Income Tax Saving Options for Salary Class

Lots of incentives are provided to the salary class people for saving income tax. Most of them are aware of the 80 C. But there are many other options, which can work well for many people. If it is possible, the salary people can include the telephone allowance, medical, transport, uniform, and education allowance in the salary. By producing the bills of these expenses, the tax liability can be reduced

The maximum exemption under section 80 C is up to 100,000 rupees, that is why one should use this section fully to take the benefit provided by this section. The way to take benefit is to invest in several investing options, which are available under this section.

 Invest in public provident fund , national saving certificates , equity linked savings schemes , life insurance policies , tuition fee paid for children up to 2 years and fixed deposit in banks and post office for 5 years . Then there are other options for those who have extended the limit under section 80 C. They can get the deduction of rupees 15,000 for self medical insurance, wife and dependent children medical insurance.

 The deduction of rupees 20,000 comes for medical insurance of parents of age of 65 plus age. These can be taken under section 80 D.  Donation to some specified funds or charitable institutions  and investment in notified infrastructure  bonds can also help a person to get deduction up to rupees 1000,000 . 

Home loans can also be used effectively to save income tax. The principle amount of the loan is included in the section 80 C for deduction. The interest part also gives some deduction up to 150,000 under section 24 separately.  A bonus from the company or employer is also taxable. 

Therefore one should produce the tax saving investments so that the tax deduction does not take place on the bonus. Anyone who is getting travel allowances can also get exemptions.  If a person is not receiving home rent allowance VAT Consultants in Delhi NCR.

 but is paying the rent then, he or she could claim 2000 rupees per month, or any extra amount that is paid over 10 % of total income. However, if same person or his or her partner has a resident in the place of work or living, then the exemptions will not be provided.  Even if a child of the couple has a resident in the same area of work and resident, the exemption is not given.

For a person who is getting HRA with salary, Income Tax Consultant in Delhi NCR.

Then the amount received for the rent can be available as exemption. The actual rent paid for the house on rent minus some part of the  basic salary with  allowances or 50 % of basic salary for metro and 40 % of basic salary for non metro can be also be  used as exemption for income tax.