You can legally reduce your taxable income with these common tax-saving deductions
Let’s be honest, if given a choice, none of us would like to pay tax on the income we earn. But we have to and we should, because income tax return is an important source of revenue for the government. This revenue is used by the government to build the nation.
India is a developing nation and very few Indians earn an income that can be taxed. This is why if you’re one of those who earn a taxable income, you should proudly and honestly pay income tax.
But having said that, there are certain ways by which you can legally reduce your taxable income that you should make use of.
The government allows for certain tax-saving deductions that you can use to lower your taxable income. You can effectively use these deductions to pay less tax. The following table lists common tax-saving deductions and their limits. → Income Tax Filing ←
All of these deductions are popularly known as Section 80 deductions. A taxpayer can claim the deductions that are applicable to him or her.
Apart from these, there are some other uncommon deductions also available to taxpayers. These include deductions for donations made to political parties, treatment for taxpayer suffering from physical disabilities, donations made towards social causes, etc.
These deductions have to be claimed at the time of efiling of income tax returns. The taxpayer is not required to attach or submit the documents related to the claimed deductions with their tax returns, but the documentation should be kept handy in case it is required by the tax department at a later date...... Read Full Article
India is a developing nation and very few Indians earn an income that can be taxed. This is why if you’re one of those who earn a taxable income, you should proudly and honestly pay income tax.
But having said that, there are certain ways by which you can legally reduce your taxable income that you should make use of.
The government allows for certain tax-saving deductions that you can use to lower your taxable income. You can effectively use these deductions to pay less tax. The following table lists common tax-saving deductions and their limits. → Income Tax Filing ←
All of these deductions are popularly known as Section 80 deductions. A taxpayer can claim the deductions that are applicable to him or her.
Apart from these, there are some other uncommon deductions also available to taxpayers. These include deductions for donations made to political parties, treatment for taxpayer suffering from physical disabilities, donations made towards social causes, etc.
These deductions have to be claimed at the time of efiling of income tax returns. The taxpayer is not required to attach or submit the documents related to the claimed deductions with their tax returns, but the documentation should be kept handy in case it is required by the tax department at a later date...... Read Full Article
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