Whether you like it or not you deal with taxes. We introduce to you the 4 simple steps you need to understand about your taxes. You have the luxury to ignore the other stuff.
Step 1: Prepare and submit annual declaration statement to your HR
- If you live in a rented apartment, fill the monthly rent in the respective column.
- If you have home loan then u/s section 80C fill the amount as Rs1,00,000
- Under infrastructure bonds mention the amount Rs 20,000
- Mention Rs 15,000 under mediclaim premium and in case you have dependent parents mention an additional Rs20000 premium.
- In case you have a educational loan mention the total interest portion
Step 2: Put into action
- Section 80 C
Do the following calculation
Minus Annual PF deducted from your salary
Minus existing insurance premuim
Minus childs school fee
Minus Interest payment on home loan
Invest remaining amount in an ELSS scheme.
- Premium on mediclaim policy for yourself and family
- In case you have dependent parents have family floater mediclaim policy for both of them.
Step 3: Submit proofs to HR team
- Rent receipts
- Medical bills
- Leave travel tickets
- School fee receipt
- Copy of your ELSS statement
- Copy of your home loan statement
- Copy of your Education loan statement
- Premium receipt for your mediclaim
- Copy of the bond investment
Step 4: Collect form 16 and file your income tax returns
With the help of form 16 from your employer you need to file the income tax returns.