In 2015 -16 Financial Year I earned 600000 INR in Commodities Trading. This is the My only income. As per this I have to pay 45000 INR as Tax.
In Future I want to reduce My Tax for this I am thinking that to trade 6 months in My account and 6 months in My wife Account ( She is an Home Maker does not have any income ). Can I do like this ? Or suggest me any better alternative to reduce My tax.
If your wife is not working then as she doesn’t have any income so her earnings will be clubbed with your income.
You can invest in financial instruments that comes under section 80 C. The limit is currently 1.5 L. So, your net taxable income will come around 4.5L. The tax on that would be 20K.
Financial instruments under 80C.
PPF - 8.1% - 15 yr lock in.
ELSS - historically 12% return . 3 years lock in.
1.) Deduct all the taxes you have given in trading such as SST, Brokerages, Service Tax etc. from your overall income.(Allowed as you have already paid these taxes, taxes can’t be taxed again).
2.) You can also deduct charges incurred for trading such as Internet charges, Computer Depreciation charges, Software bought, or some extra utility you are using for your business. If you have an office in your house you can also avail exemption of some percentage of total Electricity Bill, House tax depending on the area of your office w.r.t. house area.
3.) Avail benefits of Investments under section 80C. (Max upto 1.5 lakh) Tuition fees of school for upto two children can also be exempted under this.
4.) You can take Health Insurance for self/spouse or children. Max deduction available is Rs.25000. You can also take extra deduction of Rs.25000 for your parents if they are under 60, or Rs.30000 if they are above 60.
So suppose you have incurred Rs.25000 as taxes, and Rs.10000 for utility charges such as internet bills etc. and you avail max limit of 1.5lk under sec80C and you take Health insurance.
Your total taxable income come to 600000-25000-10000-150000-25000 = 390000
So your total outstanding taxes come to Rs.14000
You can save tax in many ways, one way is to invest in a Preventive health checkup.In 2011-2012, the Government of India has announced union budget tax benefits by widening the scope of Section
80D (IT Act).
By a Preventive health checkup you not only keep a track of your health and keep the unwanted diseases away; you can also save tax by investing in employees preventive health checkup. It is always a better idea to invest in a a Preventive health checkup than to bear the huge expenses of treatment of an illness.
“Get Preventive Health Checkup Package to Save Life and Save Tax".
how can you open an account in your wife’s name since brokeage needs income proof? I am curious…