Key Factors To Save Income Tax In India

It is mandatory to pay income tax in India as per the law of Indian Government. Every person that generates profit, whether it is from job or own business is eligible to pay income tax.

It is mandatory to pay income tax in India as per the law of Indian Government. Every person that generates profit, whether it is from job or own business is eligible to pay income tax. In companies like public or private limited company, the tax will not be exempted on individual basis as there are shareholders in those companies. Hence, the income tax is calculated on the net annual profit that a company generates.  

Assessment of tax takes place in March of every year. There is several numbers of benefits that Govt. provides to the tax payers.   The income tax department of India has defined various Tax Slabs for both males and females. The tax deducts on the basis of annual salary.  The various tax slabs defined by the IT department are described in a table given below:

Amount Earned By Male(In Rupees)	Tax Rate
0-1,80,000	No Tax (0%)
160,001-500,000	10%
500,000-800,000	20%
Above 800,000	30%

Amount Earned By Female(In Rupees)	Tax Rate
0-1,90,000	No Tax (0%)
190,001-500,000	10%
500,000-800,000	20%
Above 800,000	30%

Similarly, there are tax slabs defined for Senior Citizen and Very Senior Citizen. Therefore, you have to show the investment proof, if you would like to get the tax benefit. If you invest in the products that are given below, then tax waiver applies. Thereby, you should make investment in these products: 

• Mutual Funds:

There are several types of mutual funds that are available in the market that includes Govt. and Private Mutual Funds like SBI Mutual Funds, Franklin Templeton, Kotak Mahindra and ICICI. Remember that tax waiver applies to mutual funds having a lock-in period. Tax waiver do not applies to funds that are not having a lock-in period. 

• Home Loan: If you take home loan and buy a property, then a tax waiver is applicable on it.

• House Rent:  It is another method to save income tax. You must attach the tax receipt while you file your income tax.

• Insurance Policy: You can get tax benefits on various types of Insurance plans like life insurance and health care covers. Remember that you do not get tax benefit on general insurance plans.

All this will provide you benefit, only if you attach the above mentioned documents receipt when you file your income-tax.