Income Tax News: In India, utilising a variety of tax-saving tools and intelligent financial planning are necessary to save tax on salaries exceeding 35 lakhs. The following are some practical methods to reduce tax obligations:
Section 80C Deductions
Invest in tax-saving options such as Employee Provident Fund (EPF), National Savings Certificate (NSC), Equity Linked Savings Schemes (ELSS), and Public Provident Fund (PPF).
Explore Section 80D Benefits
Take advantage of Section 80D discounts on health insurance premiums for you, your spouse, your kids, and your parents.
Opt for NPS Contributions
In order to receive benefits under Section 80C as well as deductions under Section 80CCD(1B), you must contribute to the National Pension Scheme (NPS).
Invest in Tax-Saving FDs
Invest in bank-offered Tax-Saving Fixed Deposits (FDs) to take advantage of Section 80C deductions.
Explore HRA and LTA Exemptions
To lower taxable income, take advantage of the Leave Travel Allowance (LTA) and House Rent Allowance (HRA) deductions.
Maximize Home Loan Benefits
Tax obligations can be greatly reduced by taking advantage of deductions for principle repayment under Section 80C and interest on home loans under Section 24(b).
Utilize Education Loan Benefits
Under Section 80E, deductions are allowed for interest paid on student loan debt.
Consider Voluntary Provident Fund (VPF)
Increase your VPF contributions to receive additional tax benefits comparable to those from EPF contributions.
Explore Tax-Saving Bonds
Invest in bonds that are notified by the government, such as REC or NHAI Bonds, to deduct taxes.
