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Start tax planning well before the year ends! Invest in the best tax savings plan to avail benefits under 80C of the income tax act, 1961. Secure your family's future with suitable life cover as well. Click to know more https://www.bajajallianzlife.com/save-tax.jsp
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Financial freedom helps prevent person from constant monetary worries and concerns in their everyday life. This has to be achieved through lot of hard work and effort. There are several ways to ensure financial freedom such as investments in mutual funds, gold, ornaments, property, etc. but another good and consistent way to save your hard earned money is choosing a suitable tax savings plan. However, tax planning requires a lot of attention as it can prove to be road block in the effort. Too much or too little attention for tax aspect may eat up the effort to ensure financial liberty that you wish to achieve. A little bit of effort, hardwork and strategy gives you fruitful dividends on tax savings. • Salaried people often feel that they don’t have much scope to save money on taxes. However the various allowances and reimbursements that they receive as a part of their salary actually provide good opportunity to save taxes. Besides, tax saving plans can be worked upon various investments such as home loan, child education loan, property investment, insurance policies, etc.
It is advisable while choosing your tax saving plans work carefully on parameters like returns, safety, flexibility and liquidity. Each parameter should be given equal weightage and a composite score before defining your savings plan. As per the income tax act 1961, under Section 80CCE, the overall limit for deduction u/s 80C, u/s 80CCC and u/s 80CCD(1) is Rs. 1,50,000/- Following are some of the best tax saving plans that will help you save your hard earned money from getting shred in taxes: • Life Insurance • Life insurance is one of the best investment tool that range from term insurance to whole life insurance policies, ULIPs to retirement plans, child insurance and saving insurance plans that help you save tax. Policies are issued in Indian rupees. The overall exemption available under Section 80C, 80CCC, 80CCD is Rs 1.5 lakh per annum. • Health insurance • Premium paid towards health insurance for self, family and parents not only provide financial help in case of medical emergencies but also help in tax savings. The quantum of tax benefit, however, depends on the age of the individual who is medically insured. On the premium paid for self, spouse, children and parents, the maximum deduction that can be availed is Rs 25000 a year, provided the age of the individual is not above 60. Premium paid for health policies for his or her parent who would be senior citizen of age 60 or more, the maximum is capped at Rs 30,000. Thus, a taxpayer may therefore maximize tax benefit under section 80D would therefore be a total of Rs 55,000
Sukanya Samirddhi Yojana • SukanyaSamriddhiYojana is a new investment scheme it qualifies for deduction under section 80C. It’s a deposit scheme to encourage education of girl child and get tax benefits as well. You can open an account in the name of your girl up to the age of 10 years for up to two girls (unless you have twins) either in a post office or authorized bank. Investment in this account lets you earn around 8.5% tax-free income and the maximum deposit in a financial year allowed for deduction is Rs 1.50 lakh. The interest rate is subject to a quarterly review.
Education loan • An education loan taken for your child not only fund higher studies but can be a part of your tax saving plans. The interest paid on the education loan can be claimed as deduction, as per section 80E of the Income Tax Act of India, 1961. The repayment of Interest paid on Education Loan is eligible for deduction and moreover there is no cap on the amount to be deducted. • Donations • Are you a regular donor for charity, social or philanthropic purpose or made contributions towards a National Relief Fund? If yes, then you could use these donations to reduce your tax outgo. Donation made to specified entities are eligible for Best tax saving planunder section 80G of around 50 to 100% depending upon the institution to which the donations are made. This section is applicable to all people who make an eligible donation, whether an individual, HUF, NRI or a company.
