How to Save Income Tax in India?How to Save Income Tax in India?2020-10-22
There are so many ways of saving income tax and ensuring you are able to manage your income better.
Ways to save tax under sec 80c and 80d.
a. Make investment of 1.5 lakh to reduce your taxable income, under section 80c.
b. Buy Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical insurance premium under Section 80D.
c. Claim deduction upto Rs 50,000 on Home loan interest under Section 80EE.
Other investment options.
a. Buy Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical insurance premium
b. Claim deduction upto Rs 50,000 on Home loan interest under Section 80EE
c. A home loan would also help you in reducing your taxable income as the principal portion of home loan can be claimed under Section 80C up to Rs 1.5 lakhs and the interest portion can be claimed as a deduction from income from house property.
Use the following pointers to plan your tax-saving for the year:
a. Check the tax-saving expenses that you’re already making that you can claim. This includes expenses like insurance premium, children’s tuition fees, EPF contribution, home loan repayment etc.
b. Deduct this amount from 1.5 lakh to figure out how much to invest. The entire amount doesn’t need to be invested if expenses are covering it.
c. Choose tax-saving investments on the basis of your goals and profile. ELSS funds, PPF, NPS and fixed deposits are some of the popular options.
It will help you understand how much you need to invest to save taxes. It is advisable to spread your investments throughout the year. This will reduce the financial burden and help you make informed decisions.
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