There is no escape route from tax as Govt. made it mandatory for every individual to pay tax. However, not paying any amount of tax can result in getting yourself behind the bars. Therefore, it is important to learn how to save tax in a legal way or ethical ways and office at home tax deduction.
Many people in the past tried to evade tax but it resulted in getting arrested and even seizure of property i.e. personal and public too. We as an individual must feel responsible to pay tax during duly. However, there are some ways that you can be helpful in saving your tax.
Investing money is one of the ways to save money. However, there is a catch. As you can subject the cap level up to 1.5 lakhs. As money above this price range is not exempted from tax. There is a wide range of investment types and it will help you to reach your financial goals.
- Tax Saver FD
- Public Provident Fund (PPF)
- ELLS Funds
- Life Insurance Premium
- National Pension System (NPS)
- Home Loan Repayment
- Senior Citizen Savings Scheme
- Tuition Fees Repayment
Pay Health Insurance Premiums
Health Insurance can be another effective way to save money and you can be assured that you will save up to Rs 25,000. However, the limit has been increased up to Rs 50,000 in case of senior citizens. If you have bought insurance in your name and your senior citizens’ parents then there is a good chance that you can save up to a total sum of Rs 75,000 in a year and can save by office at home tax deduction.
If you want to save money then another method that can probably work is by claiming your tax deduction under the House Rent Allowance (HRA). People have claimed a tax deduction up to an amount of 60 – 70 K per annum, on basis of not getting a pay rent under the HRA.
Donation To Charity
Donating money can one of the easiest ways to save money. However, this can only happen if the NGO or the organizations have 80G certificate. Failing to provide such will result in a collapse of tax deduction.
These are some of the legal ways to save money or have a tax deduction. However, it is important to pay regular taxes on time and even you can start work at office at home tax deduction.