Income Tax News: In India, utilizing different tax-saving options and smart preparation are necessary to save taxes on salaries over 65 lakhs. The following are some practical ways to reduce your 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 Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Pension System (NPS), and Sukanya Samriddhi Yojana (SSY).
Opt for Health Insurance
Get health insurance for your parents, family, and yourself in order to take advantage of Section 80D discounts. Up to Rs. 1 lakh in deductions are available for premiums paid for health insurance policies, which also include costs for preventative medical examinations.
Invest in NPS
In addition to Section 80C, you can receive up to Rs. 50,000 in extra deductions under Section 80CCD(1B) if you make contributions to the National Pension System (NPS). NPS offers a tax-benefitted retirement planning opportunity.
Consider Home Loan Repayment
If you have taken out a home loan, you can deduct the principal repayment amount under Section 80C and the interest payment up to Rs. 2 lakh annually under Section 24(b).
Explore Other Deductions
To further lower taxable income, take advantage of the deductions offered under several sections, such as Section 80G for donations, Section 80E for interest on student loans, and Section 80TTA for interest on savings account.
