Income Tax News: Significant! Corporate Heavyweights Earning Over 30 Lakh Take Note; Check How to Save Big

Income Tax News: Consistent wage growth also translates into higher income tax rates. If you make more than Rs 7 lakh a year, the changes to the new tax regime in Budget 2023 make it even harder to take advantage of deductions.

Navigating the Previous Tax Regime

If you choose to stick with the previous regime, you can still minimise your taxes by making the most out of your investment strategy and effectively utilising all available deductions. Therefore, having a proper tax savings strategy is essential for large salary amounts, such as those above Rs 30 lakh per annum mark in India.

Key Tax Deduction Sections for Salaried Workers

In India, tax deductions under sections 80C, 80CC, and 80CCD are available to salaried workers. However, there are also ways to legally lower the tax even more. The Income Tax Act states that citizens can reduce their taxable income by deducting specific expenses from their income.

How can salaries exceeding Rs 30 lakh be saved on taxes?

To minimise taxes, it's critical to understand every avenue for claiming a deduction. The investment strategy that makes the best use of these opportunities is unquestionably the best one in India. Here's how to take advantage of all tax benefits:

Deductions under sections 80C, 80CC, and 80CCD

Invest in life insurance, ULIP plans, PPF accounts, pension plans, National Savings Certificates (NSC), fixed deposits, and other tax-saving options under these sections to save money on taxes. Thus, a total deduction of Rs 1.5 lakhs is allowable. The greatest retirement plans or ULIP plans can help you take advantage of the most tax benefits in this situation. For this reason, term insurance can also be purchased.

Medical costs

By subtracting medical costs from the taxable income subject to sections 80D and 80DDB, you can lower the amount of tax that must be paid. Spending on health insurance can also be reimbursed.

Education loan

You can deduct interest paid on student loans for yourself, your spouse, or your child under Section 80E.

Home loan

Purchase a home to qualify for a deduction of the interest paid under section 24 as well as the principal amount of your home loan under 80C.

House Rent Allowance

One is able to claim a deduction for the house rent allowance deducted from salaries.

Leave Travel Allowance

Employer-provided leave travel allowance (LTA) is tax-free. It can be used to travel anywhere in India twice every four years.

Capital gains

Receive tax deductions for capital gains that you make by investing your long-term capital assets in financial instruments and selling them.

ELSS Mutual funds

ELSS mutual fund investments are an additional tax-saving strategy.

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