Everyone wants a future in which they and their families can live comfortably financially. The amount of tax we pay is the only obstacle we face to ensure this. You will be required to pay more taxes if your income rises. Taxpayers always look for new ways to pay the minimum tax on their salary because of this.
Today, we’ll talk to you about tax-saving deductions and tools that can help you pay less in taxes.
What are the various components of a pay slip?
Basic Salary
Dearness Allowance
HRA
LTA
Reimbursement
Children’s Education and Hostel Allowance
House Rent Allowance
Standard Deduction
Professional Tax
Section 80D: Paying the premium for a health insurance policy
For oneself, one’s spouse, and any dependent children (Rs. 50,000 for parents over the age of 60Section 80E
Tax deduction on the “interest component” paid against the loan taken for the higher education of a particular assessee for 8 years
Section 80C
Specified investment and payment options such as ELSS, EPF, PPF, Fixed deposit for 5 years, Sukanya Samriddhi Yojana, among others.
Section 80D
Allows deduction to the extent of Rs 75,000 (disability is 40% or more but less than 80%) & Rs 1,25,000 (in cases of severe disability – 80% or more)
Section 80G
It is an income tax benefit given on donations made to certain charitable institutions—50% or 100% of the eligible amount (T&C)
Home Loan Payments:
Can enjoy education up to Rs 2 lakh on a new house On principal amount: Up to Rs. 1.5 lakhs per 80C, based on the amount of interest:
Life Insurance Policy Maturity
Under certain conditions, the maturity of a life insurance policy will be exempt from tax for up to Rs 2 lakhs;
20%: Prior to April 1, 2012, policies 10 percent: 15 percent: Policies issued after April 1, 2012 Policies for a person with a disability or disease that were issued after April 1, 2013
