10 Ways to Save Income Tax

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There are many taxpayers in this world, would find themselves to deadline approaching which is termed as bottleneck approach. You can find some of the basic parameters that are covered under saving tax option like taxability, return, flexibility, liquidity and safety.  There are various options are available in order to save income tax are as follows:

#1. Save Tax Through Public Provident Fund :

PPF is one of the best ways to save income tax that has been selected as best tax saver option in 2014. It performs well in all parameters which have been specified above and this comes under small level saving scheme which has been much profitable and it also considered to be one of the favorite tax saving tool and one of the major feature of this tool is to linking an interest rate that yield much better in the secondary market.  The net returns from this PPF are approximately 8.7%.  This ensures that PPF returns are much affordable and much prevailing market rate.

#2. Moderate Benchmark Yield :

There are twenty five basic points are going to be introduced in the upcoming year which helps the people to save money. There is strong shortage in mid range of the year which remained about 8.4% consecutively in the past six months. This information must be understandable only if you research on it.

#3. Private Bank Support :

One can find great flexibility in by making use of PPF in private bank sector through which you can open an account in nearby post office or from bank. The great news is there is no need to pay anything in order to opening this account, previously it has been charged. There are certain features are provided by ICICI bank that helps the user to perform the online investment in PPF accounts. As per the client requirement, the user may pay the investment periodically or through quantum basis.

#4. Save Tax Via ELSS Funds :

Equity Linked Saving Scheme (ELSS) is another important thing which plays major part in reducing the income tax and allows the people to save money.

#5. Tax Prevention Through Home Loan :

There is an option to claim the deduction once you have taken the home loan which helps to replacement of principal amount under the section of 80C. More than that there is an option to claim deduction of interest paid under the section 24.  In some cases there is some maximum limit of Rs. 2, 00,000 and in few cases there is no maximum limit for the payment of interest.

#6. Save Tax Via Education Loan :

This deduction comes under the section 80E which is helpful for the student who takes education loan under the specified region which helps them to save taxes for their guardian.

#7. Tax Coverage Under RGESS :

The tax payer who are earning less than ten lakhs per annum are allowed to take part in specified mutual funds. This type of deduction is termed as Rajiv Gandhi Equity Saving Scheme.

Related : 10 Simple Ways to Save Money

#8. Tax Gaining Through Capital Investment :

This provides high level tax deduction with capital investment. Most of the present day businessman will plan to implement this system.

#9. Income Tax Deduction For Donation :

Donation is one of the finest ways to reduce the income tax. That’s so you can find many companies will try to get their needed fund as donation.

#10. Long Term Sales Equity Share :

To encourage the people to invest in sales equity and other mutual funds this provides long time gain in income tax.

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