Income Tax News: In India, handling taxes on a salary over 60 lakhs requires careful use of the provisions that are available as well as strategic planning. Key techniques to lower tax liability are listed below:
Leverage Section 80C Deductions
To receive tax deductions of up to ₹1.5 lakh under Section 80C, invest in tax-saving vehicles like as PPF, ELSS, NPS, and Tax-saving FDs.
Optimize NPS Contributions
Increase your tax savings by making contributions to the National Pension System (NPS) and utilizing Section 80CCD (1B) to claim additional deductions of up to ₹50,000.
Embrace Health Insurance Benefits
Get health insurance for you and your family so you may benefit from Section 80D deductions, which allow you to deduct up to ₹25,000 for yourself and ₹50,000 for elderly persons.
Leverage Home Loan Interest Deductions
Make use of Section 24(b) deductions for house loan interest payments; claims for self-occupied properties are limited to ₹2 lakh.
Explore Equity and Debt Investments
For long-term capital gains tax exemption, think about investing in debt funds and ELSS, as the former offers tax-free profits after a three-year lock-in period.
Maximize HRA and LTA Benefits
Effectively handle the components of the Leave Travel Allowance (LTA) and House Rent Allowance (HRA) to reduce taxable income and maximize tax savings.
