Everybody wants to pay less tax; if you can dream it, you can do it. Saving taxes is not very hard. You just have to keep all the documents so you can show it as proof in the assessment year, or you’re going to get in trouble which, of course, nobody wants. So here is a simple math “the way you plan your deduction becomes the basis for the calculation of your income tax.” Let me simplify [Gross salary –Deduction = Taxable income].
Health insurance provides medical coverage to the insured against any medical emergency or expenses, plus it can save you some tax you’re paying to the government, add it to your pay slip, and claim deduction from taxable income.
Life insurance is essential for you these days, especially if you are the sole earner of your family. Premium on a life insurance policy can be claimed as a deduction.
One of the most significant advantages of owning a home is the tax benefits on the home loan that come with it. Tax breaks on home loans are a long-term investment that will give you tax breaks for a long time.
The spending for pursuing education can let you save on income tax. The tax benefit of taking education loan is that the interest paid on education loan can be claimed as a deduction while calculating your taxable income.
If you made some contribution to certain relief funds and charitable institutions, you could claim a deduction, but however, not all donations are eligible for deduction. This deduction can only be claimed when the contribution is made via a cheque, draft, or cash (food, medicines, clothes, etc., are not deductible).