How to Save Tax from Salary

1. How to Save Tax from Salary

2. How to save tax on salary ? • High living costs and rising inflation can occasionally cause you to reevaluate your spending plan. Despite your best efforts, you cannot reduce the costs of necessities, and you must also set up investments and savings accounts. You think you pay too much tax at the conclusion of the fiscal year. You then begin looking for lawful ways to reduce your tax liability. • The good news is that a number of tax-saving investments provide refunds in addition to securing your future. • Where there are some of the ways to how to save tax from salary, Purchasing life insurance has two crucial benefits: With the proceeds from the policy, it safeguards your family's future while you are away, and it provides a tax break under Section 80C of the Income Tax Act of 1961. • Your life insurance premiums, whether they are for term, ULIPs (Unit Linked Insurance Plans), endowments, or money back, are tax deductible up to Rs 1,50,000 annually. As a result, you not only secure your future but also save money on taxes.

3. List of some tax saving options from salary : • Buy insurance Purchasing life insurance has two crucial benefits: With the proceeds from the policy, it safeguards your family's future while you are away, and it provides a tax break under Section 80C of the Income Tax Act of 1961. Your life insurance premiums, whether they are for term, ULIPs (Unit Linked Insurance Plans), endowments, or money back, are tax deductible up to Rs 1,50,000 annually. As a result, you not only secure your future but also save money on taxes. • Invest in ELSS The Equity Linked Savings Scheme is another another excellent way for salaried people to save on taxes (ELSS). A high growth mutual fund strategy called ELSS is very well-liked by investors seeking a strong exposure to the stock market. In accordance with Section 80C, investing in ELSS can result in tax savings of up to Rs 1,50,000. Regardless of whether you make a one-time payment or an annual payout, the exemption is given. Since the returns are also tax-free, it is a fantastic investment for reducing taxes. • Buy health insurance If you're wondering how to reduce your tax liability under an IT Act provision other than Section 80C, you should think about getting health insurance. Your assets and income are shielded from the exorbitant costs of seeking medical care for you or your loved ones. For salaried individuals, Section 80D allows you to claim a reimbursement for health plan premiums paid up to Rs 25,000 annually. This is a fantastic tax-saving choice. For the premiums paid on the policies in your parents' names, you are eligible to receive up to Rs 50,000. Health insurance premiums for you, your spouse, your dependent parents, or your minor children may be paid. • Take a home loan With the aid of a home loan, it is feasible to buy a home at a time when Indian real estate prices are unaffordable. The loan not only pays for the house, but it also helps you save money on your taxes. Section 80C allows you to deduct up to Rs. 1,50,000 of principle loan payments from your taxes (increased to Rs 2,00,000 for senior citizens). In the meantime, Section 80EE allows you to deduct up to Rs 50,000 of the bank-paid home loan interest.

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