Save Income Tax : Save tax of Rs 7 lakh in these 6 ways, know the mantra of saving before filing RTI.

How To Save Tax: Not all taxpayers know the best way to save tax. Today we’re going to inform you 6 such methods, with the assist of which it can save you tax as much as Rs 7 lakh.

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In India, residents are given earnings tax exemption beneath the sections of the Income Tax Act 1961. All taxpayers are required to file ITR return yearly. If your earnings comes beneath the ambit of earnings tax, then it’s essential to pay tax. The authorities provides a chance to taxpayers who file ITR to avoid wasting Rs 1.5 lakh yearly in tax.

However, not all taxpayers are conscious of the best way to save tax. Today we’re going to inform you 6 such methods, with the assist of which it can save you tax as much as Rs 7 lakh. You must pay zero tax on earnings as much as Rs 12 lakh. Let us inform you that in the previous tax regime, the authorities has already made earnings as much as Rs 5 lakh tax free.

Know these 6 methods –

1. If your wage is Rs 12 lakh, then you may make it in such a approach that your HRA will likely be Rs 3.60 lakh, your LTA will likely be Rs 10,000, and the expense of cellphone payments will likely be Rs 6,000. You will get a regular deduction of Rs 50,000 on wage beneath Section 16. You can declare exemption on career tax of Rs 2500.

2. HRA of Rs 3.60 lakh may also be claimed beneath Section 10 (13A) and LTA of Rs 10,000 beneath Section 10 (5). With these deductions, your taxable wage will cut back to Rs 7,71,500.

3. If you have got invested in LIC, PPF, EPF, or when you have paid your youngster’s tuition charges, you possibly can declare an extra deduction of Rs 1.50 lakh beneath Section 80C.

4. Those who’ve invested in the Tier-1 scheme of the National Pension Scheme are eligible for an extra deduction of Rs 50,000 beneath part 80CCD. After each these deductions, your taxable earnings will likely be Rs 5,71,500.

5. Section 80D means that you can declare tax exemption for premiums paid on medical insurance insurance policies. While you possibly can declare Rs 25,000 for medical insurance premium for your self and your partner or your kids.

6. You can declare an extra rebate of Rs 50,000 for the premium paid on the well being insurance policies of your senior citizen dad and mom. With this you’ll get the profit of deduction of Rs 75,000, as a result of which your earnings will cut back to Rs 4,96,500.

These schemes may also give tax exemption
beneath the earnings tax guidelines: Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Saving Scheme (ELSS), National Pension System (NPS), Sukanya Samriddhi Yojana (SSY). Tax deduction is out there on Senior Citizen Savings Scheme (SCSS) and Fixed Deposit (FDs) schemes with tenure of 5 or extra.

According to tax consultants, by investing your financial savings in these schemes, you possibly can declare tax exemption as per the relevant circumstances. Also, with this you possibly can organize extra funds for your self in the long term. Let us inform you that the final date of ITR file is 31 July 2024.

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