Income Tax News: Knowing how to navigate tax-saving measures becomes essential for Indian citizens making more than Rs. 10 lakh every year. The following are efficient ways to minimise tax obligations and increase savings:
Utilize Tax Deductions
Reducing taxable income by utilising Section 80C, 80CCC, and 80CCD deductions can be quite beneficial. Deductions are available for investments made in instruments such as the National Pension System (NPS), Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF), Provident Fund (PF), and life insurance premiums.
Explore HRA Exemption
If your pay includes House Rent Allowance (HRA), you may be able to claim an exemption from HRA under Section 10(13A). To receive this advantage, you must have rental agreements and rent receipts.
Optimize LTA and Medical Reimbursements
To reduce taxable income, make efficient use of medical reimbursements and leave travel allowance (LTA). Claiming these exemptions may be aided by submitting invoices and documentation of travel and medical costs.
Invest in Health Insurance
Tax deductions under Section 80D may be obtained by paying health insurance premiums for oneself, one’s spouse, one’s children, and one’s parents. This benefit is applicable to both mediclaim and critical illness plans.
Utilize Home Loan Benefits
Sections 24(b) and 80EE allow homeowners with house loans to deduct principle and interest payments. First-time homebuyers may also be eligible for additional incentives under Section 80EEA.