I make a lot of money, is there an app that will help me save on my taxes or any other options please give me suggestion
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I make a lot of money, is there an app that will help me save on my taxes or any other options please give me suggestion
Firstly, let's assume that you have a taxable income of Rs. 5,00,000 per annum and you are in India. Your tax liability on the Rs. 1,00,000 will be as follows:Taxes Payable (Rs.) Tax already paid as 10% of taxable incomeNet tax liability after tax deductionTax payable (Rs.)Net tax liability after taRead more
Firstly, let’s assume that you have a taxable income of Rs. 5,00,000 per annum and you are in India. Your tax liability on the Rs. 1,00,000 will be as follows:
See lessTaxes Payable (Rs.) Tax already paid as 10% of taxable income
Net tax liability after tax deduction
Tax payable (Rs.)
Net tax liability after tax deduction
Rs. 1,00,000 1,00,000 – 0 = Rs. 100,000
So your net liability is Rs. 100,000. Now let’s assume that you earn a salary of Rs. 4 lakh per annum and you are in India and your employer deducts taxes at the rate of 40% from your salary for Company A where only 15% is deducted at source; so your total taxable income becomes Rs. 2 lakh and so also your net tax liability becomes Rs. (1+40%)/2 = 25%. This means that 25% of the amount of salary is deducted by the employer at the source and therefore this step reduces the amount to which you have to pay taxes by 25%. So all you have to do is multiply this figure by say 45% so that the amount left.
You are not alone, you see our Government is bad with Money. I don't think the Government has a good idea of how much money one makes in his or her lifetime. One has to be very careful about saving and investing. You can easily save by investing your hard-earned money in Future Growth Mutual Funds tRead more
You are not alone, you see our Government is bad with Money. I don’t think the Government has a good idea of how much money one makes in his or her lifetime. One has to be very careful about saving and investing. You can easily save by investing your hard-earned money in Future Growth Mutual Funds through ETFs (Exchange Traded Funds) like Nifty 50, Sensex (India’s Stock Exchange), S&P CNX Nifty, etc as they invest in companies that are growing and you will get high returns on your investment. The best part is that these funds do not charge any transaction charges, maintenance charges or commission fees. They also offer Tax saving facility so there is no tax at all on your invested income.
See lessSimply put this means for every Rs1k invested in Fund A you will get back Rs15-20k (based on average market return). These are low-cost funds which have various schemes of saving taxes like HRA, PPF & Excess HRA etc depending on your annual income. So its really better to optimize your investments by taking these kind of measures instead of going wild with expensive but risky schemes like PPF/EHT/HRA etc.
I do not use a tax software at all. I simply file my taxes on paper and have the receipts in case I need to write back with the IRS. IF you are a legitimate business owner, an accountant will be able to help you get some of your tax liability taken off your taxes as an employee or contracting is oneRead more
I do not use a tax software at all. I simply file my taxes on paper and have the receipts in case I need to write back with the IRS. IF you are a legitimate business owner, an accountant will be able to help you get some of your tax liability taken off your taxes as an employee or contracting is one thing but as a business owner you’re legally required to pay taxes on whatever you earn. Shareholders and employees get away with some things but if you’re operating a business, then paying taxes is just part of how it goes down. You’ll realize pretty quick that there are major advantages to getting your own accounting software and filing everything electronically. Also, for those of us who are professionals we can buy our health insurance separately from our companies (unless we use a group plan). If you want to save money on taxes, this is one area that could help out a lot.
See lessIt depends on your income, but the IRS has a handy calculator that can give you an idea of how much you might save. I've been tracking my taxes and here's what I found: As a freelance writer, I had little to no taxable income before deducting health insurance, mortgage payments, etc. My net adjustedRead more
It depends on your income, but the IRS has a handy calculator that can give you an idea of how much you might save. I’ve been tracking my taxes and here’s what I found: As a freelance writer, I had little to no taxable income before deducting health insurance, mortgage payments, etc. My net adjusted gross income was just over 750000 per year after deductions. My federal tax rate is 10%, so this means my savings over 10 years would be roughly 2500000! That’s huge considering that I’m still in the early stages of my career. The amount of money saved comes from the marginal tax bracket, which is the percentage of your adjusted gross income that goes to taxes (ie: if your federal tax rate is 20%, then half of all your adjusted gross income will be taxed).
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