There are several ways to save taxes in India. Some of the most common methods include:
Investing in tax-saving schemes: There are several tax-saving schemes available in India, such as Life Insurance Policies, Medical Insurance, Public Provident Fund (PPF), National Savings Certificate (NSC), Equity-Linked Saving Schemes (ELSS), and National Pension System (NPS). These schemes provide tax benefits under Section 80C of the Income Tax Act, which allows an individual to claim deductions of up to Rs 1.5 lakh from their taxable income.
Claiming deductions for home loans: Interest paid on home loans is tax-deductible under Section 24 of the Income Tax Act. An individual can claim a deduction of up to Rs 2 lakh for the interest paid on a home loan for a self-occupied property.
Claiming deductions for medical expenses: Medical expenses incurred for the treatment of specified diseases or illnesses can be claimed as deductions under Section 80D of the Income Tax Act. The maximum amount that can be claimed as a deduction is Rs 25,000 for self, spouse, and children.
Claiming deductions for charitable donations: Donations made to certain specified charitable institutions and organizations are eligible for tax deductions under Section 80G of the Income Tax Act.
Renting out a property: If an individual rent out a property, the rent received can be taxed as income under the head “Income from House Property”. However, if the individual is paying a home loan on the property, the interest paid on the loan can be claimed as a deduction.
Keeping track of expenses: Keep all the bills and invoices of the expenses done throughout the year, this will help in claiming the deductions during tax filing.
It’s important to note that the rules and regulations regarding tax saving in India are subject to change and it’s always recommended to consult with a professional tax advisor or a chartered accountant to ensure that you To know more on how to save Tax, contact us for a free consultation.
