Top Ways to Save Income Tax In 2018-19 – HDFC Life

It is possible to save tax for working professionals by proper planning and investment. Below are some of the ways you can save your tax this financial year.

1.Save taxes under sec 80c, 80cc and 80ccd.

The maximum deduction allowed under the sections is 1,50,000. You can claim taxes under any of these sections or in combination.

2.Savings through Home loan.

If you are taking a home loan, you are allowed to get deduction of principal amount under 80c.

You are also allowed to claim deduction of interest paid under section 24. Tax planning to save taxes under Home loan is advised as the deduction is allowed under three different sections resulting in huge tax savings to the tax payer.

3.Tax saving through Education Loan under Section 80e.

If you have taken education loan to support your education, you can claim tax deduction 80e. The deduction can be claimed only for the repayment of interest and not the principal amount. It is only available for individual tax payers.

4.Tax under 80ccg.

If you are an income tax payer with an income of less than 12 lakh an annum, you are allowed an additional deduction for investing in shares and mutual funds of selected companies. This is called the Rajiv Gandhi Equity saving scheme.

5.Long term capital gains arising from sale of property.

If a tax payer has a property which is held as a long term asset, meaning owned by him for more than 2 years, in that case he can be exempted from paying such capital gain tax if he invests the sale amount in specified instruments.

6.Tax exemptions under donation under section 80G.

If a tax payer has made donation or charity or a contribution towards national relief fund, then such donation can be claimed as a deduction under section 80G.

There are several ways to save tax for a common man. Find out your various options and plan accordingly.