Proper Planning Proper Investment Results to Proper Tax Saving
  • Income Tax is one of the important source of Revenue for the Government. 
  • As a salaried person or a business person, everyone must pay Income Tax for the income they earned.
  • As a citizen of INDIA, we are also consumers of India, where we utilize all the facilities in the country. But, many of them not interested to pay tax. For they purpose, everyone try to do something or the other as a saving or investment to escape from the tax.
  • Now, its time for everyone not to escape from tax illegally. 
  • We can save tax expenditure legally with some of the following TAX SAVING TIPS :
  • Tuition fees: - Under Section 80C Income Tax
  • Deduction on rent paid (without HRA):- Under Section 80GG Income Tax.
  • Repayment of education loan:- Under Section 80E Income Tax.
  • Pension funds:- Under Sections 80C/80CCC/ 80CCD(1)/80CCD(1B)/80CCD(2) of Income Tax
  • Medical insurance & health check-up:- Under Section 80D Income Tax.
    You can get deduction up to Rs. 60,000
  • Medical expenses of disabled individual:- Under Section 80DD of Income Tax
     The maximum deduction limit is Rs 1,25,000.
  • Treatment of specified diseases:- Under Section 80DDB of Income Tax.
    Treatment of diseases like cancer and AIDS is very expensive and this section offers much needed financial relief to the person suffering from such ailment and his family members.
  • Charitable donations:- Under Section 80G of Income Tax
    There is an upper limit on cash donations i.e., Rs 2,000.
  • Donations for scientific research or rural development:- Under Section 80GGA of Income Tax
    In relating to this , any donation made for scientific research or rural development is eligible for deduction.
  • Employee Provident Fund: Under Section 80C of incoem Tax
    The interest income & maturity amount that you get as a result is also exempt from tax if you have completed 5 years of service.
  • Voluntary Provident Fund (VPF) :- Under Section 80C of Incoem Tax
    Other the Provident fund, all the income which we deduct as VPF will be treated as non taxable income.
  • Public Provident Fund (PPF) :- 
    Along with Provident Fund (PF), now you can also invest in PPF. It is a good option if you looking for long-term investment opportunity. Just like PF, now you can get tax deduction on your contributions while resulting interest income & maturity amount.
  • Sukanya Samriddhi Scheme:- Under Section 80C of Income Tax
    This scheme offers higher rate of return on investment when compared to Provident Fund (PF) & Public Provident Fund (PPF). However, this scheme is only available to parents or guardians of a girl child.
  • National Pension System (NPS) :- Under Section 80C of Income Tax
    All the saving which come under Nation Pension System (NPS), is one of the tax saving method.
  • 5 years post office time deposit account:
    Fixed deposits for a minimum period of 5 years will come under Tax deduction.
  • HRA Deduction for Rent Paid:
    If you look at your salary carefully you will find that it has a component called HRA. This allowance can be claimed as a tax deduction, if you live in a rented place.
  • Donations to Political Parties:- Under Section 80GGC of Income Tax Act.
    Any donations made to political parties is one of the exception from tax deductions.
  • Meal Coupons:
    Meal Coupons Like Sodexo provided by the employees by the employee. Up to Rs.2600 per month, one can show as expenditure to decrease income tax.
  • Tax Benefit on Gratuity:
    Whatever the income received as a Gratuity at the time of death or retirement will be considered as no taxable income. 
  • Leave Travel Allowance Deduction for Travel Expenses:
    LTA concession can be claimed for 2 journeys in a block of 4 years. Expenses incurred by you & your family on travel on which your employer gives LTA can be claimed as deduction.
  • Medical Bills:
    It is beneficial to keep the receipts of medical expenses safely to save tax. You can gain tax benefit of up to Rs 15,000 on medical expenses for yourself and your dependents. 
  • Daily Travel Allowance:
    Up to Rs 1,600 per month Employees can also get tax benefits on conveyance from their employer. It will be maximum of Rs. 19,200 per annum. to claim this benefit, one does not need to submit any bills or proofs.
  • Car Leased by Employer:
    If someone is making use of car lease policy offered by his employer, he can drive a car leased by his employer and therefore save tax on car EMI since he may not require buying a car. In this case, he cannot take the benefit of Daily Travel Allowance.
  • Expenses Related to Internet or Phone:
    Employees often get mobile phones and internet devices from their employer to do their jobs effectively. Expenses incurred in using these devices are either pre-paid by the employers or can be reimbursed by the employees. Tax benefits can be claimed on these expenses.
  • Money under Voluntary Retirement Scheme:
    Under VRS, all the Government of Public Sector Employee can get a benefit of Rs 5 lakhs as non taxable.