If you will talk to your colleagues regarding ways to save tax they will let you know ways that they use. If you are not looking for opportunities to save tax, you are missing out from the race. There are more or less productive ways in which you have can save your hard earned money. Below reading points will make you aware of smart tax saving ways.
Leave Travel Allowance
You can use transaction receipts of travel that has been done by your spouse, children and parents. If your sibling is dependent on you then you can use their travel receipts as well. This comes under section 10(5).
Take Benefit Of HRA
If you are living in a rented apartment you can take this benefit. Just make sure that your rent agreement is updated and you have all receipts. This comes under section 10(13).
If you are not getting HRA benefits from your employer and you are living on rent, you can claim the deduction for rent amount under section 80(GG).
Gratuity Fund Amount
You should know that the money you receive as gratuity fund is tax free. But there is a limit of Rs 20 Lakh on it and above Rs 20 Lakh you will have to pay tax.
Save Tax On Food Coupons
Food coupons that your HR gives you every month can be used to save tax. The annual limit for food coupons to be non-taxable is Rs 26,400.
Also read:
Income Tax Department Can Cause You Trouble: Here’s How?
Company Leased Car
If lease rental of car is part of your package then you can take this benefit. The lease amount is non-taxable so next time look for this benefit.
Telephone And Internet Expense
You just have to submit your telephone or broadband bill and you can get tax benefits on it.
Save Tax On Voluntary Retirement Scheme Amount
A lot of people opt for Voluntary Retirement Scheme and take a sum of amount. That amount is not taxable up to limit of Rs 5 lakhs.
Public Provident Fund
Public Provident Fund Statement under section 80C can help you take tax benefits. Tax benefit is provided against gross total income.
National Pension Scheme
NPS Statement under section 80C and 80CCD (2) can save you tax against gross total income.
Save Tax Tuition Fee Of Children
Under section 80C you can save tax on tuition fees paid by you for your children. You need to keep receipts for availing benefit.
