Hi,
I have exhausted my complete limit of ₹1,50,000 in PF/PPF, etc., and also ₹50,000 in NPS. After that, my taxable income becomes around ₹15,00,000.
Need to know:
1) How much can I invest in VPF if my Basic is, say, ₹60,000?
2) Also, if I invest ₹1,50,000 in VPF, will my taxable income reduce to ₹13,50,000?
Ashish
From India
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I have exhausted my complete limit of ₹1,50,000 in PF/PPF, etc., and also ₹50,000 in NPS. After that, my taxable income becomes around ₹15,00,000.
Need to know:
1) How much can I invest in VPF if my Basic is, say, ₹60,000?
2) Also, if I invest ₹1,50,000 in VPF, will my taxable income reduce to ₹13,50,000?
Ashish
From India
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Hi Ashish,
Since you have already reached the maximum of Rs. 1,50,000/-, your VPF will not be helpful in saving tax for the FY 2018-19. Beyond certain limits available under various sections of the IT Act, there is no room to completely save tax. However, if you plan for some more savings as provided in the IT Act, there is a possibility of saving tax over and above Rs. 1.50 L. You can go through the notes attached for information.
From India, Bangalore
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1159Since you have already reached the maximum of Rs. 1,50,000/-, your VPF will not be helpful in saving tax for the FY 2018-19. Beyond certain limits available under various sections of the IT Act, there is no room to completely save tax. However, if you plan for some more savings as provided in the IT Act, there is a possibility of saving tax over and above Rs. 1.50 L. You can go through the notes attached for information.
From India, Bangalore
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls