How to Do Tax Savings?

Albert Einstein once rightly said that “The hardest thing in the world to understand is the income tax.” One of the displeasures of growing up and earning is the burden of taxes. There are weird taxation laws around the world. There were times when houses were taxed depending on the number of windows in a house. There were even taxes on beards. Today even without all these strange taxes, the amount we pay as taxes exceeds the peak of Mount Everest!

What if we tell you that there are certain ways to reduce the amount of taxes paid? Investment in schemes like mutual funds, bonds and stocks can help to save taxes. Section 80C provides a provision to deduct taxes for the premium paid on life insurance. Health insurance premiums can save taxes up to Rs. 20,000.

How to do tax savings

Restructuring the salary will also help in reducing the amount of tax to be paid. Equity-linked savings scheme will help to gain tax benefits. They also offer maximised returns.

Education of children requires a considerable amount of money. You can redeem this money by claiming tax deductions under Section 80C. Expenses of medical insurance and regular health check-up can be shown to obtain tax exemptions. Section 80D has the provision of a maximum deduction of Rs. 60,000.

The treatment for certain diseases is eligible for tax deduction. Donations to research and rural development are also eligible for tax deductions. The pharmaceutical products purchased are also eligible for a reduction in taxes.

Public Provident Funds also help in tax saving under Section 80C. Education loans offer tax benefits under Section 80E. Donations made to charitable institutions help in tax exemption. The savings account offers maximum tax deduction up to Rs.10, 000 under Section 80TTA.

Employees can obtain a tax deduction by claiming travel allowance. House rent allowance can save taxes on house rent.

Saving on taxes should be for achieving long term goals. There must be a futuristic approach for your tax saving investment plan.

When these many options are available to cut down the taxes, why should you worry anymore? Contact Goodwill today at admin@gwcindia.in or give a call at +91 – 44 – 4020 5050 to put your thoughts into action.

 

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