Tax planning: Donít follow the herd
This is made easier as tax payers can take recourse to various websites that offer insights on tax saving plans, including sites of banks and financial service providers that advise, calculate and explain the options available. These websites also offer help in filing returns. However, for the salaried class, here are a few things that can be done to minimise the tax burden and maximise returns in the long run :-
Section 80C of the Income Tax Act: This section in the I-T Act provides tax breaks for investing in certain financial products. This was provided for by the government to encourage savings in the country. Section 80C investments include life insurance policy, Public Provident Fund (PPF), provident fund (PF), equity-linked savings scheme, home loan principal repayment, New Pension Scheme (NPS), pension products, mutual funds and tuition fee for up to two children. The section offers deduction up to Rs 1 lakh for the taxpayers. Under PPF alone, you are allowed to invest up to Rs 1 lakh per annum. Many experts are of the view that the PPF is one of the best options available for tax
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