Best Tax Saving Investments Option in India

Smita is an employee at a bank. She was looking into different avenues to save tax as the financial year came to a close. She meticulously analyzed the different tax saving instruments and found out some instruments reduced her tax outgo and gave her additional income. Smita knew that investing in tax saving instruments, could help her reduce her taxable income, but what she did not consider was the taxability of the income earned from them. If you’re wondering how to save income tax, there are a whole range of…

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How to save Income tax on Salary in India

How to save Income tax on Salary in India As tax season approaches, Kartik was looking at his tax burden and figuring out ways to save tax. He had exhausted the limit under Section 80C (investment in tax saving instruments), Section 80D (investment in health insurance), and taken the benefit of sections like 80G (donations) and 80TTA (deduction for savings account interest). However, his total tax payable was still quite high. He compared his tax burden with a colleague with a similar salary and was surprised to find his burden significantly…

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Long Term Capital Gain Tax on Shares

Abhay is a married man looking to build a corpus for his life goals, mainly his retirement and his children’s education. He wants to invest in the stock market, mainly because it gives excellent returns over the long run. However, with the change in the tax laws on capital gains, he is confused about the tax impact. Abhay is not the only one. Many investors stay out of the stock market because they’re not sure about taxation rules. However, the rules are simple and easy to follow. Gains on the…

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HOW TO STRUCTURE YOUR SALARY TO MINIMIZE YOUR TAX BURDEN

As tax season approaches, Kartik was looking at his tax burden and figuring out ways to save tax. He had exhausted the limit under Section 80C (investment in tax saving instruments), Section 80D (investment in health insurance), and taken the benefit of sections like 80G (donations) and 80TTA (deduction for savings account interest). However, his total tax payable was still quite high. He compared his tax burden with a colleague with a similar salary and was surprised to find his burden significantly lower. His colleague assured him it was only…

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TAX BENEFITS OF HEALTH INSURANCE POLICY

Aarti was looking at different ways to save tax as tax season approached. At a seminar that her company conducted, she learned that she could get a tax benefit for investing in a health insurance policy for herself and her family. Like many others, she only know about Section 80C for investment-linked deductions. In fact, there are several other sections which Aarti can use to save tax and benefit her family. A health insurance policy is one of the most important tools in a person’s life arsenal. With the cost…

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Long Term Capital Gain Tax on Shares

Abhay is a married man looking to build a corpus for his life goals, mainly his retirement and his children’s education. He wants to invest in the stock market, mainly because it gives excellent returns over the long run. However, with the change in the tax laws on capital gains, he is confused about the tax impact. Abhay is not the only one. Many investors stay out of the stock market because they’re not sure about taxation rules. However, the rules are simple and easy to follow. Gains on the…

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Tax benefits from Health Insurance

Aarti was looking at different ways to save tax as tax season approached. At a seminar that her company conducted, she learned that she could get a tax benefit for investing in a health insurance policy for herself and her family. Like many others, she only know about Section 80C for investment-linked deductions. In fact, there are several other sections which Aarti can use to save tax and benefit her family. A health insurance policy is one of the most important tools in a person’s life arsenal. With the cost…

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HOW TO SAVE TAX ON YOUR CHILD’S EDUCATION

Chetan has a two-year-old daughter and it’s his dream to provide her high-quality education right from preschool till post-graduation. Both he and his wife work and are actively looking ways to ensure that they have enough saved up and invested for their daughter’s education. The rising cost of a good education is worrisome, and they have to make sure they build an adequate corpus that fully meets all education expenses. Chetan is not alone. Every parent wishes to give her child a good quality education. Education is one of the…

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ELSS vs SIP

Vidhi was looking to make some investments in the stock market to diversify her portfolio and also save tax. Since she had no experience in picking the right stocks, she considered mutual funds, and had heard that equity-linked savings schemes (ELSS) offered tax benefits. However, she didn’t realize that there were two ways of investing in an ELSS fund, and got conflicting advice from financial advisors. One recommended that she invest a lump sum amount while the other said she should start a systematic investment plan (SIP) and invest small…

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How to Save Capital Gain Tax in India

Rajiv sold off a significant portion of his equity shares to fund his son’s wedding. As tax returns season approaches, Rajiv is looking out for ways to reduce his long-term capital gains tax liability. He did not suffer any long-term or short-term capital losses that he can set off against the long-term capital gain, which means he has to look for other avenues to save tax. But how can he do that? Like Rajiv, there are many others preoccupied with methods of saving tax in the last three months of…

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