Indian government opens up new options every year for people to the people for tax savings so that the money of taxpayers will be utilized in a better manner. There are several opportunities available in the tax market with which an individual can easily save tax. It is also a smarter way to meet all of the long term and short term financial targets.
You may not have the power to stop unanticipated events to occur but you have the option to decrease the burden of budget in an intelligently.
Options for Tax Saving:
While death is inevitable, we can certainly reduce the burden of taxes to some extent with intelligent planning. With various tax saving schemes, one can experience dual benefits of sound investment and tax benefits.
Here are some of the taxes saving options available in the market for people:
Section 80 C:
This option allows people to enjoy a refund of amount up to 1 Lakh by investing in different assets. This amount can be subtracted from the taxable income of the taxpayer. Different options that are available under this scheme are EPF, PPF, Pension Plan, bank fixed deposits, some government schemes like post office deposits, Kisan Vikas Patra, and many more. EPF, PPF, and ULIP are some of the best options to make investments under Section 80 C to take pleasure in a tax rebate.
Other deductions options:
Deduction on Home Loan: The principal amount of Housing Loan is deductible under Section 80 C up to a limit of 1 Lakh and the interest is deducted up to a limit of 1.5 lakhs.
Education Loan: Another option that is available for availing tax benefit is Education Loan. The interest on this loan is deductible under Section 80 E.
The Indian government has provided another option for tax saving under Income tax clause 80 CCF. A person can invest up to 20,000 and can claim the deduction.
Health Insurance: Next option to save money from the tax is to avail Health Insurance Plan. One can claim an amount up to Rs 15,000 under the medical claim clause of Section 80 D.
How can one choose the accurate tax saving option?
One should choose the tax-saving scheme very carefully. It should be well planned by keeping in view all of your short term and long term needs.
It is a legitimate goal of investment, but the returns on investment surpass everything.
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