Top Five Ways to Save Taxes on Salary Income
This infographics would discuss about best ways to save taxes on salary income by doing proper tax planning. Some of ways to do so, is to claim full benefits of deductions of Rs. 1Lac under section 80C by investing in Provident Fund /Voluntary Provident Fund, Public Provident Fund, Life Insurance Premium, Unit Linked Insurance Plan (ULIP) / Unit Trust of India (UTI), Tuition Fees maximum for 2 childrens, etc, OR using options other than 80C, such as deduction u/s 80GG for payment of rent or claiming HRA u/s 10(13A) , or Deduction u/s 80CCDÂ for contribution by employer and employee (limit 1, 00,000) to pension scheme will be eligible for deduction, Deduction u/s 80D â€“ for claiming deduction for Medical Insurance Premium paid. Housing loan benefits is also a way to save taxes, for principal amount, Stamp Duty and registration charges u/s 80C,Â Interest amount u/s 24(b).Â You can also look to maintain separate income tax file in the name of HUF and avail benefits.Â Another way is to restructure your salary by including,Â Dearness pay and dearness allowances should form part of your salary,go for exempt perks rather than going for taxable allowances.