My husband income is more than 7 lacs and recd HRA Rs.15,000 pm.how he can accumulate charge?
Answers:
Your Husband's gross Salary would be computed as 7 Lacs + 1.80 Lac (15000 x12 month).
So Gross Total Income= 8,80,000.
Out of this, Under Section 80C of Income Tax Act, your husband can avail conclusion of Rs, 1,00,000 surrounded by following cases:
any one of the following but maximum 1 lac.
Investment upto Rs. 70000 (Maximum Limit) in PPF
Investment upto Rs. 1,00,000 in ELSS (Equity Linked Saving Schemes) of Mutual Funds
Insurance premiums upto Rs. 1,00,000
and so on..
I would suggest Mutual Funds Schemes as it could present you triple benifits. 1. Investment is exempt, 2. income (Dividends) are charge free, (3) Capital Gains are also exempted from charge after one year (ELSS is locked within for 3 years).
So very soon the gross total income of your husband would come down to Rs. 7,80,000.
You may also find assumption below box 80D maximum upto 10000 or 15000 (i am not sure. ask your CA) for Medical Insurance Premium.
Now your Gross Taxable Income would come down to that extent. After that you will enjoy to earnings Income import tax as per the duty rules.
Unless more information at appendage, answer will not be appropriate. You can refer "Taxmann's direct taxes primed reckoner for A.Y.2007-08, page 51.(Hints for rates planning)"
Moreover, it can be suggested that you please consult your toll practitioner.