Tax saving is as important as paying it. When we are paying considerable fractions of our incomes in the form of taxes, then some smart moves to save it will come as a sigh of relief. Often we search for tax saving tips on the internet and end up wondering which path to choose. The month of March approaches and we hover hard on how to save tax? But, you don’t need a pro like planning to save tax every time. Some simple tips can make way for you.
Distribute you money in different options:
Section 80C give all tax saving options in the form of investment. Check yourself if you have made necessary investments because that saves you from paying tax. Yes, you can move ahead from insurance ULIPs here. With investing just Rs. 1.5 lakh in one financial year, you can save up to Rs. 40,000 taxes. This is valid if you comprise in the highest income slab. If you think, the amount is very small , then there are many other options like Public Provident Fund with 15 years of lock-in period, equity linked saving scheme with 3 years of lock in period, national saving certificate or NSC and tax saving deposit with 5 years of lock in period.
Areas like NPS (National Pension System), saves you Rs. 50,000 on the cap of Rs. 1.5 lakh. Apart from this, medical insurance is also an area to save considerable amount of tax. With this, you can save up to Rs. 60,000 deduction in tax.
Save Tax From Share Losses:
You can be little smart with your losses. If you are making losses in share investment for a time less than 12 months, then the loss is termed as short-term capital loss. This loss can be adjusted with short term capital gain. For good, it can also be adjusted against long-term capital gain.
Save From Paper Bills:
Your personal expenses which are mingled in your salary can be a way to save taxes. One of the prominent example is medical allowance. If you get a medical allowance added in your salary, then you can exempt this amount by showing actual bills. So, just collect your medical bills and keep them ready to get exempted from paying tax. Other options are exemption from travel allowance for two times in a year.
Apart from this, you charity money is always free from tax burden. So, you can keep a portion away for some good for you and others!