Keywords or Tags - Tax saving investments, tax saving tips, tax saving schemes
Among all assesses, the ones with the least tax saving options are definitely the Salaried Persons. This is more of a hassle for those on a higher pay scale, and this typically includes the salaried individuals who fall under the 30 percent tax bracket.
So if you are already there or even otherwise want to legitimately reduce your tax liability, then here are some useful Tax saving tips for Salaried Individuals. These Tax Breaks can be widely divided into Salary Restructuring and Tax Saving investments.
Salary Re-structuring
First of all, you need to know the Tax benefits that you already derive from your existing Salary Structure. For all you know, it could be designed to your benefit by your Employer. Now that brings you to the threshold of what a good salary structure means.
A good salary structure is one that enables the Employee to get the most out of the available tax saving schemes. To analyze that, you need to go through the components of your salary after having a comprehensive knowledge about the exempt allowances, reimbursements and employee-friendly benefits and perks. If you find that complicated, then not to worry, you can avail one of EazyKar’s Services and our support team will personally educate you on what’s best for you.
An ideal salary structure allows the following tax deductions to help reduce the tax liability of the Employees. You can avail these tax deductions by producing the relevant bills to your Employer. Even if salaried, there are several tax deductions that you can claim in order to reduce your tax liability. However, that cannot be done overnight and is a gradual process that needs to be planned right from the start of the Financial Year.
Some Tax Deductions that you can claim
House Rent Allowance - Use our HRA Calculator to figure that out
Standard Deduction - Up to Rs.40,000 per annum
Uniform Allowance - This is permitted only if you are required to wear one.
Children Education Allowance - (Max 2 children) 100 per month per child for Tuition Fee (Educational institutions list Education Fee as ‘Tuition Fee’ in their receipts) and Rs. 200 per month per child for Hostel Fee.
Tax Saving Investments
It is not always possible to have the final word with your Employer and therefore you must also know a few things that you can do on your own. So depending on your personal goals and interests, you could consider investing in Tax Saving Schemes. However, this is one area where you need to be on guard and avoid picking Tax saving investments that is marketed to you by a sales guy. That becomes a piece of cake for our clients because unlike other Tax Consultants, EazyKar provides time-based services. So you can always call our support team before you make any tax saving investments.
Tax Saving Plans under 80 C
Irrespective of how much you invest under these tax saving schemes, the maximum ceiling limit to claim tax deductions on all of these tax saving investments is Rs. 1,50,000. Some of them include:
• Employee Provident Fund
• Public Provident Fund
• National Savings Certificate or NSC
• Tax Saving Fixed Deposits with a minimum tenure of 5 years, interest is chargeable
• ELSS
• Tax Saving Mutual Funds
There are several ways to legitimately reduce your Tax Liability, however, to avail these Tax Benefits, you need to know in which direction you must head. It is highly recommended that you read through our article on Debt Management in order to get a better understanding of how to further reduce your tax liability by making Tax saving investments and claiming further Tax Deductions on them. In case you have just discovered that your Form 16 missed some details and that you qualify for a Tax Refund, contact us and our support team would be glad to extend its services to you.
By Pooja Hegde
Keywords or Tags - Tax saving investments, tax saving tips, tax saving schemes Among all assesses, the ones with the least tax saving options are definitely the Salaried Persons. This is more of a hassle for those on a higher pay scale, and this typically includes the salaried individuals who fall under the 30 percent tax bracket. So if you are already there or even otherwise want to legitimately reduce your tax liability, then here are some useful Tax saving tips for Salaried Individuals. These Tax Breaks can be widely divided into Salary Restructuring and Tax Saving investments. Salary Re-structuring First of all, you need to know the Tax benefits that you already derive from your existing Salary Structure. For all you know, it could be designed to your benefit by your Employer. Now that brings you to the threshold of what a good salary structure means. A good salary structure is one that enables the Employee to get the most out of the available tax saving schemes. To analyze that, you need to go through the components of your salary after having a comprehensive knowledge about the exempt allowances, reimbursements and employee-friendly benefits and perks. If you find that complicated, then not to worry, you can avail one of EazyKar’s Services and our support team will personally educate you on what’s best for you. An ideal salary structure allows the following tax deductions to help reduce the tax liability of the Employees. You can avail these tax deductions by producing the relevant bills to your Employer. Even if salaried, there are several tax deductions that you can claim in order to reduce your tax liability. However, that cannot be done overnight and is a gradual process that needs to be planned right from the start of the Financial Year. Some Tax Deductions that you can claim
House Rent Allowance - Use our HRA Calculator to figure that out Standard Deduction - Up to Rs.40,000 per annum Uniform Allowance - This is permitted only if you are required to wear one. Children Education Allowance - (Max 2 children) 100 per month per child for Tuition Fee (Educational institutions list Education Fee as ‘Tuition Fee’ in their receipts) and Rs. 200 per month per child for Hostel Fee.
Tax Saving Investments It is not always possible to have the final word with your Employer and therefore you must also know a few things that you can do on your own. So depending on your personal goals and interests, you could consider investing in Tax Saving Schemes. However, this is one area where you need to be on guard and avoid picking Tax saving investments that is marketed to you by a sales guy. That becomes a piece of cake for our clients because unlike other Tax Consultants, EazyKar provides time-based services. So you can always call our support team before you make any tax saving investments.
Tax Saving Plans under 80 C Irrespective of how much you invest under these tax saving schemes, the maximum ceiling limit to claim tax deductions on all of these tax saving investments is Rs. 1,50,000. Some of them include:
• Employee Provident Fund • Public Provident Fund • National Savings Certificate or NSC • Tax Saving Fixed Deposits with a minimum tenure of 5 years, interest is chargeable • ELSS • Tax Saving Mutual Funds
There are several ways to legitimately reduce your Tax Liability, however, to avail these Tax Benefits, you need to know in which direction you must head. It is highly recommended that you read through our article on Debt Management in order to get a better understanding of how to further reduce your tax liability by making Tax saving investments and claiming further Tax Deductions on them. In case you have just discovered that your Form 16 missed some details and that you qualify for a Tax Refund, contact us and our support team would be glad to extend its services to you.