income tax : 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.
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 a responsible citizen 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.
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 of the 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 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, then 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.
