Tax Saving
There is more to tax saving than the exemptions available on investment made by you. With right investments, you will pay the right amount of tax and know how to tax proof your income and gains. After all, your capital is more productive in your hands and it can work wonders for you if invested properly. It starts with tax saving which can increase the take home income. These investments can also cater to a few of your needs. Tax saving can be done under different sections of Income Tax Act.
Under Sec 80C- ELSS Tax saving Mutual Funds, Life Insurance, Tax Saving FDs, PPF, etc.
Under Section 54EC - Capital gain tax exemption
Under Section 80D - Health Insurance
Keynotes:
- By careful understanding, one can reduce tax liability substantially.
- Do not wait for last minute. Start in April and use monthly investments to reduce risk. It will be easier on your pocket as well.
- Use tax efficient investment avenues. You should not be paying too much tax on their returns.
