Every year we earn and pay a certain percentage of taxes to the government. For many, taxes seem to be a burden who are earning less and unable to save money because of high taxes. But no need to worry as we can reduce taxes with good tax-saving planning.
We all know that saving is also a kind of earning so with proper tax saving planning you can save your hard-earned money. Many people don’t know how to save taxes because of lack of knowledge so they lose out a good amount of money every year.
But, yeah, it’s never too late. We are going to list out all the points that will give you a fair idea of how you can save money while filing an income tax return.
- This is for students who have taken education loans and paying interest, they can claim the interest paid on the loan under section 80E. So, the amount of interest they have paid will be deducted from the amount they have earned.
- If you have taken a health insurance policy then you can claim that amount under section 80D.
- If you have invested in any of the government schemes then you can also claim that amount under section 80C, you can claim up to 1.5 lakhs spent on such investments as tax waivers.
So, what are the government schemes?
- Public Provident Fund (PPF)
- Sukanya Samridhi Yojana
- National Pension Scheme (NPS)
- Fixed Deposit (FD)
So, these are the schemes if you have invested in you can claim while filing an income tax return (ITR).
- If you have taken life insurance plans, you can also claim this under section 80C
- If you have taken a home loan, the interest you are paying for the home loan will be exempted, you can claim these amounts while filing ITR.
- If you have paid a certain amount of money to any charity or institution, that fund can be claimed under section 80G while filing a tax return and this will be exempted.
- If you have a savings account and you maintain a good amount of money, and earn interest every year, up to 10,000 rupees, that amount is not taxable.
- If you earn income from agriculture, the income generated through agriculture is less taxable.
As you know all these points, they will help you save taxes. So next time you are going to file your tax return, plan before considering all these points.
