7 best ways to save income tax

Tax-saving

In order to save a chunk of your income in India, you will have to pay close attention to the available tax-saving financial products. In India, if you are salaried professional, you can save tax through these 7 tips.

Contribute more to National Pension Scheme

If you are a subscriber of NPS, you may claim tax benefit under Sec 80 CCD with an overall ceiling of Rs 1.5 lac under Sec 80 CCE. What you may not know is that you can claim an additional deduction of Rs. 50,000 under Section 80 CCD(1B) of income Tax. So, to save taxes, increase your contribution to the national pension scheme.

Deductions for children's tutition fees

If you are a parent, you can claim a deduction on the amount spent as tution fees to a school, university, college, or any other institution.

Wedding gift

A wedding is a huge occasion in India. The couple receives so many gifts from the guests. Such gifts are extempt from taxation under Section 56(2). Gift received on your wedding day, whether in the form of a gift, cash, or cheque, are tax-free.

Route your Investments through parents

Senior citizens are entitled to special tax benefits. You can re-route your revenue from investments if your parents have a low income. You can gift this money to your parents tax-free.

Money spent on Donation

Tax deductions can be claimed for charitable or donations and philantropic undertakings. Depending on the purpose, some donations are eligible for a 100% deduction, while others for a 50% deduction.

Expenses for telephone and internet

According to Rule 3(7)(ix), telephone reimbursement provided to employees is not taxable. If your office work necessitates the use of a mobile or telephone or internet connection, you are entitled to a full exemption of the billed cost.

Pay for parents health

Section 80D allows a taxpayer to claim a deduction of up to 25,000 INR. It is available for paying the health insurance premium for yourself and your family.