Income Tax News: Exhausted All Tax Saving Options? Top Tips for Tax Payers Earning Over 90 Lakhs

Income Tax News: In order to save tax on an income over 90 lakhs in India, one must use available tax-saving opportunities and engage in proactive financial planning. Here's how people can successfully lower their tax liability:

Utilize Section 80C Deductions

To claim deductions up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, invest in tax-saving options such as Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), and Provident Fund (PF).

Maximize Contribution to NPS

Make contributions to the National Pension System (NPS) and, in addition to the Section 80C limit, claim additional deductions under Section 80CCD(1B) of up to Rs. 50,000.

Avail Home Loan Benefits

If qualified, choose a home loan and submit claims for Section 80C deductions for principle repayment and Section 24(b) deductions for interest payment. Furthermore, utilize Section 80EEA to claim deductions on loans for affordable housing.

Utilize Health Insurance Premiums

Invest in family, parent, and self-health insurance and take advantage of Section 80D discounts. Senior adults can receive up to Rs. 50,000 in benefits, while those under 60 years old can receive up to Rs. 25,000.

Opt for Leave Travel Allowance (LTA)

Use the LTA that your company provides, and use Section 10(5) of the Income Tax Act to claim tax exemptions on costs incurred for your family's and your own domestic travel within India.

Utilize Deductions for Education Loan

If you are repaying an education loan, you can deduct interest from your income for the duration of the loan by using Section 80E of the Income Tax Act.

People making more than Rs. 90 lakhs per year can secure their financial future and substantially lower their tax burden by making wise investment decisions and taking advantage of all available tax-saving opportunities.