Income Tax News: In order to save tax on an income over 70 lakhs in India, one must use available tax-saving options and engage in strategic financial planning. The following are some practical methods to reduce your tax liability:
Maximize Deductions
Benefit from the Income Tax Act’s Section 80C deductions. Invest in tax-saving options such as life insurance premiums, National Savings Certificates (NSC), Equity Linked Savings Schemes (ELSS), and Public Provident Funds (PPF).
Utilize Health Insurance
Purchase health insurance for your parents, siblings, and yourself. Section 80D of the Income Tax Act allows deductions for health insurance premiums.
Optimize Tax-Exempt Components
Make use of the tax exemptions on components such as the Leave Travel Allowance (LTA), the House Rent Allowance (HRA), and reimbursements for medical and educational costs for children.
Invest in NPS
To take advantage of the deductions available under Section 80CCD(1B) of the Income Tax Act, think about investing in the National Pension System (NPS). Up to ₹50,000 in additional tax benefits are available for contributions made to NPS.
Choose Tax-Efficient Investments
To diversify your investments and reduce your tax liability, choose tax-efficient investment choices such as endowment plans or Unit Linked Insurance Plans (ULIPs).
Individuals making more than 70 lakhs per year might minimize their tax obligations and improve their financial planning by implementing these tactics.
