Income Tax News: Using tax-saving options and intelligent financial planning are necessary for individuals in India making more than 50 lakhs a year to save taxes. Here’s a thorough guide:
Utilize Section 80C Deductions
Invest in tax-saving programmes like the Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), and Public Provident Fund (PPF).
Maximize Section 80D Deductions
Obtain health insurance coverage for your family and yourself in order to take advantage of Section 80D deductions.
Leverage Home Loan Benefits
Under Section 24(b) of the Income Tax Act, you may deduct interest payments as well as principle repayments under Section 80C. Additionally, you are eligible for interest deductions of up to Rs. 2 lakhs annually if the home is self-occupied.
Invest in NPS
Make contributions to the National Pension System (NPS) in order to be eligible for deductions under Section 80CCD(1B) above the Section 80C cap.
Opt for LTA and HRA
To lower taxable income, make use of your House Rent Allowance (HRA) and Leave Travel Allowance (LTA), if applicable.
Explore Other Deductions
To further lower your tax obligation, take advantage of the deductions offered under Sections 80G (donations), 80E (interest on school loans), and 80TTA (interest on savings accounts).
