As you submit investment proofs this year, don't forget to claim maximum LTC &
save taxes. This year, Govt has given some special concessions, & you must take
benefits of those!
The government came up with LTC to promote domestic tourism. If you take a
domestic holiday, you get some tax benefits.
Now because of Covid pandemic, most of the people couldn't travel. So Govt. gave
one more option.
Govt wanted people to spend/ buy more as the economy was at a pause. So Govt
said: If you purchase anything with 12% or more GST on it, you can claim it
under LTC!
As long as you bought something with 12% or more GST & paid by debit/ credit
card or UPI, you can claim it under LTC.
Such purchases can be anything: books, clothes, electronics, Netflix
subscriptions- anything that has 12% or more GST & bought between 12th October
to 31st March.
If you bought goods of 1 Lacs, you could claim 33% of it( 33K). If you are in
30% tax bracket, you get ~10K tax benefit on 33K. So for your purchases, you get
~10% tax benefit. You can check with your HR for the maximum LTC you can claim.
There are many conditions for claiming LTC, so people generally can't claim it
entirely. But this year, Govt has been very lenient, so make sure to claim it
fully!
Cheers!
-GrowFix.in Abhik Shashank Anshul
Originally posted by Ajinkya Kulkarni on LinkedIn
link: linkedin.com/in/ajinkyamkulkarni
save taxes. This year, Govt has given some special concessions, & you must take
benefits of those!
The government came up with LTC to promote domestic tourism. If you take a
domestic holiday, you get some tax benefits.
Now because of Covid pandemic, most of the people couldn't travel. So Govt. gave
one more option.
Govt wanted people to spend/ buy more as the economy was at a pause. So Govt
said: If you purchase anything with 12% or more GST on it, you can claim it
under LTC!
As long as you bought something with 12% or more GST & paid by debit/ credit
card or UPI, you can claim it under LTC.
Such purchases can be anything: books, clothes, electronics, Netflix
subscriptions- anything that has 12% or more GST & bought between 12th October
to 31st March.
If you bought goods of 1 Lacs, you could claim 33% of it( 33K). If you are in
30% tax bracket, you get ~10K tax benefit on 33K. So for your purchases, you get
~10% tax benefit. You can check with your HR for the maximum LTC you can claim.
There are many conditions for claiming LTC, so people generally can't claim it
entirely. But this year, Govt has been very lenient, so make sure to claim it
fully!
Cheers!
-GrowFix.in Abhik Shashank Anshul
Originally posted by Ajinkya Kulkarni on LinkedIn
link: linkedin.com/in/ajinkyamkulkarni