Are you worried about Tax:- Here are the tips for saving tax for a salaried person.
Many tax payers might not be aware of various tax deduction tips .If you are worried about tax here are some relevant tips and various ways to save income tax for salaried employees in India.
Relevant ways to save income tax :
1.The individuals whose gross income is more than or equal to Rs 250,000 can utilize the entire Section 80C deduction, according to this the maximum deduction available is Rs 100,000 pa.
Following investments/contributions eligible for Section 80C deductions,
- PPF (Public Provident Fund)
- NSC (National Saving Certificate)
- Life Insurance Premium.
- Accrued interest on National Saving Certificate.
- Equity Linked Savings Schemes (ELSS).
- Tuition fees paid for children’s education (maximum 2 children)
- 5-Year fixed deposits with banks and Post Office
- Principal component of home loan repayment
2. Deduction under Section 8oC is not applicable, If individuals gross total income exceeds Rs250,000 pa, they can consider the following instead of Section 8oC.
Medical insurance : Under Section 8oD, an individual is allowed a deduction of upto 15,000 pa if he is paying medical insurance premium for self, spouse, children or for any dependent.And above this an additional deduction of upto Rs. 15,000 pa is allowed for premium payment made for parents.If they are senior citizens, then the maximum deduction allowed is Rs. 20,000 per year.
Home loan: Individuals thinking to buy a house should consider for a home loan.According to deduction under Section 24 interest payments of upto Rs. 150,000 pa are eligible.
Donations: Under Section 8oG subject to the certain limits, donations to specified funds/institutions are eligible for tax benefits.
3.Claim tax benefits on house rent paid: In case of residing tax payers spouse or minor child in the location where he performs his office duties and the individual
can claim the rent paid by them for residential accommodation, if HRA doesn’t form part of their salary under section 8oGG, least of the following deduction is available:
- 25% of the total income or,
- Rs. 2,000 per month or,
- Excess of rent paid over 10% of total income
4.Joint Home Loan Option
The principal compensation on a home loan is eligible for a deduction of up to Rs 100,000 pa and the interest paid is eligible for a deduction of up to Rs. 150,000 per year.
5. Salary restructure: Salary restructuring is a more efficient means application of tax benefits restructure salary by adding some factors can go a long way in reducing the tax liability.