Tax Saving Tips

If India adopts U.S.-style unemployment benefits, how can we protect professional taxpayers without draining the budget? Can we create a safety net for high earners that prevents fraud and encourages them to return to work?

Using family accounts for IPO bids is fine only if the money truly belongs to them and can be verified. Since your parents have farm income but don’t have tax returns, you should:

Move money to their bank account through official bank transfers — no cash, please. Keep a record of the transfer and have them sign a simple gift or loan declaration. Hold onto proof showing where the money came from in your account.

Just steer clear of informal transfers. Having proper documentation is very helpful if the tax department wants to know where the money came from.

@Drishti Take a moment to assess your business structure before diving into expense applications. Sometimes, simply changing how the business is set up — such as using a family structure — can save you significantly on taxes. You just want to ensure that whatever you choose fits your future plans and keeps the tax office happy.

EPFO withdrawals are tax-free if the total employment duration is 5 years or more. Withdrawals before 5 years are taxable, with TDS at 10% if the amount exceeds ₹50,000. Exemptions apply if the withdrawal is due to illness, company closure, or reasons beyond the employee’s control.

When you use your car for personal purposes or for commuting to/from the office, you are not eligible for any kind of tax benefits.

However, salaried workers in India are eligible to claim tax benefits on a company-leased car, including EMIs and maintenance.

Yes, donations to registered NGOs or orphanages in India can provide tax benefits under Section 80G of the Income Tax Act. But the income tax act gives different deductions. Some donations can be deducted in full, while others allow a 50% deduction.

The Indian Income Tax Department clearly states that you must pay a 30% tax on cryptocurrency profits. There is no other way to avoid this tax.

Hi

In terms of your situation, there are number of factors you can consider for tax saving and financial planning. Both you and your wife, as co-owners can claim the tax deductions individually and doubling the tax benefit.

Under section 24B you can claim the deduction up to Rs. 2 lakh on interest paid and Under section 80C you can claim Rs. 1.5 lakh on principal. Choosing different banks won’t result in direct rise in your tax savings. As it provides additional advantages and better interest rates. Under Section 80D, your wife is eligible to deduct the premiums paid for their health insurance coverage from her taxes.

In the end, just remember to take advantage of the deductions available under sections 80C and 24B to maximize the tax benefits of your home loan.