We Indians have a habit of saving every penny we have, or at least we try to do that. Many plan to avoid taxes and save thousands of rupees but it takes a wrong turn if done illegally. If you are adamant to save money and want to know how to avoid tax legally in India then I can suggest some ways. You can read through them and make wise investment choices to avoid tax in India.
How to avoid income tax in India?There are various sections in the Income Tax Act which allow you to save taxes legally. These sections are Section 80C, Section 80D and Section 80EE.
In section 80C, you can make an investment of up to Rs. 1.5 lakhs. If you invest in National Pension Scheme then you can claim an additional deduction of Rs. 50000. Some investment options in this section include 5 year bank FD, PPF, National savings certificate, NPS, ELSS Funds, ULIP, SSY, and SCSS.
In Section 80D, you can get deduction for buying medical insurance of up to Rs. 100000 (Rs 50,000 for self and family if senior citizen and Rs 50,000 for senior citizen parents)
In section 80EE, you can claim deduction of up to Rs. 50,000 on home loan interest
Apart from the options mentioned above there are some other ways on
how to avoid tax legally in India. Check these out:
If you have investments in the name of your children or minor then you can claim deduction of up to Rs. 1500 per child for two children
You can invest the money in stocks and equity mutual funds and hold on to them for more than 12 months.
These are a few ways I know of how to avoid tax legally in India. You can always contact a tax expert or CA to get more information.
Good luck :)
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Authors Of The Question
How to avoid tax legally in India?
Jayanti
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3 Year
2021-09-08T14:49:42+00:00 2021-09-09T12:56:11+00:00Comment
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