Income tax: FY 2019

Additional tax would be around 145704.

As TDS on interest is deducted at 10% and you are in 30% so you need to pay additional 20% tax on interest income.

Since you have already taken full deduction of PPF and HRA there are not much ways to save tax. Also generally if you want to save tax for any financial the due date for investment is 31.03 of that financial year, however due to covid situation this year the due date was extended to 30.06.2020.

There is only one option left to invest in NPS Rs. 50000 which can save 15000 tax. Also you havent claim mediclaim but it would be useful for next year.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Assuming you are having only two sources of income as you have mentioned i.e Salary income and FD Interest. Again assuming, taxable salary is calculated after considering all exemptions and deductions.

1) As the taxable income is more than Rs.10 lacs, you will be in higher tax bracket i.e. 30%. You are liable to pay additional tax of Rs.1,45,122 on FD interest plus cess @4%. You have not disclosed SB interest. Also assuming it is less than Rs.10,000 but you should disclose in ITR and claim deduction u/s 80TTA.

2) Investment options available are Rs.50,000 in NPS, medical insurance u/s 80D, Donation u/s 80G. Last date is 30.06.2020. 

I am based in New Delhi. You can approach me.

1. additional tax will be 272,550.

2. You have used your 80C limit. You can invest in National Pension Scheme to avail additional benefit of 50K. and you can buy mediclaim policy. The deduction is available for premium paid upto 25000. for self and family and 25000 for parents. If your parents are senior citizen limit is upto 50000 for parents. That means maximum deduction upto 75000 can be availed from salary for medical insurance premium.

You will not be able to come to zero tax as this is the maximum benefit that you can avail. Rest tax will have to be paid. Investment is to be made till 30th June.

Dear Sir,

Hope you are doing well !!

It is advisable to take a phone consultation for detailed discussion.

We may assist you in proper tax planning. 

Hello,

Since you have already exhausted the 80C limit, further you can invest in NPS for an additional deduction of Rs. 50,000, or for medical insurance/expenditure u/s. 80D, donation u/s. 80G. The investment due date has been extended to 30th June 2020.

For calculation of the tax liability, kindly contact directly or take a phone consultation.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Hi Amit,

while I need to do a detailed calculation to arrive at the additional tax amount.

As far as tax saving option is concerned, you can deposit the money into NPS upto rs. 50k to get additional tax deduction. you need to deposit the money by 31 July 2020.