The General Budget introduced a few days ago comes as a boon for farmers, financially weaker section, women and children belonging to rural areas, etc. However, the education sector receiving a budget in the second term, the levy of taxes reducing from 10% to 5% over 2.5 lakhs to 5 lakhs salary slab gives million of salaried people hope to save a certain amount of money at the end of each month. Here we will take a look at various ways to save tax from the salary received monthly in reference to the recently announced Budget 2017.
Several Ways to Save Tax for Salaried People
- The deducted percentage on home loans give a golden opportunity for several salaried persons to save tax as the rates have been closed at 8.65% as Fixed Interest Rates. Those who are bounded by home loans or any property loan tend to get relief from paying tax.
- A small portion of amount contributing to Public Provident Fund (PPF) would help a salaried person to save tax at the end of the year. Now at a margin of 8.1% after being announced in Budget 2017, the PPF scheme, specifically a tax-free saving platform, one can deposit any sum of the amount thus keeping it fix for years and using it whenever required.
- National Saving Certificate (NSC) can be another platform chosen so as to save Income Tax annually by a salaried person. In fact, a necessity for all the people working in MNCs, small companies, government, semi-government can avail the benefit. Having a maturity date of 5 to 10 years, one can deposit any amount for few years thus availing the benefit from filing taxes.
- Exemptions or Reimbursements may also help a person in saving tax. Though optional for a limited section of people who receive any kind of traveling, house rent, allowance may be beneficial to save tax. A salaried person who avail the benefit can fill the option of physical stress (traveling or leave travel) and economic stress (house rent) during Income Tax process.
- Medical Insurance too can help in saving a pretty good amount of tax for a salaried person. Those who give away Rs. 15,000/- (minimum) medical plan through any insurance unit are eligible for tax deduction as per Budget 2017.
- Although limited to a family person, those who have two or more children can avail the Tuition Fees deduction method as this may help in saving tax at a bigger scale. While filling up Income Tax form, enter the school or college tuition fees with its amount and receipt no., you can easily land up in saving tax from the total amount.
- The following scheme is also limited to those salaried people who are blessed with a girl child. The Sukanya Samridhi Account, as per Budget 2017, helps salaried parents to receive best of small saving scheme thus having the highest amount of return on tax filing. Investment locked till the child turns 18, it’s maturity is free of any tax.
- Simple yet seldom, this particular method can only be carried out if one wishes to. Well, giving away a sum of an amount from your monthly salary to any recognized charity unit would 100% help you in saving a large amount of tax. Moreover, a donation to the PM Relief Fund (any of the one) would give 100% tax benefit along with paying money to any scientific institution, religious body, some notified NGO or any political party may help you in claiming 100% tax rebate. However, this would only be possible if you keep the receipts safely with you.
Hope, the above tax saving scheme for salaried people help you in either of the mentioned ways. So, to avoid the big burden of filing tax, start saving or investing somewhere from the beginning of the fiscal year.
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