Are you paying extra tax? You are really thinking about tax saving investment. You do not pay your tax properly, and then you will have to pay more than you should. Income tax seems to be complicated, which folks are afraid to deal with taxes. Saving tax is not a difficult task as you think it is.
Everyone does not know about tax saving investment. When you put efforts, you will save extra tax than you are imagined. Let’s talk about tax saving investment that will make us eligible for tax benefits. Here are some expenses that are helpful to you and you can save a lot of taxes for you –
Tax saving expense:
- Tuition fee –
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We generally spend more amount of our income to give the best education to our kids. Few laws offer you golden opportunity to compensate the expenses on their tuition fee by diminishing your taxes. Its deduction comes under I-T act.
- Deduction on rent paid –
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Have you ever been gone through HRA? If you do not get HRA in your salary because you still receive tax advantage as per the I-T act.
- Repayment of a home loan –
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You will be happy to know that extra burden of your home loan EMI can diminish the burden of taxes. You will also take advantage of both principal and interest element. When you pay your first house, you will certainly save a greater amount of savings.
- Repayment of education loan –
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Due to the increasing cost of educational courses, people frequently go for educational loans. The deduction is also available on tuition fee, your educational loan EMI is also bringing tax advantage to you. Income tax sections have an individual provision under act 80E.
- Pension funds –
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Usually, when you start earning, you think of the retirement day to save money. This is the fine way to start investing in pension funds. You can eliminate your taxes when you contribute to definite funds.
- Medical insurance and health check-up –
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The extra expenses are the main part of everyone’s life. For your relief and relax, tax laws allow you to make some tax when you spend money towards medical and health insurance. Apart from these expenses, there are some others expense such as:
- Medical expenses of disable dependent
- Medical expenses of disabled individual
- Treatment of specific disease
- Charitable donations
- Donations for scientific research development
The best taxes saving investment are such as –
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- EPF – your employ open EPF, then you are investing investment alternatives.
- VPF – your 20% salary goes for EPF.
- PPF – invest in PPF, it is a very good alternative if you want a long-term investment opportunity.
- Sukanya samriddhi scheme – this saving investment option is one of the best options as it offers high rate returns and investment.
- NPS – postal department offers this scheme. This is a highly secure option with no risk.
- Five-year post office time deposit account – five years fix deposited is opened with India post office’s branch.