Name: Dharminder Nagar Occupation: Paras Hospitals MD Income: Rs 90 Lakh Tax Planning: Dharminder Nagar prefers insurance and mutual funds to save tax and invest for his future needs. Nagar has one insurance (endowment) policy from Life Insurance Corporation of India,for which he pays Rs 90,000 per year and invests Rs 3 lakh per annum in an equity linked saving scheme of SBI Mutual fund. Post Budget: The doctor is more excited about the incentives that he will get due to his profession. On the personal tax front,there are not many changes in the Budget. Nagar can use the additional deduction of Rs 20,000 in specified long-term infrastructure bonds. As this deduction is available over and above standard deduction of Rs 1,00,000,Nagar is likely to benefit by at least Rs 6,180 in his tax liability. PwC Analysis: High income individuals can expect a maximum savings of Rs 57,680 depending on income levels. In the case of a person carrying out a business,the limits of total sales/ turnover for compulsory audit of books of accounts have been raised from Rs 40 lakh to Rs 60 lakh. It means additional savings in audit fee and compliance obligations if total sales/turnover is between Rs 40-60 lakh. Name: Priya Bhatia Occupation:Homemaker Income: NA Tax Planning: Priya Bhatia,27,recently quit her job to don the role of a homemaker. While she was working,she used to invest Rs 2,000 per month in two equity-linked saving schemes and also had a money back policy from the Life Insurance Corporation of India. She used to pay Rs 3,000 per annum for the insurance cover. Post Budget: This years Budget is a mixed bag for Priya. While she is excited about relaxed tax breaks,hike in the price of petrol and gold have come as a dampener. Now that Im financially dependant on my husband,I was happy to see the revised tax breaks. Itll leave us with more disposable income. But the increase in fuel prices is likely to hit us hard. We have quite an active social circuit and therefore,travel a lot in and around the city. Even the minimal hike proposed will have a significant impact on our household budget, says Bhatia. Moreover,Priya plans to start investing for her retirement and,therefore,thinks the New Pension Scheme is a very attractive proposition. PwC Analysis: No special relief this time. Resident womens savings would be the same as available to any other individual. For a woman who earns an income up to Rs 3,00,000,the lax liability remains the same. For the second bracket (between Rs 5 lakh and Rs 8 lakh),there will be savings of at least Rs 20,600. And for the ones in the highest tax bracket earnings above Rs 8 lakh a year there will be savings of at least Rs 51,500. Name: Anupamaa Dayal Occupation:Fashion Designer Income: NA Tax Planning: Anupamaa is quite aggressive on the professional front. However,when it comes to saving,she adopts a very conservative approach. She religiously invests Rs 70,000 in her public provident fund account every year and has a number of life insurance policies from the Life Insurance Corporation of India. She also invests in tax-saving fixed deposits offered by public sector banks. Apart from this,she owns property in Gurgaon. Post Budget: For Anupamaa,an important point in this years Budget was on audit of accounts. Budget 2010-11 has raised the penalty on self employed individuals and professionals who are required to get their accounts audited. If they fail to do so within the prescribed due date,the penalty has been raised from Rs 1 lakh to Rs 1.5 lakh. PwC Analysis: Young professionals and self employed people have more reasons to smile. The monetary limits of gross receipts for compulsory audit of books of accounts have been raised from Rs 10 lakh to Rs 15 lakh. It means additional savings in audit fee and compliance obligations if your gross receipts are between Rs 10-15 lakh. Name: Smriti and Himanshu Gupta Occupation:HR Executive and Senior Engineer Income: Rs 5 lakh and Rs 9 lakh Tax Planning: Himanshu,30,and Smriti,30,use insurance and real estate to save tax and create wealth for their future. They invest Rs 70,000 a year in three unit-linked insurance policies (two life insurance policies and one child plan). Apart from this,they have bought a three-bedroom apartment in Haryana for which they pay Rs 3,60,000 a year. Smriti is also investing in her higher education and is paying Rs 2 lakh a year for a management course offered by XLRI. Post Budget: The couple,definitely,has reasons to cheer. More liberal tax limits and additional deduction of Rs 20,000 in infrastructure bonds will allow more savings in their pocket. Himanshu is likely to save at least Rs 51,000 in the next financial year due to the new tax slabs and Smriti is likely to benefit by around Rs 20,000 through the reduction in tax liability. Name: Satinder Kaur Occupation:Retired Income: Pension Tax Planning: Satinder Kaur,54,retired as the vice-principal of a school a couple of years ago. Apart from the pension of Rs 7,500 that she gets per month,Satinder relies on a few other investments made in post office savings schemes and equities. Post Budget: Although,there was nothing in store for retirees like Satinder,she is a little upset with the rise in the petrol prices. Prices of vegetables and other grocery items are already shooting through the roof. Rise in petrol prices will only add to the burgeoning cost, says Satinder. However,she is excited to see if the reduction of customs duty on rodium polish will translate into lower prices for her. PwC Analysis: There is no special relief for senior citizens as well. Their tax saving would be the same as available to any other individual. A senior citizen with a salary or income of Rs 3 lakh or less will have no change in his/her tax treatment.