What are the Different Ways in Which You can Save Taxes?

Money saving is taught to us from the beginning. We try to save everywhere and even in the taxes. But not paying your taxes are not saving, it’s illegal. But there are many ways one can easily save thousands of rupees in taxes. Here is the list of the different way in which you can save taxes.

• Agriculture Income: if you have agriculture land, you won’t need to pay taxes on the rent or income you received from it. It’s totally tax-free in India. One does not need to pay any taxes on Incomes that obtain from the agriculture.
• Interest in saving account: any income from the interest on your saving account is tax-free up to 10,000rs. Which mean if someone gets 20,000rs as saving account interest, they have to pay taxes on 10,000rs only.
• Marriage Gifts: we have a tradition to gift money to a newlywed That money which is received as a gift in marriages is totally tax-free. It could be in any form like a check, cash or a gift, one does not need to pay taxes on that.
• 80C: Under Section 80C, one can save up to 1, 50,000rs in taxes. There are many ways you can save in this like investing in Public Provident Fund, while paying life insurance premium, paying tuition fees to your children (up to 2 children). You can also save money in fixed deposit in banks and post office under section 80C.
• Insurance, loan, and donation: Under Section 80E, interest paid on the educational loan is tax-free. You can also save taxes in medical insurance under section 80D. Any donation which was given under section 80G is tax-free as well.
• Travel, hotel, and food expenses: employees can save taxes on traveling or staying in the hotel or food by billing it to the company directly. If the person doesn’t pay those bills out of his own pocket and it was an allowance by the company, they don’t have to pay taxes on those too.
• House rent allowance: under HRA, you don’t need to pay taxes if you are paying rent over 1, 00,000 per year. There are many formalities also including in it like submitting your house owners pan card and rent receipt that you received every month.
• Profit from a share: only if you hold those share or mutual fund for one year, you don’t have to pay taxes on the profit you received after selling Also, the dividends you received from the shares are tax-free.

There are many legal and easy way you can save taxes. Paying taxes are the duty of every single civilian but you can also perform your civic duty and save money as well.