Spanish income tax questions.

Basic Income tax related questions?

• I have some very basic questions about income tax. I am a software engg. working in a small/medium IT firm. I have now come inside tax paying bracket. My CTC is 2.01. We have to fill up an Income tax declaration form and submit it. - Do I need to invest exactly what I mention in my IT declaration form? What if I later plan something different during the year? I know people are concerned about paying income tax in the year end. What is the purpose of this declaration? - How much is the lower limit of my tax slab for 2009-10? 1.6 lc or 1.5 lac?

• Answer:

  Declaration is given [it is not a confirmation] so that the company wont deduct tds to that extent. But you are committing a promise to make investment to that extent. It need not be in the same manner also. From your total salary [approx.] reduce your investments like PF, PPF, LIC, NSC, MEDICLAIM, TAX SAVER BONDS, TAX SAVER FIXED DEPOSIT ETC. but the ceiling is only Rs.1,00,000. If the balance exceeds Rs.1,50,000 only you are liable to pay tax. otherwise forget about it