 Good evening one and all and as we all understand as a professional and any responsible citizen that how important it is to pay the tax but at the same time if one can legitimately save the taxes yes there couldn't be a better way and they say that everybody anybody who is a professional knows the nuances how one can do the best in that particular field and if you have a professional like a chartered accountant Mr. Rajeev Arora who also when he feels that I was talking to him that as a chartered accountant what he feels he says that professionally man can all grow but the best way is that if you keep on sharing your knowledge and disseminating and that to free of cost to understand and empowering not only professionally and otherwise on various aspects he started a YouTube channel by the name of CA plus wherein he takes short snippets as well as the bird I view to understand for a common man in a simplest manner as how can things be kept forward in the financial aspects those who want they can connect with that channel they can also like and subscribe but as far as our journey of beyond law is concerned we have been empowering everyone so that they can as the names suggest that beyond law also we take sessions and top income tax saving tips if one could understand it's good for any professional to understand for any citizen it is important to understand one should save tax which can be legitimately be done and why not it should be done and that's why they say that a slight advice from any professional would always carry forward so to understand the what could be the top secrets top ideas with which one can save income tax and since everybody wants to pay back to the nation also it contributes for the healthy growth of a nation as a responsible citizen we should also pay income tax but in an estimate manner rightful manner so it is good for the citizen as well as for the country without taking much time I will request Mr. Rajeev Arora who fortuitously is also from Chandigarh and he's been my class fellow in a law that makes us to probably think that we are on a common page to take ideas forward over to Mr. Rajeev thank you because thanks for the introduction and now straight away good evening friends and straight away I'm coming to the topic itself the topic which has been today is how to save taxes income taxes all of the us are earning income and there are a lot of taxes which are there itself so we want to pay minimum of taxes and today and now it's the tag end of the year 31st March is approaching or hums up the up the savings like at the starting of the year we have committed to our employers or whatever we have earned in the financial year we only can save during that particular financial year we have saved in that particular financial year we can save for benefit taxation so before starting I will first start with the how to save taxes but firstly income tax there was a old regime of taxation and now there is a new regime of taxation in the old regime earlier the slavery for individuals below 60 years was 2.5 lakhs of rupees and for senior children it was 3 lakhs and for super senior children who was above 80 years it was 5 lakhs of rupees and from 2.5 lakhs to 5 lakhs there was a taxation of 5% and above 5 lakhs it was 10% 20% and subsequently it was 30% recently 2 years back income tax introduced a new regime of taxation where earlier in the earlier regime there was around 120 type of deductions or exemptions which were available so now income tax reduced it to around 50 and they have done away with some 50 exemptions or deductions in the new regime so in the new regime apparently they have kept a new regime open and in the new regime the taxation is up to 2.5 lakh it is 5% then subsequently 2.5 to 5 lakh it was 2.5 7.5 then 10 then subsequently 12.5 and 15 and it goes on so now the first question and for salary earner and individuals who are individuals not having business income they have an option at the when they are finding their ITRs they have an option either to select the taxation that they want to select the old regime or the new regime of the taxation so if they go to the old regime then they can take the benefits all the benefits of section under Chilur 6A like ATC can take the benefits of HR, standard deductions, home loan interest can take the benefits of it so they can take all the benefits which were available in the earlier regime but in case they select the option under the new regime then what is there is that most of the deductions, standard deductions, HR, LTA have been done away with that means their taxation is lower there but they cannot claim any type of deductions now the important point in this in the minds of many people is that I go to the old regime or the new regime the income tax has allowed you, it started from year 2021 and now two years have passed now this is the third year which will be closing the time so you can for salaried person or any person pensioners they have an option to select every year they can change either they can opt for the old regime or they can come into a new regime but for business people it has been allowed once in their lifetime for example if a businessman has opted from old regime to a new regime then subsequently he wants that I should come back to the old regime so once in a lifetime only he can come select the option of changing the old regime or a new regime but he cannot select it every year so the first and the foremost thing which everybody has to look into is whether I can do it myself or I can take the help of some taxation experts the first thing I have to look into is when my taxation ends in a year then I have a benefit in the old regime or the new regime if you personally ask me if you have any type of LTC deductions and you actually have a benefit in rent and accommodation if you have an LTA or you have a home loan then the old regime is better for you so the first and foremost point is you have to decide if you want to go to the old regime or the new regime now the second important point is that the important point is that all the people, if they have a family member like in most cases what is the husband if he is earning then he transfers the wife to the money thinking that I have transferred the wife to 10 or 15 lakhs or transferred it in the name of the children and my liability comes over it's wrong what happens is that under section 64 there is a clubbing provision which is applicable although you transfer the wife or your children to the money which is totally exempt from tax but in that case because you have transferred the wife to the money in that case because of the clubbing provision if you have given the wife 10 lakhs and assume that your interest is 8000-880 thousand in that case the income of the wife will not be considered the income of the child will be considered and even the money you have transferred to the children the income of the child will not be considered as your income so you have to keep in mind that when you are transferring the money to your wife or your children then you have to take care of the clubbing provision so here I will suggest a better remedy is if you are transferring the money to the wife or the children then you have to invest in such instruments which are tax free for example PPS PPS has totally exempted interest from tax if you transfer the wife to 10 lakhs and the wife is transferred to PPS and the interest of PPS is exempt from tax similarly there are tax free bonds of the government which they come out so if you invest in that then there is no tax line on the income that is why you can shift your liability to them or you can also do that if your children are minor then you can do such an investment and when they are major then it will be like a policy when you invest in such financial instrument when they are major then there will be taxation on that amount so in that case when they are major then the taxation will be in their hands not yours so this is the one of the legitimate way of saving the tax now there is another important point that many people are like this who live with their parents in their homes so in that case there are solid other persons but they stay with their parents because of the joint family culture they live with their parents now in that case the house is owned by their parents but in that case if you have an agreement with your parents if your house is in the name of your father and if you have an agreement with that house and you pay your father on account then in that case you can take the benefit of HR because you have been a salary donor you get rent so you can take the benefit of HR but the thing to pay special attention to is that you have to transfer your father or mother to transfer your rent and the second thing you have to ensure that at the end of the year whatever your father or mother has has become an income assume that you have transferred your father to 5 lakhs now 5 lakhs in that will not be considered as your father or mother's income in that they will get the benefit of 30% of the difference maintenance so that means from 5 lakhs 30% is less so their income will stay for 3.5 lakhs so they have to pay 3.5 lakhs so if they are senior citizens so 3 lakhs is the same exemption and they can take the benefit and if they get minimum tax or if they save 80% then they will not get tax so this way you can claim the exemption of HR and your parents in that taxation you can actually show your income and take the benefit apart from this the 4 most important things you can do is you can take the benefit of deductions under 80% now in schedule 6A there are a lot of deductions which are available and I have seen that a lot of people do not get the benefit and one of the most important points before starting the deductions is that a lot of people do this for example husband is earning and wife is not earning they do not file even the returns or wife does small work or wife does small work or wife does home coaching they think that wife is less than 3.5 lakhs or 3.5 lakhs so why should I pay taxes on that it is wrong if husband pays tax on his IDR similarly I will also suggest that your wife even if she is doing some sort of work at home you should file her return what will be the benefit of that when you take home loan or you are going out normally your IDR is asked for husband and wife in that case if you are paying income tax then it is easy to get a visa and if your home loan is getting 40 lakhs because of this you can make it your visibility can be a little more it can be 60 lakhs or 60 lakhs so this is also I will always suggest to my clients that if you do not pay wife's return or your major children and she is not doing much but file the return so now I am coming back to the schedule 6A deductions now ATC all of us are aware that under ATC I get 1.5 lakh exemption now under ATC which sources are there under which I can take benefit of ATC the most important is PPM on which today's rate is 8.1% rate of interest and it is completely tax free similarly PPM is your employer 12% is your salary and 12% that contributes but you also feel that you also want to open a parallel account so you can open PPM account separately with a post office or any bank and in that you can take benefit of ATC in addition your national pension scheme which recently government introduced and if you do that then you can also cover it in ATC similarly Kisan Vikas Phattar and this National Saving Certificates if you do our investment then you can take benefit of ATC similarly you could be linked insurance plans and in addition if you have 2 children then 2 child tuition fees now here a question which many people have they confuse tuition fees in the school or college with the tuition fees which they are paying to the outside academies in comparison the tuition fees which you give to college or school or the recognized institution you can pay the tuition fees in exemption for example at the beginning of the year I have used building fund or some other activities in the name of school or college money or transport charges you cannot take those in tuition fees so purely and purely tuition fees which you pay on a monthly basis is allowed as a reduction under section ATC similarly the deposits of 5 year post office like in bank now what has happened I am not investing in many instruments because some are market linked instruments and in some you feel that probably more or less and you have a flavor for fixed deposit so what you can do you can use any bank in nationalized bank or private bank there is a separate scheme in which you can take benefit of 1.5 lakh rupees under ATC or by opening up 5 year so the benefit is that for 5 years your rate of interest has been fixed and from here you have fulfilled your benefit in ATC so apart from this there is a senior citizen scheme in which senior citizens if they invest they can also be covered under ATC apart from this there is another important thing Sukanya Smriti scheme and she is below 10 years of age so you can open up Sukanya Smriti account which has an attractive rate of interest and that scheme is valid up to the gun marriage after 18 plus the scheme is valid up to that and for 21 years is the maximum of this particular scheme so under this scheme if you invest you can take benefit so this is broadly the sections which I have discussed under ATC but I have seen that in many cases people don't fulfill their ATC limit so my suggestion is that if you are first you have to see that you fulfill ATC limit and if I put money in equity link saving schemes mutual funds in many cases people are at the fag end means in february when they have to give their investment at the same time they put money in equity link saving schemes mutual funds so my suggestion is if you know that in the beginning of the year you have to put 1.5 lakh in ATC and your P.F. and 70,000 is the shortfall so instead of money you can put money in SIP mode so what is the benefit of that which I have separately put lot of videos on my youtube channel CA plus in this regard if you put money systematically then you won't be able to market time but you will be able to keep the average amount of money so you will always benefit in long term so if you put money in equity link saving scheme then it is covered in the section ATC now broadly we have discussed about the form I have to select in order in new regime if I have to transfer money then how to provide the global provisions another important aspect now I have discussed about ATC another important aspect is that when major children are your major source of saving the taxes how is that? if your children are 18 plus years age so that means they can file the return separately and they are not dependent on you they are earning somewhere and in the beginning their taxation slams are not that high so in that case whatever amount you give them suppose you have gifted them 15 lakhs then there is no provision of gift tax because they come in a relative definition and that 15 lakh if you invest in FD then you are already in the 30% bracket so whatever interest you get you will get 30% taxation but your children are in late taxation or in 10% taxation you have transferred them to 15 lakhs then assume 7-8% or 7% then assume 1.5 lakhs then they will be in their interest and if they are in lower or nil slams then you will get 20% taxation so keep in mind that your major children are also your major source of saving of your taxes so many times people discuss how we should not pay taxes I said you pay taxes because in today's date whether you are investing whether you are buying property everything of yours is valid that means the more information you have the more information you have so better do not avoid your tax because today is not the time to that you have invested in them and you did not pay taxes today is the time when you save your tax but whatever your tax is you have to do it because recently we used to download information from 26AS which had a limited approach that if I have a tax cut then it comes to 26AS since last year we have introduced AIS AIS is annual information summary and AIS is transaction information statement so what happened in that case that my every transaction detail whether it is previous or not it is available to the government my saving accounts my sale of purchase in mutual funds my property sale of purchase I have made foreign investments where I have done foreign travel all those information is available with the government so better to declare everything whatever is in black and white now an important question comes in the minds of many people and they say what is black and what is black because when we keep our money in our wallet we keep it somewhere whether it is white or black so I will answer one question if you whatever is money in your pocket or in your bank account if you are able to prove that this money has been earned from legitimate sources or I have paid all the tax that is a white money if you are not able to prove in your account that is a black money so simply as a layman if you are able to prove that money in my account if I am able to prove from where this money has come it is a white money otherwise it can be treated as a black money or it is a black money I cannot put anything now coming to the next deduction 80D now in 80D if I pay any premium for health insurance whether for my spouse for my dependent children or on my own if I take any medical policy then for 25,000 rupees I can take the benefit of 80D and if I have my dependent parents whose medical expenditure or their medical policies or premiums I am paying so that separately I can claim 50,000 that means for my parents who are senior citizens 50,000 for medical expenditure or premium and 25,000 for me, my spouse and my children so that means 75,000 I can claim under section 80D now there is one more important thing which most of the people miss out and we separately guide our clients on that particular issue if my premium for insurance comes at 15,000 then in that case I do not have a limit of 25,000 so I can separately claim 5000 rupees under preventive health care the government says that if in a year by 5000 for your health test or for doctor's visit or for medicine by 5000 under preventive health care you can claim under section 80D and 90% of the clients who come to us for the first time I have seen that they do not claim this deduction if you have never claimed this deduction then I will suggest at least 5,000 then take benefit if you come in the 30% bracket then you are semi-egyptmatically now one more important question which comes in the mind which the government recently introduced that under 80D senior citizens if they do not take medical policy because they do not give medical policy company then if they spend 50,000 rupees on medical treatment then they get 50,000 in 80D now here many senior citizens have come to me that we have done medical expenditure but if you read that section then 3 conditions have been imposed number one condition that the medical expenditure that you have done it has to be prescribed by the doctor the doctor has prescribed your treatment which is the treatment secondly, whatever you will do it has to be through electronic mode means cash payment is not allowed now many of our clients which I have discussed they say that the doctor asked for 50,000 we have paid 50,000 and there is nothing wrong so you will not get the benefit of 80D first doctor prescription secondly it has to be through electronic mode you can do IMPS you can do NIFT or payment gateway but cash is not allowed thirdly you should have proper record of bills for those expenditure if you meet these 3 conditions and senior citizens then you can take the benefit of 80D you can take the benefit of 80D now coming to the important section is another section is ATCCD what is in this that before the government gave me the benefit of 80C now the government has said that the national pension because the government saw that we cannot give all the pension and the pension the government slowly cut it so the government said if you are an employee and you pay 50,000 for NPS then you will get 50,000 for NPS and similarly employer can contribute separately to the NPS fund so in this section if you are ATCCD separately your benefit for national pension scheme you can choose any fund there are a lot of fund managers fund houses like ICC Bank, HDFC government banks you can put it in and take the benefit another important section is ATE what is in ATE what is in ATE for example I have children and sometimes a lot of people after a few years they take a break and they go for a higher study either abroad or within India and for that to upgrade themselves or their children go out or they study in good colleges and universities if the education is costly they cannot afford to pay from their own in that case they approach a particular bank to take a loan for the educational purpose and I will share if you pay 7.5 Lakhs loan from any bank then bank cannot help you they don't want to and if you pay 7.5 Lakhs loan from an education loan then bank can ask for a full letter so now whatever interest you have whether for the education of self or spouse or your dependent children then you can take the benefit of that section in ATE separately if you think you have to spend on your children's education I will suggest by to block your funds take a loan from a bank and take the benefit of your interest in ATE if you are in 30% debt and you are getting 8.5% or 8.5% money then technically you have saved from 2.4 Lakhs then you have got approximately 5.60% which is good for the FD rate of interest now one more important section ATE DD ATE DD is medical treatment for any person who is dependent upon you and who is handicapped you can take the benefit of ATE DD if it is 40% disability then in that case you can take the benefit of ATE DD and if it is 80% and above disability then you can take 1.25 Lakhs under ATE DD so in many cases we have seen there are some persons who have some disability but people have forgotten to take the benefit of ATE DD under ATE DD in that case you need a disability certificate whether you have incurred or not incurred an expenditure that does not matter apart from that an important section is ATE DD B in that case medical treatment for specified diseases in that there are certain technical diseases because I am not from the medical profession so there are some technical diseases which are available with the income tax one of them is a major neuro disease or some type of cancer if that type of disease is there then you can take the benefit of ATE DD under this section or if the person who are finding their return their senior surgeons or their parents are senior surgeons they can take the benefit up to 1 Lakh of rupees in this particular section although we cannot avoid that disease so I am not here suggesting you take the undue benefit but the disease is there and you have to spend on it in this section your income tax has allowed you to take a benefit if the income tax has allowed and if a particular disease is there then why not take a benefit now another important section where probably I have already discussed HRR there are many people who live in rented accommodation if you are living in rented accommodation and there are many clients so the owner says that you can pay in cash rent so here I will suggest that if you are a salaried person and you want to pay in the benefits under HRR then make a proper rent agreement or pay on account but now I have discussed about the salaried person or the calculers who are picking salary and who are separately having the benefit of HRR doing basic HRR and getting separately HRR now I am coming to the point that some people are like this who are self-employed professionals or who are into business but they also live in rented accommodation so they don't have any HRR so for them there is a separate section the double G in which the government says that if you get your salary then you get it in LAMSAM some people get it in LAMSAM some people get it in LAMSAM some people get it in LAMSAM some people are self-employed they are in business but they live in rented accommodation so there in the double G a separate benefit 5,000 per month you can get the benefit so in total you can get the benefit this is a particular exemption which I have seen lot of self-employed people or small businessmen or even the people who are working in the organization where you get LAMSAM salary so you can get the benefit of this section now there is a lot of people after the COVID and coming into place people have become health conscious or they feel that all the money I am doing by myself so I should become more religious or I should be given some charity so this is a thought which I have seen lot of people's mind have come it up life is too short we should do something other than ourselves so there is a section which is available what can you do if there are some institutions where the APG has 100% reduction some have 50% so that this is available with the income tax or you can consult any professional so if you invest in them and ensure that you check the payment on account or get a proper seal or the APG to whether they are just eligible to be such type of a seal under section APG and in that case 50% in some organizations 100% so if you do the reduction then you can get the benefit of the APG under this section similarly section government introduced section APGGC which is a section where you can donate to political parties if somebody has a some soft burner for the political parties and you also want to donate something there so in APGGC you can donate separately to the political parties and the payment has to be through county check this is the broadly type of deductions apart from this there are a lot of other deductions which are available which are applicable to business people so here I am today not discussing about that so today I am purely and truly concentrating myself on the individuals and the accused and this other way and because I have few points more left data another important aspect is income from agriculture now a lot of people have income from agriculture so what they do is now a notion has come that agriculture income is an example of that so probably here I would like to clarify purely if you have agriculture income then that is an example but if I am doing dairy or forming or I am doing something else which are agree related activities but not directly agriculture then taxation is proper so what I have seen is when few of client approaches said sir my agriculture income will not be taxed sir this statement is partly correct if my income is 5 lakh then I come to 5% slab but my agriculture income is exempt from tax which is 5 lakh so in that case although I do not have tax on agriculture income but the non-agriculture income was 5% slab but now after adding agriculture income I will come under 20% slab technically I did not have tax on agriculture income but my slab rate has changed so you have to keep this in mind if you have pure agriculture income then you will not get tax but if your agriculture and non-agriculture income is there then your slab rate can be changed so keep this in mind another important point which I am going to discuss about is actually now many Hindus 6 and Jains Hindu and divided family on this separately how is the formation process I have separately put a video in my youtube channel in this regard but here I am going to discuss if you have an ancestral property and you have a rental income on that many people have seen that their fathers, their forefathers were visionaries and in some cities they have taken 2-3 properties in which we have a good rental income now that rental income when you are under 30% slab and that rental income even if you add 30% in your slab then you get 30% taxation so in actual you can form an actual as soon as a person is married automatically an actual is formed Hindu, Jain or 6 if a person gets married then he can form an actual after that they can also add to the actual till they are unmarried so you can form an actual separately you can apply the plan card separately and as soon as you have your slabs you can give the benefit of slabs so that means this is a legitimate way of reducing your tax so the benefit that you take in your spouse the benefit that you can take in your at your account after that income from house property what used to happen that broadly on one house was treated as a self occupied now you can treat up to 2 houses as a self occupied if you have 4 houses then you can select 2 houses as a self occupied earlier it was 1 house now the other 2 houses you get the concept of deemed let out but in my career I saw that 99% of people do not show the concept of deemed let out now I will clarify that even if you get a rent if you get a rent then you can have a proper rent and pay 30% benefit but if you do not get a tax then you get deemed let out so you have to keep in mind that if you are buying a home loan then if you and your spouse both are taking working and both have taxable income and both are buying a home loan then you get an interest benefit of 2 lakh rupees under section 24 of the income accept claim that means if you have bought a home loan if you do not have a vision then you can buy a maximum of 2 lakh rupees but you and your wife have a corner but one thing to keep in mind that if you and your wife have a corner then try to go half EMI from your house and half EMI from your wife's house otherwise if you have bought a home loan or you have bought a property and the entire money is transferred from your house then if a case comes to scrutiny income tax will not consider it up and they will consider the whole property as your property and one more important point which wanted to discuss about is in the taxation part itself and the sale of the property now a lot of people do the sale of the property and in one mind I have seen a lot of people avoid this so I am telling you there are 30 lakhs so any registry the information goes to the income tax whether you tell or not and 50 lakhs if you are selling the property then the taxation is also an implication so what is seen in this is that if you have done the house sale you within one year before and two years after the sale you invest in the new house and whatever your capital gain is made you can save it legitimately but believe me you say that I did not like the house and you want to make the house want to construct the house so you can invest within three years to avoid the capital gain now if you have kept the property up for two years then you will get a long term capital gain tax if after the property is sold within two years then you will get a short term capital gain tax so you will get the benefits of indexation so you have to keep this in mind that a lot of people say that they do not want to buy the property so for them they can invest in capital gain bonds now on capital gain bonds the rate of interest is RECKB bond, NHIKB bonds up to 40 lakhs per person now if you invest money in capital gain bond believe me I have sold 50 lakhs of the property and sold 50 lakhs so I have gained 1 crore of the capital now I will invest 1 crore in the new property here I will invest 50 lakhs in the capital gain bond so in the capital gain bond 5.75% of the interest and 5 years of locking now a lot of people discuss that 5.75% is a big time and 5.75% is more so I am getting 25% in the FD so I tell them that 20% of the tax you saved is above 40 lakhs that too is 10 lakhs you will add that in the interest so technically you will get 8-9% of the interest which you saved in 3-4% tax and 5.75% in the FD so this is the legitimate way to buy a new property so this broadly I have tried to discuss about the different sections of the income tax act broadly briefly I have touched upon if we go on discussing each and each topic we can go at length for 1 hour in detail on each and every topic but I have briefly tried to discuss about broadly in the case where we can save tax but if you have any questions you can always reach to me I am based out of Chandigarh so you can always reach to me over phone or anywhere and this was because from my side and if some query is there, question is there I was just checking it out because we had gone live on the YouTube there was only one query on the how to save from the agriculture part that you have already saved because largely that motion is there and as a bird eye view you have given everything and the rest of the sessions will be on YouTube and will continue to come with you and will continue to give knowledge so thank you friends and enjoy your weekend and thank you Mr. Rajeev for sharing your knowledge I hope that people will save tax better or that is the key mantra for today's session thank you