Now-a-days all are trying their best to save money and searching tips to “How to Save Money”. As without money, nothing is possible in this world. Everyone should remember that ‘a penny saved is a penny earned’. So keeping in the view of the people here we are providing some useful and valuable tips to save money. The people who love every bit of their hard earned money must go through the tips correctly. An employee or citizen of India, who earns more than Rs. 2,50,000/- must pay Income Tax to the Income Tax Department. But so many people are embarrassed to pay Income Tax and want to save the amount. But it is not the right way to save money. Even it is not called saving money, but storing income illegally. So better pay Income Tax and live a tension free life. The employee need not fear to pay Income Tax.
There are so many deductions and exemptions to show while paying the Income Tax. For example, if you have taken a children’s plan for the bright future of your child then you can that while filing the IT return. Once the deductions and exemptions are shown to the IT Department, then they will refund the excess Income to the Assessee or deduct the Income while paying in the next time. So better follow the steps and go through a better path. I hope the steps given below are useful while you are filing an Income Tax Return.
Income Tax Saving Tips – Tax Tips
These are the Income Tax Saving Tips:
Save Tax by investing under Section 80C
Making certain Investment like
- Contribution to EPF account.
- Deposit in PPF Account.
- Investments in Tax Saving Mutual Funds that is equity linked saving Scheme (ELSS).
- Tax Saving Fixed Deposit.
- Senior Citizen Saving Scheme.
- Sukanya Samriddhi Account.
- National Saving Certificate.
Save Tax Through Salary Restructuring
- Newspaper, Books, and Magazine.
- Medical Treatment.
- Telephone and Mobile.
- Office Entertainment.
- Personality Development.
Leave Travel Allowances & Medical Expense
Some Expenses are allowed as Tax-free Expenses. These are the expenses which are deducted from the gross salary. The employer will provide you the medical allowance as a part of your salary. If the employee produces the actual bill of the medical expense, then it becomes tax-free. However, the limit is upto Rs 15,000/- in a financial year.
Save Tax on Rent Payment
The Employee can deduct the lowest of these from gross income.
- 50% of the basic salary + DA if the employee is situated in Delhi, Mumbai, Kolkata and Chennai. Else, 40% of the basic salary + DA.
- Actual HRA given by the employer.
- Actual house rent paid by you, minus 10% of basic salary + DA.