Hello Friends, As most of us, I have to pay 42% tax. Can anybody share information as to where and how could we get more tax benefits besides sending money to india or daily commuting expenses? Can we get tax benefits by making deposits in schemes promoted by German government, bonds, etc? Some tips would be appreciated. Maulin

why? you don't know that the tax + everything can up to 42%??
For your information: to send money back to support parents has to be done cleverly, otherwise you still won't get something back.

Hi,

This is really interesting topic for me, as I have to claim taxes for year 2005.

Actually in 2005 my family members took money from my citibank account in India (Citibank ATM) using my citibank card, can I claim those amounts as support for my parents?
I have my "Kontoauszug" (Bank balance statement) in which it states that I withdraw so and so amount in so and so ATM in India.

@VP_2004:
I would like to request to discuss more about your previous message "to send money back to support parents has to be done cleverly, otherwise you still won't get something back"

Regards,
Vempati.

Yes, i know that the money has to be sent to India cleverly. It should be sent in the beginning of financial year i.e. January to get advantage for whole year. Money tranfer receipts alongwith affidivit from parents confirming that they have no other income in india.

I even know that 42% includes other taxes.. But the Lohnsteuer i.e. which comes around 27.8% is what i am talking about. There must be some "promotion" by government to "invest" in some government schemes/altevorsorge or some other things which one can present while filing tax returns.

Maulin

Maulin has mentioned the first point:
- send money in the beginning of fiscal year-January. if you sent in December, tax officer can argue that your parents doesn't really money for you, your parent need money only for fun

- the best way is to send money to germany to your country of origin. transfering money from citibank to citibank account is free of charge.


- proved of your parent income. for india the amount that can be deducted for tax is 25% of 7 K samething. Mean about 1400 euro only.
You can send 10000 euro, but you can clain only 1400 each person (father, mother, grandpa, grandma)
If for example -> your dad income peryear is more than 2800 euro, than you can't claim this amount. he he he, very clever from the tax office isn't it?

Can anybody share information as to where and how could we get more tax benefits besides sending money to india or daily commuting expenses?

do not work as an employee, work as a freelancer, you won't have to pay contributions to useless insurances (pension, unemployment), will be mostly free from paying USt and will have much more possibilities to get tax benefits.

who works as an employee, sponsors everybody and everything here in Germany ;)

My Tax consultant gave a form for family maintenance. Later when i submitted it, he came up saying that age of the parents should be 65+. Is this true? Or is there a way out?

Well things have "thoughen up" since I guess 2007. It is true that they have to be at least aged 64+. In case they are younger, you should proove that they are "medically" not capable to work. The intuition is that when they are still in the "age" of working ( anybody younger than 65), they should try to get a job and not rely on your financial help. The unemployment rate in your country does not interest the german governement. By the way, the discussion as how to save taxes or optimise expenses is a very very interesting one.

Hallo,

Can anyone tell if tax erklärung is must. Actually after calculating all I have to give money and I dont get something back. So I want to know if it is must to do this steuer erkärung. And if not what are drawbacks?

I will be very thankful for your reply.

Regards
RA

Can anybody reply?

Hi RA,

no it is not a 'must'. In fact sometimes you pay for a tax adviser or some 'Lohnsteuerverein' and at the end there will be no return of taxes. Especially if you are a single and do not have special extra costs like paying for 5 children with different mamas ;-)

Have a nice Sunday!

Detlef