Tax Planning
India is a high tax country, and paying tax is a social responsibility. It is difficult when we have to pay heavy tax for our hard-earned money. So each year, for tax eligible income, taxpayers make it a point to lower the tax by any means. However, being compliant with the income tax law, tax can be reduced. For that, you need a talented, trustworthy, and experienced accountant who can start with the financial planning exercise for you. We, at Multi Wealth, help all who are seeking guidance for tax planning to save their earned money.
Under the income tax act, many tax deduction sections are present. Here is how you can make the best use of them to lower your tax.
- Deductions under Section 80C: This section contains two options: Investment Oriented and Non -Investment Oriented options. In aggregate, an exemption of up to Rs 1 lakh on different investments can be achieved. It comprise the following:
- Premium paid on life insurance policies
- Payment for deferred annuities
- Contributions to provident funds
- Contributions to super annuation funds
- Contributions to Unit Linked Insurance Plans
- Subscription to notified security
- Subscription to NSC
- Payments towards annuity plans of LIC or other insurers
- Subscription to notified mutual funds or UTI
- Subscription to Home Loan Account Scheme of National Housing Bank
- Investment in companies engaged in providing infrastructure facilities
- Term deposits (5 Years)
- Senior Citizens’ Saving Scheme.
Non -Investment Oriented options comprise the following:
- Payments for acquisition of a residential house
- Tuition fees paid for education of children
Other sections for tax deduction are: Section 80C, Section 80 D – Medical insurance, Sec 24 (b) – Interest component of home loan, Charity – Sec 80 G, Sec 80GGB and Sec 80GGC, Education – Sec 80 E, and Capital Gain Tax etc. For a complete assistance on tax planning, contact us today!