Tax Saving Scheme: Adopt these methods to save tax, and you will save lakhs..
Saving tax is a big problem for employed people... Saving tax is a big challenge for those whose salary is Rs 30 lakh or more. A thoughtful investment can help you a lot in saving tax.
Under Section 80C and many other tax acts, you can make savings in tax. Let us tell you today in which 6 ways you can save your tax.
1. Tax Saving Fixed Deposits
Tax Saving Fixed Deposits (FDs) are the easiest way to save tax. You can avail of tax exemption under section 80C of bank FD tax. At present FD is a safe option to invest money.
2. Public Provident Fund
Apart from this, you can also invest in PPF. Public Provident Fund is a good way to save. In this, along with saving money, tax is also saved. This is a long-term saving and investment method, through which you can save tax. This is a government scheme so it is considered quite safe.
3. National Savings Certificate
You can also save money through NSC. This is a fixed-income investment option. By investing in the National Savings Certificate, you can avail tax exemption under Section 80C of the Income Tax Act of 1961. There is a lock-in period of 5 years. Apart from this, guaranteed returns are available.
4. Senior Citizen Savings Scheme (SCSS)
You can also save tax through Senior Citizen Savings Scheme. In this, this scheme has been made for senior citizens aged 60 years and above. In this also one gets the benefit of exemption under Section 80C. The lock-in period of this scheme is 5 years and you can extend it for 3 more years. In this scheme, the benefit of exemption up to Rs 1.5 lakh is available under 80C.
5. Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is a tax saving scheme. This scheme is especially for girls. Modi government had started this scheme for the advancement of daughters. You can withdraw the money when your daughter turns 21 years old. In this, one gets the benefit of tax exemption under 80C. The interest received under this scheme is also tax-free.
6. Loan
Apart from this, you can also save your taxes by taking a loan. You can also save tax through home loans, and education loans. Under section 24(b) of the Income Tax Act, you can save tax up to Rs 2 lakh on the home loan. Whereas, if we talk about education loans, you can avail of tax exemption under Section 80E.
Benefit of tax exemption on home loan
If you have taken a home loan, you can claim tax benefits on its principal and interest amount. Under Section 24, you will get a rebate of up to Rs 2 lakh on home loan interest and a rebate of up to Rs 1.5 lakh on the principal amount of the home loan.
Choose the right tax slab for you
Currently, you get the option of two tax slabs. You should see which slab is more economical for you. In the new tax regime, the tax rates are lower, but there is no option of deduction in it. Therefore, if you want an exemption under section 80C, then you will have to file an ITR in the old tax slab.
Filing ITR on time is also the right step
Paying taxes on time also reduces the burden on your pocket. As a rule, you should file your income tax return every year before 31st July or whatever deadline is set by the IT Department. After this, you have to pay a huge penalty for filing an ITR.
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