How want to plan for salary tax for 2006-07. Please tell me the best way to save the tax and file myself?

self preparation of tax for income 2.4 Lakhs and for my father 3 Lakhs

Public Comments

1. What???
2. As per Indian Income Tax Act You may insist your employer to set your salary package as follows : Basic Salary : 100000 Transport Allowance : 9600 House Rent Allowance : 36000 Medical Allowance : 15000 Contribution to PPF : 12000 All the above allowances are tax free, subject to condition of house rent allowance For Balance Taxable income i.e 67400 you may claim deduction u/s 80C by purchasing insurance plans and other invesment plans available in market such as mutual funds etc. Further you may claim deduction of tution fees of your children if any. Investing in the above manner would provide you all tax free income in your hands.
3. Apart from the following allowances Basic Salary : 100000 Transport Allowance : 9600 Medical Allowance : 15000 Contribution to PPF : 12000 You can do following additions - HRA 40,000 if you live in a non metro and 50,000 if you live in a metro, but you will have to give a rent reciept for the same. Then you can opt for LTA, which can 10 to 15 grand per annum, you can also go for food coupens like Sodexho approx 12 K per annum. Then you ask your employer to add medical insurance for you and your family. And you can always do the investments upto 1 Lakh per annum to get deduction under section 80C and you will end up paying little or no tax.
4. For the FY 2006-07 you need to invest Rs. 100,000 in tax saving schemes like life insurance, mediclaim etc. The companies are now shying away from giving allowances as they have to pay FBT on those allowances. So be prepared and try to invest in tax saving schemes as it is better to rely on yourself than on anybody else. For more get in touch at coolapurav@yahoo.com