How can I get maximum tax benefit in India?

How can I get maximum tax benefit in India?

Here’s a list of popular investment options to save tax under section 80C.

1. Public Provident Fund.
2. National Pension Scheme.
3. Premium Paid for Life Insurance policy.
4. National Savings Certificate.
5. Equity Linked Savings Scheme.
6. Home loan’s principal amount.
7. Fixed deposit for a duration of five years.
8. Sukanya Samariddhi account.

Which expenses are tax deductible in India?

Various Types of Tax Deductions in India

• Public Provident Fund (PPF)
• Life Insurance Premiums.
• National Saving Certificate (NSC)
• Bank Fixed Deposits (FDs)
• Senior Citizen Savings Scheme (SCSS)
• Post Office Time Deposit (POTD)
• Unit-linked Insurance Plans (ULIP)
• Home Loan EMIs.

How can I get tax benefit?

Recommended ways of saving taxes under Sec 80C,80D and 80EE

1. Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
2. Buy Medical Insurance, maximum deduction allowed is Rs.
3. Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.

How much is tax exemption in India?

If your annual income does not exceed Rs 5 lakh, you are eligible for a tax rebate of up to Rs 12,500….INCOME TAX EXEMPTION LIMIT.

Taxable Income	Tax Rate
Rs 5,00,000–Rs 7,50,000	10%
Rs 7,50,000–Rs 10,00,000	15%
Rs 10,00,000–Rs 12,50,000	20%
Rs 12,50,000–Rs 15,00,000	25%

Which business is tax free in India?

Income from farming and agriculture is tax free. Agriculture income is exempted under section 10(1) of Income Tax Act. Even income from activities such as poultry and cattle rearing is considered as agricultural income.

How do I reduce my tax to zero?

Tax Exempted Salary Components

1. Meal Coupons.
2. Car Maintenance.
3. EPF (Contribution by Employer)
4. NPS (Contribution by Employer)
5. Gift voucher.
6. Mobile Phone and the Internet Bill Reimbursement.
7. Newspaper/Journal Allowance.
8. Children Education/Hostel Allowance.

What are the benefits available to salaried employees in India?

Employees: Benefits allowable List of benefits available to Salaried Persons* [AY 2022-23] S. N. Section Particulars Benefits A. Allowances 1. 10(13A) House Rent Allowance (Sec. 10(13A)& Rule 2A) Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras)

What are the different types of tax deductions in India?

There are various kinds of income tax deductions that can be used to reduce the taxable income in India. There are 19 ways in which tax deductions can be availed, ranging from public provident funds to life insurance and loans. What is Tax deductions?

What is the amount exempt from income tax in India?

Amount exempt from tax varies from Rs. 200 per month to Rs. 1,300 per month. 19. 20. Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)

Is health insurance premium tax deductible in India?

Health insurance premium paid for self, spouse and children qualifies for income tax deduction under section 80D of the Indian income Tax Act, 1961. The deduction allowed under this section is Rs. 25,000 for youngsters and Rs. 30,000 for senior citizens.