Page 27 - Banking Finance February 2018

ARTICLE

INCOME TAX

MANAGEMENT

FOR SALARIED

CLASS

(With special reference to Bank
Employees)

F irst of all, lets distinguish between Tax A few examples of tax evasion (which one must

Management and Tax Evasion. Tax Management
refrain from):
is a much desired and legally tenable concept,
while tax evasion is illegal stealing/concealment of
many people would not declare interest received on
tax with the help of unlawful manipulations. Tax i. Not declaring your income in income tax return e.g.
fixed deposits.
Management is tax planning, which helps you save tax
legally within the boundaries of law. ii. Some people would arrange fake house rent receipts
to get relief from HRA (House Rent Allowance).
After saving tax via this route, you do not have any remorse iii. Some people would manage fake donation receipts to
or fear of law. You can disclose without fear your ways and claim under section 80G.
means of tax saving. Income Tax act has provided for many
exemptions and deductions, which one can and must avail Examples of Tax Management/Planning:
oneself of to save taxes. On the other hand, tax evasion is i. Investing in instruments to avail deductions under
highly fraught with risk and is never advisable. chapter VI.

About the author ii. Investing in residential house property etc. to save tax
from capital gain.
Sanjay Gupta iii. Availing housing loan to avail the benefit of interest
Chief Manager (Research) payable under Section 24.
State Bank Academy
"Gurukul", Gurugram Most salaried people find at the end of the month, a good

chunk of their salary having been devoured by income tax.

BANKING FINANCE | FEBRUARY | 2018 | 27

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