Tax Saving You Save, You Earn ... Taxation Tax Saving Tax Slab Tax Calculator Tax saving is a complicated subject for most people, as they do not clearly understand that there are more layers to tax-saving than only the exemptions available on your investments. With the right knowledge, not only you will pay the correct tax on your investments, but also know how to tax proof the income and actually create an asset out of your tax saving. First of all, consider your capital as a liquid asset that does a better job with continuous investments, rather than being stagnant in the bank. Tax saving is a thoroughly discussed subject in the Indian constitution as well, where the tax savings investments are protected under Section 80C. There are various other schemes and allowances mentioned, like: HRA, Home Loans, LTA, Section 80D, Reimbursements, National Pension Scheme (NPS) Interest on education loan (Section 80E) Rajiv Gandhi Equity Savings Scheme (Section 80CG) House rent allowance (Section 80GG) Medical treatment under Sec 80DDB. SukanyaSamariddhi account Children ’ s tuition fees Additionally, some of the signi fi cant tax saving schemes and policies are discussed below in details: Health Insurance (Section 80D) A certain amount of money paid as a health insurance premium is not tax-deductible. Paid on an annual basis, this premium can save you some more taxes if you are a senior citizen. Expenses to treat the disabled As a part of Section 80DD, if you can furnish a certi fi cate of disability, then you are eligible for a deduction of Rs. 75000 for 40-80% disability and Rs. 125000 for more than 80% disability. These expenses should solely be for training, rehabilitation, or treating a disease. Expenses for treating specific diseases As a part of Section 80DDB, tax deductions of up to Rs. 40000 are applicable for the treatment of diseases like AIDS, Cancer, and Dementia. For senior citizens, this deduction increases to Rs. 1 lakh. Income through NRE account interest CLIENT LOGIN Home About Us Services MF Tools Research Blog Contact Us Non-resident Indians have their NRE accounts in India. For the amount in the savings accounts or fi xed deposits, they earn interest, and this interest is non-taxable, also called tax-free income. Wedding gifts Under Section 56(2), all wedding gifts are non-taxable, no matter the size of the gift, received as cash, cheque, or kind. HUF and additional income If you have multiple income sources, you can open a separate HUF account for the secondary income and invest it under Section 80C to avail tax bene fi ts on this income, apart from your primary salary. Reducing taxable income To reduce your taxable income, here are some important tips to follow. You can reduce your tax liability signi fi cantly by understanding the terms of every single expenditure and investment that you make. Never wait until the last minute to calculate your taxes. Start this practice right from April and use your monthly investments to reduce the risk. Never invest where you have to pay too much taxes on the returns. Always go for the tax-e ffi cient investment avenues. Axe the Tax & Make Wealth Max Sign Up A company with high customer satisfaction rate since mid 2011, Imperial Money had engaged in providing comprehensive Financial distribution services to individuals. We help you to make smart investment choices with your money to get optimum returns. Quick Links Client Login MF Tools Downloads Blog Market Updates Financial Calculators Our Services Tax Savings Mutual Funds Insurance Equity Investment Get In Touch 302, Royal Vista, Opp. Dhantoli Garden Main Gate, Dhantoli, Nagpur - 440012 (+91) 9595 8899 88 (0712) 2454477 wecare@imperial fi n.com Imperial Money Pvt. Ltd. makes no warranties or representations, express or implied, on products o ff ered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Unless otherwise speci fi ed, all returns, expense ratio, NAV, etc are historical and for illustrative purposes only. Future will vary greatly and depends on personal and market circumstances. The information provided by our blog is educational only and is not investment or tax advice. Mutual fund investments are subject to market risks. Please read all scheme related documents carefully before investing. Past performance of the schemes is neither an indicator nor a guarantee of future performance. Terms and conditions of the website/app are applicable. Privacy policy of the website is applicable. Copyright 2021 IMPERIAL MONEY Disclaimer | Disclosure | Privacy Policy | T & C.