Here are some popular tax-saving avenues for how to save tax for salary 10 lakhs annually:
Contribution to the Employee Provident Fund (EPF) through your employer qualifies for deduction under Section 80C of the Income Tax Act. The contribution limit is up to 12% of your salary.
Investment in PPF accounts is eligible for deduction under Section 80C. You can contribute up to ₹1.5 lakhs annually in your PPF account.
ELSS mutual funds offer the dual benefit of potential returns from equity investments and tax savings under Section 80C. Investments in ELSS up to ₹1.5 lakhs are eligible for deduction.
Investment in NPS qualifies for deduction under Section 80CCD(1) up to ₹1.5 lakhs, and an additional deduction of up to ₹50,000 is available under Section 80CCD(1B). Hence, you can claim a total deduction of up to ₹2 lakhs by investing in NPS.
Premium paid towards life insurance policies for self, spouse, or children is eligible for deduction under Section 80C.
Premium paid towards health insurance policies for self, family, and parents is eligible for deduction under Section 80D.
Repayment of the principal amount of a home loan is eligible for deduction under Section 80C. Additionally, interest paid on a home loan is eligible for deduction under Section 24(b) up to ₹2 lakhs for a self-occupied property.
Interest paid on education loans for higher studies qualifies for deduction under Section 80E.
Donations made to eligible charitable institutions qualify for deduction under Section 80G.
Five-year tax-saving fixed deposits in banks are eligible for deduction under Section 80C. This is how to save tax on salary income of 10 lakh annually.
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How To Save Tax on Salary: Tips and Tricks?
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How to Save Tax for Salary 10 Lakhs?
Shami
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3 months
2024-05-26T18:11:03+00:00 2024-05-30T23:39:44+00:00Comment
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