Paying taxes has been plaguing the minds of employees every year as they calculate their finances. If you fall in the category of people who pay a huge amount as tax, you have our sympathies. However, taking the time to find out what you can do about it can give endless number of answers on how you can evade tax.
Most people go to great lengths to avoid paying taxes which could be illegal, landing you in deeper trouble when found. So why take illegal measures when you can achieve the same through permitted means. With the current financial year coming to an end, we bring to you the top five ways in which to legally save taxes:
- If you have children who are yet minors, they can save the day for you. Any investment you make in the name of your minor children, albeit only for two of them, you can claim a deductible of Rs.1500 for each child. That gives you a benefit of up to Rs.3000 along with providing financial security for your kids.
- With home loans being common to every household, it wouldn’t be difficult for you to save up on taxes with the claim deduction you can enjoy of the principle amount as well as the interest paid under section 24.
- Education has always been a boon with no limitations to what you can learn. Age, too, is just a number where learning is concerned. This might as well be a good thing with the deduction under section 80E for an education loan. All the more reason for your children, your spouse, or even you, to pursue further education.
- Saving taxes through investments in avenues such as Public Provident Funds (PPFs), National Savings Certificate, Equity Linked Savings Schemes, five year fixed deposits (FDs) with post offices and banks, as well the tuition fees paid for a maximum of two children.
- Of all the options for legal tax saving, investing in a life insurance policy is the most carried out tax saving investment by people. Along with offering a security, it also provides tax benefits to a great extent. Aegon Life is one of the best providers of life insurance policies such as iTerm, iSpouse, or iMax to ensure security; it is also reliable with a high rate of claim settlements to support its assertions.
So make sure you choose the right way to save your taxes from now on.
Want to know your taxes? Access our easy to use tax calculator, and plan your finances.