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BlogTax Saving Tips: Income Tax-Saving Tips in 2020

Tax Saving Tips: Income Tax-Saving Tips in 2020

People earn money by working hard, but when this money is deducted from your salary at the end of the year as tax. (Tax-Saving Tips) So this is certainly the most painful moment. Everyone wants his tax to be minimized but taxpayers often do not know enough about other options. Apart from the Income Tax Act Section 80C, there are many other Income Tax Acts in which tax is exempted in many ways. Today we are going to tell you about some such special options.

Salary Reconstructing

It is not always possible to revamp your salary. But if your company allows this, and you have good relations with your HR, then some of your salary may be reduced by tax. Take food coupon instead of launch allowances, this gives you tax exemption of up to Rs 60,000. Allow Medical Allowances, Transport Allowances, Education Allowances, Uniform Allowances (if any) and Telephone Expenses to remain in the salary, and show the correct bill for these so that they are exempt from tax. Not only this, use a company car instead of your car to avoid paying more tax.

Use section 80c | Tax-Saving Tips

Use Section 80C as much as you can, because, under this, you will get a tax deduction of up to Rs 1,00,000. To make good use of this stream, invest in these options. Public Provident Fund Life Insurance Premium National Savings Certificate Equity Linked Savings Scheme Fixed Deposit in Banks and Post Office for 5 years 2 Paying tuition fees for children’s education.

Other options other than 80C

If your amount is working from one lakh rupees, then there are other options other than Section 80C. Section 80D – Medical insurance of Rs 15,000 will be deducted for self, spouse and dependent children and Rs 20,000 for medical parents above 65 years of age. Section 80 CCF- A deduction of Rs. 20,000 with 1 lakh under Section 80C for investment in notified infrastructure bonds. Section 80G – Giving donations to specified funds and charitable institutions.

House rent: Tax-Saving Tips

Are you paying your house rent yourself and you are not getting any HRA from the company? So here are some options that you can take advantage of under Section 80GG. 25% of the total income, or Rs 2,000 per month, or pay more than 10% of the total income in addition to the rent if you live with your spouse and minor child and the house you live in is yours and there If you do all the work in your office, then there will be no deduction of any kind from your salary.

If HRAs make up part of your salary, you will get minimum exemption in the three below. The current HRA that you will get from your boss, the current rent of the house that you will pay, this includes a 10% pay cut (including basic + dearness allowance if any) 50% deduction from your salary (for metro) and 40% Salary deduction (for non-metro) 5. Save tax from home loans.

Save tax with home loans

The principal principal of your loan falls under 80C, with a deduction of Rs.1,00,000. Not only this, under Section 24, there is a deduction of 1, 50,000 in interest separately. 6. Travel Leave Allowance Use Travel Leave Allowance for your vacation, which you will get twice in four years. If you have not taken advantage of them in these four years, then you can take a holiday now. With this you can take advantage of the next three.

Tax on bonus: Tax-Saving Tips

The bonus you get from the boss is fully taxable the year you got it. Therefore, request your boss that if the tax rate is reduced now or in the coming year. Also, see that you can increase your bonus for the next year. Provide all the information related to your tax to your boss so that no tax is levied on him while giving a bonus.

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