As per the Income Tax Act 1962, those who are earning a particular amount of money above the taxable slab are liable to pay taxes to the government. In accordance with this act, the government has also revised and amended a few sections in the act which allow the taxpayers to enjoy some slack or benefits.
What is tax planning?
The word ‘tax planning’ suggests an organized activity that will help a taxpayer a significant amount of tax money to be paid to the government in a legit way. Being a responsible citizen, paying taxes to the country is our prime concern. To encourage this act, the government has also planned a lot of spheres where the taxpayers can reduce the amount depending on other investments such as insurance, loans, etc. The idea income tax planning India can be defined and performed under the supervision of finance executives.
What are the tax benefits?
On amending proper financial planning in India, one can easily save on tax payments and enjoy the benefits. Unless you have a good idea of how to save on taxes, you cannot make this significant saving. For this, you will have to learn more about the legit tax-saving steps approved by the government.
Section 80C, 80CCD, and 80CCC
As mentioned earlier, the investment benefits can be utilized to reduce the tax amount you have to pay every year. You can enjoy tax benefits from the following investments you have done.
- Equity-based saving scheme
- Pension plans
- Fixed deposits linked to tax saving
- Life insurance policy
- Home loan
- National Savings Certificate
You can save up to INR 150,000 by complying with the agreements of this section. You can use the investment plans as tax benefits to reduce the tax amount.
National Pension Scheme
On availing this pension scheme, you can reduce the tax amount up to INR 50,000 above Section 80C reduction limit.
As per Section 80C and Section 24(b), you can not only claim repayment on housing loan up to INR 150,000 but also seek a deduction of interest by INR 200,000. This clause is also applicable to an online loan you have taken.
The maximum deduction one can seek from the government is by investing in medical insurance. A tax benefit limiting up to INR 100,000 can be utilized.
You can now imagine how much money a person can save from using these excellent tax benefits organized by the government for the common people. Call a representative from a reputed brand to avail of a solid income tax planning India so that you can save your hard-earned money.