Save Tax Save Money

Save Tax often proves headache for everyone. If you have not any plan to save Income Tax then it increases more pain in head. There are many ways to save Income Tax, here I am providing you a some tips for this :-

• Section 80 C :- In this section, you can save taxes from LIC, PPF, Home Loans etc. According to Income Tax Act 1961, you can save tax upto Rs. 1 Lac,. If your annual income is Rs. 5 Lac, then you need to paid tax on annual income of Rs. 4 Lac, from this section.

• Section 80 CCF :- This Section allows Non-Banking financial Companies to issue infrastructure bonds and investors who invest money in these bonds can get an additional tax benefit. You can invest only Rs. 20,000 in infrastructure bonds and have that reduced from your taxable income

• Section 80 D :- This section made Investments towards payment of health insurance premiums, quality for a tax deduction. For individuals less than 65years of age can save tax upto Rs. 15,000 wherease for senior citizens above 65years can save upto Rs. 20,000

• Section 80 E :- Section 80 E provides benefit of interest on Educational Loan taken for Self or Relatives. If you have taken an education loan from any financial institution or an approved charitable institution. This section provides a tax deduction on the loan interest that you are paying.

• Section 80 G :- Section 80 G provides a benefit for those peoples who donate certain money or institution. You have not need to donate or charity every year. The Income Tax Department issues the registration for a period of 2 years.