Income Tax News: For many people, saving taxes on an income of 15 lakhs per year is a common problem. Through the application of smart tax planning strategies and the utilisation of accessible deductions and exemptions, people can effectively minimise their tax obligations and optimise their after-tax income. This post examines numerous practical tax-saving techniques and offers insightful advice on how to reduce taxes on a salary of Rs. 15 lakhs annually.
House Rent Allowance (HRA)
You can lower your taxable income if you live in a rented home by claiming House Rent Allowance (HRA). People can receive tax benefits under the HRA component by supplying rent receipts and other required documentation.
Leave Travel Allowance (LTA) Overview
The Leave Travel Allowance (LTA) offers tax breaks for out-of-pocket travel expenses. People can reduce their LTA taxes by carefully organising their vacations and making sure they have all the required paperwork.
Navigating Tax Complexity
It can be difficult to navigate the complexity of tax legislation and maximise tax savings. It is advisable to speak with a financial counsellor or tax expert who can offer tailored guidance based on your unique financial circumstances. They may assist you in determining the best tax-saving plans, making sure tax laws are followed, and maximising your tax advantages.
Tax-Saving Fixed Deposits (FDs)
Fixed deposits (FDs) that save taxes are a well-liked financial choice for tax planning. These FDs give tax benefits under Section 80C and have a five-year lock-in term. Individuals can deduct up to Rs. 1.5 lakhs from their taxable income by investing in tax-saving FDs provided by banks and financial organisations.
National Savings Certificate (NSC)
The Indian government offers the National Savings Certificate (NSC), a fixed-income investment programme. It has a five- or ten-year maturity period and is eligible for Section 80C tax incentives. Although the interest earned on NSC is taxable, Section 80C allows for a claim deduction if the money is reinvested.