Many people have frown on their taxes when they file their Income tax and other taxes.
But many do not know that they don’t have to look be sad if you follow some smart financial ways to save tax.
Following are some tips we have rounded for those who feel that they deserve more savings of their hard earned money.
Read on to know about ways to save tax to grow their wealth :
1. 80 C Investment Options
Equity Linked Savings Scheme (ELSS), Five Year Bank FD, Public Provident Fund (PPF), National Savings Certificate (NSC) and Life Insurance policies are some of the instruments which can help you to save your taxes. You can choose any of these investment options and save a good chunk of taxes.
2. Section 80 D and Section 80G
As per some clauses in section 80D one can avail tax benefits on their payment of medical insurance premiums. You can fulfil your desire to donate as well as you can save tax. 80G section mentions that donations to specified funds or charitable institutions can also give tax payers some exemption.
3. Restructuring your pay package
Some companies do provide food or gift coupons and other allowances as these can be exempted. But many cannot avail this way of saving tax as it depends on company’s policies. There are many ways to restructure your salary in order to control your tax out go. For example, you can request your firm to lease you a car as compensation as this will be another taxable perk for you.
4. Tax Savings from Home Loan Repayment
Now you can take home loans without worrying as you can get tax exemption when you repay your loan. The amount offers a deduction up to rupees one lakh. This is eligible only for principle amount.
5. Pension Funds
National Pension System (NPS) is similar to Life Insurance policy. This policy too helps to reduce your tax liability. It is considered as one of the best tools for tax savings as it helps to save for your retirement as well.
Do you too have some ideas that you follow to save tax? Then do let us know in comments below.
