Income Tax News: People in India who make more than 20 lakhs a year generally look for strategies to save as much money as possible on taxes. The following are practical methods to minimise tax obligations and increase savings.
Utilize Section 80C Deductions
To claim deductions up to 1.5 lakhs under Section 80C, invest in products like Public Provident Fund (PPF), Equity Linked Savings Schemes (ELSS), National Savings Certificate (NSC), or Sukanya Samriddhi Yojana (SSY).
Health Insurance Premiums
Get your family and yourself a comprehensive health insurance policy. Under Section 80D, deductions are allowed for health insurance premiums.
Home Loan Interest
If you have a home loan, Section 24 allows you to deduct the interest you pay on the loan. In addition, Section 80C allows for the claim of principle payback.
Education Loan Interest
Under Section 80E, people can deduct the interest they pay on student loans. Those who are seeking higher education or funding their children’s education would especially benefit from this.
NPS Contributions
Under Section 80CCD(1B), investments made in the National Pension System (NPS) are deductible. Furthermore, under Section 80CCD(2), employer contributions to NPS up to 10% of salary (basic plus DA) are deductible.
People making above 20 lakhs can secure their financial future and maximise their tax planning by strategically utilising these tax-saving strategies.
