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  • JIM Tax Planning

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    Shreekant Sharma
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    This document provides an overview of income tax planning in India. It discusses key tax terms like assessee, financial year, assessment year, PAN, TAN, Form 16, Form 26AS, total income, deductions, exemptions, taxable income, and the old versus new tax regimes. It outlines various deductions available under the Income Tax Act like those for HRA, medical expenses/insurance, and tax saving investments/contributions under Section 80C. It also explains how to calculate HRA exemption, capital gains tax for both short-term and long-term gains, and how to compute taxable income. The document aims to help taxpayers understand common tax concepts and plan their finances and salary structures to maximize deductions

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    This document provides an overview of income tax planning in India. It discusses key tax terms like assessee, financial year, assessment year, PAN, TAN, Form 16, Form 26AS, total income, deductions, exemptions, taxable income, and the old versus new tax regimes. It outlines various deductions available under the Income Tax Act like those for HRA, medical expenses/insurance, and tax saving investments/contributions under Section 80C. It also explains how to calculate HRA exemption, capital gains tax for both short-term and long-term gains, and how to compute taxable income. The document aims to help taxpayers understand common tax concepts and plan their finances and salary structures to maximize deductions

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views17 pages

    JIM Tax Planning

    Uploaded by

    Shreekant Sharma
    This document provides an overview of income tax planning in India. It discusses key tax terms like assessee, financial year, assessment year, PAN, TAN, Form 16, Form 26AS, total income, deductions, exemptions, taxable income, and the old versus new tax regimes. It outlines various deductions available under the Income Tax Act like those for HRA, medical expenses/insurance, and tax saving investments/contributions under Section 80C. It also explains how to calculate HRA exemption, capital gains tax for both short-term and long-term gains, and how to compute taxable income. The document aims to help taxpayers understand common tax concepts and plan their finances and salary structures to maximize deductions

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 17

    INCOME TAX PLANNING

    CA SHREEKANT
    7th Jan, 2021
    What is your
    expectation from
    this session?
    Content flow
    • Understanding few common tax terms
    • Know about deductions, exemptions & tax saving
    investments / contributions
    • Plan in advance on salary components
    • How to calculate HRA exemption ?
    • 80D deductions-Medical Insurance/expenses ?
    • How to compute Income From House property ?
    • How to calculate Capital Gain Tax –LTCG & STCG?
    • How to decide between New vs Old tax regime ?
    • How to do Computation of Taxable Income ?
    • Q& A
    Understanding Common Terms
    • Assessee
    • Financial Year & Assessment Year ( e.g. FY 2019-20 : 1 st

    April 2019 to 31st March, 2020 the AY will be 2020-21 )

    • PAN & TAN, TDS


    • Form 16 –TDS certificate
    • Form 26AS : Income tax deposit n credit records maintained by
    Income tax department
    • Total Income: from all sources of earning/income heads
    • Deductions & Exemptions e.g. HRA , 80C …
    • Taxable Income : Total income less deductions and exemptions
    • Old vs New -It’s Choice given to Tax payer.
    Deductions available under IT Act
    Salary Structure -planning

    You should judiciously


    design your flexi part of
    the fixed pay, so as to
    maximum benefit of
    deductions n
    exemptions and save
    on taxes
    Higher / Senior level
    will have higher % of
    performance
    pay/bonus /variable
    pay
    HRA exemptions
    3 Conditions :
    HRA Exemptions ….

    Variable components : HRA received and rent payment will impact the HRA Exemption
    quantum
    Medical Expenses /Insurance premium
    Sec 80D
    Capital Gain
    • Short Term Capital Gain ( STCG )
    • Long Term Capital Gain ( LTCG )
    • For Equity Shares – STCG if holding period is less than 12 months
    --LTCG if holding period is greater than 12 months
    • For Land & Building – STCG if holding period is less than 24 months
    --LTCG if holding period is greater than 24 months
    • Capital Gain Tax
    • Short Term Capital Gain Tax ( STCG Tax )
    • Long Term Capital Gain Tax ( LTCG Tax )
    • For Equity Shares – STCG if holding period is less than 12 months @15%+4% Cess
    --LTCG if holding period is greater than 12 months @10%+4% Cess
    • For Land & Building – STCG if holding period is less than 24 months normal Tax slab
    --LTCG if holding period is greater than 24 months @20%+4% cess
    • In case of unlisted shares the holding period should be greater than 24 month for LTCG
    • In case of Equity Shares LTCG upto Rs. One lakh is exempted
    • Components needed for Indexed Cost of the
    assets working :
    A- Purchase/ Acquisition cost
    Add -Expenses at the time of purchase
    e.g. Stamp duty, brokerage /commission etc-
    B-Cost Inflation Index at the FY of
    purchase/acquisition –
    C-Cost of addition/Improvement n it’s Year
    D--Index at that time
    E-Sales consideration
    less Sales Expenses e.g. brokerage /
    commission etc-
    F-Cost Inflation Index at the Year of sales
    LTCG Working
    Capital Gain on Equity Shares
    New regime vs old regime
    Computation of Taxable Income
    QUESTION
    S?
    THANKS

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