The good thing about paying taxes is that you know the funds collected by the government will be used to finance existing and future projects in the infrastructure and health domain. However, the not so good thing about paying taxes is that it leaves you thousands of rupees poorer. That said, there is always a way out. Many taxation service providers in India offer professional consultation services to help their clients save tax by claiming deductions allowed by the government. If you are a salaried individual looking to save tax, hiring professional taxation services in India can be the way forward. Continuing the discussion, the post lists some ways in which you can save tax. Take a look.
- Request Your Employer to Restructure Your Salary
If you are spending money due to job related obligations, request your employer to restructure your salary. Some examples of such expenses are: buying a uniform, spending to entertain clients and buying and reading magazines for self development (as a part of your job responsibility). Your employer must pay for such expenses. Technically speaking, the amount you receive from the employer is not a part of your salary, which is why all such receivings are exempt. Request your employer to provide you a proof every month, which you will have to submit to claim deductions. - Invest to Reduce tax Burden
Under Section 80C deductions, there are several investments that come with tax rebates. For example, you can claim deductions, if you:- Contribute to your EPF account
- Deposit in your PPF account
- Invest in different schemes such as: Senior Saving Schemes, National Saving Certificates and Sukanya Samriddhi Account.
- Claim Deductions on Leave Travel Allowances and Medical Expenses
You can claim exemption on some allowances provided by your employer to cover personal expenses such as treatment costs. To claim exemption on this allowance, you will have to submit a copy of your medical bills. You can also claim exemption on medical expense of dependants. The amount must not exceed INR 15,000 in a financial year. Leave travel allowance provided by your employer is also tax-free, given the condition that:- You traveled when you were on leave
- The travel destination is within India
- You took the shortest traveling route
- You did not travel more than two times in a block of four years.
- Claim tax Benefits on Rent Payment
If you live in a rented accommodation, you can claim deductions on HRA, that can be partially or fully exempt from tax. If you live with your parents, you can pay them rent (which they must include in their return) to claim HRA exemption. To be able to claim this deduction, collect your rent receipts and compile them in a file. If your rent payment exceeds INR 1 Lakh in a financial year, you will have to submit a copy of your landlord’s PAN card and rent agreement.
Conclusion
These are just some ways in which you can save tax. Buy health insurance for yourself or your family members to claim deductions up to INR 25,000. It is also advisable that you consult a professional tax services provider in India to learn about more deductions and design a tax saving strategy.
These are just some ways in which you can save tax. Buy health insurance for yourself or your family members to claim deductions up to INR 25,000. It is also advisable that you consult a professional tax services provider in India to learn about more deductions and design a tax saving strategy.
