transaction tax will be paid on such shares at the tie of sale. However since you will sell them after 3 years the same will be treated as long term and you will be entitled to claim benefit of indexation on it and the tax will be @ 20.36% on such indexed gains. The cost for indexation will be the acquisition cost plus the perquisite tax paid by you.

guest: Im a 30 year old working in PSU with 37k p.m in hand salary. Have 25k p.a LIC, 4.5k p.m PF ( plus 4.5k employer PF contribution ), Have completed 5year SIP of 1k p.m in BSL tax relief 96(D) Regular plan; April 2018, shifted to Direct plan with increase in SIP to 2k p.m with a horizon of 10-12years and the total current value is 1.4lakh. I can now invest  5k more per month and further make a lumpsome investment of 1 lakh. Goals- 1. Want to buy a pre owned car for 3 lacks in the 1.5-2years; 2. Want to wealth of 15lakhs in next 10 years so that I could save to buy a home. 3. Have another 2lakh as PF previous employer. Should I withdraw that and invest in equity/liquid funds?

Balwant Jain: Moreover the PF money is supposed to be your retirement money. I would strongly advise you not to withdraw the same. It also serve the purpose of having debt component in your overall asset allocation. For the other questions ,please send me a mail on jainbalwant@gmail.com as it is not possible to answer the detailed question here.

guest: Sir i am govt employee earning 10 lakh per annum.How do i plan to save tax. Currently no loan taken Age 28 yrs

Balwant Jain: Since your age is 28 years, I would advise you to invest in ELSS through SIP for the balance amount after deducting the mandatory items like LIP, PF, school fee etc.`I would also advise you to avail the additional benefit of Rs. 50,000/- u/s 80 CCD(1B) by contributing in NPS account.

rakeshg83: Hi sir .I own a house at my city. I am claiming housing loan interest excemption also. Whether I can avail HRA exemption if I am staying in a rented housein the same city ?

Balwant Jain: Yes. You can. Read the article on the link give below. https://housing.com/news/can-claim-hra-well-home-loan-benefits/
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