{"id":24363,"date":"2022-01-17T12:59:38","date_gmt":"2022-01-17T12:59:38","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=24363"},"modified":"2022-01-17T13:00:24","modified_gmt":"2022-01-17T13:00:24","slug":"5-income-tax-saving-tips-that-also-help-financial-fitness","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/wealth-services\/5-income-tax-saving-tips-that-also-help-financial-fitness\/","title":{"rendered":"5 income tax-saving tips that also help financial fitness"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Tweeting about tax payment in the country, the Central Board of Direct Taxes (CBDT) stated that while 5.78 crore tax returns were filed, only 1.46 crores paid income tax for the financial year 2018-19 since their incomes were higher. However, how many of the taxpayers planned their taxes in advance?<\/p>\n\n\n\n

While the Income Tax Act stipulates that you are required to pay a tax on your income, it also provides various tax-saving options. If you use these options, you can not only reduce your tax liability, you can build up your financial fitness too.<\/p>\n\n\n\n

Here are 5 tips how \u2013<\/p>\n\n\n\n

1. Maximise 80C savings<\/strong><\/h2>\n\n\n\n

Section 80C is the holy grail of tax planning. It allows a deduction of up to Rs.1.5 lakhs from your taxable income. You can claim this deduction by investing in eligible avenues like life insurance, ELSS schemes, PPF, EPF, National Saving Certificate, Sukanya Samriddhi Yojana, SCSS, etc.<\/p>\n\n\n\n

You can also enhance your insurance coverage and avail 80C benefit. You can opt for a term insurance coverage or a traditional endowment plan for the same.<\/p>\n\n\n\n

Moreover, expenses incurred on tuition fee of children, home loan repayments, property registration and stamp duty are also allowed as a deduction. So, make sure you claim all the eligible expenses and investments allowed under the section and claim a deduction of Rs.1.5 lakhs from your taxable income. <\/p>\n\n\n\n

Additional Read<\/strong> – 5 Ways to Minimize your Taxes and Maximize Investments<\/a><\/p>\n\n\n\n

2. Invest in a health insurance plan<\/strong><\/h2>\n\n\n\n

A health insurance plan has become a must in today\u2019s age when medical costs are soaring. As per a Max Bupa survey, while only 10% of the participants believed in the need of health insurance pre-COVID, the number jumped to 71% post-COVID. A health insurance plan takes care of your medical costs and can also help you save taxes. The premium paid for the policy is allowed as a deduction from your taxable income under Section 80D.<\/p>\n\n\n\n

  1. You can claim a deduction of up to Rs.25,000 if you are below 60 or Rs.50,000 if you are 60 and above.<\/li>
  2. Moreover, if you invest in a plan for your parents, you can claim an additional deduction of Rs.25,000 if your parents are aged below 60 or Rs.50,000 if they are senior citizens.<\/li><\/ol>\n\n\n\n

    So, with a health plan, you can claim a deduction of up to Rs.1 lakh and save up to Rs.30,000 in taxes (if you fall in the 30% bracket).<\/p>\n\n\n\n

    3. Buy your own home<\/strong><\/h2>\n\n\n\n

    As per a Home Credit survey, 67% of Indians are open to a home loan. The loan not only helps you finance your dream home, but it also gives the following tax benefits \u2013<\/p>\n\n\n\n