Income Tax Saving Investments Tax Planning

Income Tax Saving Investments Tax Planning

Today, We want to share with you Income Tax Saving Investments Tax Planning.
In this post we will show you Tax Planning: How to Save Tax legally in different ways, hear for Best Ways to Save Tax Legally we will give you demo and example for implement.
In this post, we will learn about How To Save Tax In India- 10 Ultimate Tips For Salaried with an example.

Today I will tell you the best tips and tricks of tax saving (2019-2020)

Tax Planning: How to Save Tax legally in different ways : Everyone wants to increase their income (salary) and everyone want to save taxe.

And many ways to save income tax and You might know few of these but I am sure you will find at least 1 new way from this article that can save more tax this year

1- Interest Income on Saving Account

You might not be aware that interest income on saving accounts is not taxable up to 10k Rupees and If you earned 15k as interest from all your savings accounts then you have to pay tax only on 5k rupees its great idea

2- Interest Income on NRE Account

Indian Government is very very friendly to NRIs amd Someone with NRE account does not have to pay tax on interest income on saving or fixed deposit.

3- Maturity or Claim amount by Life Insurance

As per amendments introduced in the Finance Act, 2003, any proceeds receive on account of maturity or surrender of an insurance policy were exempt from tax its only if the premium paid did not exceed 20% of the sum assured.

4- Educational Scholarship

Any amount received as a scholarship for education is not taxable in india and It does not matter if the scholarship is granted by government trust or private trust.

5- Profit from Selling Shares or Equity Mutual Funds Only after one year holding and its long term capital gains.

If you invest in stocks/ mutual fund then you can make your profits 100% non-taxable in india. Do not sell your equity before holding for 1yr.

6- Dividends received from Shares or Equity Mutual Funds

Stocks & Mutual Funds distribute dividend to share holders and All of the dividend are tax-free in the hands of the receiver

7- Amount received as Gifts on marriage

Do you know that the gift received like cash,cheque,gifts on marriage are totally tax free in india ?

8- Agriculture Income

income derived from Agriculture lands is taxfree.

9- HUF account for secondary income

10- Inherited Amount through Will

11- Well Known Tax Saving Options under section 80C

12- Money Received from Provident Funds (after 5 years)

13- Tax Saving from Home Loan

14- Tax Saving on Education Loan,Section 80E

15- Medical Insurance,Section 80D

16- Donations ,Section 80G

17- Distributed Profit to Partners in Partnership Firms

18- Travel/Hotel Expenses in Business

19- Food Expenses in Business

20- Leave Travel Allowance

21- House Rent Allowance

22- Income from Gratuity

23- Meal Coupons

24- Medical Bills

25- Daily Travel Allowance

26- Company Leased Car

you can drive company leased car to save tax on cars EMI and fuel.

27- Telephone/Internet Expenses

28- Money under VRS (Voluntarily Retirement Scheme – Upto 5 lacs)

It is only applicable for employees of public sector company(psc) or authority established under Center government or State government.

Written By -RD&JD

Leave a Comment