Having an understanding of the tax slabs in light of the new budget is important for Income Tax filing in the later part of the year. Once equipped with the understanding, one can easily calculate the amount payable with the help of any third-party Income Tax Calculator that is available online.
Ideas that Help Save Tax:
In the progressive taxing system of India, saving on Income Taxes is usually of interest to the individual. Once the Income Tax Calculator, calculates and lets you know the amount you have to pay, you can invest your money in the market and buy insurances to save on the payment of taxes. More tips on saving on taxes are listed below:
- Insurances:
Health and Life insurances are of prime importance in the face of growing health bills and these insurances even let you save on taxes. You have to pay premiums monthly to get reimbursed for your medicals bills under health insurances and in life insurances, you get life coverage and a large amount of money is paid to the nominee upon the death of the insured person, in return of paying premiums. There are scopes of saving 15000 to 20000 rupees and more on taxes through insurance.
- Investments:
Mutual funds with huge returns, tax saving fixed deposits with attractive interest rates and benefit on tax savings, post office time deposit with tax benefits, national saving certificates with tax exemptions available on them are the ideal offers that boost the economy while guaranteeing advantageous returns for the masses.
- Provident Funds:
The goal for provident funds are mainly based on long term investment planning, for this reason, the pension fund falls under tax deduction and benefits from it.
- Loans:
Home loans for construction or buying a house or even for reconstruction and renovation purposes, are eligible for yielding tax benefits.
- Others:
Based on advantageous tax returns policies, equity linked saving schemes that offer returns in either dividends or growth options, long term capital gains from the sale of long term assets are non-taxed, revenue generated from agricultural activities is not taxed, investment returns to PPF accounts are actually tax free, Interest for education loans are tax free, scholarships awarded, voluntary donations made are exempted from tax and the interest income from the saving accounts are not taxed.
Investments made to boost the economy further are exempted from the taxing system to quicken the pace of growth of the country. For this purpose, there are various ways available to get maximum returns from Income Tax. With that being said, the safety and security provided by the tax saving instruments that are available in the market are advised to be taken into careful consideration before making any kinds of payments.
For basic information on how to file taxes online and for guidelines to follow to not suffer in the hustle of year-end tax filing for businesses and start-ups click here.
