Income Tax Saving Investments Tax Planning
Today, We want to share with you Income Tax Saving Investments Tax Planning.
In this post we will show you Tax Planning: How to Save Tax legally in different ways, hear for Best Ways to Save Tax Legally we will give you demo and example for implement.
In this post, we will learn about How To Save Tax In India- 10 Ultimate Tips For Salaried with an example.
Today I will tell you the best tips and tricks of tax saving (2019-2020)
Tax Planning: How to Save Tax legally in different ways : Everyone wants to increase their income (salary) and everyone want to save taxe.
And many ways to save income tax and You might know few of these but I am sure you will find at least 1 new way from this article that can save more tax this year
1- Interest Income on Saving Account
You might not be aware that interest income on saving accounts is not taxable up to 10k Rupees and If you earned 15k as interest from all your savings accounts then you have to pay tax only on 5k rupees its great idea
2- Interest Income on NRE Account
Indian Government is very very friendly to NRIs amd Someone with NRE account does not have to pay tax on interest income on saving or fixed deposit.
3- Maturity or Claim amount by Life Insurance
As per amendments introduced in the Finance Act, 2003, any proceeds receive on account of maturity or surrender of an insurance policy were exempt from tax its only if the premium paid did not exceed 20% of the sum assured.
4- Educational Scholarship
Any amount received as a scholarship for education is not taxable in india and It does not matter if the scholarship is granted by government trust or private trust.
5- Profit from Selling Shares or Equity Mutual Funds Only after one year holding and its long term capital gains.
If you invest in stocks/ mutual fund then you can make your profits 100% non-taxable in india. Do not sell your equity before holding for 1yr.
6- Dividends received from Shares or Equity Mutual Funds
Stocks & Mutual Funds distribute dividend to share holders and All of the dividend are tax-free in the hands of the receiver
7- Amount received as Gifts on marriage
Do you know that the gift received like cash,cheque,gifts on marriage are totally tax free in india ?
8- Agriculture Income
income derived from Agriculture lands is taxfree.
9- HUF account for secondary income
10- Inherited Amount through Will
11- Well Known Tax Saving Options under section 80C
12- Money Received from Provident Funds (after 5 years)
13- Tax Saving from Home Loan
14- Tax Saving on Education Loan,Section 80E
15- Medical Insurance,Section 80D
16- Donations ,Section 80G
17- Distributed Profit to Partners in Partnership Firms
18- Travel/Hotel Expenses in Business
19- Food Expenses in Business
20- Leave Travel Allowance
21- House Rent Allowance
22- Income from Gratuity
23- Meal Coupons
24- Medical Bills
25- Daily Travel Allowance
26- Company Leased Car
you can drive company leased car to save tax on cars EMI and fuel.
27- Telephone/Internet Expenses
28- Money under VRS (Voluntarily Retirement Scheme – Upto 5 lacs)
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It is only applicable for employees of public sector company(psc) or authority established under Center government or State government.
Written By -RD&JD