1)Proper Allocation of Annual compensation
Restructuring your salary with some additional components can reduce your tax liability. This restructuring doesnt require any additional cash outflow. The following components can be efficiently used to reduce your income tax liability.

Transport allowance to the extend of Rs.800 is exempt
Medical expenses which are reimbursed by the employer are exempt to the tune of Rs.15000
Food coupons like sodexo or ticket restaurant are exempt from tax up to Rs.60000
Individuals who are all living in a rented accommodation can include House Rent Allowance ( HRA ) as a part of their salary
Leave Travel Allowance (LTA) can be part of your salary as this can be claimed twice in a block of 4 years.

2)Effective Utilization of Tax Exemption
As far as possible utilize the maximum exemptions available under section 80 C, 80 CCF and 80 D. The maximum exemption available under section 80 C is Rs. 100000.

Under this section Rs.100000 investment or contribution can be made in PPF, NSC, Life insurance premium, 5 year FD with banks and Post offices, Mutual Fund ELSS, Principal Repayment of housing loan, and the tuition fees paid for childrens education.

Under Section 80 CCF, you can invest up to Rs.20000 in infrastructure bonds.

Under Sec 80 D, the premium paid towards the mediclaim policies are exempt. The maximum limit of exemption is Rs.15000 and for senior citizens the limit is Rs.20000 and for covering senior citizen parents there is an additional exemption to the extend of Rs.15000.

3)Properly Structure your Housing Loan

The Principal repayment of a housing loan is eligible for a deduction up to Rs.100000 u/s 80C. The interest paid on a housing loan is eligible for a deduction up to Rs.150000 u/s 24B. If the housing loan is for a sizeable amount, then it is possible that the principal repayment and interest may exceed the specified tax exemption limit. To utilise the maximum tax benefit, an individual can consider going for a joint home loan with his/her spouse or parent or sibling. This will make sure that both the co-owners can claim tax deductions in the proportion of their holding in the loan.

4)Tax Plan in Sync with Overall Financial Plan

You should not do your tax plan in isolation. You need to do it in sync with your overall financial plan. So a tax plan is not only to just save taxes and also it should assist you in achieving your other financial goals like childrens higher education, buying a home or retirement.

5)Avoid Last Minute Rush

In fact the right time to do the tax plan is the beginning of the financial year. If you postpone your tax planning even now and do it in the last minute, then you will not be able to choose the right investment. In the last minute rush, you will be forced to choose a scheme which gives the proof immediately. Is the investment sound and profitable? Is there any other better options? You will not be able to choose the best scheme and you may settle with a mediocre one.

6)Invest Some Quality Time
Before investing your money, you need to invest your time. You need to take some quality time to understand the various tax saving options and compare their benefits and limitations.

7)Check for Future Commitments
Some tax saving options like NSC or ELSS need only onetime investment. Some other tax saving options like PPF, Ulips need periodical investments year after year. You need to be careful in choosing a tax saving scheme where you need to commit for periodical future payments. You need to check on a few things like; do you need such a future commitment? Will you be able to meet the future commitments at ease? The law may change and you may not get any tax exemption for your future payments. Would you consider the scheme irrespective of tax benefit for the future payments?

8)Changed Your Job; Redo your Tax Plan
Did you switch your job in the middle of the financial year? Then you need to redo your tax plan with consolidating the income from both the companies. It is advisable to inform the new company about the income during the particular financial year from the old company. So that your new company will deduct the right amount of TDS. Otherwise you may need to pay extra tax at the end of the financial year.

Whenever you change your job, you need to have a sitting with your financial planner or tax advisor. So that the required changes in your tax plan can be done proactively.

With proper tax planning you can reduce your tax liability; save more; invest better and become wealthier.

About the Author:
The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Founder and Director of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.

Tags: food coupons, coupons, sodexo, maximum limit, income tax liability, Money Saving Discussions

In America, sale means that the particular product would be available at half of its actual price. People living in USA believe that they can get the same furniture of the same quality from the Furniture Sale in New York and thus they do not go for buying furniture in the normal days. They wait for the sale and save up money to buy furniture meanwhile. Furniture Sale in New York can enable you to save much of your money. People all over the city wait for the sale and people belonging to all classes come to the sales in order to buy furniture. When people here in America dont miss using the food coupons, then they cant even think of missing such big opportunities where they can get furniture at half of the actual price.

If you are thinking to change the furniture of your house or if you are about to buy new one, then you shouldnt get it in the regular days. The best time to buy furniture is when there is sale season in the city. Furniture Sale in New York can provide you furniture that would be of moderate quality. Time after time new families shift to New York and search for a home to live in. The houses that are available at rent are most of the time furnished with furniture and because of this, the landlords ask for high rents. If you are a clever tenant, then you would ask the landlord to get the furniture from Furniture Sale in New York.

The furniture sales are usually held twice or thrice in a year and if people need to buy new furniture when there isnt any sale, then what should be done? What most of families do is that they wait for the sales and meanwhile they hire furniture from the furniture hirers. As it is confirmed that the clearance sale would be held, thus people are always ready to wait to buy furniture at reasonable prices. When they will get the desired furniture from the sales, then they can return the furniture back to the furniture hirer. In this way, they would just have to pay the monthly rent for the use of the furniture.

The companies that offer furniture for rent are allowed to rent it for one year only. The hiring companies that can provide the latest styled furniture can be easily found anywhere in the city. They specially work for renting furniture and they have carpenters working for them who make furniture for the customers. These companies dont actually sell furniture they just rent it out. They expect that their customers dont damage the furniture during the use. If any damage is found, then customers are fined for this. The carpenters who manufacture the furniture also repair it if any damage is made by any of the customers. The rent that is to be paid by the customer is quite affordable and it wont ruin the budget.

About the Author:
Allen Reeve is an author of popularfurnitureny(www.popularfurnitureny.com), One of the best furniture store. He is writing articles on Furniture Sale in New York , since long time.

Tags: food coupons, Money Saving Discussions, landlords, USA, way, coupons