5 way to save income tax in India.
Saving for the future is of paramount importance to all Indians. Everyone loves to save money and it’s another way to increasing your money. If you belong to those people who finding best ways to saving income tax so you’re reaching on right place because here you will gets some basic tax-saving strategies that every taxpayer should know. Due to lack of knowledge in this field people giving more tax but after reading this article you will pay only adequate amount of tax.
Tip :1 Claim stamp duty and registration fees in 80C
If you buy any property you will going to paid stamp duty and registration charges that fees you also can involved in 80C the bad thing is that lot of people don’t know this and don’t claim this so they are paying extra tax. The maximum deduction u/s 80c is Rs.1 lakh per year. There are so many items in sec.80C like LIC premium, NSC, ELSS, PPF, Children School Fee, repayment of home loan principle amount, Stamp duty on registration of flat/house etc.On total, you can maximum claim 1 lakh deduction u/s 80c per financial year. It is not necessary that you should invest in all the investments. You can invest in any one or more than one.
Tip 2: Gift money to your major children and Save tax on Future Income
You should gift your money to your children so that money will consider as their money. Now, when any kind of investment is accord like generating a F.D then they will not become payable because children might not be comes under tax limited. Let’s take an example- you have Rs.10 lakh now you will gives those money to your children and make a F.D Rs.8000 now this 8000 is not become payable because those money are your children’s and they will not comes under tax limit(if they haven’t any other high income)
Tip 3: use HRA as best saving tool
HRA (house rent allowance) is provided to salaried people under Section 10 (13A) of Income Tax Act, 1961, in accordance with rule 2A of Income Tax Rules. Self employed professionals are eligible for tax deductions under section 80GG of Income Tax Act, 1961.learn more about how to save income tax through HRA
Tip 4: save tax through education loan.
If you are paying money for your children’s education fees so it would be wise to opt for an education loan in name of your children’s name as you can claim the full interest paid on education loan under section 80E. Note that it’s only available if you are a parent or a legal guardian. You can’t claim deduction for your spouse education loan.
Tip 5: claim tax benefit on the second house
Yes, you can get benefit on the second house by claiming it as self-occupied. If you have two properties, you can claim only one as self-occupied, while the other will be considered as let-out property. The notional rent on the second house will be added to your income and will be taxed as per the applicable tax slab. However, you will be allowed to deduct the interest on the home loan from the notional rent. You will also have to pay wealth tax on the second house, as only one residential property is exempt from it. To avoid this, you could invest in commercial property