Save Tax In India

There are different methods by which you can save your tax and valuable money. There are various types of plans that help you to save your tax. You can save the tax by making investment in various kinds of investment products. 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 waivers do not applies to funds that are not having a lock-in period.

 

You can save tax by taking home loan. If you take home loan and buy a property, then a tax waiver is applicable on it. Another method to save income tax is through house rent. You must attach the tax receipt while you file your income tax.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. Also, you must file your income tax by the due date. You will also get tax reductions according to some sections defined by income tax department of India. Under Section 80C of the Income Tax Act, certain investments and expenditures are allowed up to a maximum of Rs. 1 Lakh which can be a combination of the following:

• Contribution to Provident Fund or Public Provident Fund. This is a long term investment. The return percentage of PPF compounded annually is 8.5 percent. The complete withdrawal is possible after 15 years; however partial withdrawal can be made after 5 years.
• Payment of Life Insurance premium.
• Investment in Equity Linked Savings schemes (ELSS) of mutual funds.
• Investment in Pension plans. One can save money for post retirement in the National Pension Scheme.

Similarly, you can get tax deductions in Section 80CCF. In addition to the deduction of Rs. 1 Lakh under Section 80C, one can also invest in Infrastructure bonds. The maximum amount deductible is Rs 20,000.

If you take the help of a tax consultant, you will be able to save your time and your useful efforts will not get wasted. The tax consultant provides you financial advices to save your tax. If you take right steps in the beginning of the year, it will become possible for you to save your tax.

You can save a larger amount of money, if you plan and implement properly. Browsing the sites that provide the best information about the various tax saving schemes is one of the best method to get updated on various tax saving schemes. If there is an internet facility available at your home, then there is no need to go anywhere for the required information about tax schemes.