In India, taxpayers are required to pay certain kinds of taxes on their income under the new income tax regime method. If Individual income from salaries fall above the tax slab rates then they are liable to follow and proceed to pay their income tax (summed) naturally, visiting e-filing portal.
The spinal board of the income tax authority referred to as CBDT has made the process of filing income tax for various individuals i.e. senior citizens and super senior citizens as very simple and burden-free.
It happens, many taxpayers think to save income tax so they get neutral and invest their money for a surplus result. In order to supplement this idea, an individual or salaried person can readily and easily save their income tax in India with the ocean of tax saving options that may be introduced by the authoritative.
In this blog, I will discuss income tax saving tips. If you’re a person looking to get answers to the best way to save tax in India - reading this article is worth considering.
Income Tax Saving Tips
- Avail a Home Loan and enjoy Tax benefits under Section 80C
Profiting a home advance is related with double advantages, as it accompanies decreased assessment obligation, alongside the fulfillment of possessing your own home.
Numerous legislature ordered plans, for example, PMAY (Pradhan Mantri Awas Yojana) and DDR (Delhi Development Authority) Housing plan provides housing schemes towards making living easy in India, while Section 80C and 24(b) lessen money related obligations by allowing deduction of up to Rs. 1,50,000 under section 80C and interest benefits up to Rs. 2,00,000 under section 24(b).
- Buy a Health Insurance Policy
Having a health insurance premium can facilitate and benefit you to get quality healthcare at premier medical institutions for zero or low additional charges.
And, while paying income tax, individuals can claim for deduction on the part of the taxable income spent towards premium payments under section 80D. Look to the below table to know more about dedication under 80D:
| Eligibility | Deduction Under Section 80D |
| Health insurance for individuals, spouse, children (below 60 years) | Up to ₹25,000 |
| For individuals and parents (below 60 years) | Up to ₹50,000 (₹25,000 + ₹25,000) |
| For individuals (below 60 years) and Senior Citizen parents | Up to ₹75,000 (₹25,000 + ₹50,000) |
| For individuals and parents (both above 60 years) | Up to ₹1,00,000 (₹50,000 + ₹50,000) |
Source Godigit.com
- Undertake Investments
Investments in the capital market are relatively handsome but also carry market risks. So if you are really serious towards investments and also want to have tax benefits then you should look for government mandated schemes which can lead to wealth accumulation through higher returns, as well as tax-saving benefits.
In case you’re willing to take risk, you can choose to opt for investment tools of the stock market, such as ELSS (Equity Linked Savings Scheme).
- Park your Money in Government Schemes
Talking about saving taxes by investing into gov-mandate schemes may offer you high returns on total investments along with tax waivers.
Tax exemptions can be availed by investing in the following tools:
- National Saving Certificate (NSC)
- Sukanya Samriddhi Yojana (SSY)
- National Pension Scheme (NPS)
- Public Provident Fund (PPF)
- Atal Pension Yojana (APY)
- Opt for Life Insurance Plans
The other best way to save a spontaneous amount of income tax is by opting for a life insurance policy whether it’s government introduced or private scheme.
Moreover, Income Tax Act has provisions under Section 80C for premium payments, and Section 10(10D) for the sum assured received on maturity. The tax benefits of up to ₹1.5 Lakh spent on annual premium can be claimed under Section 80C.
- Claim Exemptions if you live on Rented Premises
Also you can cut income tax pay-off by claiming exemptions under House rent allowance (HRA) are granted under Section 10(13A). But there is some checklist that is mandatory to be passed or fall in the bracket.
- 50% of the yearly salary tends for rent expenses if the individual is residing in a metro city (40% in case of non-metro cities).
- Total annual rent – (10% of the basic salary).
If you are not a salaried person, even then you can claim tax benefits on yearly rental expenses under Section 80GG criteria as follows -
- Rent payment of up to ₹5,000 per month.
- 25% of the gross total income.
- Total rent minus 10% of basic salary.
- Donate to Charity
As charity is a job of socialism and humanity as well, it gives you benefits of tax saving options. Donations made in cash are eligible for tax waiver amounting to ₹2,000 under Section 80G of the income tax act or the donation given through wire mode of method of bank transfer, enjoy complete or partial tax exemptions, respectively.
In the end, you can learn about how to save tax in India by keeping in the mind the above stated tips and ideas.
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