Posted on: November 3, 2011 Author: Sudhir Kaushik
TaxSpanner’s vision is to empower every individual to gain the advantage of being actively involved in his/her financial life. An individual’s tax return mirrors one’s financial affairs. The understanding of your financial lifestyle starts with your tax return. We believe that if one is able to understand and prepare one's tax return independently, half of the battle of financial well-being is already won. The rest of the battle can be won by understanding the Tax Ratio and implementing the best practices in tax-efficiency, as applicable to your scenario.
Tax Ratio is the most powerful indicator of the tax efficiency of an individual. Tax ratio is the percentage of your salary that you pay as tax. To put it differently,
Tax ratio = Tax paid / Gross salary
For e.g. If your Gross salary is Rs. 5 lakhs and Rs. 50,000 got deducted from it as TDS, your Tax Ratio is 50000/500000 = 10%. Go ahead! Calculate your tax ratio and how it can help you save thousands or lakhs.
Sudhir Kaushik has been a practicing tax consultant for the last 17 years. He is a Fellow Chartered Accountant and conducts seminars in large companies to help salaried employees with income tax and investment queries. Sudhir brings domain knowledge of income tax laws and their compliance difficulties faced by individuals. He is the author of Income Tax Handbook For Salaried Employees for smart financial planning and investments for salaried people. He enjoys an excellent reputation and has a strong network in the corporate sector and public sector undertakings.
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