Timely investment in efficient tax saving tools goes long way in reducing your over all tax outgo. Please find below list of few popular tax saving tools, which will help you in reducing your tax outgo.

Claim deductions on interest and principal paid for housing loan
The principal amount and interest paid against a housing loan to banks or other financial institutions is eligible for deduction under 80C. Further, Stamp duty, registration fees and other expenses incurred for the purpose of acquisition of such a house property are also eligible for deduction. However, the cost of renovation or repairs after the completion certificate is issued or after the house is occupied, is not eligible for deduction

Provident Fund (PF)/Public Provident Fund (PPF)
PF and PPF are two of the most popular and effective tools to create a pool of funds to meet long-term financial requirement and also save taxes.

Employees contribution towards PF is eligible for deduction. In case of self-employed individuals, in the absence of a PF, a contribution could be made to the PPF. It is important to note that in case of PPF, the maximum amount of contribution is restricted to Rs 70,000 per annum under the PPF rules.

Invest in Equity- linked savings schemes

The equity-linked savings schemes (ELSS) offered of mutual funds, have a three-year lock-in period, and individuals ready to take some risks may consider this investment plan.

Life Insurance Policies (LIP)

Life insurance policies work as excellent tax saving plan and also provides security to the family members. Term insurance is particularly advisable, wherein by paying a small sum of premium; a large sum could be assured by an individual.

Claim deductions on expenditure incurred for tuition fees

Further, the expenditure incurred for tuition fees, including fees for full-time education in any Indian university, college, school, educational institution, for any two children is eligible for deduction. However, development fees or donations are not considered.

Post Office Schemes

Post office scheme over the period of time have become the popular tax saving plan and investment plan for retired individuals for their post retirement life. Investment avenues under the post office schemes include National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS) and the Post Office five-year time deposits. The best part about these schemes is that they have uniform presence and their interest rates do not vary frequently in comparison with banks/other deposits schemes.

Taxmantra.com offers excellent tax support in addition to filing of return of income and comprehensive tax planning. At Taxmantra.com we do not put you at pain by asking to fill in long tax forms.

You just need to fill in a form with basic details after attaching your salary certificate/ other income details, after which we take care to online tax return filing in most hassle free manner.

Do contact us immediately; we are here to help you in solving all tax related issues.