TAX SAVING FOR DIFFERENT TAX SLABS
For professional who fit in this income slab, money saving is getting difficult with raising inflation. Some professionals commit mistakes of making 80c investments even when it is not necessary. Before calculating their tax liability they have to make sure that they deduct HRA and contribution to PF from the taxable income .The tax saving made by investing in 80C is directly proportional to the tax slab. These professional can make maximum of tax saving investments under 80C is Rs.10,000. It is really important that these professional should prioritize between the goals they want to achieve and savings.
The professionals who are under the above salary bracket should try to minimize the benefits they receive from tax saving avenues other than 80C. They can receive Rs.20,000 maximum of tax saving under 80C.If both the spouses are liable to tax, it’s a good option to buy a home. This will give an additional option to claim the interest rate paid on home loan under section 24B up to a maximum amount of Rs.1.5 lakh.
Above 10 lakh
The professionals can enjoy a tax benefit up to Rs.30,000 under this tax bracket by making the tax saving investments which account for section 80C.According to the tax-planning strategy such professionals revolves around making use of tax saving options to cut short their income tax rate from 30-20 per cent or 20 per cent. taking a home loan if planning to buy a home, can be done one of these options.