Do you earn Rs 7 lakh and more? Check out some tips to help you reduce your income tax
A rise in your income means that you will have to pay more taxes. This is the reason why taxpayers always look for different ways to pay a minimum tax on their salary.
Everyone looks for a financially stable future, for themselves and their families. The only problem we face to ensure this is the amount of tax that we pay. A rise in your income means that you will have to pay more taxes. This is the reason why taxpayers always look for different ways to pay a minimum tax on their salary.
Today we will tell you about such deductions and tax saving instruments that can reduce tax burdens.
What are the different components in a Pay Slip
Basic SalaryDearness AllowanceHRALTAReimbursementChildren Education and Hostel allowanceHouse Rent AllowanceStandard DeductionProfessional Tax
If you want to pay lesser taxes, here are some deductions that you can avail
Section 80D: Paying Health Insurance Policy Premium
For self, spouse, and depedent children (Rs 25,000 (Rs. 50,000 if aged 60 and above) For parents: Rs 25000 (Rs. 50,000 if aged 60 and above)
Section 80E
Tax deduction on the “interest component” paid against the loan taken for the higher education of a particular assessee for 8 years
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Section 80C
Specified investment and payment options such as ELSS, EPF, PPF, Fixed deposit for 5 years, Sukanya Samriddhi Yojana, among others.
Section 80DD
Allows deduction to the extent of Rs 75,000 (disability is 40% or more but less than 80%) & Rs 1,25,000 (in cases of severe disability - 80% or more)
Section 80G
It is an income tax benefit given on donations made to certain charitable institutions- 50% or 100% of the eligible amount (T&C)
Home Loan Payments
Can enjoy deducation up to Rs 2 lakh on a new house On principal amount: Up to Rs 1.5 lakhs u/s 80C On interest amount: Up to Rs 2 lakhs u/s 24b
Life Insurance Policy Maturity
Maturity will be exepted of tax ibn certain conditions;20%: Policies issued before 1 April 201210%: Policies issued after 1 April 201215%: Policies issued after 1 April 2013 for a person with disability or disease.