Wednesday, May 25, 2022

How to maximise my income tax savings?

I earn round 10 lakh each year. I’m 26 yr previous and am paying LIC premium of 28,000 each year. I’m additionally contributing 50,000 in the direction of my PPF account. I nonetheless should pay tax. Might you please recommend some tax saving choices. I need to maximise my tax financial savings.

-Haresh Jain

By Balwant Jain, tax and funding skilled

It appears you aren’t absolutely exhausting the restrict of 1.50 lakh underneath Part 80C. I’d recommend you to begin an SIP of 6,000 per 30 days in the direction of Axis Lengthy Time period Fairness Fund, an ELSS scheme , for claiming tax advantages. For shortfall within the present yr, you’ll be able to make investments the shortfall quantity in three month-to-month installments ranging from present month within the scheme prompt above.

For saving additional tax you’ll be able to think about placing as much as 50,000 yearly in an NPS account to assert an unique deduction underneath Part 80 CCD(1B). This may take your deduction to 2 lakh. It appears you shouldn’t have any medical insurance which in my view is a should even when your employer supplies you one. To your personal medical insurance you’ll be able to pay and declare premium as much as 25,000 for purchasing medical insurance in a yr. You can too pay the medical insurance premium of your mother and father and declare deduction as much as 25,000. In case your mother and father are senior citizen the deduction obtainable is 50,000. In case your mother and father shouldn’t have medical insurance coverage or aren’t in a position to get one, you’ll be able to declare deduction as much as 50,000 for his or her common medicine bills together with bills incurred for normal examine up, day at this time medicine and hospitalization underneath Part 80D. Inside each the boundaries for your loved ones and your mother and father, you’ll be able to individually declare as much as 5,000 spent on preventive well being examine up yearly.

You can too save tax in case you borrow cash to purchase or assemble a home however shopping for a home only for saving tax is just not advisable except you actually need to purchase one.

(Views as expressed by the skilled.)

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