Tame Your Taxes

Every year as the end of the financial year approaches, the scramble for paperwork begins. If you identify with this annual ritual, you are not alone. But a little advance planning is all it takes to manage your taxes better.   Know your taxable income At the outset, it is important to get a comprehensive idea of your total income during the financial year. Depending on that, you will fall under one of the tax slabs. There are several ways to reduce incidence of tax. “There are certain incomes that are not eligible for deductions or exemptions and there are some specific incomes which are only eligible for certain exemptions,” says Rakesh Bhargava, Director, Taxmann.  After applying these, one can arrive at the net taxable income. This is where tax planning comes in. Tax planning is a process through which an assessee can reduce his tax liability by availing...