Tax Planning

https://www.taxfull.com/15292/rsu-taxation-in-india (Recently added in 2024 )
https://zerodha.com/varsity/chapter/foreign-stocks-and-taxation/ (Recently added in 2024 )
https://zerodha.com/varsity/module/markets-and-taxation/ (Recently added in 2024 )

- ELSS (Equity MF Under 80C)

 
- NPS
                Section 80CCD : 1.5L ( Under 80C)
                Section 80CCD (1B) : 50K (direct contributions)
                Section 80CCD (2)   : Employer's NPS contribution up to 10% of Basic salary

- Health Insurance

               Section 80D
(Deduction on Premiums) : 50K (  25K <60 Yrs + 25K for Parents <60 Yrs)
  75K (  25K <60 Yrs + 50K for Parents >60 Yrs)
                                                                  1 L (  50K >60 Yrs + 50K for Parents >60 Yrs)

(Preventive Health Check-up) : 5K

- Save Taxes on Home Loan
Section 80C (principal) : Principal repayment up to Rs. 1.5 lakh.
Section 24 (interest) : Interest Paid for Home Loan (Up to 2 Lakhs)
Section 80EE (interest) : Interest paid by first-time home-buyers (Loan 01-Apr-16 bw 31-MAR-17) (50K)
Section 80EEA (interest) : Interest paid by first-time home-buyers (Loan 01-Apr-19 bw 31-MAR-22) (1.5L Per FY)

-  HRA (House Rent Allowance)

      - If not part of Salary , 60K under Section 80GG
                          - If it is part of Salary,tax exempted is the least of the following
                                          1) actual HRA received
                                  2) 50% of basic salary (Metro) or 40% of basic salary (non-Metro)
                            3) Actual rent paid minus 10% of basic salary

LTA (Leave Travel Allowance):
- Only 2 journeys in a block of 4 years are exempt from tax
- On actual travel cost(domestic travel expenses)
- Food or stay or any such expenses excluding travel cannot be a part of it.

Useful Links

• Income Tax Guides 

• Basics of Income Tax

• Income Tax Return (ITR) - Tax2win 

• Salaried Individuals Taxation | Income Tax Department 

• Tax Information and Services  

• Income Tax Notice Received u/s 133 (6)? What to do Now

• Tax-Free Income Sources in India – Overview

• Advance Tax Payment - How to (Recently added in 2024 )

Tax Calculator

Income Tax Calculator      Kuvera Tax Calculator 

RSUs (Restricted Stock Units )                Form of stock-based employee compensation.

Tax needs to be paid on below cases.

1) On Vesting : Taxed as perquisites (will be in Form-16) & have to pay TDS on the once shares recieved .
should declare in ITR:   holding of foreign shares under Schedule FA (foreign assets) 

2) On Sale : Capital Gains (Selling Price - Vesting Price)
STCG: < 24 Months, as per Slab rate
LTCG: > 24 Months ,20% with indexation 

3) Dividends    : Should declare in ITR - (Income from other sources)
  Form 67 (for double taxation avoidance DTAA  for dividends).

Understand, Watch here, Read here

ESPP (Employer Stock Purchase Plan) / ESOP (Employee Stock Options)

ESPP - buy company stock at a discounted price.
ESOP - buy company stock at a discounted price.(For Few People)

Tax need to be paid on below cases

1) On Purchase :  Taxed as perquisites(will be in Form-16) &  have to pay TDS on the once shares recieved
  The discount offered on the purchase of ESPP shares is considered as income and taxed accordingly
                                            Should declare in ITR:  holding of foreign shares under Schedule FA (foreign assets) 

2) On Sale : Capital Gains (Selling Price - Purchase Price)
  (Same as RSU: Refer RSU Section)

3) Dividends              : (Same as RSU: Refer RSU Section)

Read more here 1 , 

1. Investing in the Name of a Non-Working Spouse

2. Making investments in the name of a major child

3. Making investments in the name of a minor child

4. Making Investments in the Parent’s Name

5. Paying Rent to Your Parents (Applicable to old tax regime only)

6. Tax Loss Harvesting

7. Tax Gain Harvesting

8. Creating a Hindu Undivided Family (HUF)

Read more 1,2 ,3 ,4,5,6