Tax savings & some of the best ideas to create your plan

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Tax savings some of the best ideas to create
your plan
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• An annual income earned by an individual is
  subject to tax as per the Income Tax laws of the
  country. In India, the income tax rates are
  different for an individual based on his or her
  age and annual income levels. There are many ways
  by which one can save on income tax by investing
  wisely in various mutual funds, bonds,
  securities, policies etc.
• Life insurance are one of the best tax savings
  plan to avail maximum benefits by saving your
  hard earned money from being deduced in
  government taxation.

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• To extract maximum tax benefits, people have to
  invest in different insurance plans, i.e., Life
  Insurance, Pension and Health. Premiums paid
  towards these insurance plans reduce your taxable
  income which will eventually help you save money.
  Besides, investment in polices also help you get
  tax benefits on the maturity amount or returns
  from insurance plans.
• As the financial year end comes nearby we all
  rush to file income tax returns. However, it
  would be wise if we check some of the best tax
  savings plan options that can help us earn more
  money.

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• Life Insurance
• Premiums paid for all life insurance policies
  are exempt from tax up to a maximum of Rs 1.5
  lakh under Section 80C of the Income Tax Act,
  1961. Also, the claim amount received by the
  beneficiaries or bonus in the hands of the
  policyholder is tax free under Section 10 (10D)
  of the Income Tax Act.
• Market linked- insurance policies that provide
  the combined benefits of insurance and investment
  help you save taxes uptoRs 1.5 lakh for premiums
  paid towards these plans.
• For retirement plans, Section 80CCC of the
  Income Tax Act provides an exemption of up to a
  maximum of Rs 1.5 lakh for premiums paid towards
  pension plans.
• For family health protection people often buy
  medical insurance policies which can be used for
  tax rebate during financial year end. One of the
  best tax saving plans, health policies provide
  double benefits as the premium paid on medical
  insurance policies upto Rs 25,000 for individuals
  upto 60 years and Rs 30,000 for those above 60
  years is available as a deduction under Section
  80D. At the same time even preventive checkup
  costs upto Rs 5,000 are covered.

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• PPF
• This tax saving plan is for the few people who
  want to get the tax deduction under Section 80C
  while investing and after that exemption on
  interest earned as well as the maturity amount.
  The limit of yearly investment is upto to Rs.1,
  50,000.
• ELSS
• ELSS is kind of mutual funds which can also help
  you build best tax savings plan as well to save
  your hard earned money. It is one of the most
  popular Section 80C investments wherein investors
  enjoy both the benefits of capital appreciation,
  as well as tax benefits upto 1.5 lakh.
• Some other tips to create your best tax savings
  plan
• When staying in your parents house pay rent and
  claim it under HRA to save tax
• By donating to charitable trust, you can avail
  tax deduction under Section 80G
• Expense incurred towards your kids tuition fee
  can be availed for tax benefits under Section
  80C. Also, there is section 80E under which you
  can claim deduction against the interest paid on
  education loan
• For stamp duty and registration expenses
  incurred in house property you can avail tax
  benefits under section 80C

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