Paying taxes is an essential responsibility of every citizen, as it contributes to the development of our economy and society. However, the tax burden can sometimes feel overwhelming, particularly if you pay more than you need to. Fortunately, there are legal ways to reduce your tax burden and save money on your income tax bill.
Understanding the different tax-saving options available and navigating complex tax laws can be challenging for many individuals. With the right guidance and knowledge, anyone can become more tax-savvy and make informed decisions about their taxes.
Our goal is to equip you with the tools and knowledge necessary to save money on your taxes and plan your finances better. Whether you’re a salaried employee, self-employed individual, or business owner, our guide will help you identify the most effective tax-saving options for your unique situation.
Before jumping into the main topic, it’s important to have an understanding of Section 80C of the Income Tax Act.
Section 80C of the Income tax act
Section 80C is a crucial provision of the Income Tax Act that offers taxpayers several options for legally reducing their tax liability. Under this section, individuals and HUFs can claim deductions of up to Rs. 1.5 lakh on their taxable income by investing in various specified schemes and instruments.
Some of the popular investment options are following
- Public Provident Fund (PPF)
- Equity-linked saving Scheme (ELSS)
- National security certificate (NSC)
- Tax saving Fixed Deposit
- Unit-linked insurance plan (ULIP)
- Senior Citizen Saving Scheme
- Sukanya Samriddi Yojna
- Home loan principal repayment
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