Income Tax News: In India, reducing taxes on income over 15 lakhs necessitates careful planning and using all available exemptions and deductions. Here are a few practical strategies to reduce your tax obligation.
Maximize Section 80C Deductions
The Income Tax Act’s Section 80C allows individuals to deduct up to 1.5 lakhs [1]. To benefit from these alternatives, invest in PPF, ELSS, NSC, and EPF.
Utilize Section 80CCD(1B)
To be eligible for further deductions of up to 50,000 rupees, one must contribute to the National Pension System (NPS).
Opt for the Old Tax Regime
To optimise tax savings, think about going with the previous tax system and utilising all of the exemptions and deductions.
Leverage HRA and LTA
To lower taxable income, take full advantage of the House Rent Allowance (HRA) and Leave Travel Allowance (LTA), if you are entitled.
Utilize Deductions for Home Loan Interest
Those who have a house loan are eligible to deduct interest paid under Section 24 as well as the principle amount (under Section 80C).
Consider Professional Tax Deduction
Under Section 16(iii), claim deductions for professional taxes paid to the state government.