What is Tax Saving? 10 Best Tax Saving Options in India

A tax saving is a reduction in the amount of taxes paid by an individual, business, or other taxpayers. This can result in a reduction of income tax withholding or total tax liability after filing an income tax return. Tax savings often results from deductions, exemptions, and credits. The more significant your tax savings and your refund check are, the greater your financial security.

These are the 10 Best Tax Saving Options to Save Tax.

  1. Section 80GG Rent paid for accommodation – if you’re tone- employed or salaried and you haven’t entered HRA (Home Rent Allowance) at any time during the time only also you can claim this deduction. It’s available for the rent paid by the taxpayer. For his accommodation in a fiscal time as per specified limits.
  2. You can contribute a fresh quaff antrum up toRs. 000, to the National Pension Scheme, if cash inflow permits and claim deduction under Section 80CCD( 1B) of the Income duty act, 1961.
  3. Section 80E allows you to claim the interest quantum being paid on an education loan profited, for tone,  children, or partner or the pupil for whom the existent is the legal guardian. There’s no limit on the quantum, but the deductions are valid until 8 times from the time of the first interest paid.
  4. Section 80U allows a deduction of Rs. 000 if you’re suffering from a disdisabilities0 disability). In case of severe disability (80 disability), the quantum of deduction will beers… still, the section covers only the taxpayer but not the dependents.
  5. Common home loan borrowers can claim the maximum duty benefits collectively. It means each holder can get of Rusty rebate of R. for top prepay and Sec 80C ands. For interest payment under Sec 24.
  6. Keep saving Levies on your post-retirement fund by investing in a combination of duty-redeemer FD to have liquidity & ELSS to enjoy duty-free advanced returns!
  7. UF is a separate entity, and can claim deductions under various Sections of Income Tax.
  1. Life insurance surrender value is tax-free, subject to certain conditions. For ULIPs the tax-free redemption period is 5 years.
  2. Debt mutual funds give you an indexation benefit which reduces your tax outgo if you redeem the funds after 36 months.

10.Section 80DDB: Expenses on treatments for specified diseases qualify for deduction from Total Income. The maximum amount of deduction is R. 40,000 for patients below 60 years, and R. 1,00,000 for senior citizens (Above 60 year of age). This exemption can be availed for treatment of self or dependents.

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