No matter how much we earn, we all look for ways to save tax. And, as the income tax filing date nears, we try to dig into papers that can save our hard-earned money. Well, instead of stressing up yourself at the last minute, invest your money wisely in schemes that can avail you tax exemptions with ease.
Here is a list that can help you to save tax on your salary:
• House Rent – The Government of India allows exemption of tax for house rents under Section 80GG. House rent is an unavoidable expense that has to be borne by an employee, especially outstation employee, who relocates to different cities to fulfil the demands of their jobs. The eligibility of exemption depends upon certain criterions and the employee has to furnish rent receipts during income tax filing.
• Children Education Allowance – This allowance qualifies a salaried person to avail tax benefits for expenditure pertaining to school fees, hostel fees and similar education-related expenses of their children. This benefit can be availed for up to two children only.
• Housing Loan – A home loan comes with a specific interest rate. Hence, if a salaried person has taken a home loan then he can furnish the required papers to get a tax exemption on the interest amount.
• Donations: Contributing donations to a registered NGO or a charitable trust can exempt you from paying taxes on the donated amount under Section 80G. The donor can either claim for 100% or 50% exemption on the donated amount based upon the receiver and the criterions set by the Income Tax Act.
• Medical Insurance – Under Section 80D, one can claim for exemption on the medical insurance policy. It is applicable to the policyholder and the dependent members too. It is a good opportunity to save tax while remaining secured for any kind of health emergency.
As it is evident that making an investment is a good way to save tax, and, even better if this can bring about a positive change in the society. Offering charity to a not-for-profit can create a win-win situation for the donor and the society. One such NGO is The Akshaya Patra Foundation that provides school lunch to more than 1.6 million government school children on every school day. The Foundation operates its kitchens in 34 locations in 12 states of India. It strives to provide unlimited food for education so that ‘No child in India is deprived of education because of hunger.’ While sustaining its service for the current beneficiaries, the Foundation aims to expand its reach to more locations so that more children can be nourished from its Mid-Day Meal Programme. Akshaya Patra is a recognised charitable trust eligible to offer tax exemptions to its donors as per Section 80G of the Income Tax Act. The Foundation directs all the funds towards providing wholesome meals to children so that they grow up to be healthy, educated, and responsible assets for the country. Thus, by choosing to contribute online donations for NGO, you are not only saving tax on your income but also securing the lives of young children.
So, take a stand and support the cause that will provide for the less-privileged, foster hope, and constructively enrich our society.
Disclaimer: Each of the above-mentioned tax exemption plans has its own terms and conditions. Hence, it is advised to understand the respective tax exemption clauses prior to making an investment or a claim.
Here is a list that can help you to save tax on your salary:
• House Rent – The Government of India allows exemption of tax for house rents under Section 80GG. House rent is an unavoidable expense that has to be borne by an employee, especially outstation employee, who relocates to different cities to fulfil the demands of their jobs. The eligibility of exemption depends upon certain criterions and the employee has to furnish rent receipts during income tax filing.
• Children Education Allowance – This allowance qualifies a salaried person to avail tax benefits for expenditure pertaining to school fees, hostel fees and similar education-related expenses of their children. This benefit can be availed for up to two children only.
• Housing Loan – A home loan comes with a specific interest rate. Hence, if a salaried person has taken a home loan then he can furnish the required papers to get a tax exemption on the interest amount.
• Donations: Contributing donations to a registered NGO or a charitable trust can exempt you from paying taxes on the donated amount under Section 80G. The donor can either claim for 100% or 50% exemption on the donated amount based upon the receiver and the criterions set by the Income Tax Act.
• Medical Insurance – Under Section 80D, one can claim for exemption on the medical insurance policy. It is applicable to the policyholder and the dependent members too. It is a good opportunity to save tax while remaining secured for any kind of health emergency.
As it is evident that making an investment is a good way to save tax, and, even better if this can bring about a positive change in the society. Offering charity to a not-for-profit can create a win-win situation for the donor and the society. One such NGO is The Akshaya Patra Foundation that provides school lunch to more than 1.6 million government school children on every school day. The Foundation operates its kitchens in 34 locations in 12 states of India. It strives to provide unlimited food for education so that ‘No child in India is deprived of education because of hunger.’ While sustaining its service for the current beneficiaries, the Foundation aims to expand its reach to more locations so that more children can be nourished from its Mid-Day Meal Programme. Akshaya Patra is a recognised charitable trust eligible to offer tax exemptions to its donors as per Section 80G of the Income Tax Act. The Foundation directs all the funds towards providing wholesome meals to children so that they grow up to be healthy, educated, and responsible assets for the country. Thus, by choosing to contribute online donations for NGO, you are not only saving tax on your income but also securing the lives of young children.
So, take a stand and support the cause that will provide for the less-privileged, foster hope, and constructively enrich our society.
Disclaimer: Each of the above-mentioned tax exemption plans has its own terms and conditions. Hence, it is advised to understand the respective tax exemption clauses prior to making an investment or a claim.
No comments:
Post a Comment