Save Tax: Everyone earns money by working hard, but when this money is deducted from your salaries at the end of the year in the form of tax. This is the most painful moment. Everyone wants to reduce their taxes at least, but taxpayers often do not have enough information about other options. Apart from the Income Tax Act 80C, there are many other income tax laws that get tax exemption in many ways. Today I am going to tell you about some special options.
It is not always possible to redesign your salaries again. But if your company permits this, and you have good relationships with your HR, then there may be less tax on some of your salaries.
Take a Food Coupon instead of lunch allowance, it exempts tax of up to Rs 60,000. Medical allowances, Transport allowances, Education allowance, Uniform allowance (if any), and telephone expenses make remain in the salaries and show the right bill of these so that they can get the tax rebate. Not only this, to avoid paying more taxes, use the company’s car instead of your car.
2. Use Section 80C
Use section 80C as much as you can, because, under this, you will get a tax deduction up to a maximum of Rs.1,00,000. Invest in these options to make good use of this section.
- Public provident fund
- Life insurance premium
- National Savings Certificate
- Equity Linked Savings Scheme (ELSS)
- Fixed Deposit in Banks and Post Office for 5 years
- Tuition fees for children’s education
3. Alternate option other than 80C
If your amount is less than one lakh rupees then there are more options than Section 80C.
1. Section 80D-15,000 for medical insurance, for husband or wife and dependent children, and Rs 20,000 for medical insurance for parents over 65 years of age.
2. For the investment in section 80 CCF- Notified infrastructure bond, a deduction of Rs. 20,000 along with 1 lakh under Section 80C
3. Section 80G- Donation in specific funds and Charitable Institutions.
4. House Rent
Are you giving your house rent yourself and you are not getting any HRA from the company? So take these options, which you can avail of under Section 80 GG.
1. 25% of the total income
2. or, Rs 2,000 per month
3. or, Payment of more than 10% of the total amount of rent.
4. If you live with your spouse and a minor child and the house you live in is your own house and from there you do all the work of your office, there will be no deduction from any of your salaries.
5. If HRA ( House Rent Allowance) makes part of your salary, then you will get a minimum discount in the three below.
# The current HRA that you will get from your boss.
# The current house rent you will fill, includes a 10% reduction in salary (basic + dearness allowance, if any)
# 50% deduction from your salary (for metro) and 40% deduction of salary (for non-metro)
5. Save Tax From Home Loans
Use your home loan properly so that you can save more tax. The main principle of your loan comes under 80C, which is a reduction of 1, 00,000. Not only that, deduction of interest of 1, 50,000 under Section 24 is also there.