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10 Ways To Save Tax In India


VFN Team - May 22, 2018 - 0 comments

In this VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) world, to save tax is not difficult as it was; there is many ways to accomplish this.

“The hardest thing to understand in the world is the income tax.” – Albert Einstein

To be a financial stable in future individual should start planning of saving taxes through investments from the very first day of the financial year. These investments also fulfill their short term as well as long term goals.

To save tax is never an easy task, requires lot of expertise and experience to excel in it.while discussed with our taxation experts we get to know 10 easiest ways that is useful in saving taxes.

  1. MEDICLAIM (under sec 80 C)

  • Invest in Medical Insurance & get a deduction up to Rs.25,000
  • Rs.30,000 for Senior Citizens for medical insurance premium
  • Deduction of Rs.5000 on preventive Health check-ups
  1. LIC Policy (under sec 80 C)

  • A deduction of maximum 1.5 lakh can be claimed for the premium paid
  • Payment of premium should be less than 10% of the sum assured
  1. INVESTMENTS IN DIFFERENT FUNDS (under sec 80 C)

  • Invest in  instruments (ELSS, PPF, NPS, tax-saver fixed deposits, five-year post office deposits and Sukanya Samriddhi Yojana, EPF )
  • A deduction of maximum 1.5 lakh can be claimed for the premium paid
  1. National pension scheme (under section 80 CCD)

  • A deduction of maximum 50,000 can be claimed
  1. Interest on Savings Bank Account (under sec 80 TTA)

  • An individual or HUF can claim a deduction of maximum Rs.10, 000 on the interest earned from a savings bank account.
  1. CHARITABLE FUND  (under section 80 G)

  • Claim either 50% or 100% of the amount donated as deduction.
  • Payment should be either through by cheques, drafts or cash( less than 2000)
  1. HOME LOAN (Under sec 80 EE, SEC 24)

  • GET A DEDUCTION OF UPTO Rs.2 lakh on the payment of the home loan interest
  • A first-time home buyer, get an additional deduction of Rs.50,000 if your loan amount is less than Rs.35 lakh of a property worth less than Rs.50 lakh.
  1. EDUCATION LOAN (under sec 80 E)

  • Bring tax benefits to your education loan EMIs
  • Claim a deduction for Interest paid ( period of 8 years)
  1. INVESTMENT IN EQUITY (under sec 80 CCG)

  • An individual can claim deduction up to 50% of the amount invested in equity share or 25,000 (whichever is minimum)
  1. EQUITY LINKED SAVING SCHEMES (under sec 80 C)

  • An individual can claim tax deductions up to Rs.1.5 lakh
  • These schemes come with 3 year of lock-in period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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