Thursday, August 9, 2018

Indian Money Review -How high earning individuals can reduce their tax burden?



Saving taxes is really a serious concern for high earning individuals. So, how they can reduce their tax burden? Let us look into some useful tips provided by Indian Money CEO, C S Sudheer.
How high earning individuals can reduce tax burden?
Donations and Charity
By making donations, you will be able to support a good cause and at the same time get tax deductions. When you make a donation to any relief fund or charitable institution then you will be saving taxes under Section 80G.
Similarly, when you make a donation for any rural development work or for scientific research project then such donation entitles you to claim deductions under Section 80GGA.
Capital Gains
According to IndianMoney.com Review, investment in capital gains bonds turns out to be the right option for high earning individuals.
The reason is that, when capital assets are sold and capital gains arise out of it, those gains are tax free if the gains are invested in capital gain bonds. Another good thing is that, by making an investment in these capital gain bonds you will be able to save as much as fifty lakhs every year.
Short Term Trading
If you fall in the category of high earning individuals then as per Indian Money review Bangalore it will be important for you to stay away from short term trading. The reason is that capital gains of short term are usually taxable at 15% rate.
Give a Gift
If the value of a gift is higher than Rs.50, 000/- in year then only it is taxed otherwise not. But, according to Indian Money Bangalore, this rule will not be applicable if the gift is given to following people:
1.       Spouse
2.       Parent’s siblings
3.       Parents
4.       Siblings of your spouse
5.       Your siblings
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