How To Save Income Tax this Year Simple and Easy Tips, Know the Details?

ITR filing AY 2023-24

Income tax saving for FY 2022-23:  When you become eligible to pay tax, there are many complications in front of you in the initial time. Paying a part of the earnings as income tax seems heavy. But it is our duty to be responsible citizens and pay tax for the development of the country. People are always on the lookout for more and more tax-saving options. No one likes to miss out on options that can save the money they have to pay as taxes. Different people prefer different ways of doing this.

The central government has made some important provisions under section 80C to encourage the habit of saving more tax among the citizens. Under this, you can get tax exemption by investing money in various investment options.

Also, Read This: Income Tax Alert: These 5 Cash Transaction can Get An Income Tax Notice, Know Income Tax Rules

Save Income Tax: You can save money by investing in the following investment options- 

Pension Plans -Pension plans

PPF account – PPF accounts

Equity Mutual Funds

Five Year Tax Saving Deposit Scheme – 5-year tax-saving deposits

Life insurance or term insurance- Life insurance policies or term plans

Salary Allowances

Most companies make many provisions in your salary to reduce your tax liability. You can talk to the HR of your company in this regard. You can avail of allowances like Medical Allowance, Transport Allowance, Education Allowance, and Telephone Expenses as part of your salary, as they are not taxable.

House Rent Allowance (HRA) 

Employees generally get House Rent Allowance (HRA) in their income. If you live in a rented house and receive rent allowance from the employer, you, as an employee, can claim exemption on HRA as per the Income Tax Act.

Charitable Contribution

Also, charitable contributions are deductible up to 10% of your income under section 80G. However, you should ensure that you get a receipt from the organization and a copy of their income tax exemption certificate rather than donating without any acknowledgment.

Leave a Reply

Your email address will not be published. Required fields are marked *