Income Tax News: In India, there are several legal ways to save taxes on salaries above 45 lakhs, as stipulated by the Income Tax Act. The following are some useful tactics to think about.
Utilize Section 80C Deductions
Maximise your deductions under Section 80C, which permits investments in funds like as National Savings Certificates (NSCs), Public Provident Funds (PPFs), Employee Provident Funds (EPFs), and Equity Linked Savings Schemes (ELSS) up to ₹1.5 lakh.
Invest in NPS
To be eligible for further deductions under Section 80CCD (1B) of up to ₹50,000, think about investing in the National Pension System (NPS). This exceeds the cap set under Section 80C.
Interest on Home Loan
Under Section 24(b) of the Income Tax Act, you can deduct interest paid on a house loan up to ₹2 lakh for a self-occupied property. In addition, Section 80C allows for principal payback deductions.
Health Insurance Premium
Purchase health insurance for your family and yourself in order to take advantage of Section 80D deductions. Deductions for premiums paid for dependent children, your spouse, and yourself are allowed up to ₹25,000, and premiums paid for your parents are also deductable. Should your parents be elderly, the cap rises to ₹50,000.
Education Loan Interest
You may be able to deduct interest paid on education loans under Section 80E if you have taken out a loan for higher education.
Individuals earning more than 45 lakhs per year might reduce their tax obligations and yet comply with tax laws by carefully employing these tax-saving opportunities. To maximise tax-saving tactics based on unique financial goals and circumstances, it is advised to speak with a financial advisor or tax specialist.
