No matter how hard one tries to deny the fact, no one in this world is happy with what they earn. On one hand, people who earn less aren’t happy because they are not able to meet the financial needs of their family properly. On the other hand are people who earn decent 6 to 7 figure salary every year but then, they have to pay income tax which disappoints them.
For the first kind of people, all I can say is step up in your life and take better paying jobs to increase your monthly income or simply manage your income wisely. However, for the second kind of people we have come up with this list of investments which can help people claim reduce their taxable income and save their money.
- Buy a Home: Buying a home; your first one would allow you to claim up to Rs 1.5 lakh deductions under section 80C as a deduction on the interest paid against the loan every year. Not just that, you’ll be able to able to claim a deduction worth Rs 2 lakh per year on the principal paid.
- Invest in Tax Saving Investment Securities: Investment securities such as Fixed Deposit, Mutual Funds, SIP, Post-office term deposit, Life insurance schemes or any other security accepted under section 80C is best option for tax saving. The government of India or the Income tax department allows people to use up to Rs 1.5 lakh from their annual income to invest for their future. The catch is, this amount can be claimed as a deduction at the time of tax filing.
Don’t forget to check the eligibility conditions for the above shared tax-saving provisions in detail. Senior citizen fixed deposit scheme is also a good investment options for Senior citizens after retiring from their job, it can be choosen as monthly scheme also. It will also save tax. Hope now you understand How to Reduce Your Taxable Income and Save Money?
Additional read: Looking To Save Tax? Take A Look At These Top 6 Investments