Have you ever thought about things you couldn’t buy in the previous year? With irresistible offers throughout the internet and the streets, sometimes our wallets just don’t have sufficient funds. This is where Tax Planning gives you the extra financial support.
The higher your salary, higher your taxable income. IT in India has several deductions that help to save money for salaried individuals and businessmen. Let’s have a look at some fine methods to save your money-
Savings, as per Section 80C, 80 CCC, and 80 CCD
Our government provides an opportunity for deductions on investments under the above sections. With the utmost combined deduction on the 3 sections being 1,50000, tax payers can use instruments such as PPF Accounts, 5 Year Tax Saving Fixed Deposit, Equity Oriented Mutual Fund, Pension Plans etc to claim the deduction.
Health and Insurance for yourself, and for family
Medical insurance and health checkups with the fulfillment of T&Cs enables tax payers for deductions under tax laws. Claims can be made not just for yourself but your family and dependents. Section 80D allows up to Rs.25000 for non-seniors and Rs.30000 for seniors, applicable for both individuals and HUFs.
Under section 80GG, deductions on House rent paid is applicable. In this case, the salaried employees, supported with allowances from an employer can only claim under one tax section. This is done to maintain the limit on claims, but it is quite important to submit legitimate documents. Henceforth build the habit of collecting rental bills in the future whether you feel the need or not.
Education being a necessity to our society, Indian tax laws allow tax deduction on higher education loans of individuals and children. Because of its long-term nature, the policy is applicable on interest and not for the repayment of principal amount. Hence if you are planning on obtaining education loans or you currently are under one, make sure you claim the deduction.
Although the above are popular ways you can save money, there are much more ways you can reduce taxes. So this year, ensure you save more and make the most of Your Money!