In Indian Income Tax Act, there is a legal provision for tax deduction, stated online tax consultants. However, these deductions can be claimed while filing the income tax return. But it is not easy without proper tax planning.
After proper income tax planning and research, you can easily save some part of the income tax from your total gross income. Here are top 10 tax saving tips, ideas, and hacks for India shared by Quikconsult:
- If you live on rent, then, subtract house rent allowance from your gross income.
- There are some investments which can help you in saving your tax. Some of these tax saving investments are:
- Investment in Equity Linked Saving Scheme (ELSS)
- Investment in Sukanya Samridhi account
- Investment in Senior Citizen Saving Scheme
- Investment in Tax Saving Fixed Deposit
- Investment in EPF account
- Try to collect your medical bills and travel allowance and deduct it from your gross income at the end of the year.
- You can also save tax by deducting Medical Insurance expense from your income up to the limit of 1.5 lakhs.
- Deduction from home loans can also help in tax saving if the amount is very big. This is one of the lesser known income tax saving tip of India.
- Show the capital loss up to 8 years and it will help you in tax savings. This point is more relevant for Indian businessmen and companies.
- Donate in PM relief funds, political parties, and some top NGOs to save your tax legally, shared online tax consultants.
- Try to declare your planned tax saving, investment and other expenses of the year. Else, projected tax can be higher.
- Try to ask for non-taxable allowances such as Medical Treatment, Uniform, Telephone and Personality Development etc. Restructure your salary according to these allowances.
- Ask for tax-free travel allowance from your employer. It will help in reduction of income tax.
Above are the most popular tips and ideas to save income tax in India. If you have an income tax query that wasn’t answered in this post, then, consult tax consultants online through chat and email. It is the easiest way to answer your income tax queries online!