What are tax saving options for salaried?

What are tax saving options for salaried?

Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), Public Provident Fund (PPF) and 5-year Bank Fixed Deposit (FD) are some of the available instruments you can employ to make tax saving investments. HDFC Bank offers a variety of tax saving products. Click here to know more about them.

How can we save tax for salaried class and professionals?

Top 10 Tax Saving Options for Salaried in 2020

1. Employees’ Provident Fund (EPF)
2. Public Provident Fund (PPF)
3. ELSS.
4. NPS.
5. Tax Saving FD.
6. Life Insurance Premium.
7. HRA.
8. LTC.

How does a salaried person save tax?

Leave Travel Allowance: LTA or Leave Travel Allowance can be used to save tax on fare expenses for a trip made within India. Section 80C deduction: Claiming the entire Rs 1.5 lakh deduction available under section 80C can reduce your tax outgo by Rs 45,000, for those at the 30% highest tax bracket, excluding the cess.

How do I reduce my annual taxable income?

15 Legal Secrets to Reducing Your Taxes

1. Contribute to a Retirement Account.
2. Open a Health Savings Account.
3. Use Your Side Hustle to Claim Business Deductions.
4. Claim a Home Office Deduction.
5. Write Off Business Travel Expenses, Even While on Vacation.
6. Deduct Half of Your Self-Employment Taxes.
7. Get a Credit for Higher Education.

How can I reduce my taxable income 2021?

6 Ways to Lower Your Taxable Income

1. Save for Retirement. Retirement savings are tax-deductible.
2. Buy tax-exempt bonds.
3. Utilize Flexible Spending Plans.
4. Use Business Deductions.
5. Give to Charity.
6. Pay Your Property Tax Early.
7. Defer Some Income Until Next Year.

What are the tax benefits for salaried employees?

Section 80C, 80CCC and 80CCD(1)

• Life insurance premium.
• Equity Linked Savings Scheme (ELSS)
• Employee Provident Fund (EPF)
• Annuity/ Pension Schemes.
• Principal payment on home loans.
• Tuition fees for children.
• Contribution to PPF Account.
• Sukanya Samriddhi Account.

How can I avoid paying tax on my salary?

How to Reduce Taxable Income

1. Contribute significant amounts to retirement savings plans.
2. Participate in employer sponsored savings accounts for child care and healthcare.
3. Pay attention to tax credits like the child tax credit and the retirement savings contributions credit.
4. Tax-loss harvest investments.

How can I save my income tax in India on salary 2021 22?

8 Ways to Save Income Tax Under Section 80C

1. Life Insurance. Life Insurance does not only provide full life coverage, but it is also the best way to save Taxes.
2. ULIP’s.
3. Mutual Funds.
4. Tax Saving Fixed Deposit.
5. SCSS or Senior Citizens Savings Scheme.
6. Provident Fund.
7. National Saving Certificates.

How can an employee reduce taxable income?

What is the exemption limit for salaried employees?

As a result, salaried people could avail an additional income tax exemption of Rs. 5,800 in FY 2018-19. The limit of Rs. 40,000 has been increased to Rs.

How can I save tax on my salary other than 80C?

How to save tax other than section 80C?

1. 80D- for medical insurance premium for self, spouse & dependent parents.
2. Section 80EE – Deduction for interest payment of home loan for first home owners.
3. Section 24- Interest deduction for housing loan upto Rs 2 lakh.

What is taxable income for salaried employee?

Taxable Income for Salaried Employees

Yearly Salary that is Taxable	Salaried Income	Total Taxable Income
Basic Pay	Rs.8,00,000	Rs.8,00,000
House Rent Allowance	Rs.3,00,000	Rs.1,28,000
Conveyance Allowance	Rs.96,000	Rs.76,800
Other Allowances	Rs.60,000	Rs.60,000

Are there any tax saving options for salaried employees?

7 Tax saving Options for Salaried : 1. Exemption of House Rent Allowance : As an employee you might be receiving House Rent Allowance as a part of your salary package.So,if you stay in a rented accommodation you can claim an exemption U/s 10(13A) of The Income Tax Act.

Which is the best tax saving option for 20L income?

Here are some of the most beneficial tax-saving options you can avail for tax saving on 20L income: Investments: The most common deduction availed by most taxpayers in India is that offered under Section 80C. This is because Section 80C offers deduction amounts as high as Rs. 1.5 lakhs for making investments in various useful instruments.

Which is the maximum amount that can be invested in NSC?

National saving certificate– NSC is tax saving fixed deposit scheme from India post. It is available for 5 years now since 10 years NSC has been discontinued. The minimum investment amount is Rs 1000, there is no maximum limit for investment. Investments in NSC are eligible for a deduction of up to Rs 1.5 lakhs p.a. under Section 80C.

Which is the highest tax rate for SCSS?

The rate for SCSS is higher than prevailing FD rates and is currently 8.7% (it is taxable). 11.Sukanya Samriddhi Yojana: Parents of a girl child below the age of 10 can get this deduction.