It is not fair when you have to pay huge sum of taxes for salary income. This blog is meant to help you understand all the methods available to save taxes on income from salary. It is always better to know tax saving options well in advance so that your tax burden does not give you stress at the due date. Most of the salaried people know tax saving options in salary income but that knowledge is limited to insurance and HRA however there are other ways to save taxes in salary income. Let’s discuss all these tax saving for salary income in an easy manner. If you do not want to go through hassle of reading and having to analyses and want to talk about tax saving options under salary. Text your question to 9711310417 and receive a call within a day from expert on Tax Planning.
1.) SECTION 80 CCD (1B) NATIONAL PENSION SCHEME (NPS):
You can save additional tax by investing in NPS for 50000. As you know under 80C, the limit is 1.5 lacs, /so this section helps you increase the limit upto 2 lacs under 80C altogether. All you have to do is invest under NPS. If you are under 30% tax bracket, this additional deduction helps you save upto 15000 of income tax.
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2.) SECTION 80D HEALTH INSURANCE PREMIUM:
Health insurance is amust have for all. Some of the companies are providing health insurance benefits but some may not. The cost of medical expenses can create a big trouble and stress to you and family so taking health insurance is not just good for tax saving but it is extremely important which can save you a lot of stress. The Government in order to encourage provides tax saving benefit not only on your health insurance but family members as well, here is the limits:
- Upto 25000 tax deduction: For you including your spouse and your children. If any of you or your family members is older than 60 years the limit you can claim is 50000
- Upto another 25000: For your parents. If parents are older than 60 years limit you can claim is 50000
- Also you can claim certain amount as medical expenses, there is a limit though, it is apart from the above premium.
3.) SECTION 80 DD:
If you are taking care of specially abled depended, you can claim tax deductions for same. This is to help disabled dependent in your family. Who are dependent in family? It can be your spouse, children, your parents or your siblings.
List of disabilities covered for section 80DD : Cerebral Palsy, Autism, Mental illness, Blindness, Low vision, Loco- Motor disability, hearing impairment, Mental retardation,
Tax deduction can be claimed on medical treatment expenses, their nursing, training and rehabilitation and on premium paid on any insurance policy taken for them
What is the tax deduction limit under section 80DD?
If 40% disabled: limit is 75000
If 80% disabled: limit ids 125000
4.) SECTION 80E:
Tax deduction on education Loan: Deduction is available on interest paid from the year on which repayment starts till the time loan period gets over or till 8th year whichever is earlier.
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5.) SECTION 80TTA:
Tax Dedduction on interest earned from your saving bank or post office accounts This section is not available for interest earned on FD, RD or your term deposits. Interst upto 10000 is not taxable under this section. So you get deduction of 10000 under this section for interest earned by you during the year. All bank accounts are consolidated, not to be looked at each bank separately. Rest of your interest is chargeable to tax under head income from other sources. For senior citizen the limit is 50000 deduction of same comes under section 80TTB
6.) SECTION 80 C:
This is the most popular section and eligible investments you can made under this section are Investments in Provident Funds such as EPF, PPF, etc., payment made towards life insurance premiums, Equity Linked Saving Schemes, payment made towards the principal sum of a home loan.
7.) Interest paid towards home loan (Section 24 of income tax):
You can claim deduction upto 2 lakh in a year for interest portion of your emi. Want to know more? Text and book appointment with CA at 9711310417
If you want to understand these points of tax saving on salary income or want to plan tax saving on salary income from a professional or CA near you, just email us at info@taxvic.com and you shall be contacted with all the help. Thank you for reading, hope it helped!
