Tips for Saving Income Tax – 2024

Do you think that tax deduction will burn your overall monthly budget? Do you agree that you are paying too much as tax? Are you looking for ways to save more tax? Do you think tax planning is tricky? Tax planning is not really tricky if you have assessed and evaluated all possibilities in detail. With proper planning and guidance anyone can save more tax. Most of the people are aware of few conventional ways of saving tax as investing in life insurance and investing in fixed deposits. But, there are many other ways to save tax by acting smartly. Everyone can save more tax on their total annual income. You can save tax through multiple ways, depending upon your interest of investment and money flow.

Here are some simple steps to increase your saving on total tax outgo.

 
Assess your requirements: This is really important and foremost step to begin with. Before taking the decision for investment, you should assess your requirements first. Don’t make such an important decision in haste. Like a blind follower of the mob don’t burn your cap of saving under 80 C only. Look for other options as well for savings.

Take advantage of tuition fee & education loan: You can claim tax benefits under section 80 C and 80E respectively. You can avail tax benefits against the tuition fee paid for self, spouse, and children or in case of legal guardian. You can also get tax benefits under section 80E for education loan. If you have borrowed loan for self, spouse or for children, you are eligible to claim the tax benefits. The day you start repaying your education loan from that year onward you can claim tax benefits.

Tax benefits under Section 80D: This section is not really popular among the tax payers, but you can claim tax benefits from Rs. 20,000 to Rs. 50,000. You can get tax benefits for medical insurance. If you are taking treatment for any serious disease, or having any dependent with life-threatening ailment or having any dependent with physical disabilities or you are physically disables, you can claim tax benefits. You can also add your expenses incurred on health check-ups for tax advantage.

Make investments except LIC’s: Try to invest your money in different investment plans, just investing in life insurance. You can also invest in PPFs, Mutual Funds, Fixed Deposits, and EPF. These are few other methods where you can invest your money and get good returns.

Tax benefits under home loan: You can take advantage of your home loan to save income tax. You can claim this benefit in two ways for the principal amount paid and for interest amount paid. You can also add your house rent in this category if you are living in a rented house. However, the tax benefits for HRA are not having higher cap, still you can avail this to save some more money.

Tax exceptions for donation: If you want to do some charity, so do it in full swing and enjoy tax benefits as well. If you donate money under various government run schemes, you can claim tax benefits on your donation. If you donate your money to any political party for their party fund, you are eligible to get advantage in tax deductions.