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Paying Income Tax when the year-end approaches becomes very tough and difficult for businessmen along with the salaried class of people. Many the chaotic situations for most people as they have to clear dues for various policies they have adopted and fulfilling their rents. But if you ever wish to keep calm and cool despite the financial stress, then you must be acquainted with the ins and outs of saving your tax.
In order to understand how much money can be kept at hand, you have to understand some of the slabs. Based on how much money you earn every year, the taxpayers are identified into various income tax slabs.
Therefore if you are very much eager to save your hard-earned money, which everybody wishes, then you have to invest some of your money in various market policies or put them all together in savings for future benefits. Apart from this, you can implement several allowances to save your taxes. Below are given some ways to save on taxes:
Here are the some of the best ways to save tax.
Invest in These 3 Types of Insurance Plans
The various insurance policies that you purchase from your market not only help to grow economically but also safeguard you from the clutches of tax collectors. Now you can find out how the various insurances would help you to save your income tax.
Life Insurance Policies not only coverage for one’s life but as well provides a definite path to save your taxes. In a life insurance policy, one has to pay a fixed premium on a yearly basis.
This good return comes back to him or her in deaths, sickness or accidents. In this case, the premium which is paid for the insurance policy is subject to a tax deduction which is mentioned under section 80C of the Income Tax Act.
Unit Linked Insurance Plan is an insurance-linked market plan. Under this scheme, investors are offered both the benefits like one for investing and the other one as protection under this single plan. Financial investments which are made under this plan are also eligible for a tax deduction and help with monetary growth.
The cost required for gaining medical benefits, hospitalization and going through the process of treatment is much higher these days than it had been earlier. Therefore insurance policy has become an indispensable part of your life. A health insurance policy helps to cover all the expenses that are made to take care of your health problems. The one who can pay premiums can save your taxes, upto Rs. 15,000 to Rs. 20,000.
There are several ways that would help one to save taxes in India. Availing of medical insurance would help you and your family to claim for a reduction of your income tax given. For the businessmen, travel and food expenditure could be considered so as to save on taxes apart from the ways as mentioned earlier. The salaried taxpayers might use their leave travel allowances and house rents to save their taxes. Therefore, one should have cleared their objectives and linked their tax instruments to achieve their goals.