The world can be quite a jungle when it comes to surviving. Saving every little penny and then spending them away daily on a loop can be worrisome. Then there are taxes again, knocking at every door waiting to scrape all the rights. Few out of many have found compelling tax saving tips to ensure more savings for better future.
Some of these income tax saving tips have had benefits for buying new insurance plans and building up sound and secure future. Tax are benign if one understands how to wield it, and better if one knows how to save it for new insurance plans.
Examining Section 80C Can Help You Save Tax
The most efficient of all tax saving tips is to closely examine section 80C. This tax saving solution benefits salaried employees to take home more income and also reduce income tax rate and payout “legally”. It comes with a wide spectrum of solutions to lower tax rate.
Under section 80C, one can legally claim a deduction of 1,50,000 from total income. One can begin from 1,50,000 and move in declining order deeming insurance plans which could help acquire the most of financial goals. If one delay in exhausting section 80C before its deadline, to make the most of tax saving tips one could adhere to is, online network.
a. Abandon Payment by Cheque On Last Minute Tax Saving Investment:
Late applicants should avoid applying for tax saving investment on section 80C via cheque. To move around physically out of offices, homes or even getting the signature wrong could all lead to the hold up. Leaning on online application would be the safest route to section 80C for last minute applicants.
b. A Five Year Fixed Deposit:
One can simply log on to their online banking system and apply for investment in tax saving fixed deposit. On maturity the reclamation comes to the bank account directly.
c. Investment On ELSS Mutual Funds:
Investment on ELSS can be applied through ‘Mutual Fund House’ (MFH) website. Through net banking funds are invested. If the investment is produced before 3:00 pm the Net Asset Value (NAV) up to 1.5 lakh is allocated for ELSS.
d. Opening National Pension Scheme (NPS) Account:
Another tax saving tips for late applicant is to open an NPS account online. But one can apply for NPS online only with an Aadhar card.
e. Opening Public Provident Fund Online:
To open an account in PFF one has to go online with requested documents only. Online fund transfer can be done from a connected saving account directly.
f. Home Loan for Tax Saving Tips:
In case of existing home loan, it is competent for section 80C. Disbursing a fraction of home loan in advance can save tax as well as interest cost. The greater and longer the period of home loan pre-payment is, the more savings one may acquire.
Explore Beyond Section 80C
Besides 80C there are other ways to save tax. There are special sections for various taxpayers that may guide in saving tax to invest on life insurance plans later.
a. Remitting Medical Insurance Deposit Via Section 80D:
The fraction of bills paid for the cost of medical expenses can be deducted through section 80D. This policy can be acquired by the name of the applicant or the name of the spouse, parents or children. In case of HUF (Hindu Undivided Family), this policy can be acquired by the name any family member. Under this section the premium can be paid by any other mode besides cash.
b. Deduction Of Health Expenses On Differently Abled Via Section 80DD:
There is a special deduction for taxpayers who invests on differently abled persons. It can be for anyone who are dependent on the taxpayer specially in the case of Hindu Undivided Family. The highest deduction amount under section 80DD is 75,000 INR once per year. In case of severe disability, the deduction rate can increase up to 1,25,000 INR. The disabilities are such as autism, mental retardation and cerebral palsy. If any of these disabilities scales beyond 80% it is certified for section 80DD.
c. Deduction of Education Loan Payment Via Section 80E:
Another great idea on tax saving tips is to claim education payment deduction under the section 80E. This claim is available up to 8 years starting from the inception of the interest paid.
d. Rental Payment Coverage Via 80GG:
This section is applicable for unsalaried persons and workers who do not receive rental allowance for houses. The form 10BA must be applied and submitted as declaration to avail this service.
One could splurge on lists of opportunities such as above with just a little bit of work and research. These tax saving tips could be of help to anyone planning to invest on insurance policies for fetching good fortunes in future.