INSUBCONTINENT EXCLUSIVE:
House Rent Allowance (HRA) is an important source of saving income tax.
The last date to file income tax returns for financial year 2017-18 is July 31
If you are now wondering over the amount that you are paying as income tax, you should realise that that there are ways to reduce this outgo
Making proper investments is definitely the way out
Under Section 80 C of the Income Tax (IT) Act, one can get a maximum income tax benefit of Rs 1,50,000
This means your taxable income can reduce by a maximum of Rs 1,50,000 if you make proper investments
If you invest in the National Pension System (NPS), it gives you an additional income tax benefit of up to Rs 50,000.Here are five ways in
which you can save on your income tax outgo:1) If you pay rent, you can use that amount to save taxHouse Rent Allowance (HRA) is a part of
It is an important source of saving income tax
All that you are required to do is submit rent receipts given by your landlord to your company
If the rent paid is above Rs 1,00,000 per annum, copies of the landlord's permanent account number (PAN) and the registered house rent
agreement are to be attached.2) Invest in mutual funds via ELSSELSS or equity-linked saving schemes are types of mutual funds which help you
ELSS require investors to invest money up to a lock-in period of three years
ELSS returns are usually higher as compared to other schemes and are partially taxable
Income tax benefits under ELSS fall under Section 80 C bracket of the IT Act.3) Invest in tax-saving schemesFixed deposits (FD) which come
with a lock-in period of five or 10 years help you save income tax
Investments in national savings certificates (NSC) and public provident provident funds also help you save income tax
Income tax benefits under these investments also fall under Section 80 C of the IT Act.4) Income Tax authorities love 'cheerful givers'If
you make donations for charity, you can claim income tax benefits under Section 80 G of the IT Act
You can deduct up to 10 per cent of your adjusted gross income by donating to some charities.5) Invest in NPSThe national pension system is
a contribution-based pension scheme launched by the government
It aims to provides income in old age, market-based returns over a long period, and extends old age security cover to citizens
There is an additional tax benefit up to Rs.50,000 for investment in NPS.
