Additionally, income tax is due on income. However, there are some ways to avoid paying this tax. Certain investment kinds are eligible for tax deductions under the Income Tax Act. such as a donation to a charitable organization, a life insurance premium, etc. People are encouraged to invest and save thanks to these deductions, which may help the economy thrive. In order to help you in this circumstance, we are going to provide you with information on how to reduce your income tax liability.

Income Tax reduction

Here are some simple suggestions for reducing your tax bill. People should be aware that the information is provided for educational purposes only and should not be regarded as advice from professionals. Before making any financial decisions, you should get personalized guidance from a specialist.

You can avoid their taxes.

Equity-Linked Savings Schemes (ELSS), Public Provident Funds (PPF), and National Savings Certificates (NSC) are examples of investments that might reduce taxes. Taxes can be avoided by investing in these instruments.

Claim Deductions

You are able to write off a variety of costs, including those related to your health and education. Keep all the appropriate bills and receipts so that you can claim the deduction.

Utilise Section 80C

You are permitted to deduct up to Rs 1.5 lakh in expenses under Section 80C of the Income Tax Act. The use of tax-saving tools like PPF, NSC, and ELSS is possible here.

Use Section 80D

Section 80D allows you to deduct the cost of health insurance for you, your spouse, and any dependent children.

Use Section 80TTA

Section 80TTA allows you to deduct up to Rs 10,000 from the interest you earn on savings accounts.

Keep an eye on your investments

After keeping an eye on all of your investments, be sure to claim the deduction.

File your Income tax return on time

to avoid fines and to guarantee that you don’t lose out on any opportunities to reduce your tax liability.

Income Tax payers should be aware that

the deductions they can claim are only valid under the tax regime (old or new tax regime) they selected when filing their income tax returns. Before making any decisions, you should also seek advice from an experienced tax professional to be sure you are taking full advantage of your possibilities.

Read more: Big update for accountholders by RBI, you must know

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