Best Tax Saving Techniques For Fulfilling Income

Learn the different methods by which you can save your hard earned money rather then paying it in tax!

In the contemporary world, the citizens consider themselves as a prominent victim of the exponential increase of the inflation rates which has an implication on their attitude in the form of their reduced willingness to pay the larger amounts of their Income Tax returns. Therefore, in this blog we would be sharing some of the easy methods which would benefit the readers by leading to their savings in the aggregate tax return. In this manner, we would be involved in inhibiting their apprehensions emanating from the burden on their pockets.

In the Income Tax Act, there are certain sections which provide certain redemption to the tax payees. Following sections emphasis upon this fact-

• Section 80 C- It provides rebate to the citizens upto Rs. 1.5 Lakh. The only condition is that the existing amount should be in the form of PPF, FD, ELSS, etc.

• Section 80 CC- It provides lease on the products pertaining to the pension granted to the individuals.

• Section 80 CCD- This section comes under the area of the Central Government Employee Central Scheme. Under this section, the employees having a NPS tier 1 account are provided the additional exemption of Rs. 50,000 exceeding the amount permitted under the Section 80 C.

• Section 80 D/ 80 DD/ 80 DDB- Section 80D provides for deduction upto Rs 25,000 against premium paid for Medical Insurance of assessee or his family. A special provision for supporting those individuals who can utilize this provision by claiming the medical insurance payment upto Rs. 30,000 of their uninsured parents . This facility can be availed by giving a declaration for the same in their monthly net income.

• Section 80 U -It gives the exemptions to the physically challenged citizens.

• Section 80 E- This section is specifically dedicated towards promoting the education of the students who take educational loans for accomplishing full time higher education. They are allowed to receive a tax exemption on the interest paid by them against the total amount of the educational loan.

• Section 24- This section enables the citizens to take the benefit of the exemptions due to home loans as well as the education loan. The individuals are permitted to avail the provisions of this section on the interest upto Rs 2 Lakh on the home loan per financial year.

• Section 80G/ 80GGA/ 80GGC- These sections pertain to the tax exemptions that can be availed as a consequence of the donation of the individuals in various fields.

Apart from the aforementioned sections of the Income Tax Act, the individuals can derive the benefit from the following government schemes pertaining to investment-

1. Employee Provident Fund- The interest earned under this scheme is tax free. It can be availed by contributing 12% of the Basic Pay+ DA to EPF.

2. Public Provident Fund- The interest earned under this scheme is exempted from any tax deduction. This account has a locking period of 15 years which is mandatory.

3. National Saving Certificate- NSC is basically a tax saving fixed deposit from India Post.

The Indian Government also has some of the schemes dedicated to the specific segment of the population. The most viable schemes amongst them are Senior Citizens’ Saving Scheme and Sukanya Samridhi Yojana. The first scheme is currently enumerated amongst the best tax saving option for the Senior Citizens. It allows them to avail tax redemption on the earned interest under this scheme upto Rs. 50, 000. The other scheme is related to the welfare of the girl child as the interest obtained by this scheme is absolutely tax free.

All these methods can be sought after for minimizing the growing anxiousness from the ever increasing tax returns.