How To Save More Tax
Outlook Money|October 2020
Make informed decisions, consult an expert and save on your unnecessary tax burden
Vishav
How To Save More Tax
It is that time of the year when most salaried individuals are filing their income tax returns. If planned carefully, one can substantially reduce the tax outgo with exemptions and deductions, allowed within the framework of Income Tax Act.

Salaried taxpayers constantly struggle between income and tax savings. While most people know about the deductions of upto ₹1.5 lakh under Section 80C of the Income Tax Act, there are various other ways to save you tax. According to Prashant Joshi, Co-Founder and Partner, Financial Research and Advisory Services, Fintrust Advisors, understanding one’s taxable income is a pre-requisite, as allowances and deductions for salaried and selfemployed individuals are different. One should know there are taxsaving expenses and tax-saving investment instruments and both help in optimising and maximising tax saving, he says.

Tax saving expenses like insurance premiums, children’s tuition fees, EPF contribution and home loan repayment let you avail tax benefits under Section 80C. Expenses on health insurance premium paid for yourself, spouse, children and dependent parents under Section 80D allow one to go beyond the ₹1.5 lakh limit set under Sec 80C.

“Though Section 80C does offer a major tax-saving deduction, there are other sections that one can explore like 80D, 80E (repayment of an education loan), 80EE (interest payment of the home loan for first-time buyers), 80DD (for a dependant who is differently-abled), and 80GG (rent paid for accommodation), among others. One should consult a tax-planner for better understanding of these sections and their application to save the tax outgo,” Joshi advises.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM OUTLOOK MONEYView all
Gold ETFs And FoFs
Outlook Money

Gold ETFs And FoFs

While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.

time-read
2 mins  |
November 2024
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Outlook Money

PLANNING TO BUY CHILD INSURANCE? THINK TWICE

Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs

time-read
7 mins  |
November 2024
How Do You Define Happiness?
Outlook Money

How Do You Define Happiness?

Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness

time-read
5 mins  |
November 2024
Avoid Crypto As It Is Highly Volatile
Outlook Money

Avoid Crypto As It Is Highly Volatile

I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?

time-read
2 mins  |
November 2024
Invest Right, Don't Speculate
Outlook Money

Invest Right, Don't Speculate

The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital

time-read
4 mins  |
November 2024
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Outlook Money

The Wedding & Budget: Is Minimalist Trend The Right Knot For You?

Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it

time-read
9 mins  |
November 2024
Here's How To Buy An ETF?
Outlook Money

Here's How To Buy An ETF?

Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.

time-read
1 min  |
November 2024
How Passive Funds Help Diversify
Outlook Money

How Passive Funds Help Diversify

Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio

time-read
2 mins  |
November 2024
The Rise Of Passive Funds
Outlook Money

The Rise Of Passive Funds

The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?

time-read
10 mins  |
November 2024
Tax Reforms: What's In Store?
Outlook Money

Tax Reforms: What's In Store?

The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms

time-read
10+ mins  |
October 2024