Income Tax News: There are a few calculated ways for Indian citizens making more than 35 lakhs per year to save taxes. Here is a thorough how-to guide for maximising tax savings:
Utilize Section 80C Deductions
Invest in tax-saving options include tax-saving fixed deposits, the National Pension System (NPS), the Public Provident Fund (PPF), and the Equity Linked Savings Scheme (ELSS). Section 80C of the Income Tax Act allows deductions of up to ₹1.5 lakhs for these investments.
Contribute to Provident Fund
Increase the amount you contribute to the Employee Provident Fund (EPF) by deducting salary. Section 80C allows for tax deductions on EPF contributions.
Invest in Health Insurance
Obtain health insurance for your family members as well as yourself. Under Section 80D of the Income Tax Act, health insurance premiums are deductible from taxes. Deductions are allowed for individuals under 60 years of age (₹25,000) and elderly people (₹50,000).
Explore Other Deductions
Take advantage of deductions for costs like house loan interest (Section 24), children’s education (Section 80E), and charity contributions (Section 80G). These credits have the potential to drastically lower taxable income.
Utilize Professional Expenses
Make sure to claim deductions under Section 80TTA if you incur costs associated with your trade, such as travel, professional development courses, or equipment purchases.
Optimize Tax Planning
Get advice from tax experts or financial consultants to create a thorough tax-saving plan that works for your budget. They can guarantee adherence to pertinent tax regulations and assist in identifying further opportunities for tax optimisation.
