Thursday, 23 May 2019

Income Tax Saving Tips

Recommended ways that of saving taxes beneath Sec 80C & 80D
1. Make investment of Rs one.5 large integer beneath Sec 80C to cut back your ratable financial gain
2. Buy Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical payment beneath Section 80D
3. Claim deduction upto Rs fifty,000 on equity credit line Interest beneath Section 80EE

Investment choices beneath Sec 80C
The most in style tax-saving choices offered to people and HUFs in India area unit beneath Section 80C of the tax Act. Section 80C includes numerous investments and expenses you'll be able to claim deductions on – up to the limit of Rs. 1.5 large integer during a twelvemonth.

Other Tax Saving choices on the far side Sec 80C
Apart from the 80C deductions, there area unit numerous deductions beneath Section eighty you'll be able to use to avoid wasting on tax. Tax edges on insurance premiums and residential loan interest area unit many.
1. Get Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical payment
2. Claim deduction upto Rs fifty,000 on equity credit line interest beneath Section 80EE
3. A equity credit line would conjointly assist you in reducing your ratable financial gain because the principal portion of equity credit line is claimed beneath Section 80C upto Rs one.5 large integer and also the interest portion is claimed as a deduction from financial gain from house property

How to arrange your tax-saving investments for the year
The best time to begin coming up with your tax-saving investments is at the start of the twelvemonth. Most taxpayers procrastinate until the half-moon of the year, leading to hurried choices. Instead, if you propose at the beginning of the year, your investments will compound and assist you attain semipermanent goals. Remember, tax-saving ought to be a further perk and not a goal in itself.

Use the subsequent tips that could arrange your tax-saving for the year:
1. Check the tax-saving expenses you have already got – like insurance premiums, children’s tuition fees, EPF contribution, equity credit line compensation etc.
2. Deduct this quantity from Rs one.5 large integer to work out what quantity to speculate. You needn’t invest the whole quantity, if expenses area unit covering the limit.
3. select tax-saving investments supported your goals and risk profile. ELSS funds, PPF, NPS and stuck deposits area unit a number of the favored choices.

This way, you'll be able to discover the way to exhaust the 80C limit. it's best to start finance within the half-moon of the twelvemonth so you'll be able to unfold the investments over the year. Doing this won’t burden you at the top of the year and can conjointly enable you to create hep investment choices.

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