The various schemes that can be used for saving up on taxes are all the plans listed under Section 80C of our income tax slabs. The deduction can be placed for medical insurance claims, education loan interest, house loans, and so on.
Every citizen of every country pays taxes to fund the government to carry out their duties. Its based on your income; you pay a small percentage to the government on an annual basis. But for those that might be looking to save up on taxes, then there are ways in which you can do so legally.
The government themselves have kickstarted these funds and investment opportunities where you can save up a considerable amount and even earn money tax-free. There are several schemes that one can be a part off and most of them are enlisted under Section 80D, 80C, and 80EE. Don’t expect it to be in large numbers, but it’s a small portion that goes a long way in reducing or taxes or not paying them at all. If you want to learn the different schemes started by the government, then we have provided them below.
• Under section 80C of the income tax slabs, taxpayers can deduce 1.5 lakh rupees from their total tax to be paid (it entirely depends on the total amount invested). Its where you invest in various plans of your liking. Moreover, you still have to pay taxes on the amount earned, but then a maximum of 1.5 lakh rupees is reduced from your total income tax. These plans often include fixed deposits for five years, ELSS funds, Sukanya, Samridhi Yojana, Senior Citizen Saving Scheme, Public Provident Fund, and many other funds. Do keep in mind that these funds are locked in. you would have to pay SIP’s and if you fail to do so, then hefty penalties might be imposed.
• On top of section 80C of the income tax slabs, you can save up to 50,000 rupees additional to the 1.5 lakh rupees by investing in NPS of Section 80CCD (1b).
• Another way to reduce your tax filing would be medical insurance claims of up to one lakh rupees. Fifty thousand rupees for yourself and your family and another fifty thousand for any senior citizen in your family can be exempted from the total tax payable under section 80D of the income tax slabs.
• If you’re paying home loans, then you can claim about fifty thousand rupees in tax dedication under section 80EE of the income tax slabs.
• Under Section 80G, you can claim deductions for any charity donated to any NGO.
• Under section 80E, the interest that is paid on an education loan can be deducted from the final tax paid to the government.
The government has started several schemes wherein the taxpayer can invest money in them and still have returns while not paying any additional income taxes. Though it might be a tedious task to do taxes, it’s quite interesting to see the number of ways you can legally reduce your taxes and still have a higher income, provided you take all the offering that the government has offered to date.