{"id":2938,"date":"2019-01-19T09:00:05","date_gmt":"2019-01-19T03:30:05","guid":{"rendered":"http:\/\/capitalante.com\/?p=2938"},"modified":"2020-05-19T11:00:39","modified_gmt":"2020-05-19T05:30:39","slug":"how-to-save-tax-in-india","status":"publish","type":"post","link":"https:\/\/capitalante.com\/how-to-save-tax-in-india\/","title":{"rendered":"How To Save Tax In India In 6 Easy Steps"},"content":{"rendered":"
Black money is one of the biggest obstacles in the way to achieve financial strength and security. Unfortunately, this black money is generated by the people themselves. It is a fact that everyone wants to earn money as much as he can but wants to pay fewer taxes to the government. To do so, many people hide their income or show a lesser amount of income than what they earn, so that they have to pay lesser tax to the government. In this way that hidden money gets converted to the black money. According to government laws, generating or accumulating black money by any means is a criminal Actually in our country India most of the people are ignorant. They do not have proper knowledge about Income tax and tax planning or management of tax. With the appropriate tax planning anyone can save a good amount of tax and with this, his\/her money will not turn into black money. The money will be white and of course legal. Tax planning is not overnight planning at all. You need to know the deductions allowed by the income tax act under the chapter VI-A, and then you can make good use of the deductions available.<\/span><\/p>\n You can avail the benefits of section 80C of Income Tax Act up to a maximum limit of Rs. 1, 50,000\/- for the Assessment Year 2019-20\u00a0by depositing money in the following schemes.<\/span><\/p>\n Indian Government allows tax benefits on health insurance\/Mediclaim Policy. If you take a health insurance\/Mediclaim policy you can avail tax benefits up to\u00a0Rs. 1, 00,000\/- per annum U\/s 80D of the income tax act, 1961, for Assessment Year 2018-19.<\/span><\/p>\n This rebate is available for Government employees or other employees who receive salary and avail the facility of any kind of pension. An employee\u2019s own contribution to Tier- 1 account of NPS is eligible for tax deduction, i.e., up to 10% of the Basic pay + Dearness allowance. Contribution up to Rs. 1, 50,000 is exempted under the section 80CCCD (1) of Income Tax Act, 1961.<\/span><\/p>\n Contributions up to Rs. 50,000\/- in the Tier- 2 The Income tax act allows an individual this facility if he is staying on rent and he is not the owner or co-owner of a house where he is staying on rent. The amount you can save U\/s. 80GG is as follows.<\/span><\/p>\n Let\u2019s assume a person receives a net salary of Rs. 3,00,000\/- and separately receives Rs. 1,00,000\/- as house rent from his\/her employer, then he\/she can get the maximum amount of deduction of Rs. 90,000\/- [@30% Standard Deduction] as per section 80GG.<\/span><\/p>\n Maximum of Rs. 10,000\/- earned as interest\u00a0Income\u00a0<\/span>from any scheduled Bank or registered financial institution is exempted from income tax for a financial year. Interest earned more than this is taxable. If anyone gets Rs.20,000\/-as interest he is liable to pay tax on (Rs.20,000-Rs.10,000=Rs.10,000\/-).This is the current amount for the financial year 2018-19.<\/span><\/p>\n Now, let\u2019s see the calculation of tax planning. Suppose you have an annual income of Rs. 5 Lakh. You pay Rs. 1 Lakh as LIC Premium, Transfer Rs. 25,000 at PPF Account, Invest Rs. 25,000\/- at ELSS of SBI Mutual Fund, Pay Rs. 5o, 000 for Health Insurance Premium for your family, Contribute Rs. 50, 000\/- in NPS Tier 2 Account and Earn Rs. 9470\/- as Interest from Savings bank account. You reside at your parental home.<\/span><\/p>\n \u00a0<\/a><\/span><\/strong><\/span><\/p>\n The government does not impose any tax liability on income up to Rs. 2.5 lakh in a financial year and after availing all the benefits of tax management your taxable income comes down to Rs. 2.5 lakh. So you are not eligible to pay a single penny towards tax.<\/span><\/p>\n If you have any question regarding\u00a0how to save tax in India, feel free to comment so that we have a discussion. If you have found this post helpful don\u2019t forget to share this post.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Black money is one of the biggest obstacles in the way to achieve financial strength and security. Unfortunately, this black money is generated by the people themselves. It is a fact that everyone wants to earn money as much as … <\/p>\nTax Saving Options under section 80C of the income tax act, 1961<\/strong><\/span><\/h6>\n
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Tax Saving Options under section 80D of the income tax act, 1961<\/strong><\/span><\/h6>\n
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Tax Saving Options under section 80CCD (1), 80CCD (1B) of the income tax act, 1961<\/strong><\/span><\/h6>\n
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\n<\/span><\/span><\/li>\nTax Saving Options under section 80GG of the income tax act, 1961<\/strong><\/span><\/h6>\n
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Deductions in respect of interest income i.e., 80TTA<\/strong><\/span><\/h6>\n
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