PRESENTATION

FOR VIVA
Siddhesh Dhotre
HPGD/JL20/1852
INCOME TAX PLANNING IN INDIA
 POINTS OF PRESENTATION
 Introduction & Background

 History

 Tax Slabs

 Important Terms

 Meaning of Tax Planning

 Heads of Income

 Deduction
 Brief History of Income Tax in India: 

“In this world nothing can be said to be certain, except death and taxes.”
Benjamin Franklin

 Tax is a mandatory liability for every citizen of the country. There are two types of tax in
India i.e. direct and indirect.

 Taxation in India is rooted from the period of Manu Smriti and Arthasastra. Present
Indian tax system is based on this ancient tax system which was based on the theory of
maximum social welfare.
 BRIEF HISTORY OF INCOME TAX IN INDIA: 

 In India, this tax was introduced for the first time in 1860, by Sir James Wilson

 In 1918, a new income tax was passed and again it was replaced by another new act which was
passed in 1922.This Act remained in force up to the assessment year 1961-62 with numerous
amendments.

 In consultation with the Ministry of Law finally the Income Tax Act, 1961 was passed. The Income Tax
Act 1961 has been brought into force with 1 April 1962. It applies to the whole of India and Sikkim
(including Jammu and Kashmir).
TAX SLABS
IMPORTANT TERMS

 Assessee

 Assessment Year (A.Y. 2023‐24)

 Previous Year (F.Y. 2022-23)

 Residential Status

 Gross Total Income

 Deductions

 Total Income
Definition of 'Assessee' – Section 2(7) of Income Tax.
As per S. 2(7) of the Income Tax Act, 1961, unless the context otherwise requires, the term
“assessee” means a person by whom any tax or any other sum of money is payable under this Act,
and includes
 Person in respect of whom any proceedings under this Act has been taken for assessment of his
income
 Deemed assessee under provisions of this Act
 Any person deemed to be an assesse in default under any provisions of this Act
Assessment Year (A.Y. 2023‐24):
Assessment year means the period starting from  April 1 and ending on March 31 of the next year.
Previous Year (F.Y. 2022‐23)
The financial year immediately preceding the  assessment year 
IMPORTANT TERMS
Residential Status
 Resident–World income is taxable in India
 Non Resident(NRI)–Only income arising or accruing in India is taxable in India
 Resident but Not Ordinarily Resident–Income accruing or arising outside India may also be
taxable in India

Resident: On basis of stay in India computed separately every year

If satisfies any of the below condition:
1. He is in India for a period of 182 days or more in the FY
OR
2. He is in India for 60 days or more during that FY and has been in India for 365 days or more during
4 previous years immediately preceding the relevant Financial Year.
TAX PLANNING
Tax Planning has been described as a refined form of ‘tax avoidance’ and implies arrangement of a person’s
financial affairs in such a way that it reduces the tax liability. This is achieved by taking full advantage of all the
tax exemptions, deductions, concessions, rebates, reliefs, allowances and other benefits granted by the tax laws
so that the incidence of tax is reduced. Exercise in tax planning is based on the law itself and is therefore legal
and permanent.
HEADS OF INCOME

 Income from Salary

 Income from House Property
 Profit and Gains of business and profession
 Capital Gains
 Income from other sources
DEDUCTIONS UNDER CHAPTER VI-A
 Deduction under section 80C (Premium on Life Insurance, Public Providend Fund, EPF,Unit Linked Insurance

Plan, National Saving Certificate, Equity Linked Saving Scheme(ELSS),Repayment of housing

loan(Principal).Tuition fees for child education. Deduction under section 80CCC

Deduction in respect of contribution to certain Pension Funds:

Deduction under Sec.80CCC is available only for individuals. Contribution to an annuity plan of the LIC of India or any other insurer
for receiving the pension. Do remember that the amount should be paid or deposited out of income chargeable to tax.

Note:- this is also the part of the combined limit of Rs.1.5 lakh available under Sec.80C Sec.80CCC, and Sec.80CCD(1)
 Deduction under section 80D
Deduction under this section is available if you satisfy the following conditions.

 The taxpayer should be an individual (resident, NRI or Foreign Citizen) or HUF.

 Payment should be made out of income chargeable to tax.
 Payment should be in NON-CASH mode (for preventive health check up, you can pay either through
cash or non-cash mode).
Covered Individuals Premium Paid (Rs) Tax
Exemption
For Self, For Parents u/s 80D (Rs)
Family, &
Children
Individual and parents > 60 years 25,000 25,000 50,000

Individual and family > 60 years but 25,000 50,000 75,000

parents < 60 years

Both individual, family and parents < 60 50,000 50,000 1,00,000

years

Members of HUF & Non-resident 25,000 25,000 25,000

Individual
 Deduction under section 80DD

Section 80DD provides tax benefits to the families of disabled dependents for the purpose of caring

for them. It can be claimed by caretakers who are individuals as well as by Hindu Undivided Families

(HUF).

• Deduction under section 80DDB

Section 80DDB provides for deduction to Individuals and HUFs for medical expenses incurred for treatment of
specified diseases or ailments and should be deducted from the Gross Total Income while computing taxable
income of the assessee

 Deduction under section 80E

Section 80E of the Income Tax Act provides provisions for tax deductions on educational loans. This is available only
for the interest component of the loan. This can only be claimed once the loan repayment has commenced.
 Deduction under section 80G
80G is a certificate that exempts you part or fully from paying taxes, if you have made donations to charitable trusts or

section 8 company or organizations that are registered to offer you exemptions from taxes.

 Deduction under section 80CCE

Section 80GGC of the Income Tax Act provides tax deductions for contributions made to political
parties. This can range from 50% to 100% of the amount contributed. This provides a great deal of
tax saving while encouraging a strong political system.
• Deduction under section 80U
Deduction of Rs.50,000/- to an individual who suffers from a physical or mental
retardation.
THANK YOU