The financial year 2018-19 has begun. Like the previous year, income up to Rs 2.5 lakh annually is tax-free, but those whose annual income is more than that, they have to pay an income tax. People in this category have to file income tax return every year, which is usually filled in the last days. But for the first timers, there is no complete information about the legitimate methods of tax saving, and because of not having the right information, they do not get the maximum benefit on their investment. Not only this, every person who fills income tax has to face such problems every year. So today we will tell you some easy ways to which you can easily save maximum tax on your income.
How to Save Income Tax – Tax Benefit
By Medical insurance
You can save income tax up to Rs 25,000 per annum on your medical insurance. In this, all the family members dependent on you can be included. You can take advantage of this under section 80D.
NPS – National Pension Scheme
If you have invested in NPS, you can get tax rebate through it. Under the section 80CCD, consumers of National Pension Scheme can make an additional deduction up to Rs 50,000 in income tax.
On your PPF account, you can get a discount of Rs 1.5 lakh under Section 80C of the Income Tax Act. According to the Income Tax rules, deposits in the PPF account fall under the tax exemption under 80c. That is, you do not have to pay taxes on this.
ULIPs – Unit Linked Insurance Plans
You can also save taxes by investing in Unit Linked Insurance Plans (ULIPs). But for the amount invested in ULIP, the tax exemption can be claimed only when the investment in the plan has completed the lock-in period of 3 years. The benefit of this scheme given in 80C / 80CC can be raised to a maximum of 1.50 lakhs.
Income tax is also available on life insurance ie life insurance. When your policy is maturing, you do not have to pay any tax on the amount you get on it. It is valid under section 80C. Provided he does not exceed 10% of his premium Sum Assured.
Discount on rent
If you live in a rented house, you can still get a tax rebate on the House Rent Allowance (HRA). Under the section 80GG, businessmen and job seekers can take advantage of it.
At the FD done at the Post Office
If you have made an FD for 5 years in the post office, then you can also get income tax rebate for that amount. But the interest paid on it is taxable.
On the amount of gratuity
If you have accumulated money in the PF account for 5 years, you do not have to pay tax on the amount of gratuity. These funds invested in PF are tax-free.
NSC – National Savings Certificate
NSC is the safest investment. In this, you can buy 100 rupees to 10,000 certificates for 5 years. You can get tax deduction under section 80C on the amount deposited up to 1.5 lakh.
Do not forget to share these valued methods with your friends to save income tax. Also comment on us as well.