what ways to reduce tax burden?  

By availing exemptions like :

1. 80C
Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals and HUF (both resident and non-resident)
How much: Cannot exceed Rs 1 lakh.

2. 80CCC
Qualifying products: Pension plans of life insurers
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals
How much: Within the overall limit of Section 80C (up to Rs 1 lakh)

3. 80D
Qualifying products: Medical insurance policies taken for self, spouse, dependant parents or children, or any member of HUF
Mandatory requirements: Premium should be paid through a cheque out of income chargeable to tax
Who can avail the deduction: Individuals, HUF
How much: Up to Rs 15,000; senior citizens can claim up to Rs 20,000

4. 80DD
Qualifying products: Expenses on the medical treatment of a dependent who is a person with a disability
Mandatory requirements: Certification by a medical authority
Who can avail the deduction: Resident individual or HUF
How much: Up to Rs 50,000, or up to Rs 75,000 if the dependant is a person with severe disability

5. 80DDB
Qualifying products: Expenses on the medical treatment of a specified disease (cancer, AIDS, neurological diseases, chronic renal failure and more)
Mandatory requirements: Certificate in Form No. 10-I to be submitted along with the income tax return form. Deduction is available if the amount is actually paid for treatment
Who can avail the deduction: Resident individuals or HUF
How much: Rs 40,000 (if the person treated upon is less than 65 years of age), or Rs 60,000 (if the age of the person treated is 65 years or more)

6. 80E
Qualifying products: Payment of interest on loan taken for higher studies
Mandatory requirements: Deduction is available in the year in which repayment starts and only for eight immediately succeeding assessment years
Who can avail the deduction: Individuals
How much: Deduction available on the total interest portion of education loan, the principal repayment gets no tax advantage

7. 80G
Qualifying products: Donations to certain funds and charitable institutions
Mandatory requirements: Not applicable
Who can avail the deduction: Resident individuals or HUF
How much: 50 or 100 per cent deduction on the entire donated amount, or 50 or 100 per cent deduction subject to 10 per cent of gross total income

8. 80GG
Qualifying products: Rent paid for residential purpose
Mandatory requirements: Should not be getting house rent allowance. Actual rent paid is in excess of 10% of the total income
Who can avail the deduction: Self-employed or salaried
How much: Excess of actual rent paid over 10 per cent of GTI, or 25 per cent of GTI, or Rs 2,000 per month, whichever is the lowest

9. 80U
Qualifying products: Expenses incurred on self, if disabled
Mandatory requirements: Certification by a medical authority to be furnished along with the income tax return form
Who can avail the deduction: Resident individuals
How much: Rs 50,000 for a person with disability, Rs 75,000 for a person with severe disability (disability of over 80 per cent)

Answered by subu at 5:57 PM on May 25, 2008

Investment in ELSS mutual funds, PPF, ULIP, Nationalized Bank Fixed Deposit for 5 years, Post Office National Savings Certificate for 6 years and all other kinds of Insurance Policy premium, all totally upto Rs.1,00,000/- cannot be taxed.

Answered by memb rane at 10:28 AM on May 24, 2008

dear seema ji :-

Apart from doing extensive research to short list possible lawyers you must ensure that there is not conflict of interest, that you understand everything the retainer agreement states, and that you have checked the references and details regarding the practice.

You will know the lawyer you have chosen is the perfect one if:

1. He makes an effort to spend time to understand your case himself. He will not assign a legal assistant to take facts of the case down.

2. From experience and knowledge he will know what is relevant and what is not. He will set aside and ignore irrelevant facts, opinions, and personal emotions that cloud the case on hand.

3. He will insist that the footwork for the case be done thoroughly. All facts must be checked for accuracy and solid arguments jotted down with backing of earlier rulings.

4. He will not just focus on the problem at hand but examine the problem from all sides. This will create a complete picture highlighting all factors of relevance and the different ways one can approach the case.

5. He will use his foresight and anticipate moves by the opposition or opinions of the jury or judge and plan way ahead. Like a master chess player he will plan the case not by the day but by many hearings ahead.

6. He will not waste time beating around the bush or create verbose statements—many words strung together which look impressive but mean nothing. He will insist that the case and its arguments be clearly stated.

7. He will be self-disciplined, thorough, and self confident. Courteous at all times he will respect you as well as all the staff who work for him.

8. He is recommended by not just his friends and relatives but by other professionals of good standing and from his field.

9. He will not just present to you his victories but be happy to tell you why and how he lost certain cases.

10. He will lay the cards on the table and tell you clearly whether your case stands to win or loose. He will not claim that winning is guaranteed. He will be honest and upfront about his opinions and advice.

Answered by shepherd at 5:40 PM on May 20, 2008

There are 9 great ways to reduce tax burden.The list are given below-

1. 80C
Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals and HUF (both resident and non-resident)
How much: Cannot exceed Rs 1 lakh.

2. 80CCC
Qualifying products: Pension plans of life insurers
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals
How much: Within the overall limit of Section 80C (up to Rs 1 lakh)

3. 80D
Qualifying products: Medical insurance policies taken for self, spouse, dependant parents or children, or any member of HUF
Mandatory requirements: Premium should be paid through a cheque out of income chargeable to tax
Who can avail the deduction: Individuals, HUF
How much: Up to Rs 15,000; senior citizens can claim up to Rs 20,000

4. 80DD
Qualifying products: Expenses on the medical treatment of a dependent who is a person with a disability
Mandatory requirements: Certification by a medical authority
Who can avail the deduction: Resident individual or HUF
How much: Up to Rs 50,000, or up to Rs 75,000 if the dependant is a person with severe disability

5. 80DDB
Qualifying products: Expenses on the medical treatment of a specified disease (cancer, AIDS, neurological diseases, chronic renal failure and more)
Mandatory requirements: Certificate in Form No. 10-I to be submitted along with the income tax return form. Deduction is available if the amount is actually paid for treatment
Who can avail the deduction: Resident individuals or HUF
How much: Rs 40,000 (if the person treated upon is less than 65 years of age), or Rs 60,000 (if the age of the person treated is 65 years or more)

6. 80E
Qualifying products: Payment of interest on loan taken for higher studies
Mandatory requirements: Deduction is available in the year in which repayment starts and only for eight immediately succeeding assessment years
Who can avail the deduction: Individuals
How much: Deduction available on the total interest portion of education loan, the principal repayment gets no tax advantage

7. 80G
Qualifying products: Donations to certain funds and charitable institutions
Mandatory requirements: Not applicable
Who can avail the deduction: Resident individuals or HUF
How much: 50 or 100 per cent deduction on the entire donated amount, or 50 or 100 per cent deduction subject to 10 per cent of gross total income

8. 80GG
Qualifying products: Rent paid for residential purpose
Mandatory requirements: Should not be getting house rent allowance. Actual rent paid is in excess of 10% of the total income
Who can avail the deduction: Self-employed or salaried
How much: Excess of actual rent paid over 10 per cent of GTI, or 25 per cent of GTI, or Rs 2,000 per month, whichever is the lowest

9. 80U
Qualifying products: Expenses incurred on self, if disabled
Mandatory requirements: Certification by a medical authority to be furnished along with the income tax return form
Who can avail the deduction: Resident individuals
How much: Rs 50,000 for a person with disability, Rs 75,000 for a person with severe disability (disability of over 80 per cent)

Answered by Nagendra at 1:27 PM on May 18, 2008