As the financial year draws to a close, tax planning becomes crucial. There are so many options out there, so to help ease your decision making, we have rated and compared the most popular schemes.
As an investor you should be aware of these tax implications so that you can create a tax-efficient investment portfolio.However, your investment decisions should not be based only on tax-saving criteria.
Tips to save Income tax for Salaried Person
Explore Section 80C,Section 80CCC, and Section 80CCD, and in combination, you could claim a deduction of 1,50,000 maximum.You can invest in PPF account, five-year tax saving Fixed Deposit, Pension Plans, Life Insurance Policy, Employees Provident Fund or Nationals Savings Certificate [NSC]
When its the end of every financial year and you get Goosebumps -on how to show investment proofs to save tax? Are you still understanding HRA, insurance, LTA, and medical claims? Are you scared if after submitting proof still, you may attract Income tax notice? Its better you save at the beginning of the financial year and inform your company the same.
It is important to consider tax–efficient investing whenever possible. Investors can improve returns by applying strategies to minimize their tax burden.
Section 80C has listed out many Investment options that can not only help save on tax but also help to grow wealth.
As the tax season draws to a close, choosing and investing in the right scheme is key. Tax saving options can get confusing, so to aid your decision on which option is better, we have rated the different options on a variety of parameters.
Income tax has its own set of complex rules and is vast and varied. One such area of complex rules is that of capital gains and related tax rules. Capital gain is the gain one makes from sale of a financial or non financial asset. Financial asset can mean equity shares, mutual funds, bonds, exchange traded funds, gold bonds and non financial asset would be real estate. Capital loss is the loss one makes from sale of financial and non financial assets.
The taxation of an individual is dependent on the residential status, which in turn is dependent on the presence of the individual in India.
The residential status of an individual in India is classified as under-
- Resident in India-
- a) Resident and ordinarily a resident (ROR)
- b) Resident but not ordinarily a resident (RNOR)
- Non Resident in India – An individual is treated as a resident in India if any one of the following conditions are satisfied-
- a) Individual’s stay in India is 182 days or more in the financial year
Since the full amount invested upto Rs 1,00,000 is eligible for 100% tax deduction benefit. This investment is reduced from your Gross Income and therefore, can reduce your tax slab and therefore tax liability. The benefit is a deduction and not a rebate, so, in effect, the entire amount saved is tax deductible
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